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Project Report

On

CONSUMER SATISFACTION SURVEY OF LG PRODUCTS"

For the

Partial Fulfillment of BBA

Submitted to

Submitted by

Reenu

Roll No. 0

BBA VI Semester

Submitted to

Ms.Nishtha Sharma

DEPARTMENT OF MANAGEMENT STUDIES

INSTITUTE OF FOREIGN TRADE AND MANAGEMENT

LODHIPUR RAJPUT, DELHI ROAD, MORADABAD (U.P.)

1

M.J.P Rohilkhand University Bareilly.

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CONSUMER SATISFACTION SURVEY OF LG PRODUCTS"

by

REENUBBA VI SEMESTER

SUBMITTED TO DEPARTMENT OF MANAGEMENT STUDIES IN THE PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

AT THEINSITUTE OF FOREIGN TRADE AND MANAGEMENT

APRIL 2010

The author hereby grants IFTM reproduce and to distribute publicly, paper and electronic copies of

the project report in whole or in part.

Signature of student

Department of Management studies

April 2012

Certified by

Ms.Nishtha SharmaProject Supervisor

Accepted by

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 5

INTRODUCTION 6

OBJECTIVE OF RESEARCH 15

RESEARCH METHODOLOGY 53

TABULATION& ANALYSIS OF DATA 60

FINDINGS 76

SWOT ANALYSIS 79

LIMITATIONS 81

CONCLUSION 82

SUGGESTIONS AND RECOMMENDATIONS 84

APENDICES 85

BIBLIOGRAPHY 89

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small-enterprise markets. But as the years rolled on, the branded- PC industry

secured what today constitutes a major slice of the Indian PC market pie.

Today it is fashionable to talk about the new economy. Now a days businesses

around the globe are operating in globalize economy because most of the

economies of the world have become broader. The old economies were simple

then todays. It was based on industrial revolution and managing manufacturing

industries. But the new economy, in contrast, is based on the Digital Revolution

and the management of information. Things are moving at a nano second pace,

markets for every product category is highly competitive and consumers aremore empowered and having awareness regarding products offered in the

market by manufacturers.

With the growing need for computerization, branded PC demand in public sector

organizations and in the government is on the rise. Demand from the private

sector, especially in the educational institutes and home segment, is already

rising. The small office home office (SOHO) and small-and-medium enterprise

(SME) segments are also driving hardware demand. The growing popularity of

the Internet has also raised the demand for branded PCs.

In such circumstances it is very difficult to survive for the small players. But

MNCs like LG, HCL, HP, IBM Computers, etc. are doing good job and earning

heavy profit consider the economy of our country. It is also emerging into a

powerful economy and after a decade or so; India will be an economic power of

this region.

The main aim of my study is that find out the market share of branded PCs &

future aspect of LG MyPc in Indian market. For this purpose I critically examined

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the sales of different brands of PCs like HP, LG, IBM Compaq, HCL, PCs, Zenith,

Wipro.

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INTRODUCTION OF MARKETING

In the decades of 50s marketing was a far simpler subject. Consumer marketing

largely operated on mass of marketing principle & business-marketing principle

concerned itself will how to build the sales force. In those days, marketers faced

a number of tough decisions. They have to determine products features &

quality, establishes accompanying services set the price, determine the

distribution channel.

Many managers think of marketing as a company department whose job is to

analyze the market, discern opportunities, formulate marketing strategies,

develop specific strategies & tactics, propose a Budget & establish a set of

control. But there is more to marketing: marketing must also push the rest of the

company to be customer oriented & market driven.

Marketing is more then a company department; it is an orderly & insightful

process for thinking about and planning for market. The process is applicable to

more then just goods & services. Anything can be marketed ideas, events,

organizations, places, personalities.

The process is being with researching the relevant marketplace to understand its

dynamics and to identify opportunities to meet existing or latent needs. It involves

segmenting.

The marketing & those segments that the company can satisfy in a superior way.

It involves carrying out a plan, evaluating the results & making further

improvements.

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A social definition shows the role marketing plays in society. One marketer said

that marketings role is to deliver a higher standard of living. A social definition

that serves our purpose follows: -

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 mostimportant 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 & science of 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 under which organizations conduct marketing activities: the

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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 in obtaining

the product than in its feature.

THE PRODUCT CONCEPT :-

The product concept holds that consumers will prefer those product that offers

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, willordinarily not buy enough of the organizations products. The organization must

therefore, undertake an aggressive selling 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

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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 conceptholds 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 society well 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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Yet a number of companies have achieved notable sales & profit gains by

adopting & practicing the societal marketing concept.

We can say with some confidence that the marketplace isnt what it used to be.

It is changing radically as a result of major societal force such as technological

advancement, globalization, and deregulation.

Customers increasingly expect higher quality & service & some customization.

They perceive fewer real product differences and show less brand loyalty. They

are showing greater price sensitivity in their search for value.

Brand manufactures are facing intense competition from domestic & foreign

brand, which is resulting in rising promotion cost & shrinking the profit margin.

Store-based retailers are suffering from an over saturation of retailing. They are

facing growing competition from catalog houses; direct-mail firms, newspapers,

magazine & TV direct customer to ads & the Internet. They are marketing an

experience rather than a product assortment.

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EVOLVING VIEWS OF MARKETINGS ROLE IN THE COMPANY

a) Marketing as a equal function

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Production Finance

Marketing Human resource

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b) Marketing as a more important function.

c) Marketing as a major function

(d) The customer as the controlling function

(e) The customer as the controlling function.

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OBJECTIVES OF THE RESEARCH

The objective of the study is To determine the market share of

branded computers. The main theme was to check the current & future

demand of PCs in the market.

The objective of the topic Market study of Branded PCs consists every

major & minor aspect of the term Marketing.

The topic consists valuable findings & suggestions made on the basis of

sequential marketing research process for the marketing mix as Product, Price,

Place, Promotion and intermediarys channels, services provided by the LG

Electronics India Pvt. Ltd.

I have got major opportunity to explore all the aspect of Marketing under the topic

Market study of Branded PCs in particular ofLG Electronics India Pvt. Ltd.

These aspects are really treasure for the researcher as well as for the reader of

the research to attain maximum knowledge about the term Marketing.

The main theme of research was to check the demand of PCs and sales of PCs

of other companies in the market. All the market research has to design on the

basis of above discussion.

Following are the main objectives of my research

Know the market share of branded PCs like IBM, HCL, Compaq, PCs, HPZenith, LG My PC.

