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A

PROJECT REPORTON

COMPARATIVE STUDY OF

SELECTED HOME APPLIANCES

OF

SELECTED COMPANIES (SAMSUNG & LG)In partial fulfillment for requirement of Research

Methodology course in two years full time Masters of

Business Administration


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INTRODUCTION

TO

HOME APPLIANCES

MARKETING STRATEGIES

INDUSTRY PROFILE

INTRODUCTION


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followed by Samsung. Between the two, they dominate the consumer electronics business, which

includes a 30% share in colour televisions (CTVs). And companies of all nationalities Indian

(BPL, Videocon), European (Electrolux, Philips), American (Whirlpool) and Japanese

(Matsushita,Sony)- have collapsed before their onslaught and Koreans have emergedas winners.

The timing of their entry into India was more propitious. They came after

industrial licensing made its exit. It was after imports controls on inputs and equipment had

largely ended. So they were able to produce in India what was cheaper to produce here, and did

not have to follow a preconceived plan of import substitution. And cheaper production meant

that they had a fighting chance in competition, both in India and abroad. But timing was not

everything; the Koreans have also brought with them certain gifts of great value in the Indian

environment. One is the way these companies set their objectives. India is a price sensitive

country and they have not neglected that. They have derived price targets from the local market;

they have aimed to be competitive, not necessarily cheap. But within those price objectives they

have achieved reliable quality and sought to be a step ahead in product technology. Their greatest

asset has been the trust of consumers they have gained. Their next biggest advantage is their

nimbleness. They have set up subsidiaries that are large by our standards; but their speed of

reaction to market changes, speed of correction of course, speed of execution of strategic

initiatives are too good. The working conditions in the office are also different from the others.

Like European and Anglo-Saxon model has been focused on results, their approach to workplace has been reasonably laissez-faire. For Koreans, its different. The work place is pretty

hierarchical and seniors are given tremendous respect.

Marketing Strategies:


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They studied closely and picked up the salient features of the Japanese manufacturing

and made themselves an expert in that.

Their planning is very meticulous on the execution of the job in hand.

The Koreans never shown any bias against India. The Americans and Japanese took their

brand equity for granted. The Koreans did not. As a result of this they didnt make any

value judgments of the Indian customers and introduced contemporary products. This

way they got their brand noticed.

Both L.G and Samsung have consistently launched contemporary models-be it fuzzy

logic washing machines, flat screen TVs or microwave ovens-in step with their launch

globally.

o Further power was added to this strategy of dazzling Indians with global products

was their high advertising spends. L.G spent Rs 110 crore in advertising while

Samsung spent Rs 80 crore in 2001. In 2003 L.G spent Rs 225 crore and SamsungRs 100 Crore. Such high voltage advertising has made the Koreans the biggest

spenders in their businesses, and they outspend competition by a factor of at least

two. These spends have placed the Koreans in the class of some of the highest

spenders in India such as Colgate, ITC, Dabur and Hindustan Lever.

They are huge buyers of advertising so they exude through a lot of visible brand building.

The Koreans have also started making a name for their ability to understand what

customers want. They practice this shibboleth with unusual vigor.

They figure out quickly and very well what the consumer wants. But the important part

is they quickly adapt their strategies accordingly.

Unlike U.S companies following the office marketing strategy the Koreans follow the

principle of Feet marketing. That means even the higher officials roam about the market

to give boost to dealers and also to gather the first hand information on the current market

conditions. This helps in knowing the ground realities better which results in a better

strategy.

The Koreans always think big and take risks. Thats why they have infused soinvestment, which is now bearing the fruits.

Players like Whirlpool and Electrolux that made a foray into consumer electronics around

the same time that L.G and Samsung did. They hedged bets by buying existing brands


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and capacities here (Kelvinator, Maharaja, Allwyn, and the like) while the Koreans built

capacity from scratch and gives them an edge over the competitors.

The Koreans want to outdo the Japanese. They dont start on a hunch. Their planning is

meticulous. When they take up a job they take it very seriously.

All Korean managers bring on board a monk like devotion to their task at hand. This

ensures quick execution of the work.

The Koreans believe that manufacturing is a key strength and thats why they eschew

contract manufacturing and invest in their own manufacturing facilities around the globe.

They have culture sensitive workshops to ensure that the Koreans and Indians work well

together.

They bundle one product with another so as to promote the weaker one backed by the

established product.

They have well-entrenched the consumers in India by sponsoring a number of premier

events like cricket matches and others with a high TRP ratings.

According to prof.R.R.Krishnan at center for East Asian Studies of Jawaharlal Nehru

University the insecurity element in the history of Korean comprising colonization,

acquisition of their country in the past tends them to form a marketing strategy that

requires best of them.

Though the Koreans are making huge profits in India they have not fully presented

themselves in India. Many business like chip manufacturing, humungous chemicals,

energy business etc. which they are operating in other countries has not found its way to

India. The reason being the instability and lack of infrastructure of India to support these

businesses. This shows their marketing tactics and their inclination towards the prelaunch

test that they conduct before induction of each product in India.

The Koreans always do a prelaunch market survey unlike its Japanese or U.S

counterparts who take their brand equity for granted. This research gives useful inputs to

the Korean players and also times to adapt themselves for the new situation.


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OVERVIEW OF CONSUMER

DURABLE INDUSTRY

DEFINITION OF THE CONSUMER DURABLE

INDUSTRY

SIZE OF THE MARKET

BACKGROUND

MAJOR PLAYERS


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According to NCEAR survey estimates, the number of households in the higher and

middle-income categories will rise rapidly. There will also absolute reduction in the number of

households in the low incomes. This will lift large number of households to income levels at

which they can become purchasers of consumer durable products. Continuous economic growth

and higher income levels will drive growth in volumes, any reduction in the duties will leads to

lower down of the values and this will bring more customers for the durable products.

The biggest attraction for MNCs is the growing Indian middle class (approx. 250 m).

This market is characterized with low penetration levels. MNCs hold an edge over their Indian

counterparts in terms of superior technology combined with a steady flow of capital, while

domestic companies compete on the basis of their well-acknowledged brands, an extensive

distribution network and an insight in local market conditions.

The Indian middle class market of 250 million is the biggest attraction for the MNCs

along with the level of the penetration of consumer durables in the India has more attracted

Multinationals to the India, in the case of consumer durables penetration levels of TV is believed

to the highest, and after that the penetration of the refrigerator comes.

In the future, earnings will be driven by rising demand for consumer durables in general.

As per the National Sample Survey Organization project of "Use of durable goods by Indian

households", the per capita total expenditure on durable goods increased from Rs112.89 in 1987-

88 to Rs148.02 in 1993-94. Similarly, NCAER estimates point to the fact that the number of

households with monthly incomes above Rs 10,000 in metros and Rs 5,000 in non-metros is

expected to rise from 22.7 million in 1995-96 to a huge 57.2 million in 2005-06. This will mean

that firstly, there will be a perceptible shift towards branded products and secondly, the level of

aspiration buying will increase.


