PROJECT REPORT ON CUSTOMER SATISFACTIONTOWARDS LG

SUBMITTED TO:Mr. Vivek Verma

SUBMITTED BY: Shefali Kalra

11BBA 29

DECLARATION

The successful completion of this project was a unique experience for me because by visiting many places and interacting with various people, I achieved a better knowledge about the field of marketing. The experience which I gained by doing this project was essential at this turning point of my career as this project is being submitted which contains detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session.

I, Shefali Kalra further declare that the information presented in this project is true and original to the best of my knowledge.

ACKNOWLEDGEMENT

Before I get into the thick of the things, I would like to add a few heart felt words for the people who gave unending support right from the stage the idea of the research was conceived. I express my deep sense of gratitude & sincere thanks to those who have helped me in developing this research work. It is impossible to put out or classify the assistance; it is the feeling that matters, & not the value.

First of all I would like to express my sincere gratitude to my Head of Department MRS. PREETI SUMAN for giving me an opportunity to do this research & extend her kind co-operation.

I owe Profound regards & gratitude towards Mr. Deepak Taneja who has continuously guided & supported me in all the tasks by giving me valuable insight into issues like The meaning of marketing practices, its uses, and studying an organisation.

I would also like to thank my university and faculty members without whom this project has been a distant reality & especially my Faculty Guide Mr. vivek verma for the continual support and guidance extended towards the result-oriented approach for the completion of the project.

Deepest appreciation & thanks go to my family for their patience & understanding, friends & classmates for their insights comments throughout the research.

Above all it is the grace & blessings of God Almighty, which made this, Endeavour a success.

CONTENTS

S.NO TOPIC PAGE NO

1. Declaration 22. Acknowledgement 3

3. Executive Summary 6- 7

4. Chapter-1: Introduction

Overview of Industry as a whole

Profile of the organization

History of the Organization

S.W.O.T Analysis of the Organization

Objectives of the study

Scope of the study Methodology

8-38

5. Chapter-2: Data Analysis and interpretation

Only in case of primary data

39-44

Chapter-3: Summary and Conclusion

Results of the study

Limitations

Suggestions and Recommendations

45-51

Bibliography 52

Appendix 53-54

 

ABSTRACT

This Dissertation project is a study of Market Strategy in white goods products of LG will be based on the comparison between LG consumer satisfaction.

 What are the factors that affect the consumer satisfaction?

 Determining the factors affecting the consumer satisfaction.

 What is the magnitude of those factors regarding the consumer satisfaction? Korean brands, LG , have cornered nearly half of the Rs 10,000crore (Rs 100 billion) Indian home appliances market for the first time in the later half of this year. The LG leads the market with around 35 percent of the overall market. In fact, except in the refrigerator segment, the two now have combined turnovers greater than the rest of the brands in all the major segments of the market. In the refrigerator market, which accounts for the biggest chunk of the market at around Rs 4,000 crore (Rs 40 billion) this year, Samsung merged as the biggest gainer since the close of last financial year. Since April, it has not only overtaken Godrej to become the number three after LG and Whirlpool, but has also seen a steady increase in its market share since then from around 12.5 percent of the total value to around 17 per cent now. In the washing machine segment too, estimated to be worth around Rs 1,500crore (Rs 15 billion) this year, the company was able to increase its presence from 13.3 per cent share to 19.2 per cent share.

 

The company, which had a 15 per cent share in the retail-consumer AC market, was also able to improved its position by around 1.5 per cent over the last seven months. However LG continued to be the dominant player in the market. Leading in all the four product segments, it has around 50 per cent more market share than its closest competitor in each segment. By value, the company has around 30 per cent of the refrigerator market, 34 per cent of the washing machine segment, 40 per cent in the home AC segment and 38.7 per cent of the microwave market. it,

Executive summary

Ind ian  Consum er  du rab l e s  marke t   u se d   to   be  domina t ed  by   f ew  domes t i c  players like godrej Voltas allwyn and kalvinater. But post liberalization much foreign company

have entered into Indian market dethroning the Indian player and domina t ing   Ind i an  marke t   t he ma j o r   ca t ego r i e s   i n   t he  marke t  CTV , REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINES.

India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in the world. LG, SAMSUNG the two Korean companies has been maintaining the lead in the industries with LG being leader in almost all the categories.

