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Submitted in partial fulfilment of the course requirements of
Masters in Business Administration
Dated: August 31, 2008
Submitted by -
Dinu Mudukad (CPG 07 BM 029)Amrita School of Business
Amrtia Vishwa Vidyapeetham
Coimbatore- 641105
Under the guidance of:
External Guide: Faculty Guide:
Mr. Nishkam Bhasin Shri. Easwar Krishna Iyer
Branch Manager Professor, Marketing
LG Electronics India Pvt. Ltd Amrita School of Business
Mumbai Branch Office Ettimadai, Coimbatore
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DECLARATION
I, Dinu Mudukad, second year MBA student of Amrita School Of Business, hereby
declare that the project titled Why LG is not the market leader in the GSM
mobile segment in the Mumbai region, has been done by me under the guidance of
Prof. Easwar Krishna Iyer, Asst. Professor Marketing, Amrita Vishwa
Vidyapeetham, Mr.Nishkam Bhasin, Branch Manager at LG Electronics India Pvt.
Ltd, Mumbai and Mr. Samir Sheik, Area Manager - GSM, LG Electronics India Pvt.
Ltd, Mumbai during the period May-June 2008.
I also declare that this project has not been submitted by me, fully or partially, for the
award of any other degree, diploma, title or recognition elsewhere.
Date: August 31, 2008 Dinu Mudukad,
Amrita School of Business
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ACKNOWLEDGEMENT
I have great pleasure in thanking LG Electronics India Pvt. Ltd for having given me
this opportunity to do my Summer Project with them.
I would like to thank my Project Guide in the Company, Mr. Nishkam Bhasin and
Mr. Samir sheik, for their invaluable assistance and support.
I also take great pleasure to thank my project guide in college, Prof. Easwar
Krishna Iyer for his guidance throughout the project.
I would like to thank all the employees and customers of LG, who helped me
complete my project successfully.
Finally, I would like to extend my esteem gratitude to my family for the constant
support and encouragement. I would also like to thank the Almighty without whose
grace; this endeavour of mine would not have been possible.
Dinu Mudukad
Amrita School of Business
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EXECUTIVE SUMMARY
India is the fastest growing mobile phone market in the world, adding around 6million subscribers every month. The total mobile phone user population in the
country is around 250 million. It is again expected to grow and reach 500 million by
2010. One of the major reasons for this particular phenomenon is that the disposable
incomes of the people are increasing. In this 250 million more than 50% are GSM
users. The size of the Indian mobile handset market was found to be Rs 8,805 crores.
India is currently the third largest mobile phone market in the world.
LG Electronics India Pvt. Ltd is the market leader in consumer durables industry and
is recognised as a leading technology innovator in the information technology and
mobile communications business. It is a wholly owned subsidiary of LG Electronics,
South Korea, and was established in India in January, 1997. It has an impressive
portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT
products. It is the fifth largest mobile handset manufacturer in the world and it also
retains the same position in India. In India, LG is the market leader in the case of
CDMA phones with a market share of more than 59%.
The Mumbai market scenario is not favouring LG GSM mobiles. Company stands last
when we consider major players like Nokia, Sony Ericsson, Samsung, Motorola etc.
LG GSM mobile segment has a current market share of 2% in Mumbai region. LG
wants to achieve the feat of being the top seller by bringing in better priced models
which are also better phones and also by improving the support from the retailers by
providing better schemes. LG wanted to know the reasons for why LG is not the
market leader in Mumbai market
The objective was to find out why LG is not the market leader in Mumbai region. The
entire project was divided into two objectives. First one was to find out the consumer
perception and the second one was finding out the retailers perception. The
effectiveness of promotional activities of the company was also checked
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The research design that followed started with an Exploratory Research, during this
period, interviews and discussions were conducted both with the company officials
and also the major mobile phone retailers. Mystery shopping was also instrumented.
Interactions with LG distributors and competitors distributors were also arranged. In
the consumers side depth interviews were conducted. This process helped to
understand and study the current scenario. From the study questionnaire was framed
for retailers and consumers. The survey was conducted across Mumbai, with a
retailers sample size of 100 and consumers with 200.
At the end of the study, a few of the conclusions and recommendations that were
arrived at following study have been mentioned below:
Retailers are not satisfied about the current scheme; company should introduce
new schemes which benefit the retailers. From the survey it is found that 65%
of retailers wanted more benefits and also satisfaction level of current scheme
is also very low
Company should increase shop promotional activities. In the 100 retail outlets
surveyed LGs presence was only in 18 retail outlets and market leader was
present in all the retail outlet surveyed
Company should improve the technical parameters of the handsets like the
ease of use, battery backup, signal strength etc. In the consumers survey, it is
found that the 157 consumers gave the above reasons for not preferring LG
GSM mobile phones and it is also found that the 43 consumers who has used
LG mobile phone gave very poor ratings for the above parameters
Company should give consumers more choice of products in the range of Rs
8000-12000 price tags. It is found that average budget of a consumer in
Mumbai comes in this range.
Company should improve the advertisement campaign to consumers because
in the survey it is found that consumers are less aware of LG mobiles and in
consumers surveyed only 30.5% has seen LGs ads. Those who have seen the
ad showed a poor recall.
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List of figures ................................................................................................................. 7List of tables ................................................................................................................... 9CHAPTER 1: INTRODUCTION TO THE PROJECT ............................................... 12
1.1 OBJECTIVE AND SCOPE OF THE PROJECT .............................................. 131.2 METHODOLOGY ............................................................................................ 131.3 LIMITATIONS .................................................................................................. 14
CHAPTER 2: INDUSTRY OVERVIEW .................................................................... 142.1 INDIAN SCENARIO ........................................................................................ 15
CHAPTER 3: COMPANY OVERVIEW - LG ELECTRONICS ............................... 173.1 Vision: Global Top 3 by 2010 ........................................................................... 173.2 Growth Strategy ................................................................................................. 183.3 Core Capabilities ................................................................................................ 183.4 The LG Brand .................................................................................................... 18
3.5 Positioning Statement ........................................................................................ 183.6 Slogan ................................................................................................................ 193.7 LG Electronics in Indian Mobile Market ........................................................... 20
CHAPTER 4: RESEARCH DESIGN .......................................................................... 214.1 Management Decision problem ......................................................................... 214.2 Marketing Research problem ............................................................................. 214.3 PROJECT FLOW .............................................................................................. 22
CHAPTER 5: OBJECTIVE 1 ...................................................................................... 235.1 APPROACH TO THE PROBLEM: - ................................................................ 235.2 METHODOLOGY ............................................................................................ 245.3 RESEARCH DESIGN ....................................................................................... 24
5.4 DATA ANALYSIS ............................................................................................ 255.4.1 QUESTIONNAIRE DESIGN ..................................................................... 255.4.2 SAMPLING PLAN ..................................................................................... 255.4.3 DATA COLLECTION AND CLEANING ................................................ 255.4.4 EXPLORATORY RESEARCH ................................................................. 265.4.5. SECONDARY RESEARCH ..................................................................... 285.4.6. COMPETITORS ........................................................................................ 315.4.7 New Offers from LG ................................................................................... 34
CHAPTER 6: OBJECTIVE 2 ...................................................................................... 356.1 APPROACH TO THE PROBLEM: .................................................................. 356.2 METHODOLOGY ............................................................................................ 36
6.3 RESEARCH DESIGN ....................................................................................... 366.4 DATA ANALYSIS ............................................................................................ 37
6.4.1 QUESTIONNAIRE DESIGN ..................................................................... 376.4.2 SAMPLING PLAN ..................................................................................... 376.4.3 DATA COLLECTION and CLEANING ................................................... 376.4.4 EXPLORATORY RESEARCH ................................................................. 386.4.5 SECONDARY RESEARCH ...................................................................... 39
CHAPTER 7: DATA ANALYSIS AND FINDINGS ................................................. 407.1. RETAILERS ..................................................................................................... 407.2 CONSUMERS ................................................................................................... 78
CHAPTER 8: RECOMMENDATIONS.................................................................... 113
8.1 RETAILERS .................................................................................................. 1138.2 CONSUMERS ................................................................................................. 114
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CHAPTER 9: REFERENCES ................................................................................... 116CHAPTER 10: APPENDIX ...................................................................................... 117
10.1 RETAIL QUESTIONNAIRE ........................................................................ 117 ...................................................................................................................... 117
10.2 CONSUMERS QUESTIONNAIRE .............................................................. 123
...................................................................................................................... 123