To know the future aspect of LG My PC in NCR region.

The main theme was to check the current & future demand of PCs.

To know the retailers view about the market & customers.

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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 is a global force in electronics,

information and communications products with 2004 annual sales of US $38

bi ll ion (consol idated). With more than 66,000 employees working in 76

subsidiaries in 39 countries around the world, LG Electronics is comprised of

four main business companies including Mobile Communications, Digital

Appl iance, Digi tal Disp lay , and Digi ta l 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 150-721Tel: 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

Ai r Cond iti on er , Re fr ig er at or, Mi cr ow av e Oven , Wash ing Mach ine , Va cu um Cl ea ne r, Compres so rfor Air Condit ioner, Compressor for Refrigerator

Digital Display Company

Digital TV, PDP, Monitor

Digital Media CompanyCD-ROM Drives, DVD-ROM Drives, CD Rewritable Recorder, VCR, DVD Player, Audio , SecuritySystem, 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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http://www.lge.com/http://www.lge.com/about/corporate/html/ceo.jsphttp://www.lge.com/about/corporate/html/business_telecom.jsphttp://www.lge.com/about/corporate/html/business_digitala.jsphttp://www.lge.com/about/corporate/html/business_digitaldisplay.jsphttp://www.lge.com/about/corporate/html/business_digitalmedia.jsphttp://www.lge.com/http://www.lge.com/about/corporate/html/ceo.jsphttp://www.lge.com/about/corporate/html/business_telecom.jsphttp://www.lge.com/about/corporate/html/business_digitala.jsphttp://www.lge.com/about/corporate/html/business_digitaldisplay.jsphttp://www.lge.com/about/corporate/html/business_digitalmedia.jsp

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Financial Performance:Turnover for

1997RS. 125 Crores

Turnover for

1998RS. 485 Crores

Turnover for 1999

Rs. 1056 Crores

Turnover for 2000

Rs. 1903 Crores

Turnover for

2001

Rs. 2216 Crores

Turnover for 2002

Rs.3000 Crores

Turnover for 2003

Rs.4500 Crores

Turnover for 2004

Rs.6500 Crores

Turover of the LGEIL

125485

1056

19032216

3000

4500

6500

0

1000

2000

3000

4000

5000

6000

7000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Turoverin

Crores

LG has been able to craft out in five years, a premium brand positioning in the

Indian market and is today the most preferred brand in the segment

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Color Televisions for 2002, LG has already achieved the one million mark in the

month ahead of its target.

LG Electronics India is the fastest growing company in the consumer electronics,

home appliances and computer peripherals industry today. LG Electronics is

continually providing superior technology products & value for money to over 50

lakh households in India.

LG is a No. 1 in the Air Conditioners in India and among the top priority in the

sale of all other consumer electronics. In addition, LGs Golden Eye television

offers the worlds most advanced picture system.

There are 18 branches offices covering whole of India in the following cities

Ahmadabad, Bangalore, Bhuwaneshwar, Kolkata, Chandigarh, Chennai, Cochin,

Patna, Guwahati, Hyderabad, Indore, Jaipur, Lucknow, Mumbai, New Delhi,

Haryana, Meerut & Pune. While corporate office is situated at Greater Noida, U.P

& Regd. Office at Okhala Industrial Estate, New Delhi.

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

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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 a 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 per annum

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 units

R&D Thrust:

LG aims to spend 2-3% of its total revenue on Research & Development (R&D)

and hopes to establish India as an R&D hub for consumer electronics, home

appliances and GSM handsets.

At the end of 2004 LG had around 70 people in R&D at Pune, including

Hardware and Software. This will be scaled up to 350 by the end of 2007, and

550 by 2010.

At Noida, its R&D strength was 190 at the end of last year. This will be increased

to 210 by the end of 2007, and further to 300 by the end of 2010.

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At its Bangalore centre, the R&D strength was 420 by the end of 2004. This will

go up to 900 by the end of 2007, and 1500 by the end of 2010.

By the end of 2010, LG will have 1,690 people doing R&D in Software and

another 660 in Hardware, taking its total manpower strength in R&D to 2,350.

At the end of 2004, LG had spent US$23mn and US$20mn on its Software and

Hardware centres in the country respectively. By the end of 2007, it will increase

to US$67mn and US$43mn. By 2010, it will go up further to US$124mn and

US$88mn.

Market Share:

CTVs - LG has sold the highest ever number of CTVs in a month, and has set a

landmark for the industry by selling over one million CTVs in a single calendar

year. According to the recent retail audit conducted by ORG-GFK (Jan 2005), LG

has consolidated its leadership position in CTVs with a market share of 26.7%.

Washing Machines - In the overall category, LG has emerged and established

itself as the No.1 brand with a market share of 35.2%. In the Semi Automaticsegment, it has attained a market share of 36.5% while in the Fully Automatic

segment it makes up 34.5% of the total market.

Refrigerators - LG leads the market in refrigerators with a market share of 28.1%.

Further in Frost Free LG has emerged as the undisputed leader with a market

share of 35.4%.

ACs - The company currently enjoys a market share of 45% in the Room AC

(Window and Split) segment.

Microwave Ovens - LG is the leader in this category with a market share of

41.4%.

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IT Products - LG has already become No.1 in the Optical Storage Devices (OSD)

segment and is fast emerging as the market leader in the monitor segment also.

It has around 34% share in Monitors and 44% in OSD apart from 15% in

Personal Computers (PCs).

Financial Results:

Division 2002 2003 2004

(Rs cr) %contribution

(Rs cr)%

contribution%

growth(Rs cr)

%contribution

%growth

Consumer

Electronics 1495 45 2049 46 37 2810 43 37Home

Appliances1507 45 1996 44 32 2760 42 38

IT 313 10 448 10 43 715 11 60

GSM * 7 215 3 2971

Total 3315 4500 36 6500 56

* LG entered the mobile phone market in October 2003

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Vision 2010

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.

PHILOSOPHY

Complete in the International Market with a Global Mindset.

Maximize value for Customers, Employees and Shareholders.

Pursue the best in the class through Management by Principal.

Contribute to the society through good corporate citizenship.

INITIATIVES

Redesign business portfolio.

Develop new strategic business.

Globalization.

Acquire promising differentiated technology.

Cultivate high performing leader.

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Web-based Eco-Design System

Of LG

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MARKETING MIX

Marketing mix is the set of marketing tools that the firm uses to pursue its

marketing objectives in 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

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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 by three basic elements- features & quality, services mix & quality &

price appropriateness.

