marketing -lg_electronics_dual_sim__feature_rich_local_brands_product_category_market__consumer_1_
TRANSCRIPT
A RESEARCH PROJECT REPORT
ON
A STUDY ON DUAL SIM MOBILE OF LG ELECTRONICS – ITS FEATURES RICH LOCAL BRANDS
PRODUCT CATEGORY
TOWARDS THE PARTIAL FULFILMENT
OF
MASTER OF BUSINESS ADMINSISTRATION
(AFFILIATED TO G.B.T.U. , LUCKNOW)
(SESSION 2011- 13)
UNDER THE GUIDANCE OF SUBMITTED BY
MR K.K.SINGH OM NARAYAN H.O.D MBA M.B.A. 3 SEMESTER INSTITUTE OF TECHNOLOGY ROLL NO. 1135970027 LUCKNOW
INSTITUTE OF TECHNOLOGY LUCKNOW
A STUDY ON DUAL SIM MOBILE OF LG ELECTRONICS – ITS FEATURES RICH LOCAL BRANDS
PRODUCT CATEGORY
LG ELECTRONICS INDIA Pvt. Ltd.
PREFACE
The MBA programme is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field.
Training is an integral part of MBA and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training.
During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life.
In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.
ACKNOWLEDGEMENT
It is indeed my honour and pleasure to get an opportunity to pursue my summer training
with LG Electronics India Pvt. Ltd. I take this opportunity to express my profound
gratitude and deep regards to my Industry Guide who has been providing me with
immense opportunities and challenges in my project, which not only made me enhance
my awareness about customer support system in consumer durables industry, but also
provided me with a lot of learning opportunities, skills and knowledge that an efficient
manager should possess while handling unexpected problems during implementation of a
project. The help and guidance given by him from time to time shall carry me a long way
in my professional journey. His valuable suggestions were of immense help to me
throughout my tenure as a summer trainee in LGEIL.
My sincere thanks also extend to all the members of GSM - Marketing Management at
LGEIL for providing a hospitable and helpful work environment and making my summer
training an exciting and memorable event.
EXECUTIVE SUMMARY
I am pursuing a MBA Course and towards the partial fulfillment of it, I have undergone a
summer training project for a period of 8 weeks. I have put my sincere efforts to
accomplish my objectives within the stipulated time. Despite all the limitations,
obstructs-hurdles, and hindrances, I have filed and worked to my optimum potential to
achieve the desired goal. Being neophytes in the highly competitive world of business, I
came across some difficulties to make my objective a reality. Any how, with the kind
help and genuine interest of one all formally supported by guidance of my guide, I am
presenting this hand carved effort. I tried my level best to conduct a research to gain a
through knowledge about the project in the topic “Understand the “Dual SIM”, “Feature
rich local Brands” product category market, consumer behavior and recommend
positioning – marketing – communication strategy for LG mobile Phone’s new
introductions in Dual SIM portfolio.". I have put the best of my efforts and have also
tried to be justified with the available. All care has been taken to keep this report error
free and I sincerely regret for any unintended discrepancies that might have crept into this
report.
DECLARATION
This is to certify that the project Report entitled “Understand the Dual-SIM, Feature rich
Local Brands, Product Category Market, Consumer Behavior and recommend
Positioning- Marketing-Communication Strategy for LG Mobile phone’s New
Introductions in Dual-SIM Portfolio “is my original work and this has not been submitted
in part or full to this or any other university/institution for the award of any degree or
diploma.
Om Narayan
CONTENTS
1. INTRODUCTION TO THE PROJECT
1.1 Overview of Industry as a whole 1.2 Profile of LGEIL 1.5 S.W.O.T Analysis of LGEIL 1.4 Competitive Information
2. OBJECTIVE & METHODOLOGY
2.1 Significance 2.2 Managerial usefulness of the study 2.3 Objective of study 2.4 Scope of the study 2.5 Methodology
3. CONCEPTUAL DISCUSSION (Theoretical Backdrop And Literature Review)
4. DATA ANALYSIS 5. FINDINGS & RECOMMENDATIONS ANNEXURES
BIBLIOGRAPHY
CHAPTER 1 INTRODUCTION
INTRODUCTION TO THE TOPIC
Introduction to Brand Management in LGEIL:
The LG Brand comprises four Basic Elements: Values, Innovation, People, and
Passion.
Positioning Statement: LG strives to enhance the customer’s life (and lifestyle) with intelligent features,
intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and self-satisfaction.
Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed
decision.
Brand Platform: The LG brand comprises four basic elements: Values, Innovation, People, and Passion.
SLOGAN:
"Life's Good" Represents LG's determination to provide Delightfully
Smart Products that will make your Life Good.
Our slogan, 'Life's good' best expresses our brand's values, promises, benefits and personality. It is an ultimate
expression for what our brand stands for and what we strive to deliver continuously. LG's delightfully smart
products will make your life good.
The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good" set in
Charlotte sans typeface curved around the LG symbol. The curving of the slogan reinforces LG's personality and
uniqueness. The consistent usage of this signature clearly establishes the unique identity of the company and
unifies every division and product from LG Electronics across the globe.
LG’s LOGO
Face
The stylized image of a smiling face is meant to convey company friendliness and
approachability. That the portrait is one-eyed conveys LG’s profile as goal-oriented,
focused, and confident.
Circle:
The circle represents the globe, symbolizing the world and all of humanity, as well as
youth and the future
Shape :
The upper-right corner of the LG logo, intentionally left blank, makes the design
distinctly asymmetric—a nod to LG’s creativity and adaptability to change.
Colors :
LG Red, the main color, symbolizes friendliness, and is also meant to convey LG’s
commitment to delivering the best. LG Gray represents technology and reliability.
The logo represents the globe, i.e., the full reach of our aspiration to emerge as
a global company. It also implies the face of a smiling customer, conveying that we are
extremely customer-focused, or that we represent a world that is futuristic, youthful and
humane.
The bull’s eye on the circle represents the organization’s single- minded focus on goals
and determination to achieve results with a smile. The white space deliberately left at the
upper right en stands for adaptability and the hidden potential of creativity. The red
coloue conveys friendliness and LG’s commitment to quality, while the grey stands for
technology and reliability.
Products or other exterior manifestation of a company to many mind do not reveal its true
character, which is manifest in its value system, practiced philosophies and accepted
norms. Product, people, systems are all outcomes of this core value system and this is
what the LG logo conveys.
Global Operations
LG Electronics plays an active role in world markets with its assertive global business
policy. As a result, LG Electronics controls 114 local subsidiaries worldwide, with
roughly 82,000 executives and employees.
EUROPE, CENTRAL AND SOUTH AMERICA, CIS, CHINA, NORTH AMERICA,
ASIA & PACIFIC, MIDDLE EAST AND AFRICA, are the countries where LG actively
takes part.