Figure 1. WORLD MARKET SHARE ...................................................................... 15Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS... 20Figure 3. PROJECT FLOW ......................................................................................... 22Figure 4. APPROACH TO OBJECTIVE 1 ................................................................. 23Figure 5. INDIAN GSM HANDSETS MARKET SHARE ....................................... 28Figure 6. NEW LAUNCHES IN MONTH OF MARCH08 ...................................... 29Figure 7. MUMBAI GSM HANDSET MARKET SHARE ....................................... 30
Figure 8. APPROACH TO OBJECTIVE 2 ................................................................. 35Figure 9. SEGMENT CONTRIBUTION TO ZONES ................................................ 39Figure 10. RATINGS OF NOKIA ............................................................................... 41Figure 11. RATINGS OF SONY ERICSSON ............................................................ 42Figure 12 RATINGS OF SAMSUNG ......................................................................... 42Figure 13. RATINGS OF MOTOROLA ..................................................................... 43Figure 14. RATINGS OF LG ...................................................................................... 44Figure 15. RATINGS OF FLY .................................................................................... 44Figure 16. PROMOTION OF NOKIA ....................................................................... 46Figure 17. TABLETOP OF NOKIA ........................................................................... 47Figure 18. WALL PAINTINGS OF NOKIA .............................................................. 47Figure 19. DISPLAYS OF NOKIAS NEW MODELS .............................................. 48Figure 20. NOKIA FLUX ............................................................................................ 48Figure 21. PROMOTION OF SONY ERICSSON ..................................................... 50Figure 22. TABLELTOPS OF SONY ERICSSON ..................................................... 51Figure 23. SONY ERICSSON WALL PAINTINGS .................................................. 51Figure 24. SONY ERICSSON FLUX ......................................................................... 52Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL ................................. 52Figure 26. PROMOTION OF SAMSUNG .................................................................. 54Figure 27.SAMSUNG TABLE TOPS ......................................................................... 55Figure 28. SAMSUNG WALL PAINTINGS .............................................................. 55Figure 29. SAMSUNG DISPLAYS OF NEW MODEL ............................................. 56Figure 30. SAMSUNG FLUX ..................................................................................... 56Figure 31. PROMOTION OF MOTOROLA.............................................................. 58Figure 32. MOTOROLA TABLETOPS ...................................................................... 58Figure 33. MOTOROLA WALL PAINTINGS ........................................................... 58Figure 34. MOTOROLA FLUX .................................................................................. 59Figure 35. PROMOTION OF FLY ............................................................................. 61Figure 36. FLY TABLETOP ....................................................................................... 61Figure 37. FLY FLUX ................................................................................................ 61Figure 38. FLY WALL PAINTINGS .......................................................................... 62Figure 39. FLY DISPLAYS OF NEW MODEL ......................................................... 62Figure 40. PROMOTION OF LG ............................................................................... 64Figure 41. TABLETOPS OF LG ................................................................................. 64
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Figure 42. LG WALL PAINTINGS ............................................................................ 64Figure 43. LG DISPLAYS OF NEW MODEL ........................................................... 65Figure 44. LG FLUX ................................................................................................... 65Figure 45. LIVE DEMO SUPPLY .............................................................................. 66Figure 46. LG SATISFACTION OF AWARENESS .................................................. 68Figure 47. MOTOROLA SATISFACTION OF AWARENESS ................................ 68Figure 48. NOKIA SATISFACTION OF AWARENESS .......................................... 69Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS ........................ 69Figure 50. SAMSUNG SATISFACTION OF AWARENESS................................... 70Figure 51. FLY SATISFACTION OF AWARENESS................................................ 70Figure 52. OFFLINE MODE ....................................................................................... 71Figure 53. PROBLEMATIC AREA - USERFRIENDLY .......................................... 72Figure 54. PROBLEMATIC AREA - OFFERS .......................................................... 73Figure 55. PROBLEMATIC AREA- PRODUCT RANGE ........................................ 74Figure 56. SATISFACTION LEVEL AFTER SALES SUPPORT.......................... 75Figure 57. SATISFACTION LEVEL OF ACCESSORIES AVAILABILITY ........... 76Figure 58. RETAILERS RECOMMENDATIONS ..................................................... 77Figure 59. BREAK UP- GENDER ............................................................................. 79Figure 60. BREAK UP - AGE ..................................................................................... 79Figure 61. BREAK UP OCCUPATION ...................................................................... 80Figure 62. BREAK UP ANNUAL INCOME .............................................................. 80Figure 63. HANDSET TYPE ...................................................................................... 81Figure 64 . AWARENESS OF LG .............................................................................. 81Figure 65. BUDGET .................................................................................................... 82Figure 66. FORM OF HANDSETS ............................................................................ 83Figure 67. DUAL SIM ................................................................................................. 84Figure 68. PHONE WITH BOTH GSM&CDMA ...................................................... 85Figure 69. ACCESSORY SPECIFIC .......................................................................... 86Figure 70. MEMORY OPTION .................................................................................. 90Figure 71. USER FRIENDLY ..................................................................................... 90Figure 72. LESS CHOICE ........................................................................................... 91Figure 73. LESS PRODUCT FEATURES .................................................................. 91Figure 74. PICTURE AND SOUND QUALITY ........................................................ 92Figure 75. BATTERY UP............................................................................................ 92Figure 76. AWARENESS OF MODEL ...................................................................... 92Figure 77. AVAILABILITY ....................................................................................... 93Figure 78.COST OF PHONE ...................................................................................... 93Figure 79. OTHER REASONS.................................................................................... 94
Figure 80. FIRST TIME EXPERIANCE..................................................................... 97Figure 81. HEATING UP OF PHONE ....................................................................... 97Figure 82. POOR BATTERY ...................................................................................... 98Figure 83. AVAILABILITY OF ACCESSORIES ...................................................... 98Figure 84. LOW SIGNAL STRENGTH ..................................................................... 99Figure 85. NOT SUITABLE FOR ROUGH USE ....................................................... 99Figure 86. FREQUENT COMPLAINTS ................................................................... 100Figure 87. POOR AFTER SALES SERVICE ........................................................... 100Figure 88. RATING OF USER FRIENDLINESS ..................................................... 104Figure 89. RATINGS OF PICTURE AND SOUND QUALITY .............................. 104Figure 90. RATINGS OF SIGNAL STRENGTH ..................................................... 105Figure 91. RATINGS OF BATTERY LIFE .............................................................. 105
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Figure 92. RATING OF AFTER SALE SERVICE................................................... 106Figure 93. RATING OF PROMOTION AND LOW COST ..................................... 106Figure 94. RATING OF LONG LASTING .............................................................. 107Figure 95. PRICE FACTOR ..................................................................................... 108Figure 96. RANGING TV& OTHER COMMERCIALS......................................... 109Figure 97. REACH OF AD ...................................................................................... 110Figure 98. AD FEED BACK .................................................................................... 111Figure 99. PREFERANCE OF TOUCH SCREEN .................................................. 112
Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS .................................... 40Table 2. RATINGS OF NOKIA .................................................................................. 40Table 3. RATINGS OF SONY ERICSSON ................................................................ 41Table 4. RATINGS OF SAMSUNG ........................................................................... 42Table 5. RATINGS OF MOTOROLA ........................................................................ 43Table 6. RATINGS OF LG .......................................................................................... 43Table 7. RATINGS OF FLY ....................................................................................... 44Table 8. PROMOTION OF NOKIA ............................................................................ 45Table 9 . NOKIA TABLETOP DISPLAY .................................................................. 45Table 10. NOKIA DISPLAY OF NEW MODEL ....................................................... 45Table 11. NOKIA FLUX ............................................................................................. 46Table 12. NOKIA WALL PAINTING ........................................................................ 46Table 13. SONY ERICSSON PROMOTION ............................................................. 49Table 14. SONY ERICSSON DISPLAY OF NEW MODEL ..................................... 49Table 15. SONY ERICSSON WALL PAINTING ...................................................... 49Table 16. SONY ERICSSON TABLETOP ................................................................. 49Table 17. SONY ERICSSON FLUX ........................................................................... 50Table 18. PROMOTION OF SAMSUNG .................................................................. 53Table 19. SAMSUNG WALL PAINTINGS ............................................................... 53Table 20. SAMSUNG TABLE TOP ........................................................................... 