Kotler says that A product is anything that can be offered to a market to satisfy

the wants or needs of the consumers.(*)Products that are marketed includephysical goods, services, events, experience,

persons, place, properties, organizations, informations & ideas.

A firm is not selling a product. It sells only the product benefit. Product is most

important variable in the marketing mix of the firm. If the product is sound &

easily acceptable to the market if it satisfies resellers need & consumer

preference & is carefully fitted to the needs & desires of the customers, sales

success is assured. Hence product is the center of all-marketing policies &

decisions. The marketing planning begins with the product & also ends with the

product. (**)

(*) Philip Kotler, Marketing Management, Millennium Edition, PHI, N.D.

(**) S.A. Shrelekar et al. Principle of Marketing, II ed. Himalaya Publication N.D.

As for as the LG Electronics India Pvt. Ltd. Is concerned near about 11

products. All of these are available in the market. Company plans to increasetheir product range in the future. A brief description of some products is as

follows: -

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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.

Price is the exchange value of a product or service always expressed in tem ofmoney. In other words, price of a product or service is what the seller feels its

worth on term of money, when offered to a buyer.

To the customer, the price is an agreement between seller & buyer concerning

what each is to receive. The buyer is interested in the price of the whole

package consisting of physical product plus a bundle of expectation and

satisfaction. The consumer has numerous expectations such as after sale

service, replacement of parts, technical guidance & money other benefits.

However, to the seller, price is a source of revenue and a main determinant of

profit. To the seller, price is equivalent to the total product offering. This offering

includes a brand name, a package, product benefits, after sale service and so

on. We can define price as the money of the product or service agreed upon in a

market transaction.

So,

Price in money = physical product + bundle of expectations

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The Price Factor of PCs

India is a price-sensitive market. When the PC was launched in 1984, it cost wellover $4,450 here, and in the late 1980s, the price was around $2,220.

While the price was around $1,100 in the mid-90s, today, a MNC brand with

multimedia costs only around $761.

The Indian market has seen local assemblers stealing a march over their

domestic and multinational computer hardware rivals. More than 50 percent of

total PC shipments are now from unbranded manufacturers, the magazine said.

Four years ago, they accounted for less than 40 percent of the market.

The Indian PC industry has also witnessed the rise and fall of many a domestic

brand. Prominent players who fell out include DCM-DP, Usha, PCL, Sterling and

Unicorp, though many Indian brands including HCL today account for nearly half

of the branded PC sales in the country.

Pricing adopted by the LG Electronics India Pvt. Ltd.

The pricing adopted by LG Electronics India Pvt. Ltd. Can describe under this

subhead: -

Competitive pricing: - LG Electronics India Pvt. Ltd. adopted the method

of pricing called competitive pricing for their PCs. Under this policy, the

price of LG PCs is fixed according to the price of other competitor brand of

the market & the price moves accordingly.

The price list of the IT Products of LG Electronics

India Pvt. Ltd. Is as follows: -

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GSC 50-5Intel Celron M1.3Ghz,

256RAM, 40GB Hard

disk, 15TFT Display

MRP : RS 37,920

LSC 50-EIntel Pentium M

1.6GHz, Mobile Tech.256MB RAM 40GB

Hard Disk15TFTDisplay

MRP :RS 52,480

LSC 50-E Intel Pentium M

Processor 1.6GHz

Mobile tech. 256RAM,40 GB Hard

disk15TFT Display

MRP : RS 60,280

XS3-E049NPGIntel 865GV-Chipset

,256 MB-DDR

MRP Rs.39990

XS1-D419HPGIntel 845GV-Chipset

,128 MB-DDR

MRP Rs.29990

XS1-WH19LP1Intel Celeron 2.0,128

MB-DDR

MRP Rs.19990

XS1-WH1SLP2BCI0115Intel Celeron

Processor 2.0 GHz ,128 MB RAM

MRP Rs.18630

XS1-VI1SLP1BCI0117 Intel Celeron D MRP Rs.22790

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http://www.lgindia.com/productdisplay.aspx?mapid=1189&modno=LW70&region=28&pid=1190http://www.lgindia.com/productdisplay.aspx?mapid=1188&modno=LW60&region=28&pid=1189http://www.lgindia.com/productdisplay.aspx?mapid=1187&modno=LS70&region=28&pid=1188http://www.lgindia.com/productdisplay.aspx?mapid=1228&modno=XS3-E049NPG&region=28&pid=1229http://www.lgindia.com/productdisplay.aspx?mapid=1227&modno=XS1-D419HPG&region=28&pid=1228http://www.lgindia.com/productdisplay.aspx?mapid=1226&modno=XS1-WH19LP1&region=28&pid=1227http://www.lgindia.com/productdisplay.aspx?mapid=1147&modno=XS1-WH1SLP2BCI0115&region=28&pid=1148http://www.lgindia.com/productdisplay.aspx?mapid=1150&modno=XS1-VI1SLP1BCI0117&region=28&pid=1151http://www.lgindia.com/category.aspx?CatID=158&MaiCatID=67http://www.lgindia.com/productlist.aspx?catid=68http://www.lgindia.com/productdisplay.aspx?mapid=1189&modno=LW70&region=28&pid=1190http://www.lgindia.com/productdisplay.aspx?mapid=1188&modno=LW60&region=28&pid=1189http://www.lgindia.com/productdisplay.aspx?mapid=1187&modno=LS70&region=28&pid=1188http://www.lgindia.com/productdisplay.aspx?mapid=1228&modno=XS3-E049NPG&region=28&pid=1229http://www.lgindia.com/productdisplay.aspx?mapid=1227&modno=XS1-D419HPG&region=28&pid=1228http://www.lgindia.com/productdisplay.aspx?mapid=1226&modno=XS1-WH19LP1&region=28&pid=1227http://www.lgindia.com/productdisplay.aspx?mapid=1147&modno=XS1-WH1SLP2BCI0115&region=28&pid=1148http://www.lgindia.com/productdisplay.aspx?mapid=1150&modno=XS1-VI1SLP1BCI0117&region=28&pid=1151

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MB/s, 7200 rpm

GCR-8523BCD-ROM Drive

MRP Rs.650

GCE-8525B CD-R/RW Drive MRP Rs.1250

GCC-4521BCombo Drive

MRP Rs.2250

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E700S17 inch FLATRON

Monitor

MRP Rs.8500

900B19" Studio works

Monitor

MRP Rs.12500

700E

Normal MonitorMRP Rs.4500

500G15" Studio works

Monitor

MRP Rs.4750

L1720B17 inch LCD

MRP Rs.26000

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THE THIRD P PROMOTION

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 self initiated effort to establish channel of information &persuasion to facilitate or faster the sale of goods or services, or the

acceptance of ideas of points of view. It is a non-price competition.