STRATEGIC ALLIANCE
LG Electronics has made itself an industry leader through decades of consistent technical
advances. In the 21st century, the company’s continued growth is further advanced by
coordinated business opportunities—key associative relationships with highly successful
partners that count themselves among the top players in their field, worldwide.
Strategic association between corporate entities—companies with different
infrastructures cooperating to advance their mutual interests in the fast-paced global
market—can be a vital means of growth in existing industry, as well as for forging new
ones.
PRADA: LG Electronics Turned Luxury into a Brand Phone with PRADA
GE : shared patents on kitchenware and refrigerators
SCHNEIDER: established a partnership on mobile phone camera lenses.
SIEMENS: An MOU on Supplying and Co-developing Commercial Air Conditioner
Control Solutions.
TOYOTA: they are discussing common challenges as finding a model of labor-
management coexistence needed in global economy.
QUALCOMM: LG Electronics and Qualcomm are collaborating to enter the 3G/3.5G
market before other companies
HITACHI: LG Electronics Established a Joint Venture with Hitachi in the Optical
Storage Industry
MARK LEVINSON: are collaborating on a variety of products including music phones,
home theater systems, and LCD TVs.
NORTEL: LG Electronics Established a Joint Venture with NORTEL for
Communication Equipment
MICROSOFT: Launching a Smart phone running a Windows Mobile Based OS
SUN: are developing Java platforms that will enable LG mobile phones and digital TVs
to use a wider range of applications.
DOLBY: LG plans to apply Dolby Mobile technology to a wide range of multimedia
features on its phones.
LG Electronics has established associative relationships in technology and marketing
fields with many global companies such as Adobe,, H.G. Ibrahim Shaker , Arcelik and
Symbian for reasons of global compatibility and synergy, and tries to extend its territory
into the global market.
The Internal Culture of LG:
LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to learn more
and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels of
employees. There is transparency between the work and mutual understanding between
all the employees.
A carrier is highly growing in LG and one who is the employee can develop their carrier
largely. A new comer will feel fully comfortable in the company and for a new comer the
company is very helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who want to
join in LG. The company is growing with fast innovation and the BLUE Ocean strategy
is one of the examples of growth.
Mission
The mission of LG is to provide the customers with utmost satisfaction through
leadership. The fundamental policy of development is to secure product leadership that
the Customers may have the utmost satisfaction.
Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving
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 will succeed through
fair management practices and constantly developing our business skill.
A) Honest with our customer
b) Providing great values to customer through constant Innovation & and development.
c) Equal opportunities
d) Equal Treatment
Management Principle –
Creating value for customer.
Code of conduct of 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 Regulations
3. Fair Transaction :
• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners
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
6. Responsibilities to society and country
• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation
TECHNOLOGY STRATEGY
LG Electronics focuses on acquiring advanced technologies to drive you forward. The
company's vigorous commitment to R&D always embraces challenge, as demonstrated
by our creation of the world's first Blu-ray disc and the next-generation flat-panel display.
Smart Technology for Smart Customers
LG Electronics is increasing its focus on "Smart Technology" - technology that adds
convenience and joy to customers' lives. Smart Technology is a development philosophy
that embraces sensitive communication with customers in order to provide products that
everybody wants to use, and easily can. This customer-oriented principle has become the
most important development philosophy for LG, a result of collecting customer feedback
and applying it to our products.
Our Goal: To Lead Global Electronics and Information Technology
Worldwide
n order to sustain leadership among global electronics and information technology
companies, LG Electronics' R&D is driving the development of "Great Products" and
strengthening core technological capabilities through a process of "select and focus" in
key areas such as cell phones and digital TVs. In important business areas such as digital
appliances and audio/video products, LG is establishing global leadership in development
by focusing on premium products while enhancing R&D capacities in new product
categories. Furthermore, in new-business areas such as home networking, GPS, and
mobile A/V, the company is directing its efforts toward developing convergence products
in response to the current trend of merging different technologies and products. What's
more, the company is leading the new market by actively participating in pilot projects to
develop new products with various service providers.
Achievement through Top Talent Recruitment and R&D Systems
Consolidation
To achieve its lofty goals, LG Electronics continuously recruits new talent and strives to
increase its global business by consolidating R&D systems oriented toward local markets
in strategic countries such as China and India. The company is also building international
R&D capacity by pushing ahead on strategic alliances with other major companies in
regard to standardization and new products. LG Electronics operates a global R&D
system that consists of more than 30 research centers around the world. Through this
system, the company facilitates open innovation utilizing innovative technologies from
the outside, in order to secure core technologies and the early identification of future
growth engines. In all these ways, LG is on target toward realizing its vision: Top Global
R&D.
INDUSTRY PROFILE
Overview of Industry as a whole
There are various companies in the market structure right now that are competing against
each other on the basis of different marketing and promotional factors. Companies like
LG, Panasonic, Videocon, Samsung, Whirlpool, etc. These companies take their premium
initiative as to provide more and more services to the customers in the products they
launch in the market.
Top 5 DUAL-SIM PHONES
Dual SIM Mobile Phones offer the capability of two live SIMs functional simultaneously
with features like call hold & swap, providing real-time switching facility between both
SIM at the touch of a button.
There are several Dual SIM mobile phones launched by leading brands in India market
since they became popular in mid 2007.
here is a whole range of options available to consumers in India for top quality Dual SIM
Mobile Phones at much affordable prices. This featured article lists 5 such Dual SIM
mobiles which we believe offer reasonable value for money with good performance.
The prices on this page are based on the estimated current market prices that may vary
with prices listed on product detail pages. Please click links below to view the full details
on each product.
Spice D-88 Dual SIM Mobile
The Spice D-88, a dual network mobile phone handset offers both
GSM and CDMA based mobile connections active simultaneously
with option for two SIM cards in same mobile phone handset. A
dual network phone with GSM and CDMA, Spice D-88 supports
both GSM and CDMA active connections at the same time.
Spice D-90 Dual SIM Mobile Phone
The Spice D-90 is a candybar style Dual SIM
Mobile Phone (GSM+GSM) which features 256K
colors TFT color dislay, 2.0 Megapixel Digital
Camera with 6x Zoom, video recording and
playback, integrated MP3 media player, FM Tuner
with live recording, GPRS and Bluetooth
connection.
Dual SIM feature in Spice D-90 mobile phone allows in SIM-1 Tri-band GSM
900/1800/1900 MHz and in SIM-2 Dual-band 900 / 1800 MHz network connection. The
phone allows user to simultaneously use two distinct phone numbers.
Spice D-1100 Dual SIM PDA Mobile Phone
The Spice D-1100 Candybar style India’s first Dual SIM Mobile
Phone (GSM+GSM) PDA is powered by Windows mobile 6.0 and
it features 256K colors TFT color dislay, 2.0 Megapixel Digital Camera with 6x Zoom,
integrated MP3 media player, GPRS and Bluetooth connection.
Dual SIM (GSM+GSM) Spice D-1100 mobile phone allows in SIM-1 Tri-band GSM
900/1800/1900 MHz and in SIM-2 Dual-band 900 / 1800 MHz network connection. The
phone enables user to carry two distinct phone numbers at the same time.