53Table 21. SAMSUNG DISPLAYS OF NEW MODEL .............................................. 53Table 22. SAMSUNG FLUX ...................................................................................... 54Table 23. PROMOTION OF MOTOROLA ................................................................ 56Table 24. MOTOROLA TABLETOP ........................................................................ 57Table 25. MOTOROLA WALL PAINTINGS ............................................................ 57Table 26. MOTOROLA DISPLAYS OF NEW MODEL ........................................... 57Table 27. MOTOROLA FLUX ................................................................................... 57Table 28. PROMOTION OF FLY ............................................................................... 59Table 29. TABLE TOP OF FLY ................................................................................. 59Table 30. FLY WALL PAINTINGS ........................................................................... 60Table 31. FLY DISPLAYS OF NEW MODEL .......................................................... 60Table 32. FLY FLUX .................................................................................................. 60Table 33. PROMOTION OF LG ................................................................................ 62Table 34. LG TABLE TOP .......................................................................................... 63Table 35. LG WALL PAINTING ................................................................................ 63Table 36. LG DISLPLAYS OF NEW MODEL .......................................................... 63Table 37. LG FLUX ..................................................................................................... 63Table 38. LIVE DEMO SUPPLY ................................................................................ 66
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Table 39. AWARENESS OF LG................................................................................. 66Table 40. AWARENESS OF MOTOROLA ............................................................... 67Table 41. AWARENESS OF NOKIA ......................................................................... 67Table 42. AWARENESS OF SONY ERICSSON ....................................................... 67Table 43. AWARENESS OF FLY .............................................................................. 67Table 44. AWARENESS OF SAMSUNG .................................................................. 68Table 45. OFFLINE MODE ........................................................................................ 71Table 46. CROSS TABULATION .............................................................................. 72Table 47. USER FRIENDLY ...................................................................................... 72Table 48. OFFERS ....................................................................................................... 73Table 49. PRODUCT RANGE .................................................................................... 74Table 50. AFTER SALE SUPPORT ........................................................................... 75Table 51. AVALABILITY OF ACCESSORIES......................................................... 76Table 52. RETAILERS RECOMMENDATIONS ...................................................... 77Table 53. TOTAL BREAK UP .................................................................................... 78Table 54. GENDER BREAK UP................................................................................. 78Table 55. AGE BREAK UP........................................................................................ 78Table 56. OCCUPATION BREAK UP ....................................................................... 78Table 57. ANNUAL INCOME BREAK UP ............................................................... 79Table 58. AWARENESS OF LG................................................................................. 80Table 59. BUDGET ..................................................................................................... 81Table 60. TYPE OF HANDSET PREFERENCE........................................................ 82Table 61. DUAL SIM .................................................................................................. 83Table 62. SUPPORT BOTH GSM & CDMA ............................................................. 84Table 63. ACCESSORY SPECIFIC ............................................................................ 85Table 64. LESS MEMORY OPTION ......................................................................... 87Table 65. NOT USER FRIENDLY ............................................................................. 87Table 66. LESS CHOICE ............................................................................................ 87Table 67. BAD PICTURE AND SOUND ................................................................... 87Table 68. LESS BATTERY UP................................................................................... 88Table 69. LESS PRODUCT FEATURES ................................................................... 88Table 70. NOT AWARE OF MODELS ...................................................................... 88Table 71. NON AVAILABILITY ............................................................................... 88Table 72. COST FACTOR .......................................................................................... 89Table 73. INTEREST FACTOR .................................................................................. 89Table 74. OTHER OPTIONS ...................................................................................... 89Table 75. FIST TIME EXPERIENCE ......................................................................... 95Table 76. HEATING UP OF PHONE ......................................................................... 95
Table 77. POOR BATTERY ...................................................................................... 95Table 78. AVAILABILITY OF ACCESSORIES ....................................................... 96Table 79. SIGNAL STRENGTH ................................................................................. 96Table 80. COMPLAINTS ............................................................................................ 96Table 81. ROUGH USE ............................................................................................... 96Table 82. POOR SERVICE ......................................................................................... 96Table 83. TOTAL RESPONDENTS IN RATINGS.................................................. 101Table 84. RATINGS IN USER FRIENDLY ............................................................. 101Table 85. RATINGS IN PICTURE & SOUNG ........................................................ 102Table 86. RATINGS IN SIGNAL STRENGTH ....................................................... 102Table 87. RATINGS IN BATTERY LIFE ................................................................ 102Table 88. RATINGS IN PROMOTIONS AND LOW COST ................................... 102
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Table 89. RATINGS IN AFTER SALES .................................................................. 103Table 90. RATING IN LONLASTING ..................................................................... 103Table 91. PRICE FACTOR ....................................................................................... 107Table 92. RANK FOR TV& OTHER COMMERCIALS ......................................... 108Table 93. LGS NEW AD ........................................................................................ 110Table 94. AD FEED BACK....................................................................................... 111Table 95. TOUCH SCREEN PREFERANCE ........................................................... 112
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This project was aimed at finding the reasons of LG not selling properly in the
Mumbai region, in retailers and consumers perspective. The whole project was
divided into two phases.
Phase one involved knowing more about the GSM handset market in this region,
learning more about the schemes that each company provides to the retailers, the priceprotection details of each company, the marketing strategies of each company and
also learn more about the LG strategies. This was accomplished by conducting expert
interviews, i.e. speaking with the major GSM retailers in the region. It also included
tracking of different promotional activities present in each of the outlets visited. The
other part of this phase included talking to the consumers about their general
preferences while buying a GSM mobile phone and analysing this data for utilising it
to increase the sales of LG.
The second phase was featured by data collection in both consumers and retailers
end with the help of properly framed questionnaires. Retailers survey was mainly
focussed under the distributors and consumers survey was mainly focussing on
different areas of Mumbai
An additional job that came in my way was to check whether the promoters were
good enough and whether they had adequate information about the product. This was
completely done in the retail outlets under different distributors in which they have a
company appointed LG promoter. The way used to accomplish this objective was
mystery shopping.
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1.1 OBJECTIVE AND SCOPE OF THE PROJECT
To find out why LG is selling less in the Mumbai region.
To find out the perception of retailers towards LG mobiles and its competitors
To find out the reach and effect of promotional activities in retail outlets
To find out the attributes a consumer considers while buying a mobile phone
To understand the consumers perception towards LG GSM mobile phones and
its competitors
To find out the awareness about LG GSM mobiles in consumers
1.2 METHODOLOGY
The entire primary research study was done in Mumbai market. The project was
conducted in both the retailers and consumers perspective. In order to provide a
current snapshot, the data collection was achieved through direct interviews and
questionnaire survey in both perspectives. The selected retail outlets under five
distributors were selected and survey was conducted. Questionnaire design was based
on the facts obtained from the exploratory research. One-on-one interviews withretailers were also conducted. The total sample size was 100 retailers. The technique
used to find out the effectiveness of promoters was mystery shopping.
The techniques used for the data collection was oneon-one interview with
consumers. The instrument used for data collection is Structured Questionnaire
which is designed from the findings in the exploratory research. The questionnaire
was administrated through the central, western and harbour parts of Mumbai. The
sample consists of the consumers aged 18 to 55 years. Sampling technique used is
judgemental. In addition to primary research the secondary data was collected from
magazines, internet etc.
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1.3 LIMITATIONS
1. The findings are based entirely upon the research conducted in Mumbai and hence
may not be applicable to other metropolitan cities on account of socio cultural
diversity and contextual factors.
2. Surveys should be taken periodically because the consumer perception will change
with time.
3. The accuracy of the data collected cannot be verified.
Mobile phones have gained a lot of popularity and are considered to be great
multimedia tools. Mobile phones are being used for entertainment purposes owing to
the introduction of new features every day. They have become more than just calling
and receiving devices. Mobile phone handsets now have more business-friendly
applications that can enhance anybodys business. With emerging technology, mobile
phones have become more than communication devices; they are the tools to stay
ahead of competitors and peers in the present times.