Broadly speaking, promotion means to push forward or to advance ideas in

such a way as to gain its acceptance & approval. It is an effort by the

marketer to inform and persuade buyer to accept, resell, recommend, or use

the article, services or ideas, which is being promoted. The promotional

activity always attempts to affect knowledge, attitude, preferences & behavior

of recipient, i.e. buyers. The element of persuasion to accept ideas, products,

services etc., is the heart of promotion.

You may have the best product, package & so on. It may have a fair price.

But people will not buy your products, if they have never heard of it, and they

are simply unaware of its existence.

The market must communicate to his prospective buyer & provide themadequate information in a persuasive language. People must know that the

right product is available at the right place & at the right price. This is the job

of promotion in marketing. In essence, promotion is the spark plug in our

marketing mix. It is said that:-

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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.

1. Sales promotion.

2. Advertising.

3. Publicity.

4. Personal selling.

5. Trade Fairs & Exhibitions

6. Demonstration

1. Sales promotion

Sales promotion is an important instrument in marketing to lubricate the

marketing efforts. Today, sales promotion is a necessity & not a luxury. It is

not expenditure, it is an investment, which can pay a rich dividends. It is an

integral part of marketing effort.

In a specific sense, sales promotion includes those sales activities that

supplement both personal selling & advertising & coordinated them and help

to make them effective such as displays, shows and expositions,

demonstration and other nonrecurring selling effort not in a ordinary routine.

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Sales promotion aims at stimulating the purchasing at the point of sales &

dealers effectiveness at the retail channel of distribution.

Sales promotion with the reference of LG Electronics India Pvt.

Ltd.

Company plans to follow two kinds of promotional tool for their products.

They are: -

(a) Dealers promotion

(b) Customers promotion

(a) Dealers promotion

To make a proper channel of distribution & to increase the market share of the

company, corporate plans to promote their dealer or retailers through the various

promotional strategies. Under which they provide a price off, a straight discount

off the list price. The offer encourages retailers as well as distributors to buy a

quantity or carry a new item.

As it is company provide allowances to the distributors for the carrying out of the

companys brand. An advertising allowance compensates retailers for advertising

the companys products.

Company also provides free goods to the distributors as the offer for taking up

extra goods or for carrying new products. In the extra company plans to organizethe industrial associations in the form of trade fairs & conventions o stimulate the

sale result of their intermediaries.

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displaying their products. This brings companys product and consumers in direct

contact. Seeing is believing is the essence and basic concept of large-scale

exhibitions and trade fairs. These works at all the three levels viz.; consumer

level and sales force level.

5. Demonstration

Demonstration is those tools of sales promotion, which are used for all the three

levels of sales promotions. Viz., consumer level, trade level & sales force level.

Companies reset to product demonstrations when it comes up with a new

product.

Following are different forms of demonstration:

Demonstration at retail stores

School demonstration

Door to door demonstration

Demonstration to key people

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THE FOURTH P -- PLACE

Marketer has to ensure the availability of its products to the target customers. If a

product is not available to the target customers at the right place, then he/she

may shift to competitive products. So place decision relates to :

(i) Channel decision what kind of distribution channels a company

adopts between plants & consumer.

(ii) Distribution channel policy whatever to go for extensive or

selective or exclusive distribution.

(iii) Degree of selectivity among wholesalers & retailers.

(iv) Effort to get the cooperation of the trade.

(v) Physical distribution decision includes logistics, transportation,

warehousing, material handling, bulk packaging; etc.

Meaning of channels of Distribution

Goods produced by the manufacturers must come to the knowledge of theultimate consumers. This is arranging by the sales promotion activities like

salesmanship & advertising. By mere knowledge, the prospective consumers are

not happy. The products must reach their hands for actual use. Channels of

distribution are paths through which products move from the point of production

to the point of consumption. Distribution channels are also called Trade

channels.

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COMPETITORS

Major Brands of Computers in India

HCL Infosystems

HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its

origins in 1976. For over quarter of a century, we have developed and

implemented solutions for multiple market segments, across a range oftechnologies in India.

The countrys number one desktop brand had yet another great year selling

4.76 lakh units. The company targeted aggressively the B and C class cities and

upped its distribution network. The significant milestones over the last year

include the launch of the low cost Ezeebee Pride that came with an attractive

price tag of Rs 12,990. It attacked all the buying segments with low cost

processors like Via to industry standard P4 HT offerings. The aggression HCL

showed in pricing its product in a way kick-started the price war with brands like

Acer, and vendors like HP cutting down end-user price points. Another significant

development for HCL was its launch of the high-end home PC called Neo,

complementing its Beanstalk range. Neo was also the first desktop brand in India

to come with Windows XP Media Center OS. Meanwhile, on the Notebooks front,

HCL is the exclusive distributor of Toshiba in India whose volumes scaled to

20,000 units, compared to last years 11,600 units. With Toshiba aligned to the

Higher end of the spectrum HCL was unable to tap the low and mid-end

segments of the portables. And to plug that, during the year the company made a

low key launch of its own brand of notebooks called eZeebee and Powerlite,

which summed up to 3,000 units during the fiscal. Meanwhile, the banking

vertical did buy aggressively with large mandates from SBI and other

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nationalized banks. From the government side, nodal agencies like Tamilnadu

ELCOT also went for large-scale installations. As a result of growing demand for

its offerings, the company is in the process of expanding its Pondycherry plant.

Acer Computer International Ltd

Few IT companies offer the breadth and depth of products that Acer Group does.

Leveraging the vast collective technological resources available - Acer India (Pvt)

Ltd., was incorporated as a wholly owned subsidiary of Acer Computer

International Ltd. on 9th September 1999. Acer's mission in India is to translate

the Group's goal of making computer technology easier to use and more

affordable - to everyone in this country. With a focused customer-centric

approach, Acer in India is offering unmatched uptime for all it's systems through

a vast network of Service points, innovative and user friendly functionality while

continuously lowering barriers that limit the access to the fruits of technology.