T h e   r u r a l   m a r k e t   i s   g r o w i n g   f a s t e r   t h a n   t h e   u r b a n   m a r k e t ,   a l t h o u g h  t h e  penetration level is much lower .The CTV segment is expected to the largestcontributing segment to the overall growth the industry. The rising incomelevels double-income families and consumer awareness are the main growth drivers of the industries. Consumer durables major LG Electronics India Pvt Ltd (LGEIL) will invest nea r l y Rs 500 c ro r e i n Ind i a t h i s yea r i n r e s ea r c h and deve l opmen t , b r and -  building and other marketing initiatives. The company, having a turnover of Rs 9,500 crore and market share of 26 per cent, is investing Rs 360 crore on brand-building and other marketing initiatives and around Rs 140 crore on research and development, besides launching new platforms in information technology and related areas,

LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be expanded from the existing 22 to 40 cities by next month,T h e   c a m p a i g n ,   f o r   w h i c h   I T   i n f r a s t r u c t u r e   h a s   b e e n   s e t   u p ,  i n c l u d e s   t h e company’s response to customer complaint within two hours. The fixing time for complaints varies from one hour to a maximum of 24 hours.

CHAPTER -1

INTRODUCTION TO THE TOPIC

INTRODUCTION

Consumers expect electrical household to be safe, for themselves, their children and other members of the families.

Individual consumption expenditure by households covers the actual and imputed final consumption expenditure incurred by households on the goods and services they require to satisfy their individual needs and wants.

Businesses monitor customer satisfaction in order to determine how to increase their customer base, customer loyalty, revenue, profits, market share and survival. Although greater profit is the primary driver, exemplary businesses focus on the customer and his/her experience with the organization. They work to make their customers happy and see customer satisfaction as the key to survival and profit. Customer satisfaction in turn hinges on the quality and effects of their experiences

What exactly Customer Satisfaction is?

The definition of customer satisfaction has been widely debated as organizations increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of situations and connected to both goods and services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction also is based on the customer’s experience of both contact with the organization (the “moment of truth” as it is called in business literature) and personal outcomes. Some researchers define a satisfied customer within the private sector as “one who receives significant added value” to his/her bottom line—a definition that mayapply just as well to public services. Customer satisfaction differs depending on the situation and the product or service. A customer may be satisfied with a product or service, an experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these. Some researchers completely avoid “satisfaction” as a measurement objective because it is “too fuzzy an idea to serve as a meaningful benchmark.”4 Instead, they focus on the customer’s entire experience with an organization or service contact and the detailed assessment of that experience.

For example, reporting methods developed for health care patient surveys often ask customers to rate their providers and experiences in response to detailed questions such as, “How well did your physicians keep you informed?” These surveys provide “actionable” data that reveal obvious steps for improvement. Customer satisfaction is a highly personal assessment that is greatly influenced by expectations.

Importance, Features & Advantages

Customer satisfaction with a purchase depends on how well the product’s performance lives up to the customers’ expectations. Customer satisfaction is a key influence on future buying behavior. Satisfied customers buy again and tell others about their good experiences dies-satisfied customer’s of ten switches to competitors and disparage the products to others.

A basic and effective base line customer satisfaction survey program should focus on measuring customer perceptions of how will the company delivers on the critical success factors and dimensions of the business as defined by the customers:

For example:

Service Promptness Courtesy of Staff Responsiveness Understanding the customer problem etc.

The findings of the company performance should be analyzed both with all customers and by key segments of the customer population. The essential starting point for Customer Satisfaction Measurement (CMS) is exploratory research. Since satisfaction is about an organization’s ability. To meet customer requirement onehas to start by clarifying with customers exactly what those requirements are. This is done through exploratory research using focus groups or one to one depth interviews.

Two main factors determine the accuracy of CMS. The first is the asking the right question and the second is the asking them to the right people sample of customers which accurately reflects the customer base.

Customer satisfaction depends on the product’s performance relative to a buyer’s expectation, the customer is dissatisfied. If preference matches expectations, the customer is satisfied. If preference is exceeds expectation, the customer is highly satisfied or delighted outstanding marketing insurance companies go out of their

way to keep their customer satisfied. Satisfied customers make repeat purchases of the products and tell other about their good experiences with the product. The key is to match customer expectations with company performance. Smart electronic company’s aim to delight customers by promising only what they can deliver, then delivering more than the promise. Consumers usually face a broad array of products and services that might satisfy a given need. How do they choose among these many marketing makers offers? Consumers make choices based on their perception of the value and satisfaction that various products and services deliver.

Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the products customers from expectations about the value of various marketing offers and buy accordingly. How do buyers from their expectations? Customer expectations are based on past buying experiences, the opinion of friends and marketer and competitor information and promises.

Businesses survive because they have customers who are willing to buy their products or services. However, many businesses fails to “check in” with their customers to determine whether they are happy or not and what it will make to make or keep them happy.

According to U.S consumers’ affairs department, it costs five times more to gain a new customer than to retain an existing one. Other studies have repeated that with just a five percent increase in Customer retention’s a firm can raise its profitability customers spend salary at first, but with succeeding years of good experience, they will spend increasingly more.

Depending on the industry and the nature of the bad experience, dissatisfied customers will complain to 10 to 20 friends and acquaintances, which is three times more than those with good experiences are. Hence, the negative information is influential, and consumers generally place significant weight on it when making a decision. If that is not the reason enough, fierce competitor is needed more and more to differentiate firms from one another. With technology available to virtually every one today, the traditional features and cost advantages are no longer relevant. Still product and service quality provides an enormous opportunity to distinguish a firm from the rest. The Japanese have recognized this and have though us to expect quality. Today’s consumers do, and they know more about products and services than they ever did.

Customers are the best source of information. Whether to improve an existing product or service or whether firms are planning to launch something new. There is no substitution for “getting it from horse’s mouth” When you talk to your customer directly, to increase your odds for achieving success you “mistakeproof” your decisions and work on what really matters. When you routinely ask the customers for feedback and involve them in business they, in turn, become committed to the success of your business.

SCOPE OF THE STUDY

The benefit of this study is that it helped to gain knowledge and experience and provide the opportunity to study and understand the prevelant customer satisfaction.

The key points are :

1. To study the fact about LG group life.

2. To understand and analyize various factors about LG. group life

3. To suggest and measure recommendations for improvement in the process of customer satisfaction.

LIMITATIONS OF THE STUDY

Subjective nature of the study may affect its interpretation by different individuals.

Regional differences, area differences may change the scope of study also.

At different places, different implementation of applied CRM(consumer relationship management) can be seen.

The information given over Internet and other sources may be different from other practical sources.

IMPORTANCE OF THE STUDY

To know the position of LG in the market and to gauge the impact of market strategy vis-à-vis consumer durables in Mathura region. Till the early nineties in the area of marketing whole effort was focused on fine- tuning the four „P‟s: product, price, place and promotion. It was onlyin the early nineties that a few marketers began realizing that companies basically existed to serve consumers - and that the consumer did not exist merely to buy a company's products. LG both are big white goods product manufacturing companies from South Korea. Both are equally strong, global companies, and more or less with equal presence in Indian market. 

RESEARCH PROJECT AIMS:

 The overall purpose of this work is to analyze the level of satisfaction of consumer of LG.

To develop insight about the factors involved in consumer satisfaction related to white goods product in the transition phase of globalization.

OBJECTIVE OF STUDY

The setting of objective is the corner stone of a systematic study. The study will be fruitful one when the basis laid down is a concrete one they represent the desired solution to the problem and help in proper utilization of opportunities.

Objectives:

The objectives of the research are:

1) To know the level of satisfaction of customers towards “LG

2) To know the features that attracts the customer to buy durables of LG.

3) To find out how brand ambassador can influence customer satisfaction.

4) To find out which sales promotion tools will increase the sales and satisfy customers more.

Primary Objectives of the Project

The main objective of filed survey during the project was to find out the level of

customer satisfaction by LG products.

Find out the positional value of LG products in the market.

The main objective of research was to identify the group of people being most satisfied

with the LG products. So LG can give maximum satisfaction to its customers.

Find out the problem faced by the company while satisfying the customers to the

maximum so that product sale could be increased

Secondary Objectives of the Project

The Objective was to find out that how far the exhibitions are helpful in branding

While purchasing the consumer durables which parameter is most important for the

consumer?

Do the consumers prefer the financial facility for buying consumer durable?

How frequently consumers change the consumer durable?