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Size of the Market:

The total Rs. 15500 crore consumer durables industry consists of Colour Televisions,

Black and White Televisions, Refrigerators, Washing Machines, Air-conditioners, Microwave

Ovens, Vacuum Cleaners, Audio Systems, Electronic Appliances and Water Purifiers. The table

below shows the Estimated industry size and the competition in the various segments.

Now considering consumer durables industry in general, the drivers that will leads to the growth

of the industry in general will be:

The degree of distribution network in the market.

The advertising and marketing strategy adopted by the players in the industry.

The brand image of the product as perceived by the consumer.

The technology used by the company viz. state-of-the art technology or and older version.

The ability of the company to introduce newer products and newer product features.

The capability of the company to service its products.

The discount schemes and consumer finance facility available.

The market positioning of the product.

The cost competitiveness and pricing strategy of the company.

The financial strength of the players.

The competition in the industry has intensified after the liberalization and more and more

MNC are coming to India to target the huge middle class of the country. The competition is

dependent upon the brand strength and distribution network. In other words, the advertising and

marketing expenses play a vital role in competition. As a result of the increased competitive

activity, the advertising and marketing costs as a percentage of operating income have increased

over the years. This ratio for the industry has increased from 4.4 percent in 1993 to 6.7

percentage in 2000.

However, the export prospects are least or minimal because indigenous manufacturers do not

possess adequate brand equity or excellent product quality. There are even constraints like

transportation due to poor infrastructure and relatively under developed markets in the

neighbouring countries.


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Changes in the Strategies:

There is a shift in trend as the emphasis has moved from the manufacturing process to

marketing and advertising strategies. In other words, the marketing game has become a vital

factor for driving sales as against the manufacturing process of the products in the past. Players

are now concentrating on the creation of brand image in order to economize their scale of

operations and to increase their brand strength. The advertising expenses of the companies

operating in this segment are going high every year and the returns are diminishing still the brand

will play a major role in selling of the product.

Because of this, most of the manufacturers like, Videocon and Electrolux are acting as

OEM manufacturers for manufacturing refrigerators of Samsung and LG. Even, players have

increased the percentage of their advertising and marketing costs as a percentage to operating

income over the years; the ratio for the industry has increased from 4.6% in 1993 to around 7%

in 2000. The brand building is very critical in the industry and constant advertising is necessary.


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BACKGROUND:

Prior to liberalization, the Consumer Durables sector in India was restricted to a handful

of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly

90% of the market. They were first superseded by players like BPL and Videocon in the early

1990s, who invested in brand-building and in enhancing distribution and service channels. Then,

with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa.

Both rising living standards, especially in urban India, and easy access to consumer

finance have fuelled the demand for consumer durables in the country. Also, the entry of a large

number of foreign players means the consumer is no longer starved for choice. But this has also

resulted in an over-supply situation in recent times as growth levels have tapered off.

MAJOR PLAYERS:

The major players in the consumer durables industry, operating in different sectors such as air

conditioners, washing machines, freez& television include:

BOSS Portable Blenders- Manufacturer and exporter of portable blender and home appliances

includes hand held mixers, juice makers, stainless steel blender and more.

Eureka Forbes - Details on consumer products include vacuum cleaners, floor care equipment,

high pressure water jet cleaners and electronic security systems.

Kelvin Systems - Dealers for Carrier Aircon Ltd (airconditioningequipment), Honda (Siel)

Power Products Ltd (portable electric generators), and Eureka Forbes Ltd

Onida- Provide an online showroom to purchase the entire range of Onida products.

Padmini Appliances - Manufacturers of gas stoves, oven-toaster-griller, juicer-mixer-grinder,

electric hot plates, washing machines, ceiling fans.

Philips - Details for consumer electronics, lighting, domestic appliances, semi conductors,

components, enabling technologies, multi media projectors etc.

PICASSO Home Products - Manufacturer and Exporter of various home appliances like roti

maker, mixer grinder, sandwich maker, oven toaster griller, Non Stick Appliances and more.

Salora- Manufactures black-and-white & colour television sets, Panasonic fax machines,

printers, and digital cameras; colour monitors and cordless phones.

Sansui - India - Manufacturer of electronic products, audio systems, home theatres, projection

TVs, video CDs and home appliances.


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Singer - Manufacturers of sewing machines, food processors, refrigerators, televisions, oven,

toasters, washing machines, electric irons etc.

Sony India - Details of product ranges from colour TVs, hi-fi music systems, video CDs, home

theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, Wega T.V etc.

Sony World - Features wide ranges of products: car audios, handy cams, digital cameras, VCD,

LD, DVD players, cordless phones, walkman, disc mans, and Televisions.

Sansui - India - Manufacturer of electronic products, audio systems, home theatres, projection

TVs, video CDs and home appliances.

Singer - Manufacturers of sewing machines, food processors, refrigerators, televisions, oven,

toasters, washing machines, electric irons etc.

Sony India - Details of product ranges from colour TVs, hi-fi music systems, video CDs, home

theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, Wega T.V etc.

Sony World - Features wide ranges of products: car audios, handy cams, digital cameras, VCD,

LD, DVD players, cordless phones, walkman, disc mans, and Televisions.

Sun flame Appliances - Manufacturers of kitchen appliances, home appliances and electrical

appliances in India.

Usha International - Manufacturer of sewing machines, fans, air conditioners, water coolers,

home appliances, agricultural and domestic pumpsets, and auto products.

Usha Lexus - Makers of home appliances like sandwich toasters, juicer, mixer grinders, ovens,

ventilating fans, irons and room coolers.

Voltas Limited - Makers of room ac and refrigeration equipment, water coolers, cranes, pumps

and office furniture; includes machine tools, industrial chemicals etc

Videocon - Suppliers of home appliances, TVs, refrigerators, ACs, air conditioners, audios, tape

recorder, colour monitors, digital organizers, Kenwood digital hi-fi systems, television sets etc.

L.G India - Details of product ranges from color TVs, hi-fi music systems, video CDs, home

theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, T.V etc.

Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD

players, C.D.M.A mobiles, Walkman, and disc mans, and Televisions.


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LG

CONCEPT AND DEFINITION

COMPANY PROFILE

MARKETING MIX


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CONCEPT AND DEFINETION

A social definition shows the role marketing plays in society. One marketer said that marketingsrole is to deliver a higher standard of living. A social definition that serves our purposefollows: -

Marketing is a societal process by which individual & groups obtain what they need and want

through creating, and freely exchanging products & services of value with others.

For a managerial definition, marketing has often been described as the art of selling products.But people are surprised when they hear that the most important part of marketing is not selling!