Zenith Computers

This Indian company has, over the years, reinvented itself in more ways than

one. In that, FY 2004-05 can be called the year of innovation and new product

launches for Zenith. It launched seven notebookscalling it the power of seven

and priced it aggressively, starting from Rs 35K for a low-end model and a

Centrino at the sub Rs 60K. With its state of the art plant in Goa, eniths

manufacturing capabilities got upped considerably and as a result of the number

of manufacturing best practices the company put in place, it went ahead fullsteam. The company claims that its impressive performance was a result of it

introducing higher and better range products, and backing them with superior

quality control and distribution. Meanwhile, on the exports front, the company had

mandates from Bangladesh and other SAARC countries, and its entire product

offerings were certified with CE and FCC norms.

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IBM

The acquisition of IBMs PC division by Lenovo in December 2004 was probably

a shocking and unexpected development in the global PC industry. Lenovo took

over IBMs personal computing division and in the bargain became the third

largest computer company in the world. According to IDC, Lenovos 2004 product

volumes stood at 14 mn units. Meanwhile for IBM India, in the first three quarters

of 2004, it shipped close to 39,450 ThinkPad notebooks as against 16,036 the

corresponding period the previous year, representing a 146% growth. What

drove the demand is buying from two kinds of consumersfirst time notebook

buyers went for the low cost sub Rs 40k notebooks, while consumers who

already owned notebooks went for high-end wireless notebooks. Overall, IBMs

market share in the notebook space hovered around 26% during the year.

HP (Hewlett Packard India Ltd.)

HP delivers vital technology for business and life. The company's solutions spanIT infrastructure, personal computing and access devices, global services and

imaging and printing for consumers, enterprises and small and medium business.

The 2002 merger with Compaq Computer Corporation forged a dynamic,

powerful team of 140,000 employees with capabilities in 178 countries doing

business in more than 40 currencies and more than 10 languages. Revenues for

the combined companies were $72 billion for the fiscal year that ended October

31, 2002. Chairman and CEO Mark Hurd leads HP, which has corporate

headquarters in Palo Alto, California.

In 1993, Vectra was the first foreign PC to be marketed in India. However, its JV

with HCL ran into trouble and HP reentered the Indian PC market in early 1998.

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By that time, IBM and Compaq had entered and established their brands at the

premium end. HP immediately made a dent into the market through its

attractively priced PCs bundled with peripherals.

Since then, both HP and Compaq have been engaged in a relentless price war to

woo the homebuyer. According to IDC, HP has moved up to be the No.2 brand

behind HCL in the fourth quarter of 1999.

HP has an assembling facility in Bangalore with a capacity to assemble 20,000

PCs a month. It has a retail presence in 60 cities through 135 stores.

Compaq India

The worlds largest seller of PCs entered India in 1994. Initially, the commercial

segment (large corporations, government, educational & research institutions)

was its main target segment. But with recession in the economy in mid 1990s

and the consequent slashing of IT budgets of corporate, it turned its attention to

the home segment. However, it soon realized that its PCs, although perceived

well on reliability and quality, were considered too expensive. The assemblers

and Indian brands were cornering a major chunk of the market. It slashed prices

of its sub brand Presario from Rs65, 000 to Rs50, 000 to penetrate into the price

conscious Indian households.

At the same time, Compaq is aggressively going after corporate segment by

offering a range of products tailored around services to meet specific needs. Its

merger with Digital Equipment further strengthened its position in the high-endserver market.

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RESEARCH METHODOLOGY

RESEARCH

Research Methodology is a systematic way, which consists of series of actions or

steps necessary to effectively carry out research and the desired sequencing of

these steps. The marketing research is a process of involves a number of inter-

related activities, which overlap and do rigidly follow a particular sequence. It

consists of the following steps:

1. Formulating the objective of the study

2. Designing the methods of data collection

3. Selecting the sample plan

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings

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52

SAMPLE DESIGN

DATA COLLECTION

DATA ANALYSIS

FINDINGS

RESEARCH DESIGN

OBJECTIVES OF THE RESEARCH

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RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a

particular study. A Research Design is the arrangement of conditions for

collection and analysis of the data in a manner that aims to combine relevance to

the research purpose with economy in procedure. Research Design is broadly

classified into three types as:

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with

describing the characteristics of a particular individual, or of a group of individual

under study comes underExploratory Research Design.

Exploratory Research Design

Exploratory Research is also termed as Formulative research studies. The

main purpose of such studies is that of formulating the problem for more precise

investigation. The major emphasis in such studies is on the discovery of new

ideas and insights.

Since our aim is to obtain complete and accurate information in the said studies,

the procedure to be used must be carefully planned. The research design make

enough provision for protection against bias and must maximize reliability, with

due concern for the economical completion of the research study.In this research design the objective of study is clearly defined and has accurate

method of measurement with a clear-cut definition of population which is to be

studied.

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SAMPLING DESIGN

It is needless to say that no investigator can study the entire population and

hence selects a few individuals belonging to the population for the purpose of

investigation.

A Sample Design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure adopted in selecting items

for the sample. The main constituents of the sampling design are as below: -

1. Sampling Unit

2. Sample Size

3. Sampling Procedure

4. Collection of Data

SAMPLING UNIT

A sampling framework i.e. developed for the target population will be sampled i.e.

who is to be surveyed.

Retailers & Distributors of PCs

SAMPLE SIZE

It is the substantial portion of the target population that are sampled to achieve

reliable results.

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I have taken 55 Retailers & Distributors as a sample.

SAMPLING PROCEDURE

The procedure to choose the respondents to obtain a representative sample, a

probability sampling technique is applied for the target market.

NON-PROBABILITY SAMPLING

It is a purposive sampling which deliberately chooses the particular units of the

universe for constituting a sample on the basis that the small mass that they so

select out of a huge one will be typical or representative of the whole. Non-

Probability sampling technique is used in the study because the random

selection of the universe i.e. all retailers cant be available randomly.

DATA COLLECTION

PRIMARY DATA

The primary data are those data that are collected afresh and for the first time.

And happen to be original in character. The primary data to be collected for the

study are: -

By Interviewing the retailers & distributors of PCs.

By Structured Questionnaire.

SECONDARY DATA

Secondary data are those data which have already been collected by someoneelse and which already had been passed through the statically process. The

secondary data to be collected for the study are: -

Publication of the company

Periodical of the company

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By CompaniesWebsites

RESEARCH INSTRUMENT

STRUCTURED QUESTIONNAIRE: -

A Questionnaire consist of a number of questions printed or typed n a definite

order on a form or set of forms. It is the set of questions presented to the

respondents for their answers. When the questions have only two alternatives or

of multiple choices, then it is known as closed-end questionnaire,which is hence

used the given study.