To enhances the knowledge of consumer durable market.

CHAPTER 2

INTRODUCTION TO THECOMPANY

Introduction of the Company

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 .they made their new state of art manufacturing facility at greater Noida (1998), with an investment of Rs 500 Crores. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001,

LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October this year.The Greater Noida manufacturing unit line has been designed with the latest technologies. Various studies have shown that the consumer is well informed on the health awareness front. LG was one of the first companies who recognized the emerging change in consumer needs and decided to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. The CTV range offered by LG has 'Golden Eye' technology, which senses the light levels in the room and adjusts the picture to make it more comfortable for the eyes. Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN System', which preserve the nutrition in food and washing machines have 'Fabricare System', which takes the health factor down to ones clothes. All the products offered by the company have unique technologies, developed by its R&D departments that give consumers a healthier environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer electronics, home appliances and computer peripherals industry.LG Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to more than 50 lakh households in India.

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.

Consumer durables market was expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market

With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers.

Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.

HISTORY OF THE COMPANY

The company was originally established in 1958 as Gold star, producing radios, TVs, refrigerators, washing machines and air conditioners.

The LG group was a merger of two Korean companies, Lucky and Gold star, from which the abbreviation of LG was derived. The current "LIFE'S GOOD" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of LUCKY, and the electronic products were sold under the brand name of GOLD STAR. The GOLD STAR brand is still perceived as a discount brand.

In 1995, the GOLD STAR brand name was changed to LG, acquired ZENITH electronics of united states.

GLOBAL OPERATIONS

LG ELECTRONICS is playing an active role in the world market with its assertive global policy. As a result, LG ELECTRONICS control 110 local subsidiaries in the world with around 82,000 executives and employees.

LG group

1. LG.PHILIPS LCD

2. LG chemicals.

3. LG telecom

4. LG powercom

5. LG twins.

6. LG dacom.

Business areas and main products

Mobile communications

(a)CDMA Handsets,

(b)GSM Handsets,

(c)3G Handsets,

(d)Cellular Phones

Digital appliance

a) Air Conditioners,

 b) Refrigerators,

c) Microwave Ovens,

d) W ashing   Machines ,

e) Vacuum Cleaners,

f ) H o m e N e t ,

g) Compressors for Air Conditioners and Refrigerators

DIGITAL DISPLAY

a. Plasma TVs,

 b) LCD TVs,

c ) M ic ro Di sp l ay  P ane l T Vs ,

d ) M o n i t o r s ,

e ) P D P   M o d u l e s ,

f ) O L E D   P a n e l s ,

g ) U S B M e m o r y ,

h) Flat Panel Computer Monitors

Digital media

a)Home Theater   Systems,

 b) DVD Recorders,

c )S u pe r M ul t i D V D Re wr i t e r s ,

d ) C D ± R W ,

e ) N o t e b o o k   P C s ,

f ) D e s k t o p P C s ,

g ) P D A s ,

h ) P D A   P h o n e s ,

i) MP3 Players,

  j ) N e w K a r a o k e S y s t e m s ,

k )Ca r   In fo t a in men t

VISION OF LG INDIA PVT.LTD.

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products anddesign. The company's goal is to rank among the top 3 consumer electronicsand telecommunications companies in the world by 2010. To achieve this,we have embraced the idea of “Great Company, Great People,” recognizing that only great people can create a great company.

Benefits To Company & Society

Surveys allow an organization to quickly capture vital information with relatively little expense and effort. A primary advantage of this method is its directness: “the purpose is clear and the responses straightforward.” Additionally, the information gathered by surveys can easily be analyzed and used to identify trends over time. The public views consumer product polls and pollsters in a generally positive manner compared to political and other polls. One study found that at least sixty percent of the public feels that market research about products and services has

a positive impact on society. Seventy percent consider the people who conduct such surveys to have positive impacts on society.

A major disadvantage of customer surveys is that the responses may be influenced by the measurement itself through various forms of bias. For example, most surveys are voluntary, and some researchers have found differences between survey respondents and non-respondents. People who respond to surveys answer questions differently than those who do not respond, and late responders answer differently than early responders. Published standards exist to help organizations develop their current levels of customer satisfaction.