According to a report by RNCOS, the mobile handset sales increased from 482.5
million in 2003 to 561 million in 2004. But it was expected that there will be a slow
down in the growth rate of the sales in the next five years. The growth rate is expected
to be just 4.8 percent in 2008 and 2.6 percent in 2009. Even withstanding that, the
annual sales figures are predicted to reach 767 million by the end of 2009. Mobile
handsets with better and innovative features have great markets in the developed
countries and they have also gained large popularity among the population of these
countries. But it is said that it will be the developing markets which are not yet
saturated, namely India, Russia, Brazil, Mexico and China that will mainly contribute
to the global handset sales.
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Figure 1. WORLD MARKET SHARE
There are mainly five major players in the world market; they are Nokia, Samsung,
Motorola, LG and Sony Ericsson. Nokia is the market leader with 39.1% market share
with Samsung in the second position with 14.4%. Motorola and Sony Ericsson stand
with third and fourth market shares respectively with 8.4% and 8.2%. LG mobile
phone stands in the fifth position with a market-share of 6.2%. Others include players
like Apple, Benq, Blackberry, Dopod, Haier, i-mate, O2, Panasonic, Philips, and
Siemens etc.
2.1 INDIAN SCENARIO
India is a country with the third largest number of mobile users in the world. Still
India is considered as a great market for mobile phone growth. Less than 40% of the
countrys total area is covered by mobile networks and only 8 in every 100 Indian
owns a mobile phone. A lack of adequate infrastructure to support fixed landline
services has led to a situation where there are only 50 million fixed landline customers
in India, leaving the stage for mobile operators and thereby for the handset
manufacturers.
According to a research conducted by Gartner, they expect the mobile phone
production in India to grow from 31 million units in 2006 at a compound annual
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growth rate (CAGR) of 28.3 percent to reach 107 million units by 2011. According to
the same research, the mobile phone production revenue is expected to reach $13.6
billion by 2011, from $4.6 billion in 2006.
IDC has forecasted a 32 percent growth in the mobile handset market and the overall
shipments of mobile phones is expected to reach an astounding amount of 80 million.
As the mobile service operators are adding more than 5 million subscribers every
month, this growth in shipments can be expected. India is also considered as the
potential market for the mobile phone manufacturers such that many mobile phone
companies have decided to or have already set up mobile phone manufacturing units
in India. According to the same research, as many as 10,000 mobile phones are being
sold every hour in India.
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!"#$
3.1 Vision: Global Top 3 by 2010
LG Electronics is pursuing its 21st century vision of becoming a true global digital
leader that can make its customers happy throughout the world by means of its
innovative digital products and services. LG Electronics has set a new mid-term and
long-term vision, aiming to achieve the position of one of the top three electronics,
information, and telecommunication firms in the world by 2010. As such, they are
embracing the philosophy of "Great Company, Great People," whereby only great
people can create a great company, and pursuing two growth strategies involving "fast
innovation" and "fast growth." Likewise, they are also seeking to secure three corecapabilities - product leadership, market leadership, and people-centred leadership.
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3.2 Growth Strategy
Fast Growth - It is the result of strategies designed to expand the earnings quickly,
while improving the growth rate in terms of monetary value rather than quantity.
Fast Innovation - It involves setting extremely high innovation goals and securing a
competitive edge, aiming for a target of 30% more than what competitors can achieve.
Fast innovation also means 30% more sales and improvement in market share, new
product development and unveiling such products 30% faster, developing technology
and establishing corporate value three years ahead of competitors.
3.3 Core Capabilities
Product Leadership - Refers to the ability to develop creative, top-quality products
using specialized new technologies.
Market Leadership - Refers to the ability to achieve the "LG brand is No. 1" goal,
thanks to its formidable market presence worldwide.
People Leadership - Refers to talented people, who perform extremely well by
internalizing and executing innovations.
The LG brand comprises four basic elements: values, promise, benefits, and
personality.
3.4 The LG Brand
3.5 Positioning Statement
LG strives to enhance the customers life (and lifestyle) with intelligent features,
intuitive functionality, and exceptional performance. Choosing LG is a form of self-
expression and self-satisfaction. The customer will take pride in owning it and take
comfort in knowing he/she has made a smart and informed decision.
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3.6 Slogan
"Life's Good" represents LG's determination to provide delightfully smart products
that will make the customers life good. It best expresses the brand's values, promises,
benefits and personality. It is an ultimate expression for what the brand stands for and
what they strive to deliver continuously.
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3.7 LG Electronics in Indian Mobile Market
LG is a Korean based consumer durables company, which has always set its mark in
all the fields it has ventured into. This company is already one of the biggestconsumer durables company in India and it is also the fifth largest mobile maker in
the world. LG ventured into Indian mobile market IN 2003, by launching CDMA-
enabled services when operators like Reliance started offering WLL. By the end of
2003, LG forayed into the GSM segment by launching two models G5300 AND
G7030. Initially, LG had targeted only the premium segment and did not target or did
not have any models to compete in the other segments, but later they came out with
different models which belonged to different segments so that they could compete
with all the other manufacturers like Nokia, Sony Ericcson, Motorola and Samsung.
Currently LG has 14 handset models catering to all segments of the people; the price
of these mobile phones varies from Rs. 1000 to Rs 25000.
Market Share
Nokia: 62.5% Sony: 12.8%
Samsung: 6.2% Motorola: 5%
LG: 2.5% Others: 11%
Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS
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Nokias success is mainly attributed to distribution deals they inked - Of the estimated
79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of
them .The other brands include FLY, CHINA PHONES, PHILIPS BLACKBERRY,
SIEMENS, PANASONIC etc.
%$
4.1 Management Decision problem
To increase the market share of LG mobile phones in Mumbai region.
4.2 Marketing Research problem
In this particular scenario, we find the below defined problem as the most apt market
research problem:
1. To understand the overall perception of retailers towards LG mobile
phones and the effect of promotions and offers
2. To determine underlying factors for less preference for LG GSM mobile
phones by consumers
The two different research problems can be best explained under two different
chapters as the mode of survey and work done for the above cases are different. The
work done in the survey can be divided under two basic objectives which mainly
focus on retailers and consumers perspective which best explains the two research
problems.
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4.3 PROJECT FLOW
Figure 3. PROJECT FLOW
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&'
TO UNDERSTAND OVERALL PERCEPTION OF RETAILERS TOWARDS LG
MOBILE PHONES AND EFFECT OF PROMOTIONAL ACTIVITIES AND
OFFERS.
COMPONENTS: -
1. To understand the retailers preference towards the brands of LG as compared
to its competitors.
2. To understand the satisfaction level of LG mobile brands and its competitors
brands.
3. To find the problematic areas that retailers are facing while selling an LG
GSM mobile phone.
4. To find out the effect of promotional activities inside the shop, considering
both LG and its competitors.
5.1 APPROACH TO THE PROBLEM: -
Figure 4. APPROACH TO OBJECTIVE 1
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5.2 METHODOLOGY
The methodology that has been followed is that of direct interviews with
the retailers,
Direct interviews with service centre people,
Questionnaire for retailers was focussed on the problems they are currently
facing while selling an LG GSM mobile phone and about the effectiveness
of promotion/ advertising activities in their shops,
In-depth interviews with LG distributors and competitors distributors
Sample size contains 100 retailers in Mumbai city
Secondary data collection from internet, magazines, company resources.
5.3 RESEARCH DESIGN
This section discusses the various methods, techniques and tools that were used for the
project.
Exploratory research: This method was used at the commencement of the project. This
helped in orienting the research process and focus on the appropriate course of action.
In this case, the following methods were adopted to get an insight into the problem:
Secondary data
Internet
Magazines
Primary data
a. Qualitative data
Interviews with retailers
Interview with the service centre people
b. Quantitative data
Survey
Observational and other data
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5.4 DATA ANALYSIS
&(%()$
Questionnaire was designed with a primary objective to find the reasons for less sales
of LG mobile phones and to find the overall perception of retailers towards the brands
of LG GSM mobiles. Questions were also aimed to find out the retailers perception
about the competitor brands. Questionnaire also focussed on checking satisfaction
level of retailers towards different attributes of LG when compared to its competitors.