Research Step

Step-1

The topic MARKET STUDY OF BRANDED PCs was selected and a

synopsis containing the title of the organization & objective was prepared.

Step-2

A questionnaire is prepared forRetailers & Distributors consists of objective

type questions; & given to the respondent.

Step-3

The questionnaire was circulated to a random sample of 55 Retailers &

Distributors in order to find out answers to the given questions.

Step-4

The researcher for data analysis collected the questionnaire duly filled by the

respondents.

Step-5

After going through the entire questionnaire, researcher is able to find out

various aspects related with topic.

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TABULATION & ANALYSIS OF DATA

Data analysis with the help of questionnaire filled up by the Retailers and

Distributors. The responses are very encouraging. 75% responses are obtained

& analyzed carefully.

DATA ANALYSIS FOR QUESTIONNAIRE OF RETAILERS

Market share of major players in the industry

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The study shows the following figures about the market share of major players in the

industry, which is shown in the table and pie chart below:

HCL 12.25

HP 10.65

LG 10.25

IBM 5.78

Wipro 2.53

Zenith 3.75

Lenovo 10.50Compaq 13.99

Dell 5.25

Apple 0.01

Others 0.04

Assemble 25.00

Market Share of Branded PCs in Industry

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The total output of the PCs in 2003-04 & 2004-05

Total Output Units

Company 2005-06 2006-07

Units Units

HCL 273445 300790

HP 227620 250382

IBM 109570 120527

ZENITH 82669 90936

Lenovo 180030 198033

Compaq 585200 731500

Dell 95000 104500LG 115600 127160

Wipro 46434 51077

Apple 25000 27500

Assembled 102812 113093

Total 1843380 2115498

This chart shows that the maximum turnover of others & assembled computers in

2003-04 & 2004-05 then the turnover of HCL is greater then other brands and LG

turnover in 2004-05 is 95600.

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Market share of branded PCs

HCL 8

HP 6

IBM 4

ZENITH 3

Lenovo 2

Compaq 8

Dell 3

LG 10

Wipro 2

Apple 2

Others 2

Assemble 22

Total 55

Market Share of Branded PCs

This pie chart shows that the highest market capture by the HCL in branded market &

its share is 15% then HP covers the 12% market & LG has also capture 9% of the

market in 2004-05 but the assemble computers capture the 37.57% of the market

share. Here the assemble PCs also cover the big market share in this region.

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Types of PCs sold by the Retailers & Distributors

Branded18 Retailers &

Distributors

Assemble12 Retailers &

Distributors

Both25 Retailers &

Distributors

Total

55Retailers&

Distributors

Types of PCs sold in the market by the Retailers &

Distributors

Branded, 18,

33%

Assemble, 12,

22%

Both, 25, 45%Branded

Assemble

Both

45% retailers & Distributors selling both the assembled & branded computers,

33% retailers & Distributors selling only the branded computers & 22% retailers &

Distributors selling only assembled computers.

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Customer preference of the PC

Customer preference of the PC

Branded, 35,

64%

Assemble, 20,

36%Branded

Assemble

64% retailers & Distributors said that the customer purchase branded computers

& 36% retailers & Distributors said that the customers purchase the assembled

computers.

Retailers &Distributors

Branded 35

Assemble 20

Total 55

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No. Brands sold by the retailers & distributors

No. of brands sold by the Retailers &

Distributors

Only 1, 9, 16%

2, 13, 24%

2 to 5, 19, 35%

More the 5, 14,

25% Only 1

2

2 to 5

More the 5

16% retailers & distributors dealing with only one brand of the computers, 24%

retailers & distributors dealing with two brands of the computers, 35% retailers &

distributorsdealing with 2 to 5 brands of the computers & 25% retailers &

distributors deal with more then 5 brands in the market.

No. Of BrandsRetailers &Distributors

Only 1 9

2 13

2 to 5 19

More the 5 14

Total 55

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PC Brands Higher In Demand

PC Brands Higher In Demand

LG

9% HCL

15%

Compaq

9%

Assemble

36%HP

13%

Zenith

5%

Wipro

4%

IBM

9%

LG

HCL

HP

Compaq

Zenith

Wipro

IBM

Assemble

9% retailers & distributors said that the customer prefer LG, 15% retailers said

that the customer prefer HCL, 13% retailers & distributors said that the customerprefer HP, 9% retailers & distributors said that the customer prefer Compaq, 5%

retailers & distributors said that the customer prefer Zenith, 4% retailers &

distributors said that the customer prefer Wipro, 9% retailers & distributors said

that the customer prefer IBM & 36% retailers & distributors said that the customer

prefer Assembled computers

BrandsRetailers&Distributors

LG 5HCL 8

HP 7Compaq 5Zenith 3Wipro 2IBM 5

Assemble 20

Total 55

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Average monthly demand of the LG MyPc

No. Of PCs Retailers

Up to 10 31

10 to 20 14

Above 20 10

Total 55

Average monthly demand of LG MyPc

3114

10

Upto 10

10 to 20

above 20

31% retailers & distributors said that average demand of LG computers is up to

10 units monthly, 14% retailers & distributors said that average demand of LG

computers is 10 to 20 units monthly & 10% retailers & distributors said that

average demand of LG computers is above 20 units monthly.

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Pricing Factor affects to the customers

Importance Retailers & Distributors

Very much 27

Almost 16

Less 7

No effect 5

Total 55

49% retailers & distributors believe that price is the very much important affecting

factors to the customers, 29% retailers & distributors believe that price is almost

important affecting factors to the customers, 13% retailers & distributors believe

that price is the less important affecting factors to the customers , 9% retailers &

distributors believe that price is not important affecting factors to the customers.

Pricing factor affects to the customers

49%

29%

13%

9%

Very much

Almost

Less

No effect

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Responses on the statement Customer is always best productseeker.

23

16

11

5

0

5

10

15

20

25

Strongly

agreed

Agreed Disagreed Cant't say

Strongly agreed

Agreed

Disagreed

Cant't say

23 retailers & distributors are strongly agreed with the statement that customer is

always best product seeker, 16 retailers & distributorsare agreed with the

statement that customer is always best product seeker, 11 retailers & distributors

are disagreed with the statement that customer is always best product seeker &

5% retailers & distributors cant say any thing on the

statement that customer is always best product seeker.