The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organization’s attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

AWARDS 

New Delhi, October 24th October, 2007:LG Electronics India Pvt. Ltd.today achieved another landmark by bagging the award for excellence in Exports of Electronic Hardware by the Electronics and Computer Software Export promotion Council of India (ESC) .This achievement is another feather in the cap for the company after achieving a milestone of USD 186million in exports for calendar year 2006. This milestone has reiterated LG‟s

prime position not only in the domestic but the international markets as well.The award was received by Mr. Ajay Sapra, DGM, Corporate Exim,LGEIL and Mr.Jatin Madan, AGM, Exports, LGEIL, on behalf of LG on 24th October, 2007 at a function held at Hall Kamal Mahal, Hotel Maurya Sheraton, Sardar Patel Marg, New Delhi. Shri A. Raja, Union Minister for IT and Communications presented the Awards.

LG has emerged as top player in Consumer Electronics Exports and is exporting a range of products primarily to the highly competitive markets of Middle East, Asia and Africa. The award was given to LG for its excellent exports performance in Consumer Electronics (CTV, Monitors, GSM, Personal Computers and ODD) during the financial year 2005-2006

SWOT ANALYSIS OF LG

STRENGHTS:

1. Market leader in home appliances.

2. Has got manufacturing unit in tax incentives.

3. Wide range of products to serve all categories.

4. Widest distribution of network in industries(47 branches, 10000 trade partners).

5. Good after sales services offered.

WEAKNESS:

1. Samsung being its competitors provide similar products.

2. Consumers compare LG with Samsung.

3. Lack of expert operators for complex machines due to illiteracy and lack of training in INDIA.

OPPORTUNITIES:

1. Fast growth of home appliances in market.

2. Shifting to rural areas.

3. Thus maintaining control over the market and the highest share in home appliance market.

THREATS:

1. Close competitors like SAMSUNG are compared to it.

2. Price war with SAMSUNG.

3. Competition from Indian brands and foreign brands.

QUALITY INNOVATION

The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects.

LG proceeds in a hierarchal manner. It is named as“LG WAY”. From top to bottom:No.1 LG- is the vision “Jeong-Do" management  

is LG‟s unique application to ethics. LG willsucceed through fair management practices and constantly developing ourbusiness skill. a) Honest with our customer) Providing great values to customer through constant innovation & and development. c) Equal opportunities) Equal Treatment Management Principle - Creating value for customer

 

CODE OF CONDUCT LG

1. Responsibility and obligations to customers respect for customers

Creating Value

Providing Value 2. Fair competition

Pursuit of Free Competition

Compliance with Laws and Regulation

3. Fair Transaction

Equal Opportunity Fair Transaction Procedure Support and Aid for Business Partner

4. Basic Ethics for Employees Basic Ethics Completion of Duty Self Development Fairness in Performance Avoidance of conflict with company interest

5. Corporate Responsibilities to employees Respect for human dignity Fair Treatment Promoting Creativity

CHAPTER 3

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

HYPOTHESIS:

There is no significance difference between market strategy of LG white goods products. This project has been structured in the following manner. This is followed by scope of research and sample design, which encompasses the following.

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result.

Survey method:

A Survey is a complete operation, which requires some technical knowledge Survey methods aremostly personal in character. Surveys are best suited for getting primary data. the research obtainsinformation from the respondents by interviewing them.

Sampling: It is not always necessary to collect data from whole universe4. A small representative sample may serve the purpose. A sample means a small group taken in a large lot.

This small group taken in a large lot .This small group should be emanative cross section and really “representative” in character.

Research Instrument

Questionnaire- questionnaire is a carefully complied logical sequence of questions directed to a define objective. It is the outline of what information is required and the framework on which the data is A built upon. Questionnaire is commonly used in securing marker information that its preparation deserves utmost skill and care.