Questions for understanding the promotional activities of LG and its competitors were
also included. Questions to check the awareness among consumers in retailers point
of view was also included. Feed back and recommendations from retailers was asked
through open ended questions in order to obtain more precise answers.
&(%("$
The target population of the research is all the retailers who sell GSM mobile phones
in Mumbai, which includes places like Andheri, Vileparle, Goregaon, Santakruz, VT,
Church gate, Mumbai central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra,
Powai, Marol, etc. The number of sample was directed from the company. In
demographic sampling judgemental process was used. Retailers under five major
distributors area were covered. The selection of shops was on judgemental basis.
Sample size: 100
&(%(!$
The questionnaire was pretested in the market before data collection. Two questions
were added and again pretested. The whole process of data collection took 10 days.
The responses were analysed using SPSS. The missing values were considerably
negligent. One question was eliminated because of the irrelevance in survey.
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&(%(%*
PRIMARY RESEARCH
a) Face to face interactions with retailers.
This included a formal talk with retail owners under major distributor area.
Retailers were selected according to counter size. The selected retailers were
from different distributors area. There was around 20 retailers interaction,
these included retailers who sell 200 LG handsets a month and also few who
sell fewer than 5 handsets a month. The interaction was not with the aid of any
properly framed questionnaire. This interaction was mainly focussed on the
problems that they are facing while selling a LG mobile handset. The
discussion was also pointing about schemes of LG and its competitors. They
also gave some valuable recommendations
Retailers were really unhappy about the offers and benefits that LG Company is
offering. LG had come out with different schemes like Scratch Card, Point schemes
and now the Basket scheme. According to these retailers, these schemes were not very
beneficial and that stood out as one reason why retailers were not purchasing LG
phones. As per these retailers the schemes provided by the competitors like Sony
Ericsson, Samsung and Motorola were better than that of LG. They also informed that
companies like Sony Ericsson and Samsung also gave a large discount of 2 - 3%
when they purchased a bulk amount; this was in addition to the schemes they
provided. This also helped them to sell these products at lesser price and earn the
same profit as that of LG.
They also said that Nokia had a classification of retailers according to the salesvolume and each retailer was getting Rs 20 extra on each of the model they sold.
Nokia also did better promotional activities in the shops of the most preferred
retailers. They also indicated that the billing system of NOKIA is perfect; as far as LG
is concerned retailers have to wait for one week. Nokia also provides target sales
achievement which is also a benefit for retailers
Retailers were also complaining about the price protection scheme of the company.
The retailer who sells more than 200 handsets of LG mobiles which comes under the
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S+ category said that the price protection scheme should be increased for the high end
mobile phones of LG. This point was raised by almost all the retailers.
The retailers other than the category of S+ were complaining about the non
availability of brochures of new models. They said that whenever a new model was
launched they received the brochure typically after one month. They said that this
negligence from the companys side results in missing valuable sales opportunities,
because the promoters were finding hard to explain about the product without a
brochure and it is not practical to open a sealed box to show the product.
The retailers were also complaining about the bad service quality of LG service
centres. They are also unaware of the location of service centres which LG Company
operates in Mumbai. Retailers also complained about the bad promotional campaigns
of LG. According to retailers, consumers are unaware of the products launched by
LG; they quoted the example of KS 20 model. They also said that the accessories of
LG are not available and more over costly.
The request from retailers was to give live demo models in order to show the features
and technology that LG is offering to consumers.
a) MYSTERY SHOPPING
This was employed to find out the effect of promotions inside the shop.
Mystery shopping was conducted in five major shops in Mumbai. Acting as
consumer who wanted to buy a mobile preferably LG. The conclusions are LG
promoters are not aware of the new models launched in the market and they
were also not smart in convincing consumer. They also lack in communication
skills.
b) DIRECT INTERVIEW WITH SERVICE CENTRE STAFF
In Mumbai there are 18 service centres for LG which is directly operated by
the company. The interview with service centre people was mainly focussing
on the type of complaints that LG phones are currently encountering. The
major complaints that LG phones are facing is error in the software. The other
major complaint is that of poor battery back -up of the phones. The complaints
are generally fixed within 36 hours. The major feedback from the service
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centre people is that consumers are unaware of the location of service centres
in Mumbai.
&(%(&(
This process involved getting data regarding the schemes of LG and its competitors; it
also involved the analysis of all the data that was collected from secondary sources.
In India the total number of mobile subscribers is nearly 201 million. Earlier mobile
phones were used just to make and receive calls but now it is not so, it is called as the
Fourth Power. It has emerged as an alternative to cinema, TV and computer screens
(Business world). Now people are looking for value added services with each mobilephone. All the mobile manufacturers in India are trying to upgrade their networks to
Edge and 3G.
MARKET SHARE
Nokia: 62.5% Sony: 12.8%
Samsung: 6.2% Motorola: 5%
LG: 2.5% Others : 11%
Nokia
Sony
Samsung
Motorola
LG
Others
Figure 5. INDIAN GSM HANDSETS MARKET SHARE
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Nokias success is mainly attributed to distribution deals they inked - of the estimated
79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of
them.(www.gartner.com)
NEW MODELS LAUNCHED
In the month of March 08 there are the following new models launched by various
companies.
Figure 6. NEW LAUNCHES IN MONTH OF MARCH08
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In India the top selling model for the month of March was Nokia 1208, which sold
around 2, 60, 000 handsets all over the country. The other models are 1200, 1650,
2626. These models are also from Nokia.
In Mumbai the total market share of LG is 2%. Nokia is the market leader with
64% share. In Mumbai in the month of May Nokia sold around 160000 handsets
approximately. LG sold around 10,000 handsets.
Figure 7. MUMBAI GSM HANDSET MARKET SHARE
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&(%(+("
The major players in the Indian mobile market are Nokia, Sony Ericsson, Samsung,
Motorola and other regional players like Fly, Bird, Sagem etc. Recently a new threat
is being posed by China mobile handsets. These companies come out with large
number of models which tend to be stylish and have added features.
NOKIA
Nokia is currently the market leader in the GSM mobile phone segment with a market
share of 59.5%. It started its operations in India in the year 1995 and presently
operates from offices in major cities like New Delhi, Mumbai, Kolkata, Bangalore,Hyderabad and Ahmedabad. In India it mainly operates on handsets and network
infrastructure business. The company has a great R&D back up in cities like
Bangalore, Hyderabad and Mumbai. The handsets are manufactured from Chennai.
The decade year old company has now got a man power strength of around 6000
people.Nokia's revenues from the mobile phone segment stood at Rs 15,000 crores,
up by 30.6 percent, compared to Rs 11,486 crore in 2006-07. Nokias 50% total
market share comes from India. In India, Nokia has a product range of about 50
running models and three more models are in the pipeline to be launched this year.
The price ranges from Rs 1200 - 54000 which is intended to serve all the classes of
people.
SONY ERICSSON
Sony Ericsson is the second largest company in terms of market share in India. It has
a market share of 12.8% in India. Sony Ericsson mobile communication was
established in the year 2001 by telecommunication leader Ericsson and consumer
durables giant Sony Corporation. The company was equally owned by the two giants
and they announced their first product in the year 2002. The companys products have
a universal appeal and are different in their key areas of imaging, music and
technology. Now they also cater to the entry level mobiles. In India, Sony Ericsson
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has around 38 running models and two more in the pipeline for this year. Its price
ranges from Rs 1800 26000.
SAMSUNG
Samsung was founded in the year 1938, as a consumer durable giant which produced
cathode ray tube for computer peripherals. Samsung is known for its innovation and
style in the GSM arena. This company has a market share of 6.2% in the Indian
market. Samsung has recorded an exponential growth in this sector for the last two
years with some innovative stylish products. It has around 17 running models in India
with 6 models yet to be launched this year. The phones price ranges from Rs 1700
19000.
MOTOROLA
Motorola was started in the year 1928 in USA. It started with the production of radio
sets and later focused on wireless devices. Motorola started the Indian operations of
GSM mobile phones in late 2001. The companys market share has dipped to 5% this
year in India. It has a product range of about 17 running models which is priced from
Rs 1700 18000. The company is famous for its R&D which is situated in Bangalore.