Selling is only a tip of the marketing iceberg. Peter Drucker, a leading management theorist, puts

it this way:

There will always, one can assume, be need for some selling. But the aim of marketing is to

make selling superfluous. The aim of marketing is to know & and understand the customer so

well that the product & service fits him & sell itself. Ideally, marketing should result a customer

who is ready to buy. All that should be needed than is to make the product available.

Coping with exchange processes calls for a considerable amount of work and skill. Marketing

management takes place when at least one party to a potential exchange thinks about the means

of achieving desired responses from other parties .Marketing management as the art & scienceof choosing target market & getting, keeping & growing customers through creating, delivering

and communicating superior customer value

EVOLUTION THROUGH THE CHANGES:

Marketing activities should be carried out under well through out philosophy of efficient,

effective, & socially responsible marketing. However, there are five competing concepts underwhich organizations conduct marketing activities: the production concept, product concept,

selling concept, marketing concept & societal marketing concept.

THE PRODUCTION CONCEPT:

The production concept holds that customers will prefer products that are Widely available

inexpensive. Managers of production based business concentrate on achieving high production

efficiency, low cost, & mass distribution. They assume that consumers are primarily interested in

product availability and low prices. It is used when a company wants to expand the market. This

orientation makes sense in developing countries, where consumers are more interested inobtaining the product than in its feature.


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THE PRODUCT CONCEPT :-

The product concept holds that consumers will prefer those products that offer the most quality,

performance, or innovative features. Managers in these organizations focus on making superior

products & improving them over time. They assume that buyers admire well-made products and

can appraise quality and performance. However, these managers are sometimes caught up in a

love affair with their product and do not realize what the market needs.

THE SELLING CONCEPT:-

The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy

enough of the organizations products. The organization must therefore, undertake an aggressiveselling and promotion effort. This concept assumes that consumers typically show buying inertia

or resistance & must be coaxed into buying. It also assumes that the company as a whole battery

of effective selling & promotion tools to stimulate more buying. The selling concept is also

practiced in the nonprofit area by fundraisers, college admission offices, & political parties. Most

firms practice the selling concept. When they have over capacity. Their aim is to sell what they

make rather than make what the market wants.

THE MARKETING CONCEPT: -

The marketing concept is a business philosophy that challenges the three- business orientation.

The marketing concept holds that the key to achieving its organizational goals consists of the

company being more effective than competitors in creating, delivering & communicating

customer value to its chosen target market.

The marketing concept has been expressed in many colorful ways:

Meeting needs carefully

Putting people first(British Airways)Partners for profits (Milliken & company)

The marketing concept rests on four pillars: target market, customer needs, Integrated marketing,

and profitability.

THE SOCIETAL MARKETING CONCEPT: -

The societal marketing concept holds that the organizations task is to determine the needs,wants & interests of the target market & to deliver the desired satisfaction more effectively &

efficiently than competitors in a way that preserves & enhances the consumers & the societywell being.

The societal marketing concept calls upon the marketers to build social & ethical consideration

into their marketing practices. They must balance & juggle the often-conflicting criteria of

company profit, consumer want satisfaction, and public interest.


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COMPANY PROFILE

LG Electronics Inc.

LG Electronics, Inc. was established in 1958 as the pioneer in the Korean consumer electronics

market. The company is a global force in electronics, information and communications products

with 2004 annual sales of US $38 billion (consolidated). With more than 66,000 employees

working in 76 subsidiaries in 39 countries around the world, LG Electronics is comprised of fourmain business companies including Mobile Communications, Digital Appliance, Digital Display,

and Digital Media.

Corporate Name : LG Electronics Inc.

Established : October 1, 1958 (As a private Company)

Corporate Office

LG Twin Towers 20, Yoido-dong, Youngdungpo-gu Seoul, Korea 150-721

Tel: 82-2-3777-1114

URL: http: / / www.LGE.com

Vice Chairman & CEO

S.S.Kim

Business Area and Main Product

Mobile Communications Company

Wired -wireless handsets and network services, CDMA, GSM, 3G(WCDMA / cdma2000)

Digital Appliance Company

Air Conditioner, Refrigerator, Microwave Oven, Washing Machine, Vacuum Cleaner,

Compressor for Air Conditioner, Compressor for Refrigerator

Digital Display Company

Digital TV, PDP, Monitor

Digital Media Company CD-ROM Drives, DVD-ROM Drives, CD Rewritable Recorder, VCR,

DVD Player, Audio, Security System, Recording Media, Video Phone, PC Camera, Banking

Automatic System, PCB

Number of Employees 66,614(31,614 in Korea/ 35,000 overseas)


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New Manufacturing Plant:

Encouraged by this stupendous growth, LG Electronics India started building another

manufacturing facility at Ranjangaon, some 50 km away from Pune in Maharashtra at an initial

investment of Rs1.5bn (US$32mn). Spread over an area of 50 acres, the sprawling new facility is

designed to manufacture CTVs, Refrigerators, ACs, Washing Machines, Microwave Ovens and

Color Monitors. The plant commenced commercial production in June 2004, three months ahead

of schedule. At present, it manufactures CTVs and Refrigerators besides assembling of a couple

of GSM mobile handsets. The Ranjangaon facility is in line with LG's vision of making India the

global export hub. The new plant, in addition to the Noida factory, will enable LG to expand its

consumer reach and ensure better supply chain management that would translate into a faster

response time. The company aims to pump in Rs5bn in the plant over the next five years. At

present, it has manpower strength of 2,000 people, and can go up to 5,000 by the year 2010. The

new plant will contribute 10% of LG's total projected revenue of Rs90bn in 2005. It aims to

double this every year and plans to increase it to 30% by the end of 2007.

Production Capacity:

CTVs - 5 lakh units perannum

ACs - 1 lakh units per annum

Refrigerators - 5 lakh units per annum

Washing Machines - 2 lakh units per annum

Microwave Ovens -0.5 lakh units per annum

Mobile phone handsets - 10 lakh units per annum

Monitors -1 lakh unit.

Vision 2011

LG Electronics India aims to become Rs450bn Company in India. Out of this, Consumer

Electronics will account for Rs112.5bn; Home Appliances Rs12.5bn; IT Rs67.5bn and Mobile

Phones Rs157.5bn. Exports will constitute 30% of total revenue at Rs140bn.


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LGs going places in Indian market

And, luck has nothing to do with the way the Korean giant is striking gold, says

RAHUL NEEL MAN

LG is the only company to successfully introduce and run a regional distribution model in India,

claims Manikandan

It hasnt been very long since this Korean electronics and home appliance giant came to India tosell color TVs and other white goods. No sooner did the company enter India than it found this to

be a large market for its IT products as well. LGs experiments may have resulted in someinitial

snarls, but the company is now successful in terms of both market penetration and presence.Year-on-year LG is registering tremendous growth in its PC components business. How has this

been possible? Not that the company didnt face any competition when it came here, but LG hasfought well to get where it has today.