LG KS660 Dual-SIM Touchscreen Mobile Phone
The LG KS660 Dual-SIM mobile phone is a
Touchscreen triband GSM network ready phone
which features a large 3.0-inch 262K colors color
display, 5.0 MP digital camera, powerful MP3
and media player, integrated FM Radio with
recording facility, memory expansion card slot
and option for Hindi language in SMS and system
menu.
The LG KS660 mobile phone also features a unique scratch-proof display screen and it
boasts of capacity of continuous 15 hours of music playback.
Samsung D880 Dual SIM Card Capable
Mobile Phone
The Samsung D880 Dual SIM mobile phonesports a
Slider-up design and is Dual SIM capable tri-band
GSM mobile phone and it features 256K colors display,
integrated 3.15 Megapixel camera with 4x digital zoom and video recording, microSD
memory slot, GPRS, EDGE, MP3 Media Player and TV-Out Port for direct connection to
home TV.
The Samsung D880 offers tri-band GSM 900 / GSM 1800 / GSM 1900 network in SIM 1
and Dual-band: GSM 900 / 1800 MHz and is equipped with large 2.3-inch 265K colors
capable, QVGA TFT screen having 240 x 320 pixels screen resolution.
MICROMAX MOBILE:
Micromax Mobile is a Gurgaon, India
based mobile manufacturing company that
has been known fro bringing pocket
friendly mobile handsets to Indian market.
This time Micromax has announced the
avalability of Micromax Q5, a bar shaped
dual SIM mobile phone for a price of Rs.
5100/-
For social networking and web browsing, Micromax Q5 comes pre bundled with easy
access to Facebook and Opera. Facebook is just a touch away and users can access MSN,
Yahoo, Facebook Chat, EBuddy with ease. With the help of factory installed Opera
mobile browser on Micromax Q5, accessing interent is also comes handy for Micromax
Q5 users.
PRODUCT DIVERSITY
LGEIL then, as LGEIL now has always had a strong portfolio of products, viz. , CTV, air
conditioners ,washing machines ,refrigerators and microwave ovens, to name just a few.
From the very beginning, we were among the few, front- running consumer durable
companies in India to command such a waste array of products. The benefit is that even
one or two aren’t performing well in the market (for any reason) there are others to tide
us through. In fact, there is always one product that remains “on” at any point of time in
the year, so there was never a rainy season.
That said, for LGEIL, the color TV (CTV) segment has always been the most profitable.
There have been occasions, when other products have ridden piggyback on the sales of
the CTV segment, alone.
How the CTV became puller for LGEIL is another interesting tale. Within a few years of
operation, LG came to discover that air conditioners and refrigerators sold mainly from
march till July/august. The sales of washing machines likewise peeked during the
monsoon season. For other product categories, Diwali was the peak season. But CTVs
continued to be sold all through the year, helping the company maintain a good cash flow
system.
To capitalize on this market phenomenon, another winning strategy was chalked viz. To
start introducing models in each category for every strata of the Indian society. The
objective? Not to leave any price point unnamed for competition to elbow into
Chinese dual – sim Phones
There are many dual sim phones now available from the Chinese market. Examples are
the Sciphone i68, i9 and i9 3G. Also available are the KA08 or A1 phones which are
some of the smallest dual sim phones ever manufactured. The phones, which also usually
include touch screen interfaces and other modern features, typically retail for a much
lower price than branded models. Due to the extra battery usage of the additional sim slot
the phones are usually supplied with two battery packs. Popular in Asia, these
inexpensive dual sim mobile phones are now also becoming available to buy directly
from Europe, with reports that both slots are compatible with the majority of the major
UK mobile networks.
Active dual – sim phones
Mobile phones with built-in simultaneous dual SIM capability have the advantage of no
possible legal issues, breach of contract, or voiding of warranty. They allow both SIMs to
be active simultaneously and allow calls to be received on either number at any given
time.
In November 2007, Verzio — a Singapore-based 3C (computing,
communications, consumer electronics) brand launched the world's first 3G Dual-Triband
dual-SIM model named Duplii. The same brand also launched the Twinn, 2.75G dual-
SIM model. Powered by 2 processors, the Duplii and Twinn provide real dual-SIM real
dual-connecting capability.
There are some little-known Chinese companies supplying inexpensive dual-SIM
mobiles, mainly in Asian countries. The latest models includes A8 V2- Dual SIM & Dual
IMEI Mobile Phone, T518i WiFi Touch Screen Dual sim phone which is feature rich
including WiFi. However, these dual-SIM phones generally work on 1 processor only,
thus operate with limited dual-SIM functions.
Philips has made models Xenium 9@9w and 699 with this capability belonging to the
restart to change active-line generation. Samsung also released the D880 DuoS in
November 2007, a slider which can hold two SIM cards with simultaneous standby and
the D780 which came much later both have limited function on the 2nd sim card, and
there is a Windows Mobile based dual-sim phone too, called E-TEN glofiish DX900
(released in November 2008, been renamed to Acer Tempo DX900 in January 2009, after
Acer bought E-TEN).
Reasons for a dual sim
Are dual sim phones the future of mobile communication? It's uncertain, but there are a
lot of reasons to pick one up. Here are 5 of the most compelling:
1. Work / Home
Mixing work and play is a bad idea; that's why so many people are carrying a work phone
around with them on top of their own mobile. With the emergence of the smart phone at
the end of the last decade: gadgets such as MP3 players and PDA's have been combined
with the mobile phone to save on space. With all this work on new technology its almost
ridiculous for business people to being carrying two separate mobile phones around at
once. It doesn't have to be this way: with a dual sim mobile phone your business sim card
can occupy the same phone as your personal one while still remaining completely
seperate.
2. Better Rates
Most networks offer much better rates if you're calling people on the same network. With
a dual sim mobile phone you can get a spare sim card (most major UK networks are
happy to give you a free sim card or 10 now) especially for calling your friend Jim on.
Getting a spare sim card is never a problem, with most networks willing to empty a truck
load of them into your front garden in the hopes you'll encourage your friends to sign up
with them too.
3. Block Sales Calls
Nobody likes pushy salesmen calling them on their mobile, it's an invasion of privacy. A
dual sim phone is a great way of preventing them from getting in contact at all. Keep one
phone number private and use the other for when you need to give contact details to a
business.
4. Eat Sim!
Have you ever gotten so angry you want to pull your sim card out of your phone and
throw it at someones stupid face; but you don't want to lose all your contacts in the
process? Dual sim dual standby phones can make your crazy dream a reality.
5. Double Network Coverage
Everyone has trouble with network coverage at some point. Mobile users in remote or
rural areas in particular know well the troubles of mobile network black spots. With an
unlocked dual sim card phone if you're having trouble getting a signal with one sim card
you just switch to the other. Simple.