In the Indian context, the GSM devices are segregated into four categories based on
prices: -
Sub-Entry Level - This segment covers phones of prices up to Rs. 2499, this segment
include models like A38,A31,AL21 from Benq Siemens, 245x,250x,214x,253x from
Bleu, V60, M90 from Fly, KG 276, KG 271,KG285,KG288 from LG, W180 and
W215 from Motorola, 1200, 1112, 1208, 1600, 2310, 1650,2610 from Nokia etc.
Entry Level - This segment covers all the phones from Rs. 2500 Rs. 5999. All the
leading mobile manufacturers in India have their models in this particular segment.
There are more than 70 models under different brands currently positioned in thisparticular segment.
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Mid Level - This segment includes all the models which are priced between Rs 6000
and Rs. 11,999. All the major companies have their presence in this segment. Models
like KG300, KE770, KE500, KE590, and KE970 are the phones from LG in this
particular segment. Even in this segment there are more than 70 models from different
companies.
High Level - This segment includes phones which are priced above Rs 12000. Even in
this segment we can find that all the phone manufactures have their presence. This
includes models like KF600, Prada, Viewty, and KS20 from LG. There are mainly 30
models in this particular segment from the houses of LG, Motorola, Samsung, Nokia
and Sony Ericsson.
There is also segment called the Enterprise Segment, it is not based on the prices, it
includes all the business phone models.
Enterprise Level - This segment has all the business phone models and in this segment
LG has no presence, there are no business phone models for LG. This segment
includes 56 models from different manufacturers like Nokia, Sony Ericsson,
Blackberry, Asus, Vertu, HTC, I mate, Motorola and Palm.
(The source for this piece of information is www.mymobile.co.in)
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&(%(,-../$
Mobile theft is a major area of concern for all the mobile users across the world. Now
LG has come with a new insurance plan. LG has tied up with United India Insurance
co. to offer this benefit to all its mobile users with no extra charge levied on it. In such
an event of handset theft, the user files an FIR within a 24 hours and then blocks the
SIM card through the respective service provider and then should inform the
insurance company within 7 days after the loss.
The 4 simple steps to avail insurance are as follows:
1. Fill the claim form.
2. Attach a copy of the bill given to you at the time of purchase. The invoice mustcontain the IMEI number of the handset.
3. Lodge FIR under Section 379 IPC for handset theft and attach a copy with theclaim form.
4. Mail the documents to the insurance company through registered post.
Once the claim form and all these are done, the insurance company will settle the
claim within 15 days.
Some of LG mobiles (selected models) also contain LGs anti mobile theft tracker
(ATMT) which can track the mobile phone when it is stolen and a new sim card is
inserted into it. In these kinds of phones, we have an option to save two phone
numbers and when the phone is stolen and a new SIM is inserted, phone automatically
sends messages to these two numbers (LG company sources).
The new scheme provided by LG is called the Basket offer; there are threeclassifications for this offer A, B and C. These offers are according to the volume that
each retailer purchases.
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CUSTOMER
Dissatisfiedreasons
ReasonsEnd
+'
TO DETERMINE THE UNDERLYING FACTORS FOR CONSUMERS NOT
PREFERRING LG GSM MOBILE PHONES.
COMPONENTS:
1. To understand the factors that consumers consider while buying a mobile
phone.
2. To understand the overall perception of consumers about LG and its
competitors.
3. To check the extent of awareness about LG mobile phones.4. To understand the satisfaction level of LG consumers.
5. To check the reach of LG mobiles phones promotional activities.
6.1 APPROACH TO THE PROBLEM:
Desired to purchase a mobile phone / Change existing phone
Purchase LG Not purchased LG
Satisfied
Figure 8. APPROACH TO OBJECTIVE 2
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6.2 METHODOLOGY
1. Direct interview with consumers
2. Consumer survey was focusing on the consumer perception
about LG and its competitors and the factors they consider
while buying a mobile phone.
3. Sample size is 200
4. Secondary data collection from internet, magazines, company
resources.
6.3 RESEARCH DESIGN
This section discusses the various methods, techniques and tools that were used forthe project.
Exploratory research: This method was used at the commencement of the project a.
This helped in orienting the research process and focus on the appropriate course of
action. In this case, the following methods were adopted to get an insight into the
problem,
Secondary data
Internet
Magazines
Primary data
a. Qualitative data
Direct Interview
b. Quantitative data Survey
Observational and other data
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6.4 DATA ANALYSIS
+(%()$
Questions were designed to get a clear understanding of consumer perception. It was
also aimed to find the factors that consumers consider while buying a mobile phone.
There were questions specially targeted to obtain the extent of awareness about LG
mobiles. Questionnaire also contained the questions to check the perception of
consumers towards LG mobiles and its competitors. The extent of promotional
activities was also checked. Questionnaire also contained open ended questions which
are aimed to find what consumers really need in a mobile phone. Consumers were
also asked to associate different companys or brands to given phrases.
+(%("$
The target population was consumers in all age groups who currently are using GSM
mobile phone and also who are planning to buy a GSM mobile phone in Mumbai city.
The places like Andheri, Vileparle, Goregaon, Santakruz, VT, Church gate, Mumbai
central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra, Powai etc was
considered for survey. The survey was carried out in malls, railway stations and also
in some house holds. The sampling technique used is judgemental sampling.
Consumers from different age group were considered and questions were asked
according to the questionnaire.
Sample size 200
+(%(!0$
The questionnaire was pretested and surveyed. The filled questionnaire was analyzed
through SPSS. The missing values were high on some questions like people who used
LG phones.
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+(%(%*
PRIMARY RESEARCH
Direct interview with consumers
This involved conducting an informal talk with consumers. The consumers were
selected on a judgmental basis. Direct interview was conducted with ten consumers in
different age group. The whole process was to get an overview of the consumer
perception and the factors they look for while buying a mobile phone.
The consumers are generally not aware of the LG mobiles. Most of the consumers
associate LG mobile as a CDMA phone. They have a general perception that LG
mobile phones are not user friendly and have a less battery backup. The direct
interview with aged consumers really gave a new insight that no company is
producing simple user friendly phone to aged consumers, their point is that they use
phone only for picking up the call and for making a call. There are no phones in the
market which are so user friendly that they can handle. One consumer who is around
65 years, complained that she cant even use Nokia basic model which her son got for
her. She uses the phone only to make and answer calls.
The youth are generally focused on the entertainment part of mobile phone. They said
that LG lacks picture and sound quality. They also conveyed that there is less memory
option in LG mobile phones. The general view of female consumers is that LG
phones are not trendy.
Most of the consumers are happy with bar type phones and they showed less interest
in slider phones. They also have an opinion that LG mobiles are giving less choice to
consumers.
Most of the consumers prefer Nokia or Sony Ericsson because they are superior in
some attributes.
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+(%(&
For consumer perspective, the secondary data are mainly considered in checking the
price of various mobile phones. Websites of LG and its competitor was also surfed. In
the competitors website the details of up coming models are shown, it lacks in LGcompanies official website. The secondary data from the blogs, discussion forums
were also considered.
The main feed back from the website is that people are using their mobile phone not
only as an instrument to talk but also as a music player, camera, internet accessing
device etc. They are focusing more on value added services.
Figure 9. SEGMENT CONTRIBUTION TO ZONES
Source: GFK
It is found from the survey conducted from GFK that people using that colour phones
with camera is around 28% in March and colour phones without camera is around
52%. People using monochrome phones are around 20% as of March 08. This survey
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is conducted in 35 major towns in India. This is the clear indication that consumers
are moving to phones with more product features.
,1$
Data analysis and findings was done in two phases:
Retailers Consumers
The total sample size was 300, retailers sample being 100 and consumers 200.The commonly used test was frequency test. Hypothesis was created and the testis performed. Graphs for each test are shown.
7.1. RETAILERS
HYPOTHESIS 1: AMONG THE RETAILERS, NOKIA IS THE MOST PREFERED
BRAND IN THE MUMBAI REGION.