Customer Satisfaction Questionnaires:

Questionnaires are the most common marketing research instrument. Typically, it is used to:

Assess the level of customer satisfaction with a particular product, service or experience Identify factors that contribute to customer satisfaction and dissatisfaction; Determine the current status or situation of a product or service; Compare and rank providers; Estimate the distribution of characteristics in a potential customer population;

RESEARCH DESIGN

Research design is important primarily because of the increased complexity in the market as well as marketing approaches. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyer‟s behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, “Research Design is a plan, conceptual

structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

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

SAMPLING METHODOLOGY

Details of the sampling methodology, I have made  questionnaire. The one is made for the Customer

No. of questions in questionnaires for customer: 07

No. of people met during the research: 200

No. of respondents during the research: 50

SAMPLE UNIT

Professionals, Business man,Employees, House wife, Working women, Students

SAMPLING METHOD

Random Sampling methodSAMPLE SIZE 10 Dealers

RESEARCH TOOL

Questionnaires

RESEARCH AREA

Faridabad District

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

QUESTIONNAIRE FOR CUSTOMER’S SATISFACTION TOWARDS LG PRODUCT

1. Sales of printer in the survey

Sales

HP

Canon

Epson

Umax

Others

Printer model Frequency %HP 52 65Canon 12 15Epson 2 2.5Umax 3 3.75Others 11 13.75Total 80 100

INFERENCE

Out of the total 80 respondents show their believe in hp. Responses were very low for the lower range. For the three players as cannon, Epson ,Umax the main reasons were again the poor

quality, high link consumption. Out of 80 respondents 70 say that brand name matters. Out of 52 respondents 45 are satisfied.

30 say that after sale service is good while 22 says no

Q2. Have you purchased any consumer durable during Exhibitions?

Yes

No

Inferences:

1. 65 % of Customer have not purchased any consumer durable from exhibitions.

2. Only 35 % people have purchased.

3. It shows that consumers are coming in the exhibition for knowledge of product and also

they want to know that weather there is actual price difference in exhibition and shop or

not.

4. Consumer also want to compare to the different brand which are available in the

exhibition.

5. So exhibitions are more useful to increases brand awareness.

6. People are less interested to purchase product from the exhibition.

Q.2While purchasing consumer durable which parameter influences you?

Price

Product feature

Brand

Service

Durability

Inference

1. 30% of customer gives importance to price. So it shows that Indian consumers are very

price sensitive. They give more importance to price over the brand.

2. 26% give importance to brand. So price and Brand matter a lots for the costumers. And

they are also want best brand in best price.

3. 19% to product feature Service 16% and durability 9% Service is also a big factor for the

customer they are less interested in the durability.

Q3. From where you prefer buying consumer durables

Exhibitions

Co.shoppee

Showroom

Inference:

1. A majority of customers prefer to buy from showrooms. Very less proposition of

customers buys from Exhibitions.

2. 47% customers are prefer to by from the showrooms because the showrooms are more

convenient to customers they also think that these shops give more discounts.

3. People are less interested to buy from the exhibition they only visit the exhibition for

price quotation of the product and the comparison of the product.

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons

Attractive Price

Service

Demonstrations

Offers

Inference

1. Customers buy from showrooms because of the service and convenience. These are two

main factors.

2. Customers are preferred to buy from the showroom because of they think that these

convenient store may provide good after sell service.

3. Customer also thinks that there is more chance to bargain and they can get more

discounts in these showrooms.

4. Price also a factor that attract the customer in these showrooms.

Q.5.Which consumer durable you have and of which brand?

CTV

LCD

PLASMA

REF

WM

MW

AC

Inference

In CTV section maximum customers have Onida, in LCD Sony is the leader, In plasma BPL is the leader, In Ref LG is the leader, MW LG is the leader. In WM there are companies and in AC also.

Q.6. How frequently you change your consumer durables?

1-3 years

3-5 years

5-10 years

More than 10 years

Inference

1. Customers prefer to change consumer durables within 5-10 years. In India people do not

change consumer durable frequently.

2. 23% customers do not change their consumer durable within 10 year.

3. It represent that Indian consumer do not prefer to change their consumer durable

frequently.

Q.7.Do you prefer any financing scheme to purchase consumer durables?

Yes

No

Inference

Majority of customers do not prefer any financial scheme.

8.Sales of printer in the survey

Sales

HP

Canon

Epson

Umax

Others

Printer model

Frequency %

HP 52 65Canon 12 15Epson 2 2.5Umax 3 3.75

Others 1113.7

5Total 80 100

INFERENCE

Out of the total 80 respondents show their believe in hp. Responses were very low for the lower range. For the three players as cannon, Epson ,Umax the main reasons were again

the poor quality, high link consumption. Out of 80 respondents 70 say that brand name matters. Out of 52 respondents 45 are satisfied.