And there it is; 5 reasons to consider a dual sim mobile ranging from compelling to
propelling. If you're thinking a dual sim mobile could be the right choice for you, you're
probably now wondering which mobiles actually offer this functionality. Many
manufacturers offer dual sim mobiles: including Nokia and Samsung. There is also a
growing market for cheaper Chinese manufactured dual sim phones from companies such
as Sciphone. Whichever phone you choose you'll be sure to benefit from the advantages
of a dual sim mobile
When I was appointed as a trainee at LGEIL, this process was not live and already
practised. As I worked on the various problems and difficulties occurring during this
process, I came to know that how useful it was for the company. It proved to be a source
of a lot of important information for the organization on a higher level. Through this
process, the managing staff at LGEIL came to know that how much does a customer like
an LG product, what are the various queries an individual wants for a particular product.
We also came to know that among the other various varieties of brands which section of
the society wants to own dual – sim handsets. It also helped in the decision making
processes of the managers.
We, at LGEIL, were also now able to understand more clearly that which were the
specific areas in which we had to work harder. This project proved to be a great
advantage to me as well as the organization because; the process of striving for
success in a multinational begins from understanding your customer completely
The project aims at the detailed analysis of various dual – sim handsets and their
requirement in the consumer market. During this process I faced a lot of problems also.
We had to launch a full set up of dual – set handsets so that LGEIL is also able to put
itself confidently in the market of providing the consumer with the details of the
particular product the individual needs to buy. Through this process, we were able to
know what all our Consumers want from us. They needed all kind of information,
whether it is, price related, or promotion related, or even about the dimensions of the
particular product.
Through this process it was comparatively easy for the company officials to understand
the basic needs and requirements of the customers. The scope of this process is being
projected on a very large scale.
Facts and figures:
1. Established In: May 1997
2. Managing Director: Mr. Moon B. Shin
3. Corporate Office: Plot no 51, Udyog Vihar, Surajpur Kasna Road,
Greater Noida (UP)
4. Corporate Website: http://www.lgindia.com
5. Manufacturing Units: Greater Noida (U.P.) & Pune (Maharashtra)
Background:
Based in South Korea, LG Electronics (LGE) had a global turnover of US$ 29.9 billion in
2003. LGE has 50 affiliated companies across the globe, with 300 offices and presence in
120 countries. With over 64,000 employees, it focuses on four main businesses -
Electronics and Telecommunications, Services, Finance and Chemicals. LGE has 20
R&D centers worldwide and has subsidiaries in 76 countries.
Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG
Electronics, South Korea. It is one of the leading companies in consumer electronics,
home appliances and computer peripherals in India. It has a turnover of almost US$ 1000
million in India. LGEIL’s sales are increasing with a CAGR of 40 per cent over the past
five years.
LG is the market leader in various segments like color TVs, microwave ovens, frost-free
refrigerators, washing machines and air-conditioners, with market shares of 26.2 per cent,
41.2 per cent, 37.9 per cent, 34.1 per cent and 34 per cent respectively.
LG Electronics India received the Occupational Health & Safety Management System
OHSAS 18001:1999 certification from the British Standards Institution (BSI), India, for a
systematic approach towards Occupational Health and Safety Management System.
LGEI exported goods and services worth US$ 40 million in 2003. The major export
markets for LGEI are the Middle East, West Africa and Central Asia.
LG Electronics continues to pursue its 21st century vision of becoming a worldwide
leader in digital—ensuring customer satisfaction through innovative products and
superior service while aiming to rank among the world’s top three electronics,
information, and telecommunications firms by 2010.
On our way, we hold tight to a philosophy of "Great Company, Great People,"
underscoring our belief that only great people can create a great company.
LG strives for greatness in what we've identified as our three core capabilities: Product
Leadership, Market Leadership, and People Leadership—each strength a key part of
realizing our growth strategies for "fast innovation" and "fast growth".
LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and design. The company’s goal is
to rank among the top 3 consumer electronics and 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.
Core Capabilities:
a) Product Leadership:
Refers to the ability to develop creative, premium products through specialized new
technologies.
b) Market Leadership:
Refers to the ability to achieve the "LG brand is No. 1" goal backed by its formidable
market presence worldwide.
c) People Leadership:
Refers to talented people who perform excellently by internalizing and practicing
innovations.
Product leadership refers to the ability to develop creative, top-quality products, using
specialized new technologies.
Market leadership refers to the ability to achieve top ranking, worldwide, thanks to a
formidable market presence in countries across the globe.
People leadership refers to the market dominance achieved by selecting and nurturing
talented team players able to internalize and execute innovation across the board.
Growth Strategies
Fast innovation calls for securing a competitive edge over the competition by setting—
and meeting—the highest of goals in all realms of innovation, by at least 30%. This
applies to new-product development and unveiling, innovation in design and technology
—as well as product sales, market share, and corporate value.
Fast growth is the result of implementing strategies designed to swiftly expand market
size and earnings, with and eye toward monetary growth.
Corporate Culture
Though a company can boast stellar management strategies and an outstanding and
talented pool of employees, it is still necessary to adopt a corporate culture that can fully
unleash the power of these capabilities.
No to “No’s”
At LG, we try to meet every road block with an alternate route—brainstorming and
working harder before saying “no.”
‘We’ not ‘I’
LG’s embraces a code of strong teamwork—encouraging pride in achievement as goals
are met by many working together as one.
Fun Workplace
LG’s workplace is one where the individual’s creativity and freedom are respected, and
work is made fun.
India Challenges:
The challenges faced by LG when it entered the market in 1995 were:
• Low brand awareness about LG in India.
• One of the last MNCs to enter India. (Samsung, Sony & Panasonic entered in 1995 &
LG in 1997)
• High import duty.
• Competition from local players and other multinational companies in the consumer
electronics segment.
• Price sensitiveness of Indian consumers.
LGEIL has overcome these challenges to emerge as one of the prominent brands in the
Indian consumer electronics and home appliances market by leveraging the success
factors below.
FACTORS FOR SUCCESS
Innovative marketing strategies:
To make itself a known brand in the consumer electronics sector, LG has taken
innovative marketing and promotional initiatives:
• Launch of new technologies in consumer electronics and home appliances.
• LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup,
and followed it up in 2003 as well.
• LG brought in four captains of the Indian cricket team to endorse its products. LG
invested more than USS 8 million on advertising and marketing in this sport.
• LG has differentiated its products using technology and health benefits. The CTV range
has ‘Golden Eye’ technology, air-conditioners have the ‘Health Air System’ and
microwave ovens have the ‘Health Wave System’.
Local and efficient manufacturing to reduce cost:
To overcome high import duties, LG manufactures PC monitors and refrigerators in India
at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract
manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has helped LGEI to reduce
costs.
LGEIL is implementing a “digital manufacturing system” (DMS) as a cost-cutting
innovation. This system is a follow-up to the Six Sigma exercise LGEIL had initiated
earlier.
Product localization:
Product localization is a key strategy used by LG.
• LG came out with Hindi and regional language menus on its TV.
• Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural markets.
• LG was the first brand to introduce gaming in CTVs. In continuation of its association
with cricket, LG introduced the cricket game in CTVs.
Regional channel strategy and wide distribution network:
LG has adopted the regional distribution model in India. All the distributors work directly
with the company. This has resulted in quicker rotation of stocks, and better penetration
into the B, C, and D class markets.
LG also follows the strategy of stock rotation, rather than dumping stocks on channel
partners.
LG has over 46 branch offices and another 110 area offices across the country. LG had
set a target of developing 2,000 dealers in 2004, in addition to the existing 3,000 dealers
all over India.
COMPANY PROFILE
LG Electronics
To become a Top 3 global company, LG Electronics is firmly committed to investing in
R&D and Design to create products with the most highly valued technology and style. By
perfectly matching function to form, these products emotionally connect to our
customers. Our achievements in R&D and Design have made LG Electronics a global
leader in CDMA handsets, optical storage, DVD players, residential air conditioners,
plasma panels, and LCD displays. Our R&D is driven by the dreams of our customers.
Because technology innovation is the key to success, we focus our energy on developing
globally unrivaled products. At the same time, we seek to identify future growth
opportunities in new business areas. Our Design Center is guided by its vision of “using
design to inspire trust and make a lasting impression”, defining concept, style, interface,
and finish as the four core elements of its design standard. We never cease researching
what customer’s value most in creating designs that will define the future. As more
products come with intelligent microchips and networking functionality, designers also
become inventors, harmonizing technology.
With human needs. In R&D, we focus on creating a digital world that empowers and
enriches people’s lives. Our strategy is to set the standard in technologies that link to the
Internet, while continuing to develop world-leading products.
In 2006 we introduced the world’s first 60-inch single scan PDP module, the world’s
highest performance LCD monitor, the world’s largest PDP TV at 102-inch, and the
world’s first player for both Blu-ray and HD-DVD. We also launched the world’s first
MP3 player with terrestrial DMB and the World Phone for 82 countries. Our R&D
facilities include the Corporate Institute of Technology, Production Engineering Research
center, and 36 research labs throughout the world. Our investment plan focuses on high-
growth areas—mobile handsets, flat panel display, car infotainment, system air
conditioners, and home networks.
LG Electronics designers have increased the value of LG products through the magic of
“design” to create aesthetic and easy-to-use products. In 2006, we announced our
intention to become a “design-minded company” through three initiatives:
1. Designers can initiate innovative ideas in a cross-functional team with engineers,
product planners, and marketers.
2) Designers are also involved in product planning, including product displays and
promotions.
3) Designers will receive special recognition with the new “Super Designer” title.
Our devotion to design has been appreciated by prominent design organizations, resulting
in winning prestigious design awards every year at home and abroad, including the IDEA
Award, if Design Award, reddot Design Award, Good Design Award Japan, and Korea
Good Design Awards. There are now LG Design Branches in Milan, Beijing, New
Jersey, Tokyo, and New Delhi, all working to achieve our vision of being a “Digital Life
Originator”.
1.2 Profile of the Organization - LGEIL
Established In : May 1997
• Managing Director : Mr. Moon B. Shin
• Corporate Office : Plot no 51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP)
• Corporate Website : http://www.lgindia.com
• Manufacturing Units : Greater Noida(U.P.) & Pune(Maharashtra
Vision: Global Top 3 by 2010
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 mid-term and long-term vision anew to rank among the
top 3 electronics, information, and telecommunication firms in the world by 2010.
As such, we embrace the philosophy of "Great Company, Great People," whereby only
great people can create a great company, and pursue two growth strategies involving "fast
innovation" and "fast growth." Likewise, we seek to secure three core capabilities:
product leadership, market leadership, and people-centered leadership.
LG`S CORE VALUES
A set of core values that LG follows are:
Innovation
Openness
Partnership
Yet more important is the fact that the organizational culture derived from these core
values is not restricted to LGEIL internal environment, it also extends to LG`s channel
partners, i.e., dealers, distributors and vendors.
Innovation
Innovation , does not comes on its own it flows from a team culture and calls for total
management commitment .the stiff 50% target improvement practice earlier and now the
30% that LG follows every year is not possible without innovation that makes skilling
and re-skilling easy . Over the years innumerable such structures and forums have been
established by top level management and departmental heads which facilitates innovation
at all levels of the organization
In this genre, LG newest blue ocean innovation strategy, the fast re-engineering projects
and tear down and re-engineering activities, are practiced both in letter and spirit at
LGEIL.
Blue ocean initiative
Blue Ocean was introduced at LGEIL in 2006. It’s a creative new style of management
that opens new market vistas and invents new systems to maximize management
efficiency. In its final outcome, Blue Ocean attempts at making competition irrelevant.
In LG`s context, Blue Ocean is represented in a 2 by 10 logo. It aims to position as
among the top three companies in the industry by the year 2010. by this period, LG hopes
to double their revenues , profits and share holders value .the core philosophy under this “
leaping into the future” programmers are :
Think new, and most importantly,
ERRC, i.e., eliminate, reduce, raise and create
LG`s blue ocean strategy, implemented across the world focuses on creating high growth
and profitability in 5 key areas: product, business model, system, processes and people.
The outcome is to help LG create differentiated value for the customer, raise their job
expectation, increase their work efficiency and built a strong and winning team spirit a
LGEIL.
Transparency and openness
Culture that does not permit transparency bottles –up thought processes and stifles
communication (both upward and downward) and erodes the trust based in different
hierarchies of the organization.
Not just this , a transparent culture also helps top management tap into the emotional
world of the bottom – rung employees , in the process getting to know their thoughts and
ideas better and at the same time managing to drive strong motivational spirit into the
highest to the lowest denominator .Above all , it puts in place , a fast decision making
process .
LGEIL created a structure and implemented a work step that does not punish dissent, and
a transparent culture begins to get establishes virtually on its own, percolating down to
the bottom of the pyramid. One, of the start point of bringing about transparency is
through the physical infrastructure to every one except the vice- presidents and above is
housed in and open – plan office at LGEIL. Other channels of creating a barrier- free
environment are the fun and discussion forums.
Striking partnerships
At LGEIL, the policy is the reverse; it partners the employees through profit sharing and
bonuses. This instills a high level of trust and ownership in them towards their targets and
towards the company. It has increased target orientation in the company to an extent that
after a while, employees themselves begin to clamor for stretched targets.
Mean while, to insure that vendors also deliver in terms of cost, quality and schedules,
cross functional team have been established that routinely interact with them on specific
projects in order to improve their work conditions and train and develop their personnel.
For strengthening the potential for sales, LG has taken up product training activities with
dealers, where they share USP`s of their products so they are better able to represent LG
in the market place. Lastly, for developing quality consciousness in the vendors LG has
taken initiatives at the vendor’s end, such as 100 PPM movement, six sigma
development, and cost cutting activities.