Strongly agreed 23

Agreed 16

Disagreed 11

Cant say 5

Total 55

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Important factors affects to the PC customers

FactorsRetailers &Distributors

Price 12

Quality 16

Brand 14

Availability 4

Advertisement 9

Total 55

Important factors affects to the customers

22%

30%25%

7%

16%

Price

Quality

BrandAvailability

Advertisement

22% retailers & distributors believe that price is the important factor at the time of

purchasing a product, 30% retailers & distributors believe that product is the

important factor at the time of purchasing a product, 25% retailers & distributors

believe that brand is the important factor at the time of purchasing a product, 7%

retailers & distributors believe that availability is the important factor at the time of

purchasing a product & 16% retailers & distributors believe that advertisement is

the important factor at the time of purchasing a product.

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Importance of profit margin for retailers & Distributors

Most important 33

Important 17

Not important 5

Total 55

Importance of profit margin for retailers &

distributors

60%

31%

9%

Most important

Important

Not important

60% retailers & distributors believes that profit margin on the product is most

important for the retailers & distributors, 31% retailers & distributors believes that

profit margin on the product is important for the retailers & distributors & 9%

retailers & distributors believes that profit margin on the product is not important

for them.

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No. of brands confused the customers

Yes 35

No 20

Total 55

Does the large no. of brands makes customer

confused?

64%

36%

Yes

No

64% retailers & distributors are agreed with the statement that large number

of products makes customer confused, 36% retailers & distributors are not

agreed with the statement that large number of products makes customer

confused.

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FINDINGS

Indian PC buyers find value in brands

The market for assembled personal computers (PCs) is shrinking fast as branded

majors continue to slash prices and plug the gap. Even as assemblers realize

that they no longer have an edge, either in pricing or after-sales service,

optimists indicate that it's not the end of the road for them yet.

As of now, the message is loud and clear. Gone are the days of 65-70% market

share for the assembling segment when first-time PC buyers preferred going to

standalone hardware professionals. With the crashing prices of branded PCs, the

Indian consumer, including the first time user, is seeing more value in branded

products. While the total Indian PC market has been growing between 25-30%

annually, the assembled segment has actually reported a negative growth over

the past 12 months. Till a year ago, the price difference between branded andassembled PCs was 15-20%. Now, it is 6-8%. Why will a consumer buy an

assembled PC rather than a branded PC? In the last one-year, PC

manufacturers like HCL, Zenith, PCS and even local brands like Amar PC, have

been successful in bringing operational efficiency in souring hardware

components. Together with lower duty structures and efficient management PC

production, the brands have been able to offer desktop computers at sub Rs

18,000 level for entry-level users.

Branded computer vendor has to pay an average tax of 10-12%. With the

customs duty touching zero on 200 IT hardware components and devices from

March 1, and introduction of value added tax (VAT) from April 1, the simplified

tax structure will help the organized player rather than the unorganized

assemblers.

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Desktops: The Volumes Game

In the previous year (FY 2003-04) the major trend was the assemblers shedding

market share in favor of the branded players. That trend saw further escalation

during FY 2004-05 with the assemblers slice shrinking further as against the

previous years 58% to 48% for FY 2004-05. A further downslide is expected on

the assembler space in the days ahead. With the Intel based branded PC coming

into the sub-Rs 18,000 mark, the assemblers found the going difficult. Some took

the more lucrative route by becoming resellers, and in the bargain averaged

better margins.

Demand of the PCs

With the growing need for computerization, branded PC demand in public sector

organizations and in the government is on the rise. Demand from the private

sector, especially in the educational institutes and home segment, is already

rising. The small office home office (SOHO) and small-and-medium enterprise

(SME) segments are also driving hardware demand. The growing popularity of the

Internet has also raised the demand for branded PCs.

About The Assemblers:

The once ubiquitous neighborhood friendly assemblers were losing their face in

the heat of intense competition from the branded segment of the PC industry.

Industry estimates peg the share of assembles for the fiscal at around 48%. A

MAIT-IMRB study said that market share for assembled PCs, which was 57% in

FY 2003-04 was reduced to 44% in the first-half of FY 2004-05. Margin

pressures and the 4% countervailing duty (CVD) that the government imposed

on computer components put great stress on assemblers. In this scenario, better

margins are there for those manufacturers who import fully built PCs as there

would not be multiple taxation. While big players absorbed the tax and duty

changes, the budget-constrained assemblers found the going difficult as

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customer loyalties shifted more to the branded side. Also, PC buyers found the

service levels deficient with assemblers who were not able to offer quality and

timely service unlike a branded PC manufacturer. In all, tough times are ahead

for assemblers unless they re-invent and align with branded players.

Good News For PC Vendors:Indian PC Market up 34.4% in 2004

The industry recorded the second highest shipments at 33.87 lakh in Asia-Pacific

region

Gartner, an industry expert, expects Indian market to grow by 29.3 per cent in

2005, due to the strong economic indicators.

32,67,885 desktops were sold in 2004 in India.

PC Industry grew at a healthy rate of 26%, with volumes crossing 3.3 mn

units

Assemblers found the going difficult as cheaper branded PCs gained more

market share

B and C class regions continued to represent a big opportunity for PC

business

In FY 2004-05, assemblers lost share to brands in a big way. Their market

share shrink furtherfrom 58% to 48%

Assemblers and Intel got very aggressive in B and C class towns with

active marketing and promos

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SWOT ANALYSIS

S: - STRENGHTS

Quality based products.

Experience of international market.

Developed R & D.

Increasing range of products.

Suitable hierarchy of organization.

Reliable products.

Customer satisfaction oriented.

Skilled employees at all level.

Ethical work towards society.

Looking forward for different types of other field to make organization

wealthy.

W: - WEAKENESSES

Unawareness of Brand Name.

Small market segment.

Duplicity of products.

Lesser control over duplicity.

Price discrimination & wrong pricing.

No proper promotional strategies.

Weak market intelligence system.

O: - OPPORTUNITIES

Grasp maximum market share by utilizing well-developed R & D.

Having large no. Of professionals in surroundings.

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Customers are highly aware with the brand name & quality of the

products.

Rapid increase in demand of PCs, therefore highly potential market is

available.

Well-developed distribution channel in other electronic goods.

T: - THREATS

High competition from other brands.

Market slump.

Customers are highly confused by the promotional strategies followed by

the competitors.

Retailers are demand oriented.