30 say that after sale service is good while 22 says no

9 Which company are according to you is providing all the facilities ?

HpCannonEpsonOthers

Company Frequency

%

LG 52 65

Cannon 12 15

Epson 6 8

Others 10 12

Total 80 100

INFERENCE

From this table we know that LG Company is providing more facilities than other companies. That is why customers is using LG product Whereas cannon is providing 15 percent facilities ,Epson company is providing 8 percent .because of this customer are not satisfied . and others company providing only 12 percent

FINDINGS

Secondary supports play an important role in the customers mind and create awareness among

the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors.

From the survey it was found out that the majority of customers don't buy consumer durables from exhibitions. They just visit the exhibitions to see the co. latest mode.

They want to buy from the showrooms or from co. showrooms. For them service is

important .Beside convenience and other factors service is key factor.

Also majority of customers do not want any financing scheme for purchasing the durables

There was heavy rush on weekends so large numbers of ISD‟s wereappointed that day. Also the live demo calls helps in selling. Exchange offers also generate sale

Customers are also now very choosy in buying the product and it is important for the company to

make loyal customer of their brand.

In survey we found that LG has captured maximum market share in every category. LG

dominates CTV, LCD, and Refrigerator, and Washing machine, category

SUGESSTIONS

1. Customers want the company to take feedback regarding services and inform the

about new products launched.

2. LG should change warranty period from 5 years to 7 years.

3. Customers want more improvement in service.

4. “LG” should give more advertisement through Television and should place more hoarding and bill boards, newspapers and should place more hoarding and billboards.

5. LG must make clear the conditions applicable with warranty and guarantee plan.

6. LG should charge less for after sale service.

7. Annual Maintenance Service should be given to reduce the loss of customers when a product gets faulty.

8. Network should be expanded to rural areas also.

9. LG must improve their personnel selling and direct contacting to provide customers full knowledge about their products.

 

LIMITATIONS

Every study has certain limitations. In this study, also there were certain limitations, which could not able to solve;

1. The research was conducted in a very small area. 2. This research work period witness the biggest ups and downs in product sale of different brands, which affected the perception of the customer. This was biggest drawback of my study. .3. The customer filled the questionnaire mostly in careless manner, so it was difficult to make them hold for time.

4. Only the upper-middle class family was considered while filling up this questionnaire, whereas an average middle class family would have made a good choice as well for the study.

5.The sample size is also very small which represent my research on consumer behavior. This study doesn't reflect the customer'sperception and preferences regarding the two brands in the entire nation. No region outside Faridabad was considered for the same due to the above limitations as well as lack of movement on the part of researcher.

CONCLUSION

LG Electronics pursues its 21st century vision of becoming a true global digital leader who can make its customers worldwide happy through its innovative digital products and

services. LG Electronics sets its ultimate vision to rank among the top 3 global companies in electronics, information, and telecommunication firms in the world by

2010. LG embraces the philosophy of “Great Company, Great People,” where as only great people can create a great company, and pursue two growth strategies involving “fast innovation” and “fast growth.” They seek to find their three core capabilities: product

leadership, market leadership, and people-centered leadership. LG Electronics has essentially built their company into a battleship, conquering their business strategy and technological operations. They have built an exceptionally strong foundation for future

growth and promise.

BIBLIOGRAPHY

1) MARKETING MANAGEMENT – 10th Edition - Philip Kotler

2) MARKETING RESEARCH - D.D. Sharma

3) PAMPHLET AND CATALOGUES OF THE COMPANY

4) www.lg.com/in\

APPENDIX

QUESTIONNAIRE FOR THE STUDY OF CONSUMER SATISFACTION

Name of the researcher: ___________________________

Brands concerned: LG

Location: Faridabad

1. Have you purchased any consumer durable during Exhibitions?Yes No

2. While purchasing consumer durable which parameters influence you?

Price  Productfeature  Brand

Services Durability

3. From where you prefer buying consumer durables

Exhibitions shops

Showroom

4. You prefer to buy from the same as you have mentioned in Q.3 because of

following reasons

Attractive Price Service Demonstrations Offers

5. Which consumer durable you have and of which brand?

CTV LCD PLASMA REF

WM MW AC

6. How frequently you change your consumer durables?

1-3 years 3-5 years

5-10 years More than 10 years

7. Do you prefer any financing scheme to purchase consumer durables?

Yes No