Test performed: frequency test
Over-all respondents:
Statistics
Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS
NokiaSony
Ericsson LG Samsung Motorola FLY Others
N Valid 100 100 100 100 100 100 100Missing 0 0 0 0 0 0 0
(1 = worst, 5 = best)
NOKIA
Table 2. RATINGS OF NOKIA
Frequency Percent Valid PercentCumulative
Percent
Valid 5 99 99.0 99.0 99.0
1 1 1.0 1.0 100.0Total 100 100.0 100.0
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.
SONY ERICSSON
Table 3. RATINGS OF SONY ERICSSON
Frequency Percent Valid PercentCumulative
Percent
Valid 4 65 65.0 65.0 65.03 35 35.0 35.0 100.0
Total 100 100.0 100.0
From this frequency test, wecan see that 99 out of 100respondents chose Nokia astheir most preferred brand
Figure 10. RATINGS OF NOKIA
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Figure 11. RATINGS OF SONY ERICSSON
SAMSUNG
Table 4. RATINGS OF SAMSUNG
Frequency Percent Valid PercentCumulative
Percent
Valid 4 6 6.0 6.0 6.03 9 9.0 9.0 15.0
2 61 61.0 61.0 76.01 24 24.0 24.0 100.0
Total 100 100.0 100.0
From this frequency test, wecan see This test shows thatout of 100 respondents 65
respondents gave SonyEricsson as their second bestpreference and 35 respondentsgave it as their third bestoption
Here for the brand
Samsung, 6 respondents
gave it as their second best
option, 9 gave it as their
third option while 24
respondents gave it as the
worst option. 61 gave it as
the next worst option.
Figure 12 RATINGS OF SAMSUNG
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MOTOROLA
Table 5. RATINGS OF MOTOROLA
Frequency Percent Valid PercentCumulative
Percent
Valid 4 21 21.0 21.0 21.0
3 56 56.0 56.0 77.0
2 23 23.0 23.0 100.0
Total 100 100.0 100.0
LG
Table 6. RATINGS OF LG
Frequency Percent Valid PercentCumulative
Percent
Valid 4 8 8.0 8.0 8.02 10 10.0 10.0 18.01 76 76.0 76.0 94.0
NA 6 6.0 6.0 100.0Total 100 100.0 100.0
For the brands of Motorola, 56
out of 100 respondents gavethis brand a value three and 21
gave it as the second best
option a value of four. 23
respondents gave the second
worst option.
Figure 13. RATINGS OF MOTOROLA
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FLY
Table 7. RATINGS OF FLY
Frequency Percent Valid PercentCumulative
Percent
Valid 2 6 6.0 6.0 6.0
NA 94 94.0 94.0 100.0
Total 100 100.0 100.0
For LG, 76 out of 100
respondents marked thecompany as their worstpreference. 10 responded forthe second worst option, 8responded for second bestoption, while six retailersdidnt give LG any preference
For FLY it is found that 6retailers give rating 2 for and
rest of 94 retailers didnt giveany preference
Figure 14. RATINGS OF LG
Figure 15. RATINGS OF FLY
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H2: LG HAS THE LEAST PROMOTIONAL CAMPAIGNS WHEN COMPAREDTO ITS COMPETITOR BRANDS.
Test performed: frequency test
Over-all respondents:
NOKIA
NOKIAS PROMOTIONAL ACTIVITIES
Table 8. PROMOTION OF NOKIA
Frequency PercentValid
PercentCumulative
Percent
Valid Yes 100 100.0 100.0 100.0
TABLE TOP DISPLAYS
Table 9 . NOKIA TABLETOP DISPLAY
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 9 9.0 9.0 9.0
No 91 91.0 91.0 100.0
Total 100 100.0 100.0
Nokias Display of New Models
Table 10. NOKIA DISPLAY OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 36 36.0 36.0 36.0No 64 64.0 64.0 100.0
Total 100 100.0 100.0
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Nokia FluxTable 11. NOKIA FLUX
Frequency PercentValid
PercentCumulative
Percent
Valid Yes 89 89.0 89.0 89.0No 11 11.0 11.0 100.0
Total 100 100.0 100.0
Nokia Wall Painting
Table 12. NOKIA WALL PAINTING
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 100 100.0 100.0 100.0
Figure 16. PROMOTION OF NOKIA
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Figure 17. TABLETOP OF NOKIA
Figure 18. WALL PAINTINGS OF NOKIA
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Nokia has the highest promotional activity reach, i.e. out of 100 retailers Brand Promo
of Nokia has reached in all the retail outlets. In 9 outlets they have table top displays,
36 outlets have displays of new models, 89 outlets have Nokia flux. Wall paintings of
Nokia are present in all the 100 outlets.
Figure 19. DISPLAYS OF NOKIAS NEW MODELS
Figure 20. NOKIA FLUX
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SONY ERICSSON
Sonys Promotional Activities
Table 13. SONY ERICSSON PROMOTION
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 88 88.0 88.0 88.0No 12 12.0 12.0 100.0
Total 100 100.0 100.0
Sonys display of new models
Table 14. SONY ERICSSON DISPLAY OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 30 30.0 30.0 30.0
No 58 58.0 58.0 88.0
NA 12 12.0 12.0 100.0
Total 100 100.0 100.0
Sonys wall painting
Table 15. SONY ERICSSON WALL PAINTING
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 69 69.0 69.0 69.0No 19 19.0 19.0 88.0NA 12 12.0 12.0 100.0
Total 100 100.0 100.0
Sony table top
Table 16. SONY ERICSSON TABLETOP
Frequency Percent Valid PercentCumulative
Percent
Valid No 88 88.0 88.0 88.0NA 12 12.0 12.0 100.0
Total 100 100.0 100.0
Sony flux
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Table 17. SONY ERICSSON FLUX
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 88 88.0 88.0 88.0
NA 12 12.0 12.0 100.0Total 100 100.0 100.0
Figure 21. PROMOTION OF SONY ERICSSON
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Figure 22. TABLELTOPS OF SONY ERICSSON
Figure 23. SONY ERICSSON WALL PAINTINGS
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In Mumbai, out of 100 retail outlets Sony Ericssons promotional activities has a
reach to 88 retail outlets. Amongst these, 30 shops had the displays of new models, 69
outlets had Sony wall paintings and 88 shops had Sony flux. There were no shops
with Sony table top displays.
Figure 24. SONY ERICSSON FLUX
Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL
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SAMSUNG
Samsung if promo
Table 18. PROMOTION OF SAMSUNG
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 75 75.0 75.0 75.0No 25 25.0 25.0 100.0
Total 100 100.0 100.0
Samsung wall painting
Table 19. SAMSUNG WALL PAINTINGS
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 75 75.0 84.3 84.3NA 14 14.0 15.7 100.0
Total 89 89.0 100.0Missing System 11 11.0
Total 100 100.0
Samsung table top
Table 20. SAMSUNG TABLE TOP
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 6 6.0 6.7 6.7No 69 69.0 77.5 84.3NA 14 14.0 15.7 100.0
Total 89 89.0 100.0Missing System 11 11.0
Total 100 100.0
Samsung display of new models
Table 21. SAMSUNG DISPLAYS OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 75 75.0 84.3 84.3NA 14 14.0 15.7 100.0
Total 89 89.0 100.0Missing System 11 11.0
Total 100 100.0
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Samsung flux
Table 22. SAMSUNG FLUX
Frequency Percent Valid Percent
Cumulative
PercentValid Yes 65 65.0 73.0 73.0
No 10 10.0 11.2 84.3NA 14 14.0 15.7 100.0
Total 89 89.0 100.0Missing System 11 11.0
Total 100 100.0
Figure 26. PROMOTION OF SAMSUNG
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Figure 27.SAMSUNG TABLE TOPS
Figure 28. SAMSUNG WALL PAINTINGS
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In the Mumbai region Samsungs promotional activities is in 75 retail outlets out of
100. In these, all 75 outlets have displays of new models and wall paintings. The same
flux is covered in 65 outlets and 6 shops have Samsung table top displays.