High market share of assembled PCs

Beyond the above description I would like to mention it that in LG

Electronics India Pvt. Ltd. The whole pattern of marketing is quite

effective and is appreciable because they have established so huge

empire with in three to four years.

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LIMITATIONS

Every research is conducted under some boundations and this research is

not an exception. While doing the research some of the restraints had to

be faced such as: -

The researcher could not cover each & every retailer & distributor because

the sample survey was done.

There might have been tendencies among the respondents to amplify or

filter their responses under the testing conditions.

Since the results have been drawn on the basis of the information

provided by the respondents, chances of error might have crept in.

Since the study involved sampling method, Drop in or Go through error

might have crept in.

Unintelligent answers or misinterpretation of any question by the

respondent could not be corrected.

Personal Biases of retailers and distributors may affect their responses.

From all surveyed retailers and distributors only 75% have responded

positively.

.

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CONCLUSION

The outlook for FY 2005-06 is very positive, as vendors are bullish on huge

volume growth in both home and the enterprises, which could further drive the

PC volumes. A consolidation of vendor growth estimates for the ongoing

fiscal puts the volume grow that 32-34%. Intels P4 HT configurations will see lots

of traction and will start cannibalizing on its entry-level Celeron based offerings

as one is seeing a declining interest in Celeron based machines. The consumer

will be more willing to pay a small premium for P4 desktops. However, on the

portables front, mobile Celeron will be key to the growth of entry-level offerings

with the education segment expected to drive bigger volumes. Similarly, the

Centrino-based notebooks will further become affordable and will breach the Rs

45K barrier in the ensuing quarters of FY 2005-06. With the impact of the new tax

and duty regimes in place, most vendors consider that it only created a brief

confusion on the part of the vendors, channels, and the consumers, and many

believe that it will not create any major pricing fluctuations. It was a very eventful

year for the PC business in India and one only hopes this revival will drive biggergrowth in the days ahead.

As I made a comparative study of Monthly sale of different brands of PCs like

L.G, HP, Compaq, IBM, HCL, Zenith. I found HCL and HP to be the cutthroat

rival of L.G. This is because of the reason that many other brands deal in mainly

in their branded PCs and concentrate on them. But HCL & HP like the policies of

LG concentrate on the peripherals market too.

According to my study I found some discrepancies by the side of LG Electronics.

Many retailers and distributors complained of not having a proper channel for

sale. The problem arrives when the distributors start selling products to

customers directly, when the customer get the products at some what lower

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prices from the distributors, then it is very obvious why will they go to the dealer

& retailer.

So a proper channel should be made in which the distributors should supply

products to sub distributors, then the sub distributors should supply products to

the retailers or dealers. And finally it should reach to the customers through

them.

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SUGGESTIONS AND RECOMMENDATIONS

Almost 50% of the Retailers and distributors contacted complained of theservices given. So satisfaction of these 50% of retailers and distributors is

necessary, so the company should take measures by service section to come up

to their expectations, following are the main suggestions to be followed by the

company to improve the sales.

LG MYPCs price should be less.

Advertising material is not available there is a lack of pamphlets &

brochures for advertising.

Service should be improved.

Onsite service should be also improved.

Proper channeling of products from distributors to retailers.

Consistence policies should be followed regarding distributors.

Direct interaction between service members & dealers should be

there.

Improve dispatch and delivery of goods.

Action must be taken if call is not attended after 24 hrs of

registration call.

There should be proper coordination between sales person &

service people, because the sales person says something else & the

service people do something else.

Many dealers are unaware of LG MyPCs so it should be properly

supplied & made known to them.

The sale of LG MyPc is not very good in NCR region, if above suggestion

will be positively accepted by the company then the day is not far when

LG will be the best in this region.

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APPENDICES

QUESTIONNAIRE FOR RETAILERS & DISTRIBUTORS

We are carrying out a study for the knowledge of the current market share of the

Branded PCs, percentage rise in the sales of branded PCs & the future

aspect of LG MyPc in NCR region. We would appreciate if you will please

convey your view on the different questions referred to this questionnaire. On

behalf of the sponsor of this research study I thank you for sparing your

valuable time.

Name of the shop..

Address ...

1. Which PC you sell in the market?

a) Branded

b) Assemble

c) Both

2. In your view which PC do the customers prefer?

a) Branded

b) Assembled

3. How many brands you sell?

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a) Only1 b) 2 Brands

c) 2 to 5 Brands d) More then 5

4. Which PC is having mostly the higher demand?

a) LG b) HCL c) HP

d) IBM e) Compaq f) Zenith

g) Any other

5. What is the average monthly demand for LG MyPc?

a) Up to 10

b) 10-20

c) Above 20

6. In your opinion how much pricing factor affects to the customer?

a) Very much

b) Almost

c) Less

8. Are you agreed that the customers are always best product seeker?

a) Strongly agreed

b) Agreed

c) Disagreed

d) Cant say

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9. In present scenario which one is the most important factors for customers,

which affects the purchasing decision?

a) Price

b) Quality

c) Brand

d) Availability

e) Advertisement

10. Services make good relationship with customers & retailers?

a) Yes

b) No

11. How much importance of profit margin for retailers & distributors?

a) Most important

b) Important

c) Not important

12. Does the large numbers of product makes customer confused?

a) Yes

b) No

13. Monthly Sales In Percentage :

LGHCLIBMCompaq

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ZenithHPIBMDellWipro

Assembled

15. Opinion/suggestion for LG Electronics India Pvt. Ltd.

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Thanks for giving important details Name & Signature

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BIBLIOGRAPHY

BOOKS:

1. Kotler Philip, marketing management, millennium edition, New Delhi,

PHI 2002.

2. Sherlekar S.A. et al, Principles of Marketing, Second edition, Himalya

publication, New Delhi.

3. Kothari C.R. Research Methodology, Second edition, Wishwa

Publication, 2002.

CATALOG:

Catalog of LG Electronics India Pvt. Ltd.

MAGAZINES:

(a) Business standard

(b) Business world

(c) Data Quest.

INTERNET:

Information from official website of LG Electronics India Pvt. Ltd.

www.lge.com www.dqindia.com

www.lgindia.com www.pcquest.com

www.lgezbuy.com

www.google.com

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JOURNALS :

1. INDIAN JOURNAL OF MARKETING

2. ECONOMIC REVIEW

NEWSPAPER:

1. TIMES OF INDIA

2. HINDUSTAN TIMES

3. ECONOMIC TIMES