LG has grown by about 73 percent in monitors this year, compared to 2001-02. The company has

also recorded nearly 30 percent growth in the optical storage devices (OSD) segment in 2002-03

as compared to the last fiscal. The high growth for the company in the latter segment came from

the CD-Writer sub-segment. If we take this sub-segment in isolation, we see that it grew by

about 200 percent this year as compared to the corresponding period last year. Sales revenues

went up by 44 percent, and the company achieved 43 percent growth in volume terms. The totalsales turnover for the IT division touched Rs 199 crore, against 138 crore a year ago. The

company as a whole posted a 45 percent jump in sales revenue for the same period. In the IT

division OSD posted a growth of 30 percent in sales revenues, while the monitor division

registered a growth of 60 percent in revenue and 73 percent in volumes.

WHATS NEXT?

The company is believed to be toying with the idea of introducing two new products for the

Indian marketthe LG laptop and LG home-based PC server for the small office, home officeenvironment. But when Manikandan asked evasive: "Its too early to give any information," is allhell say.


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MARKETING MIX

Marketing mix is the set of marketing tools that the firm uses to pursue its Marketing objectivesin the target market.

McCarthy classified these tools into four broad groups called 4Ps of marketing: Product, Price,Place, & Promotion. These marketing variables are shown in the following figure:

Marketing Mix

Product

Promotion

Price

Place

The First PPRODUCT

Product is a key element in the market offering. Marketing mix planning being with

formulating to meet target customers need & wants. The customer will judge the offering bythree basic elements- features & quality, services mix & quality & price appropriateness.

Products Name:

1. Air conditioners

Split AC

It has Jet Cool, 3 Eva, 4 Way Swing, Dreamz Mode, Gold Fin Condenser LG L- Arctic offers JetCool with which you can experience high speed cooling. The 4 way swing ensures uniform

cooling which gives you maximum comfort. The sweet Dreamz mode switches off the light off

the display panel to give you a peaceful sleep. It gives you maximum comfort and convenience

and designed for absolute perfection


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Window A/C

Gold Fin Condenser, VFO Deodorizer, Anti Bacteria Filter, Jet Cool Smart outside, expert inside

is the core objective of formulating this LG Air Conditioner. Equipped with jet cool, it cools the

room instantly. And sporting therepute of being star rated, reduced electricity bills can be taken

for granted. The anti bacterial filter ensures every ounce of air you breathe is clean for sure.

L.C.D MONITOR

This LG 43 Series monitor is a perfect combination of superior technology and convenient

features that provide a clearer, crisper and more color accurate image in an economical solution.

L.G PLASMA TV

Lg plasma TV 42pq30r with 20,00,000:1 dynamic contrast ration,1500 cd/m2 brightness and

1365 x 768p resolution. No action sequence is too fast for the new lg pq30 lcdtv. It comes with a

superior 600 Hz sub-field driving technology that brings you 12 sub-fields per frame rather than

the conventional 8. Moreover it's superior 0. 001 millisecond refresh rate between frames

delivers ultra smooth image transition with zero motion blur.


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REFRIGERATOR

This LG side-by-side refrigerator features tasteful exterior Red Floral art finish with Home Bar

and Water and Ice Dispenser, these refrigerators are masterpieces made for you to indulge in and

designed to fit seamlessly into your home with eight digital sensors and the wine rack.

This LG Frost Free refrigerator features door cooling technology with internal (Micom),

Humidity Controller, Cell Fresh crisper & Anti Bacterial Gasket helps in keeping the freshness

of food intact.

THE SECOND P- PRICE

Sales are only income fore any business concern. But price is the main factor, which affects the

sale of the market. If the price is high, few buyers purchase and if the price is low many buyers

purchase. Therefore a sound pricing policy must be adopted to have maximum sale revenue.

Moreover, it is only through proper pricing policy the already laid down marketing objective and

corporate goals could be achieved.

money of the product or service agreed upon in a market transaction. So, Price in money =physical product + bundle of expectations

THE THIRD PPROMOTION

Promotion is the process of making communication involving information, persuasion and

influence. Promotion has three specific purposes. It communicates marketing information to the

customers, users & retailers. Promotion persuades and convinces the buyer & enters into this

consumer behavior. Promotional efforts act as powerful tools of competition providing of cutting

edge of its entire marketing programmed. Promotion has been defined as the coordinated selfinitiated effort to establish channel of information & persuasion to facilitate or faster the saleof

goods or services, or the acceptance of ideas of points of view. It is a non-price competition.

Nothing until somebody promotes something

Promotion can create & stimulate demand, capture demand from rivals and maintain the demand

of your products even against keen competition. It is true that nothing can be sold & nothing can

make money (except mint) Without means of promotion. The communication & promotion mix

includes four ingredients viz.


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THE FORTH PPLACE

Place represents the location where a product can be purchased. It is often referred to as the

distribution channel. It can include any physical store as well as virtual stores on the Internet.

Place is not exactly a physical store where it is available Place is nothing but how the product

takes place or create image in the mind of customers. It depends upon the perception of

customers.

Distribution Channels of LG Electronics India Pvt. Ltd.

Scope

1.In term of purchasing power parity (ppp), India is the 4th largest economy in theworld and

overtake Japan in the near future become the 3rd largest.

2.Indian consumer durable market is expected to reach $400 billion by on 2010

3.India has the youngest population amongst the major countries. There are lot of People in the

different income categories nearly the two third population is below The age of 35 and nearly50% is below 25.

4. There are 56 million people in middle class, who are earning us$4,400-US$21,800 a year. And

there are 6 million rich household in India.

5.The upper-middle and high-income household in urban areas are expected to grew to 38.2

million in 2007 as against 14.6 million in 2000.

Opportunity

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

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

Higher import duties on row materials.

Cheap imports from Singapore, China and from other Asian countries.


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SAMSUNG COMPANY PROFILE

RESEARCH & DEVELOPMENT AT SAMSUNG

HOME APPLIANCES SECTOR IN INDIA

SWOT ANALYSIS OF SAMSUNG

FUTURE PLANS

4 Ps


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Company Profile

1. Vision & Mission

1) Vision

The vision of Samsung Electronics is Leading the Digital Convergence Revolution. SamsungElectronics aims to be a true leader in the era of digital convergence. We are developing

innovative technologies and efficient processes to enrich peoples lives and build SamsungElectronics into a trusted and respected company.