Product history of LG products
Local interest in Televisions
1. OSD in regional language in TV-1997 product launched were having only
English, French and Arabic languages. In March 1999 LGEIL developed various
regional languages OSD like bangle, Marathi, Tamil which has a very good
response in various regional markets.
2. Cricket game: cricket was felt as a religion in India. May 1999, LGEIL decide to
launch cricket game in televisions, 1999 was a great success due to cricket game
in TV. It was the time of cricket world cup also.
3. 15 high graphic games in TV: after success of cricket game, LGEIL R&D decided
to develop high graphic game which can be connected to TV. LGEIL has
launched it in June 2001. 15 games in television was a great success. LGEIL was
recognized as Innovation Company.
4. 1200w TV – LGEIL R&D took initiative to develop high sound TV. Sound
master was the first model with 1200w, which was launched in august 2002.
5. DTH television- LGEIL has launched the first DTH in built TV in India in mach
2005
6. X- Wave: X wave or wireless sound with selectable frequency was a unique
concept launched by LGEIL. One can listen TV sound through audio sound
system; radio etc .this was launched September 2005.
7. Ballad – this was the platform to make aesthetic bench mark in India with high
sound. LGEIL developed 2000w television with PU paint for high end customers
march 2004
8. Super Slim- super slim TV was launched in September 2005
Washing Machine
1. Started washing machine business in India by launching imported top loading
washing machines in 1997
2. India was semi-automatic dominant market , so need for presence in this category
was felt .factory was set up and production for 2 models of 6 kg semi –automatic
machines started in 1998
3. For high end customers, front loading washing machines was required .the market
demand was created by IFB and SIEMENS. LGEIL also started importing front
loading washing machine from Korea and launched in the market in 1999
4. As India was semi- automatic dominant market, so to have technology leadership
in this category MICOM (mini computer) control machine was launched in 6.5 kg
capacity in 2000.
5. To strengthen the Front loading segment which was dedicated by IFB, new range
of imported front loading was launched in 2001 from 5.5 kg capacity to 6.5 kg
capacity.
6. As the market demand for top loading washing machine grew, home production
of top loading started at Noida line 2002 in the capacity 5.5 kg to 6.5 kg.
7. Semi automatic demand was constantly growing so need for another tool felt and
three new models were launched in 6 kg capacity in 2003. Also, new range of
imported front loading was launched in the brand name of “TROMM” which was
a great success world wide.
8. All available machines in the market can sense only four traits. To strengthen the
technology leadership- sensor technology in top loading was introduced in in
2004 which can sense 7 traits in a top loading machine.
9. To provide complete home solution of washing, imported dish washer was
launched in 2005 for washing dirty dishes. Also imported washer drier
Function machine was launched which can wash and completely dry the clothes.
10. To have no. 1 position in washing machine and dictate the market, highly
technology upgraded imported direct drive motor washer dryer was launched in
2006. These direct drive motors are highly reliable, produce less sound and wear
and tear are very less. So LG is also providing 7 years warranty on these products.
Focus on “Health Air”
1. Started air conditioning production in India in a998- giving simple window and
split type air conditioners – attained market leader status in India.
2. Produced Heat Pumps – these air conditioners are capable of producing
conditioned air around the year both in cold and hot weather- such a machine was
generally imported- LG India developed this air conditioner as per Indian market
needs. By 1999- retained market leader position.
3. Plasma filter- in window and split AC – by 2000- through plasma filter
technology. This is a feature that provided clean atmosphere- healthy living
conditions by leaning the indoor air- this helps in maintaining a correct IAQ-
indoor air quality. LG became no. 1 market share with 28% MS India.
4. In 2004 LG introduced its CAC range with 3.0 Tr- 5.0 Tr double air conditioners /
1.5 TR to 4.0 TR cassette type and roof top units to 2.5 TR capacities and 3.0 TR
in 2005.
5. 2004 the duct able range of conditioners has come from 3.0 Tr to 16.5 Tr with
floor standing modular split packaged air conditioners of 11.0 Tr and 16.5 Tr- low
static units of 2.1 Tr to 5.0 Tr capacity.
6. In 2005- LG introduced a new range of air conditioners called MPS along with its
new range of multi-v, i.e., VRF technology. The MPS is a multi split using a
single piping circuit for connecting multiple number of IDU to a single ODU with
individual control for each IDU.
Multi-v is a technology that helps the IDUs to set its own capacity (up to 130% of the
rated capacity) with respect to varying load in the area.
Refrigerators
1. LG started refrigerator business in India in the year 1997. Launched first direct
cool refrigerator with EMS production (models were GR 171, GR 211, and GR
251).
2. As India was one of the fastest developing countries in Asia, and the buying
capacity of people were increased, so need of FF models launch was felt for high
end customers, LG launched FF CBU models capacity from 240L to 500L in
year 1998.
3. In the year 2001, LG establish in India with full enthusiasm and establish
refrigerator line in noida. On July 2001, first FF ref launched in India with LGEIL
production with GR 282, GR 312 models.
4. In the year 2002, K projects launched with GR 232, GR 252 variant models.
5. In the year 2003, ref second line was set up. LG launches IBDC (ice beam door
cooling) feature in IL- pit. In December first DC production start with two models
GR 181 and GR 201.
6. As the ref demand was increasing tremendously for domestic market as well as
for export market, so LG established ref production line in pune. In Jan 2004, LG
introduces new door in K and IL projects, also new metallic color was introduced
in DC. In July 2004 LG started SFF production (model GLF 191, GL 231, GL
261).
7. In the year 2005, LG launched dash project model GL 362, GL 402. In March
2005, IBDC concept was introduced in GL 242, GL 262. In Sep 2005, micom
model was launched.
8. In the year 2006, LG launched intello-cool products.
The Organization Culture
The driving objective of LG is to capture the “voice” of our internal customers and align
to the HR systems so that it may have their “buy in” in everything that they do. The
survey covers over 30% of the strength through stratified, random sampling. LG believes
that this is a scientific way of understanding “an organization” as the employees see it.
The LGEIL attributes that have emerged through these surveys in order of significance
through these employees are listed below:
High learning environment
Employee trust reposed in top management
Employee’s engagement
A target-driven company
Strong communication channels
Fast and speedy decision making processes
Employees like their job assignments
Quick and speedy decision making
Cross-cultural management
Following is a brief discussion on each of these organizational attributes:
High learning
It has consistently been the best rated of all the organizational attributes.
LGEIL offers tremendous learning opportunities to its employees. They acknowledge
that their jobs are designed in a manner that it provides varied experience and continue
learning opportunities to them, helping them to eventually develop as independent
business managers.
Employee trust
Trust in top management has been highly rated as a parameter at LGEIL. This they
attribute to the transparent practices that the top brass follows and their belief that the top
management has the capability to lead them through any market crisis. They also feel that
the HR policies that LG follows are in their best interests.