MOTOROLAMotorola promotion
Table 23. PROMOTION OF MOTOROLA
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 86 86.0 86.0 86.0
No 14 14.0 14.0 100.0Total 100 100.0 100.0
Figure 29. SAMSUNG DISPLAYS OF NEW MODEL
Figure 30. SAMSUNG FLUX
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Motorola table top
Table 24. MOTOROLA TABLETOP
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 20 20.0 21.3 21.3No 60 60.0 63.8 85.1NA 14 14.0 14.9 100.0
Total 94 94.0 100.0Missing System 6 6.0
Total 100 100.0
Motorola wall painting
Table 25. MOTOROLA WALL PAINTINGS
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 86 86.0 86.0 86.0
NA 14 14.0 14.0 100.0
Total 100 100.0 100.0
Motorola display of new model
Table 26. MOTOROLA DISPLAYS OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 80 80.0 85.1 85.1NA 14 14.0 14.9 100.0
Total 94 94.0 100.0Missing System 6 6.0
Total 100 100.0
Motorola flux
Table 27. MOTOROLA FLUX
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 80 80.0 85.1 85.1NA 14 14.0 14.9 100.0
Total 94 94.0 100.0
Missing System 6 6.0Total 100 100.0
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Figure 31. PROMOTION OF MOTOROLA
Figure 32. MOTOROLA TABLETOPS
Figure 33. MOTOROLA WALL PAINTINGS
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In the Mumbai region, out of 100 retail respondents Motorola promos were present in86 retail outlets amongst which there were 20 tabletop displays and 86 wall paintingsin shops. In 100 outlets Motorola recorded 80 flux and 80 displays of new models.
FLYFly promotion
Table 28. PROMOTION OF FLY
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 30 30.0 30.0 30.0No 70 70.0 70.0 100.0
Total 100 100.0 100.0
Fly table top
Table 29. TABLE TOP OF FLY
Frequency Percent Valid PercentCumulative
Percent
Valid No 40 40.0 76.9 76.9NA 12 12.0 23.1 100.0
Total 52 52.0 100.0Missing System 48 48.0
Total 100 100.0
Figure 34. MOTOROLA FLUX
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Fly wall painting
Table 30. FLY WALL PAINTINGS
Frequency Percent Valid PercentCumulative
Percent
Valid No 30 30.0 57.7 57.7
NA 22 22.0 42.3 100.0
Total 52 52.0 100.0
Missing System 48 48.0
Total 100 100.0
Fly display of new model
Table 31. FLY DISPLAYS OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 30 30.0 57.7 57.7
NA 22 22.0 42.3 100.0
Total 52 52.0 100.0
Missing System 48 48.0
Total 100 100.0
Fly flux
Table 32. FLY FLUX
Frequency Percent Valid PercentCumulative
Percent
Valid No 30 30.0 57.7 57.7NA 22 22.0 42.3 100.0
Total 52 52.0 100.0Missing System 48 48.0
Total 100 100.0
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Figure 35. PROMOTION OF FLY
Figure 36. FLY TABLETOP
Figure 37. FLY FLUX
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In the region flux promos was recorded in 30 retail outlets out of 100. No table topdisplays were recorded. In all 30 outlets companys wall paintings, flux and displaysof new model was recorded.
LGLG promotion
Table 33. PROMOTION OF LG
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 18 18.0 18.0 18.0No 82 82.0 82.0 100.0
Total 100 100.0 100.0
Figure 38. FLY WALL PAINTINGS
Figure 39. FLY DISPLAYS OF NEW MODEL
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LG table top
Table 34. LG TABLE TOP
Frequency Percent Valid Percent CumulativePercent
Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0
Total 60 60.0 100.0Missing System 40 40.0
Total 100 100.0
LG wall painting
Table 35. LG WALL PAINTING
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 18 18.0 30.0 30.0NA 42 42.0 70.0 100.0
Total 60 60.0 100.0Missing System 40 40.0
Total 100 100.0
LG display of new model
Table 36. LG DISLPLAYS OF NEW MODEL
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0
Total 60 60.0 100.0Missing System 40 40.0
Total 100 100.0
LG fluxTable 37. LG FLUX
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 8 8.0 13.3 13.3No 10 10.0 16.7 30.0NA 42 42.0 70.0 100.0
Total 60 60.0 100.0
Missing System 40 40.0Total 100 100.0
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Figure 40. PROMOTION OF LG
Figure 41. TABLETOPS OF LG
Figure 42. LG WALL PAINTINGS
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In the Mumbai region, LG recorded the lowest promotional penetration whencompared to its competitor brands. In 100 respondents of retailers, LG recorded only
in 18 outlets. In the 18 outlets, 8 have LG tabletop displays and 18 have LG wallpaintings. While only 8 outlets recorded LG flux and displays of new models.
H3: LACK OF LIVE DEMO IN THEIR RETAIL OUTLET IS ONE OF MOSTIMPORTANT PROBLEMATIC AREAS THAT RETAILERS ARE CURRENTLYFACING WHILE SELLING AN LG GSM MOBILE
Test performed: frequency test
Over-all respondent
Figure 43. LG DISPLAYS OF NEW MODEL
Figure 44. LG FLUX
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Live demo supply
Table 38. LIVE DEMO SUPPLY
Frequency Percent
Valid
Percent
Cumulative
PercentValid highly
problematic100 100.0 100.0 100.0
Figure 45. LIVE DEMO SUPPLY
HYPOTHESIS 4: RETAILERS ARE LEAST SATISFIED FOR AWARENESSABOUT LG PRODUCTS AMONG CONSUMERS
Test performed: Frequency test
LG
Table 39. AWARENESS OF LG
Frequency PercentValid
PercentCumulative
Percent
Valid Least Satisfied 84 84.0 84.0 84.0Moderately Less
Satisfied16 16.0 16.0 100.0
Total 100 100.0 100.0
In the survey conductedamong retailers, the mostimportant and problematic
region while selling a LGGSM phone is supply of livedemo. All the retailers i.e. 100out of 100 believe its onemost important problematicareas. They find it difficult tosell a LG mobile without livedemo
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MOTOROLA
Table 40. AWARENESS OF MOTOROLA
Frequency Percent Valid Percent
Cumulative
PercentValid Moderately
Highly Satisfied54 54.0 54.0 54.0
Highly Satisfied 46 46.0 46.0 100.0Total 100 100.0 100.0
NOKIA
Table 41. AWARENESS OF NOKIA
Frequency Percent Valid PercentCumulative
Percent
Valid Highly Satisfied 100 100.0 100.0 100.0
SONY ERICSSON
Table 42. AWARENESS OF SONY ERICSSON
Frequency Percent Valid PercentCumulative
Percent
Valid ModeratelyHighly Satisfied
21 21.0 21.0 21.0
Highly Satisfied 79 79.0 79.0 100.0Total 100 100.0 100.0
FLY
Table 43. AWARENESS OF FLY
Frequency Percent Valid Percent CumulativePercent
Valid Least Satisfied 9 9.0 9.0 9.0Average Satisfaction 91 91.0 91.0 100.0
Total 100 100.0 100.0
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SAMSUNG
Table 44. AWARENESS OF SAMSUNG
Frequency Percent Valid Percent
Cumulative
PercentValid Moderately
Highly Satisfied100 100.0 100.0 100.0
Figure 46. LG SATISFACTION OF AWARENESSLG
MOTOROLAFigure 47. MOTOROLA SATISFACTION OF AWARENESS
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NOKIA
SONY ERICSSON
Figure 48. NOKIA SATISFACTION OF AWARENESS
Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS
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SAMSUNG
FLY
1. From the above frequency test and graph its clear that among 100 retailers 84were least satisfied and 16 was moderately less satisfies for the awareness ofLG products among consumers.
2. From the test 100 out of 100 retailers were very satisfied for Nokia awarenessamong consumers
3. For the company Motorola the 54 retailers were moderately highly satisfiedand 46 were highly satisfied for the awareness among consumers
Figure 50. SAMSUNG SATISFACTION OF AWARENESS
Figure 51. FLY SATISFACTION OF AWARENESS
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4. For the company Samsung 100 out of 100 were moderately highly satisfied for thereason
5. Sony Ericsson recorded 71 for high satisfaction and 29 for moderately lesssatisfaction
6. For fly 91 average satisfaction and 9 was for least satisfaction.
HYPOTHESIS 5: LG HANDSETS CANNOT BE OPERATED WITHOUT A SIMWHICH POSE A DIFFICULTY WHILE SELLING A LG GSM MOBILE PHONE.