2) Mission

Our mission to carry out the vision is Digital-Company. Digital: Market leading products,innovative services Create new businesses, products and services by shaping new lifestyles

through product and technology innovations

World-class production and management processes

Maximize management efficiency based on cost competitiveness and efficient processes

resulting from process and marketing innovations Company: Preferred and trusted company

Build a preferred and trusted company that has a dynamic culture and attracts customers

worldwide through global management and organizational innovation

2. Profile

1) Overview

Samsung Electronics has continued to demonstrate rapid growth since its founding in 1969. As

of the end of 2006, global operations included 27 production subsidiaries, 40 sales subsidiaries,

two distribution centers, and 15 R&D centers. In Korea, the Company operates eight plants. The

Suwon Complex produces digital products, while semiconductors are produced at Giheung,

Hwaseong, and Onyang Plants. The Giheung, Cheonan, and Tangjeong Plants produce LCDs.

Digital information systems are manufactured in the Gumi Complex. information systems are

manufactured in the Gumi Complex. Samsung Electronics employs 149,000 people worldwide.Of the total, 85,800 work in domestic worksites, 10,900 in our domestic subsidiaries, and 52,300

in overseas subsidiaries.


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1)Digital Media Business

The Digital Media Business has the largest share of the world digital TV market. The unit also

produces color monitors, DVD and Bluray disc players, notebook PCs, printers and portable

entertainment devices such as digital camcorders and MP3 players

.2) Telecommunication Network Business

The Telecommunication Network Business includes mobile phones and telecommunication

systems. A premium brand image and distinctive designs have elevated Samsung into one of the

world market leaders. We have also led the standardization of Mobile WiMAX, next-generation

mobile phone technologies and led the HSDPA market.

3) Digital Appliance Business

The Digital Appliance Business makes premium refrigerators, air conditioners, washers, ovens,

vacuum cleaners and other appliances that are indispensible for modern homes. Standout designs

and innovative technologies are leveraged to create new kinds of added value and offer products

that meet customer needs to make kinds of added value and offer products that meet customerneeds to make Samsung a market leader.

4) Brand Value

Samsung Electronics has engaged in diverse marketing activities to elevate brand value. A brand

value survey jointly conducted by Business Week and Inter brand in 2006 ranked Samsung

Electronics in 20th place among all corporations in the world and 7th in the IT sector. According

to the survey, the Samsung Electronics brand value continued to increase, rising to US$16.2

billion in 2006 from US$15.0 in 2005 and US$12.6 billion in 2004

Research & Development at Samsung

Innovation is crucial to Samsung's business. As new technologies are being constantly

introduced to the market, speed is essential for remain-ing competitive in today's digital era, and

new markets have to be pioneered continuously. Through the interplay of creative, imaginative

people; a global R&D network; an organization that encourages collaboration and cooperation

among business partners all along the supply chain; and a strong commitment to ongoing

investment, Samsung has put R&D at the heart of everything we do.

People

One of Samsung's strongest assets is our team of talented researchers and engineers. More than a

quarter of all Samsung employees 42,000 people work every day in research and development,

and we expect that number to surpass 50,000 by 2010. At and among our 42 research facilities

around the world, they collaborate on strategic technologies for the future and original

technologies designed to forge new market trends and set new standards for excellence.
http://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#ag_peoplehttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#organizhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#investhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#investhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#organizhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#rdnetworkhttp://www.samsung.com/in/aboutsamsung/ourbusinesses/researchdevelopment.html#ag_people


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Organization

Samsung's R&D organization has three layers. The Samsung Advanced Institute of

Technology (SAIT), Samsung's technology competitiveness in core business areas, identifies

growth engines for the future, and oversees the securing and management of technology. The

R&D centers of each business focus on technology that is expected to deliver the most promising

long-term results. Division product development teams are responsible for commercializing

products scheduled to hit the market within one or two years.

Investment

A critical way that Samsung responds to the highly uncertain business environment and the

increasingly competitive marketplace is through our commitment to R&D. Each year we invest

at least 9% of our sales revenue in R&D activities. Samsung is committed to leading technology

standardization and securing intellectual property rights.

Global R&D Network

Innovation is a global enterprise at Samsung. Our research and development network spans six

Samsung centers in Korea and 18 more in nine other countries, including the United States, the

United Kingdom, Russia, Israel, India, Japan and China, as well as other research centres and

universities. Closely linked, these centers are tasked with hiring top-notch local talent,

investigating the latest local technology trends, and bringing to life those technologies that offer

the greatest benefits.

Samsung home appliance sector in India

Samsung India is the hub for Samsung's South West Asia Regional operations. The South West

Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks after theSamsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India.

Samsung India which commenced its operations in India in December 1995 enjoys a sales

turnover of over US$ 1Bn in just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the

country. The Samsung manufacturing complex housing manufacturing facilities for Colour

Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near

Delhi. Samsung 'Made in India' products like Colour Televisions, Mobile phones and

Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida

manufacturing complex. In November 2007, Samsung commenced the manufacture of Colourtelevisions and LCD televisions at its stateof-the-art manufacturing facility at Sriperumbudur,Tamil Nadu. The Company is also manufacturing fully automatic front loading washing

machines at its Sriperumbudur facility.


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Swot analysis of Samsung

Vision

Leading the digital convergence revolution growing to be the best.

Mission

Digital-e Company

SWOT analysis is the tool which helps the organization to understand where it stands. The

SWOT analysis of Samsung make it understand that where Samsung stand in the market.

STRENGTHS

Samsung is technologically very advanced; it has heavy assets of technology. It is known for its

technologically advanced products. Samsung crushed new product concepts in five months. It is

strong corporate brand and known for its quality products and advanced technology use.

It attracts customers by offering new and innovative design through understanding the customers

that which type of designs are suitable to customers and what they want or asked about.

It heavily invest in technology, product design and human resource, because for the success of

every organization human resource plays a major role, without human resource no product can

be made thats why Samsung gives more important to the human resource.

Samsung focuses more towards the innovations and try to keep improving the products to attract

more customers and capture more market share.

WEAKNESSES

Although Samsung focuses innovation but it is not proactive to introducing new products, it

waits to attack the competitors. It also lacks in product differentiation.

Samsung caters mass market instead of niche market so for this purpose it sets low prices of

products and low price products seem as low quality products, so Samsung products perceive as

low quality as compared to competitors products.

OPPORTUNITIES

Through make itself distinctive from competitors, it can gain more market share. By providing

distinguish services it can increase its customer base.

Another opportunity is product variation, by introducing unique products and existing products

with variety; it can attract its target market and can get more market share.


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As the demand for the cell phone is increasing as compared to other electronic market, Samsung

has the great chance to introduce user friendly mobile phones at affordable price. It would help

to beat customers and also to lead market share.

THREATS

Samsung competitors in electronic market are more dominant e.g. Sony, Panasonic, LG etc in

home appliances and Nokia, rim, 3G, etc in mobile phones market so it has to struggle a lot to bethe market leader.

Telecommunication industry is growing day by day so the no. competitors also increasing so it is

difficult for Samsung to establish in that industry, it is more behind in this industry as compared

to other electronic items.

Samsung advertisement is not excessive while the competitors advertise their products

excessively which can take away the existing customers of Samsung.

Future plans

Samsung plans to create an apparitional digital lifestyle for the average Indian consumer with the

introduction of innovative digital products that represent the absolute high end of technology and

design.

The company also plans to revolutionist retail in the country by launching a massive retail roll-

out of its exclusive outlets - Digital World, Digital Homes and Digital Plaza. The company

believes that with an increasing footprint of Samsung Digital Worlds and Samsung Digital

Homes, Indian consumers today can experience the finest in technology in a world class

environment.

The company also plans to set up 600 technology retail counters to bring technology closer to the

consumers, allowing them to touch, feel and experience the same

Samsung is also investing in setting up the Samsung Marketing Academy to train sales personnel

to engage in lifestyle selling. The emphasis is clearly on providing customers a richer and more

informed buying.


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Four Ps:-
http://en.wikipedia.org/wiki/File:Marketing-Mix_(en).p


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OBJECTIVES:

Finding out the popularity of different companys products. Understanding the buying behavior.

Satisfaction of customers.

Why has this topic been selected: Because electronics product are used for daily usage.

People are loyal in used of electronics products

Electronic product makes the work easier and faster.

METHODOLOGY:-1. Target population and sample size to be covered:-

Gandhinagar Households.

Sample size: 100

2. Method of data collection:

Simple random

(Questionnaire)

3. Sources of the data:

Primary data : By Questionnaire

Secondary data: Net or companys sites.


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QUESTIONNAIRE ANALYSIS

1 TO 13 QEUESTIONS...

CHATS

SORCE

INTERPRITETION


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Age:

Age

Frequency Percent Valid Percent

Cumulative

Percent

Valid 10-20 8 8.0 8.0 8.0

21-30 58 58.0 58.0 66.0

30 and more 34 34.0 34.0 100.0

Total 100 100.0 100.0

There is more respondents age between 21 to 30 year.


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Profession:

Profession


Cumulative

Percent

Valid service 38 38.0 38.0 38.0

student 34 34.0 34.0 72.0

privet 12 12.0 12.0 84.0

others 16 16.0 16.0 100.0

Total 100 100.0 100.0

This chart shows that, respondents are more in no. of service

men and students than private business holder and other.


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No. Of family member:

No_of_family_members


Cumulative

Percent

Valid 1-5 82 82.0 82.0 82.0

6-10 16 16.0 16.0 98.0

11 and more 2 2.0 2.0 100.0

Total 100 100.0 100.0

This chart shows that, most of the family members are 1 to 5.


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Income:

Income


Cumulative

Percent

Valid below 5000 25 25.0 25.0 25.0

10000-20000 25 25.0 25.0 50.0

21000 nd above 50 50.0 50.0 100.0

Total 100 100.0 100.0

This chart shows that, there more respondents income is above20000. Below 10000 and 10000 to 20000 income group respondents

are similar.


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Q.1

Statistics

Which product do you use from

the following list?_tv Freeze

N Valid 100 100

Missing 0 0

Which company do you prefer for TV from the following list?


Cumulative

Percent

Valid lg-tv 39 39.0 39.0 39.0

samsung-tv 32 32.0 32.0 71.0

other-tv 29 29.0 29.0 100.0

Total 100 100.0 100.0

As per our survey in market, we found that more people prefer the TV of LG companyTV than other company.


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Frequency Percent ValidPercent

CumulativePercent

lg-freeze 31 31 31 31

samsung-freeze

41 41 41 74

other-freeze

25 25 25 100

Total 100 100 100

As per our survey in market, we found that more people prefer the FREEZE of SamsungCompany FREEZE than other company.

Frequency

lg-freeze

samsung-freeze

other-freeze


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Q.2

Which company's advertisements pass the correct

message more effectively?


Cumulative

Percent

Valid lg 40 40.0 40.0 40.0

samsung 49 49.0 49.0 89.0

others 11 11.0 11.0 100.0

Total 100 100.0 100.0

As per our survey, we found that according to respondents, Samsung

Company passes the correct message more effectively than LG and other

company.


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Q.4

How do you decide to purchase the product?

Frequency Percent Valid Percent Cumulative Percent

Valid tv adv. 19 19.0 19.0 19.0

Newspaper 23 23.0 23.0 42.0

friends & relatives 23 23.0 23.0 65.0

internet data 12 12.0 12.0 77.0

family discussion 20 20.0 20.0 97.0

seller help 3 3.0 3.0 100.0

Total 100 100.0 100.0

According to respondents, they decide purchase the products with

reference of newspaper advertisement, friends and relatives views andfamily discussion.

There are less people who purchase the product with reference of

internet data and sellers help.


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Q.5

Does company's adver. attract you to buy products?


Cumulative

Percent

Valid tv 63 63.0 63.0 63.0

freeze 37 37.0 37.0 100.0

Total 100 100.0 100.0

Mostly TV advertisements attract the customer to buy the

products than FREEZE advertisements.


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Q.6

According to you which company provide best quality at moderate

price?


Cumulative

Percent

Valid lg 39 39.0 39.0 39.0

samsung 44 44.0 44.0 83.0

others 17 17.0 17.0 100.0

Total 100 100.0 100.0

According to respondents Samsung provide best quality at moderateprice than LG and others.


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Q.7

From which source do you purchase?


Valid company showroom 37 37.0 37.0 37.0

Elec.showroom 27 27.0 27.0 64.0

Mall 25 25.0 25.0 89.0

Road show 9 9.0 9.0 98.0

Other 2 2.0 2.0 100.0

Total 100 100.0 100.0

According to our respondents, mostly people prefer to purchase the

products from company showroom. After that they give preference to

electric showroom and malls. They give less preference to road shows

and others.


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sheare views on the following elements of the company.For LG;quality of product


Valid Poor 8 7.5 8.0 8.0

below average 17 16.0 17.0 25.0

Average 45 42.5 45.0 70.0

above aveg 22 20.8 22.0 92.0

Excellent 8 7.5 8.0 100.0

Total 100 94.3 100.0

Missing System 6 5.7

Total 106 100.0

As per our survey, according to respondents LGs quality of product andservices are average


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responce to consumer need


Cumulative

Percent

Valid poor 8 7.5 8.0 8.0

below average 23 21.7 23.0 31.0

average 31 29.2 31.0 62.0

above aveg 31 29.2 31.0 93.0

excellent 6 5.7 6.0 99.0

53.00 1 .9 1.0 100.0

Total 100 94.3 100.0


Total 106 100.0

According more respondents, LG give response to consumer need is average.


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commitment to protecting environment


Cumulative

Percent

Valid Poor 6 5.7 6.0 6.0

below average 19 17.9 19.0 25.0

average 35 33.0 35.0 60.0

above aveg 29 27.4 29.0 89.0

excellent 11 10.4 11.0 100.0

Total 100 94.3 100.0


Total 106 100.0

According more respondents, LGs commitment to protecting environment is average.


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product/service are reasonably priced


Cumulative

Percent

Valid Poor 3 2.8 3.0 3.0

below average 24 22.6 24.0 27.0

Average 39 36.8 39.0 66.0

above aveg 22 20.8 22.0 88.0

Excellent 12 11.3 12.0 100.0

Total 100 94.3 100.0


Total 106 100.0

According more respondents, LGs products and services reasonably price are average


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Truthfulness of advertisement


Cumulative

Percent

Valid poor 6 5.7 6.0 6.0

below average 23 21.7 23.0 29.0

average 35 33.0 35.0 64.0

above aveg 28 26.4 28.0 92.0

excellent 8 7.5 8.0 100.0

Total 100 94.3 100.0


Total 106 100.0

According more respondents, LGs truthfulness of advertisement is average


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Emotional connection/appeal


Cumulative

Percent

Valid poor 7 6.6 7.0 7.0

below average 20 18.9 20.0 27.0

average 38 35.8 38.0 65.0

above aveg 23 21.7 23.0 88.0

excellent 12 11.3 12.0 100.0

Total 100 94.3 100.0


Total 106 100.0

According more respondents,peoples emotional connection with LG is average


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Q.8_

samsung

Statistics

sheare views on the

following elements

of the company.For

Samsung;quality of

product

responce to

consumer need

commitment to

protecting

environment

product/service are

reasonably priced

Truthfulness of

adverticement

Emotional

connection/appeal

overall

perception

of the

company

N Valid 100 100 100 100 100 100 100

Missing 0 0 0 0 0 0 0


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sheare views on the following elements of the company.For Samsung;quality of product


Cumulative

Percent

Valid poor 7 7.0 7.0 7.0

below average 26 26.0 26.0 33.0

average 35 35.0 35.0 68.0

above aveg 28 28.0 28.0 96.0

excellent 4 4.0 4.0 100.0

Total 100 100.0 100.0

According more respondents, SAMSUNG provide average quality of product and services.


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responce to consumer need


Cumulative

Percent

Valid Poor 13 13.0 13.0 13.0

below average 20 20.0 20.0 33.0

Average 28 28.0 28.0 61.0

above aveg 29 29.0 29.0 90.0

Excellent 10 10.0 10.0 100.0

Total 100 100.0 100.0

According more respondents, SAMSUNG give response to consumer need is average.


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commitment to protecting environment


Cumulative

Percent

Valid poor 3 3.0 3.0 3.0

below average 19 19.0 19.0 22.0

average 38 38.0 38.0 60.0

above aveg 33 33.0 33.0 93.0

excellent 7 7.0 7.0 100.0

Total 100 100.0 100.0

According more respondents, SAMSUNGs commitment to protecting environment is aboveaverage.


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product/service are reasonably priced


Cumulative

Percent

Valid poor 4 4.0 4.0 4.0

below average 23 23.0 23.0 27.0

average 31 31.0 31.0 58.0

above aveg 28 28.0 28.0 86.0

excellent 13 13.0 13.0 99.0

13.00 1 1.0 1.0 100.0

Total 100 100.0 100.0

According more respondents, SAMSUNGs product and services prices are average.


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Truthfulness of adverticement


Cumulative

Percent

Valid Poor 9 9.0 9.0 9.0

below average 28 28.0 28.0 37.0

Average 26 26.0 26.0 63.0

above aveg 23 23.0 23.0 86.0

Excellent 14 14.0 14.0 100.0

Total 100 100.0 100.0

According more respondents, SAMSUNGs truthfulness of advertisement is below average


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Cumulative

Percent

Valid poor 4 4.0 4.0 4.0

below average 24 24.0 24.0 28.0

average 31 31.0 31.0 59.0

above aveg 33 33.0 33.0 92.0

excellent 8 8.0 8.0 100.0

Total 100 100.0 100.0

According more respondents, peoples emotional connection with SAMSUNG is above average.


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Q.9

Do you wait for special festival offers?


Cumulative

Percent

Valid Yes 77 77.0 77.0 77.0

No 23 23.0 23.0 100.0

Total 100 100.0 100.0

As per our survey, more people are wait for the special offer in

festival for purchase products.


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Q.10

which is the after sales service provided by the company /dealer?


Valid after sales service 24 24.0 24.0 24.0

free service maintenance 20 20.0 20.0 44.0

free home delivery 31 31.0 31.0 75.0

free instillation & replacement 16 16.0 16.0 91.0

Future purchase discount 9 9.0 9.0 100.0

Total 100 100.0 100.0

As per our survey, company provides more extra facility of free home delivery, and also they

provide after sales service and free service maintenance.

Company less provide facility of future purchase discount.


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Q.11

TV.

How will you dispose old TV?


Cumulative

Percent

Valid tv-exchange with the same

company

51 51.0 51.5 51.5

tv-exchange with the same other

company

33 33.0 33.3 84.8

tv-scrap 15 15.0 15.2 100.0

Total 99 99.0 100.0


Total 100 100.0

As per our survey, more than 50 % people like to dispose old TV

exchange TV with same company.


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Freeze:

How will you dispose old freeze?


Cumulative

Percent

Valid freeze-exchange with the same

company

29 29.0 29.3 29.3

freeze-exchange with the same

other company

51 51.0 51.5 80.8

freeze-scrap 19 19.0 19.2 100.0

Total 99 99.0 100.0


Total 100 100.0

As per our survey, more than 50 % people like to dispose old TV

exchange TV with other company.


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Q.12

LG

Will you exchange recently bought LG TV for new scheme offered by the

company?

Frequency Percent Valid PercentCumulative

Percent

Valid after 2 yr 19 19.0 33.9 33.9

after 4 yr 16 16.0 28.6 62.5

after 5 yr 6 6.0 10.7 73.2

more than 5 yrs 15 15.0 26.8 100.0

Total 56 56.0 100.0


Total 100 100.0

According to respondents, more people like to exchange their LG Companys TV after 2 year.

Frequency

after 2 yr

after 4 yr

after 5 yr

more than 5 yrs


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LG_freeze


Cumulative

Percent

Valid after 2 yr 5 5.0 12.8 12.8

after 4 yr 15 15.0 38.5 51.3

after 5 yr 13 13.0 33.3 84.6

more than 5 yrs 6 6.0 15.4 100.0

Total 39 39.0 100.0


Total 100 100.0

According to respondents, more people like to exchange their LG Companys FREEZE

after 4 year.

Frequency

after 2 yr

after 4 yr

after 5 yr

more than 5 yrs


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SAMSUNG:

Samsung_TV


Cumulative

Percent

Valid after 2 yr 6 6.0 13.3 13.3

after 4 yr 12 12.0 26.7 40.0

after 5 yr 16 16.0 35.6 75.6

more than 5 yrs 11 11.0 24.4 100.0

Total 45 45.0 100.0


Total 100 100.0

According to respondents, more people like to exchange their SAMSUNG Companys

TV after 4 year.

Frequency

after 2 yr

after 4 yr

after 5 yr

more than 5 yrs


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Samsung_freeze


Cumulative

Percent

Valid after 2 yr 6 6.0 11.3 11.3

after 4 yr 11 11.0 20.8 32.1

after 5 yr 16 16.0 30.2 62.3

more than 5 yrs 20 20.0 37.7 100.0

Total 53 53.0 100.0


Total 100 100.0

According to respondents, more people like to exchange their SAMSUNG Companys

FREEZE after 5 year.

Frequency

after 2 yr

after 4 yr

after 5 yr

more than 5 yrs


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Q.13

As per your view which product is best of LG company?

Frequency Percent

lg-tv 55 55

lg-freeze 45 45

Total 100 100

According to respondents TV is best product of LG Company than

freeze.

0

10

20

30

40

50

60

lg-tv lg-freeze

Frequency

Frequency


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SAMSUNG:

Frequency Percent

samsung-tv

46 46

samsung-freeze

52 52

Total 100 100

According to respondents FREEZE is best product of SAMSUNGCompany than TV.

43

44

45

46

47

48

4950

51

52

53

samsung-tv samsung-freeze

Frequency

Frequency


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HYPOTHESIS

Chi-square method.


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HYPOTHESIS

Chi-square table of income and customer preference of moderate

price and satisfaction [question-6]

income * According to you which company provide best quality at modrete price? Crosstabulation

Count

According to you which company provide best quality at

modrete price?

TotalLg samsung others

Income below 5000 7 12 6 25

10000-20000 11 8 6 25

21000 nd above 21 24 5 50

Total 39 44 17 100

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

income * According to you

which company provide best

quality at modrete price?

100 100.0% 0 .0% 100 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 5.025a 4 .285

Likelihood Ratio 5.267 4 .261

Linear-by-Linear Association 2.540 1 .111

N of Valid Cases 100

a. 2 cells (22.2%) have expected count less than 5. The minimum expected count

is 4.25.


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Chi square table for customers view which company provide best product for LG and

SAMSUNG


Cases

Valid Missing Total


As per your view which

company's and product is

best?_lg * samsung

92 92.0% 8 8.0% 100 100.0%

As per your view which company's and product is best?_lg * samsung Crosstabulation

Count

Samsung

Totalsamsung-tv samsung-freeze 3.00

As per your view which

company's and product is

best?_lg

lg-tv 14 36 0 50

lg-freeze 29 9 2 40

3.00 0 1 0 1

4.00 0 1 0 1

Total 43 47 2 92

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 92


is .02.


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Chi square table for customers from which source they came to know about product and

from which source they purchase.


Cases

Valid Missing Total


How do you decide to purchase

the product? * From which

source do you purchase?

100 100.0% 0 .0% 100 100.0%

How do you decide to purchase the product? * From which source do you purchase? Crosstabulation

Count

From which source do you purchase?

Total

company

showroom

Elec.showr

oom mall Road show other

How do you decide to

purchase the product?

tv adv. 9 7 2 1 0 1

newspaper 4 8 8 3 0 2

friends &

relatives

11 4 7 1 0 2

internet

data

6 0 1 4 1 1

family

discussion

6 6 7 0 1 2

seller help 1 2 0 0 0

Total 37 27 25 9 2 10

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association .480 1 .489



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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association .480 1 .489


a. 19 cells (63.3%) have expected count less than 5. The minimum expected

count is .06.

Chi square table shows the relation between peoples income and their preference for specialfestival offer


Cases

Valid Missing Total


income * Do you wait for

special festival offers?

100 100.0% 0 .0% 100 100.0%

income * Do you wait for special festival offers? Crosstabulation

Count

Do you wait for special festival offers?

Totalyes no 3.00

income below 5000 21 4 0 25

10000-20000 23 2 0 25

21000 nd above 33 16 1 50

Total 77 22 1 100

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






is .25.


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Bibliography

Annexure


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Bibliography


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Annexure

Questionnaire

Dear Respondent,

As a part of are project research on Home appliance comparative study on

select home appliance LG and Samsung under the guidance of ProfessorAmish Soni,

N.R.Institute of Business Management - GLS Ahmedabad, we request you to spare a few

minutes and share your views on the Home appliance comparative study of the company whose

product/services you are consuming. We assure you that the information disclosed will be used

only for academic purpose.

Name: - _______________________________________________

Age: - _______________________________________________

Education: - _______________________________________________

No. Of members: - _______________________________________________

Profession: - _______________________________________________

Gender: - Male Female

Income: Below 5000 10,000-20,000 Above 20,000

1) Which Product do you use from the following list?

2) Which Companys Advertisement Pass the correct Message more effectively?

LG Samsung Others

3) According to you which company provide attractive Advertisement but not quality products?

Company Product

TV Refrigerator

LG

Samsung

Others


86/88

86

4) How do you decide to purchase the product?

5) Does companys Advertisement attract you to buy the Products?

6) According to you which company provide best quality at moderate price?

7) From which source do you purchase?

LG

Samsung

Others

TV Advertisement

Newspaper Advertisement

Friends & Relatives

Internet Data

Family Discussion

Seller Help

Product TV Refrigerator

Please Tick Mark

LG

Samsung

Others

Company Showroom

Electric Showroom

Mall

Road Show

Others


87/88

87

8) Share your views on the following elements of the company. Please put a tick mark () against each ofthese elements.

LG :-

Extremely

Poor

Below

Average

Average Above

Average

Excellent

Quality of products/service

Response to consumer needs

Commitment to protecting environment

Products/Services are reasonably priced



Overall perception of the company

Samsung:-

Extremely

Poor

Below

Average

Average Above

Average

Excellent

Quality of products/service

Response to consumer needs

Commitment to protecting environment

Products/Services are reasonably priced



Overall perception of the company

9) Do you wait for special festival offers?

Yes No


88/88

10) Which is the after sales service provided by the company/company dealer?

11)How will you dispose old product?

Product Exchange with the same

company

Exchange with the same other Scrap

TV

Refrigerator

12)Will you exchange recently bought product for new scheme offered by the company?

Company Product After 2 year After 4 year After 5 year More than 5 yrs

LG TV

Freeze

Samsung TV

Freeze

13) As per your view which companys and product is best?

LG :- TV Freeze

Samsung :- TV Freeze

After sales service

Free service maintenance

Free home delivery

Free instillation & replacement

Future purchase discount

final sub parts rm

Documents