LG employees acknowledge that a good leader helps them to better understand their work
domain and as a consequence, is able to extract the best out of them. They also
acknowledge that their leaders are best coaches and mentors to them: coaches, when they
need to know how to achieve a set target and mentors when there they need to form a
personal association with them.
Employee’s engagement
Employee’s engagement is among the top 3 factors at LGEIL and this is what
differentiates it from competition. It makes employees feel highly engaged and they find
that the biggest motivating factor at LGEIL is high learning and the achievement of their
targets.
Target-setting exercise
The target-setting exercise at LGEIL yields quantitative parameters that leave no room
for ambiguity. Even if stretched, there is complete clarity of what is expected out of each
employee. Rather than demoralizing an employee, this exercise inspires them to strive for
higher levels of excellence.
Strong communication
LGEIL has a battery of forums that facilitate top down and bottom up messages. This
makes LG a market-driven company that is very responsive to changes and helps in quick
decision making. The market communication goes strait to each of LG’s
Employees through these various forums, as well as through the senior management
team.
Speedy decision making
Fats decision making has made possible at LGEIL through grass-root empowerment.
Decisions are taken instantly as per customer needs and demands.
Job affection
Empowerment and high learning makes LGEIL employees like the job assigned to them.
Cross cultural management
In any Indian company, where employees get drawn from every nook and corner of the
peninsula, cultural influence is bound to come into the play. But these can be managed in
a manner that they do not hamper the formation of strong cohesive teams.
The issue at a multinational company is no different, although its sometimes exaggerated
by vested interests. At LGEIL, it takes a lot of care not to let cultural become a major de-
motivating factor, thereby ushering in a lot of unwelcome bureaucracies, groupies and
inefficiencies.
Two areas of improvement have however also emerged in these surveys:
The problem of long working hours.
The lack of inter-departmental cohesion, arising possibly out of the strong thrust
on individualism.
LGEIL has been, from the beginning, practicing some approaches
which help the organization to work in a more efficient manner and
overcome its problems. These approaches are discussed below.
There is no substitute to Quality
Quality is perhaps the most cherished value at LGEIL that does not flow through
systems alone. It has been brought about through dramatic mind set changes and hard
discipline; Following are the some of the qualities initiatives undertaken at LGEIL:
CPQ (customer perception quality)
The objective here is to perceive and improve quality system for products through
customer service. Customers from 10 major cities are picked up randomly and the
staff makes monthly calls to them to gauge their experience with LGEIL products.
The service call to non service call ratio comes to about 40: 60. There is a set
questionnaire on which the customer is quizzed and based on their responses, the
quality of product is adjudged and the CPQ calculated. This value of the CPQ is
reviewed every month with the top management team. The most recent CPQ ranking
of the products are as follows:
05 2 1 2 1 1 204 5 5 5 2 4 -Status Ref. AC WM MWO CTV GSM
Q museum
Sometimes ago, there was a need felt to establish a central forum for discussing quality issues among LGEIL stake holders in order to prevent failure recurrence. That’s what gave birth to Q museum.The Q museum displays defects and does cost analysis for critical failures relating to the field and the factory. It also develops a database for all products and analyzes the “recurrence prevention system”.
ICTS (Indian Customized Testing System)
The biggest strength of the various quality tools employed at LGEIL is that they have
all been customized to the Indian market needs. The climatic conditions in India for
example are very extreme. Power fluctuations are also a part of the daily life at LG.
Factoring these into the ICTS design standards, products have been designed at R&D
that can withstand huge variation in environmental conditions.
Achieving this was by no means easy or simple. It necessitated in-house designing of
various jigs, field and test conditions, accurate simulation, testing and re-testing.
Meanwhile, vendor audit and support systems to train vendor employees on the use of
these quality tools have also been put into practice.
The Quality Approach
Basic support T5SInspection system6 tools
Full support Loss improvement (Le-5)T P M Process fool-proofing
Innov. Activity Tier 2 supplier auditReliability Q contractsVENDOR GQA implementation
Future DOL strengtheningCOQ concept at vendor end
LG’s vendor audit system helps it in identifying the worst suppliers in their group.
Quality managers from LGEIL are then assigned who train and discuss line return
(LR) and lot acceptance rate (LAR) problems and solutions with them, every month. If,
for some reason a vendor is unable to come out of the quality focused vendor (QFV)
banned for three consecutive months, he or she gets dropped from the network.
The 360 degree product audit
This is used to detect problems relating to part, process, design and inspection. As
part of this process, QA (quality assurance), e-source production and R&D staff sit
together to review samples from the ready-to-dispatch lot and propose improvements,
which are then reviewed by the top management.
The R&D centre
LGEIL’s research and development (R&D) centre, armed by over 150 technical
hands is recognized by the government of India. Since inception the LGEIL
management was very focused on having a self sufficient R&D outfit that would help
it customize the products to local market needs.
Exports
Exports started in a humble way and could cross US$ 2.2 million in 1999. but in
recent years backed by world class manufacturing facility, strong R&D teams and
quality products, LGEIL has started building its international presence in the target
markets of south Asia, middle east and Africa and has also started exporting to the
demanding markets of Europe in 2006.
It has started exports of compressors, GSM phones and desktop PCs in addition to the
customer durable and home appliances products and has export dedicated manufacturing
facilities for ODD products. It has achieved US$ 100 million exports in 2005 and has
made highly ambitious plans for future.
Evolution of LG Brand
LGEIL became no.1 in all its product categories (except GSM which it has launched
recently
1.4 Competition Information
There are many players that have embarked their name in the minds of the consumer.
SAMSUNG
SONY
PHILIPS
ONIDA
HAIER
VIDEOCON
MAJOR PLAYERS: -
The industry consists of players of domestic origin (like BPL, Videocon) as well as
multinationals (like Sony, LG, Samsung, Philips, Haier). Of late, Korean majors such as
LG and Samsung have gained a sizeable presence in the Indian market at the cost of
domestic players. The Korean players have dislodged even entrenched domestic players
from leadership positions. Even though sales volumes have shown long-term growth,
there continues to be overcapacity in the industry.
Industries Where LG Group Competes
Petroleum & Petroleum Products Wholesalers
Chemicals
Computer Hardware
Computer Peripherals
Electronics
Energy & Utilities
LEADERSHIP ACROSS CATEGORIES
LG INDIA
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South
Korea was established in January 1997 after clearance from the Foreign Investment
Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater
Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.
LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida,
India. This facility manufactured Color Televisions, Washing Machines, Air-
Conditioners and Microwave Ovens.
''Company is setting up a chain of exclusive premium showrooms. LG plans to launch 60
premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a
total of 83 LG stores across the country, of which 45 are shops and 38 are exclusive
stores. Brand shops will be placed in the premium segment and the target audience will
comprise buyers interested in premium and high end products.
LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more
interactive environment and additional lifestyle orientation on display so that the
customer can actually experience the LG products in his or her own home settings.
LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is
planning a brand new image. To attract inspirational and young consumers across India,
company will roll out a new marketing strategy. The exercise will cost the company Rs
360 crore.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances, and computer peripherals industry today. LG Electronics is continually
providing, superior technology products & value for money to more than 50 lakh
households in India. LGEIL is celebrating the 11th anniversary this year.
LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics'
largest R&D centre outside Korea. We at LGSI focus on niche technology areas such as
mobile application development, digital video broadcast and biometrics software and
support LG Electronics with our expertise. Motivated by a passion for technology, a
strong work culture and loyalty to the organization, we are determined to see LG become
one of the top three brands globally.
Prominent consumer electronic company, LG Electronics Inc. has said that it expects the
sale of its products in India to up by 15 per cent in 2008. Moon Bum Shin, managing
director of LG Electronics India has said that the company has earmarked 4.8 billion
rupees for investment purpose in India this year. The said money will be used to market
as well as manufacture new products.
LG Electronics, which is originally a South Korean Company with branch in India,
informed that its sales of GSM mobile phones, color televisions, air conditioners and
other household goods in the Indian market was to the tune of 95 billion rupees ($2.4
billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion
rupees. In order to achieve its target, Shin said LG Electronics will concentrate on
catering to the high-end consumer market which will help boost sales this year. India
churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian
branch of LG exports to 40 countries.
India challenges
The challenges faced by LG when entered in Indian market
1. Low brand awareness about LG in India.
2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India).
3. High import duty
4. Competition from local market players and other MNCs in Consumer durable segment.
5. Price sensitiveness of the Indian consumer
LGEI over comes these challenges to emerge as
Innovative marketing strategy
1. Launch new technologies in consumer electronic and home appliances.
2. LG was the first brand to enter in cricket in big way a way, by sponsoring the
1999 world cup followed it up in 2003 as well.
3. LG brought in four captains of the Indian cricket team to endorse its products.
LG invested more then US$ 8 million on advertising and marketing in this sport.
4. LG has differentiated its product using technology and health benefits. CTV has
“Golden eye technology” Air conditioner has “Health air system” and
microwave ovens Have the “Health wave system”.
Local and efficient manufacturing to reduce the cost
To overcome high import duties LG manufactures TV refrigerator in India at
manufacturing facility at Noida and. LGEI had already commissioned contract
manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce
cost. LGEI implementing the “Digital manufacturing system” (DMS) as the cost cutting
innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier
R&D potential
LG has the research and development facilities in Bangalore and . Both the unit carry out
R&D department for the domestic as well as the parent company it also dose customize
R&D for the specific countries to which it export product.
MAJOR KEY SUCCESS FACTORS:
1. Innovative marketing - LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup and followed it up in 2003 as well.
2. Local and efficient manufacturing to reduce cost - To overcome high import duties,
LG manufactures PC monitors and refrigerators in India at its manufacturing facility at
Noida, Delhi.
3. Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs.
4. Product localization - Product localization is a key strategy used by LG. It came out
with Hindi and regional language Menus on its TV.
5. Regional distribution model - This has resulted in quicker Rotation of stocks and better
penetration into the B, C and D Class markets.
6. Leveraging India’s IT advantage - LG Electronics has awarded a contract to develop
IT solutions to LG Soft India (LGSI). The Project involves development and support for
ERP, SCM, and CRM And IT-enabled services for LG.
Strategies adopted by the organization:
LG follows 10 commandments which are as follows.
1. Foster working environment-5S Environment
2. Fast execution is key to success
3. Transparent and fast communication-open communication
4. Update market -knowledge –Demographics
5. Win –Win relationship with the trade partners
6. Customer is the king
7. Even Billing –Road to ach supplier A
8. Be in touch with the market (70% Market, 30% Office).
9. Plan and Execute annual marketing Calendar-Time to market
10. Display share of 50% -to get 50% consumer share.
LG market share of consumer appliances and consumer electronic:-
LG position of CTV in various states in India
LG position of REF in various states in India
LG position of WM in various states in India
LG position of AC in various States in India
LG position of Audio & Home Theatre in various in India
LG position of DVD in various in India
LG position of MWO in various states in India
This analysis is based on the ORG survey conducted by LG which represent the LG
position of different consumer durables in various states in India. We selected different
brand in different category as per the market share and the demand of product in market.
This analysis represents the LG market position during the period of March 2008. It
shows that LG has captured maximum market share almost in every category. LG and
Samsung have the maximum market in consumer durable market but LG dominate the
almost all the category in consumer durable. Prominent consumer electronic company,
LG Electronics Inc. has said that it expects the sale of its products in India to up by 15 per
cent in 2008. Moon Bum Shin, managing director of LG Electronics India has said that
the company has earmarked 4.8 billion rupees for investment purpose in India this year.
The said money will be used to market as well as manufacture new products. LG
Electronics, informed that its sales of GSM mobile phones, colour televisions, air
conditioners and other household goods in the Indian market was to the tune of 95 billion
rupees ($2.4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around
110 billion rupees. In order to achieve its target, Shin said LG Electronics will
concentrate on catering to the high-end consumer market which will help boost sales this
year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion.
The Indian branch of LG exports to 40 countries. Shin remarked that the company was
targeting an increase of exports to $300 million in 2008 from $230 million in 2007.
Distribution and Marketing:
The company has number of dealers and warehouses. They have LG exclusive shops. For
the marketing of the products a number of activities are followed:
1. Exhibitions are conducted from time to time.
2. Society and college activities are conducted.
3. Hoarding, Posters, banners are used so as to grab the attention of the costumers.
4. Day to day advertisement in leading newspaper.
5. Discount at festival time.
6. For dealer relationship they arrange dealer meeting at several time in the year
7. LG divide dealer in gold silver etc. category to know the performance of the dealers.
8. They have their sales persons at various sub dealer store and at mordent trade store for
particularly for the promotion of the LG product.
9. LG also uses the radio FM for the promotion activities.
10. Also provide capon and scratch card for festive season.
The logistics (Supply Chain Management):-
Logistics is the art and science of managing and controlling the flow of goods, energy,
information, and other resources like products, services, and people, from the source of
production to the marketplace. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging. The operating
responsibility of logistics is the geographical repositioning of raw materials, work in
process, and finished inventories where required at the lowest cost possible.
Logistics Management is that part of the supply chain, which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the point of consumption in order
to meet customers' requirements.
5R’s of Logistic followed by LG:
1. Right Time
2. Right Place
3. Right Condition
4. Right Cost
5. Right Handling
The LG Factory is located at NOIDA &. There are three types of Warehouse-
1. Mother Warehouse
2. Branch Warehouse
3. Spare part warehouse
The mother warehouse is that where the products from the factory are kept and from that
warehouse, the products are sent to the branch warehouse. A warehouse is a commercial
building for storage of goods. Warehouses are used by manufacturers, importers,
exporters, wholesalers, transport businesses, customs, etc. They are usually large plain
buildings in industrial areas of cities and towns. They come equipped with loading docks
to load and unload trucks; or sometimes are loaded directly from railways, airports, or
seaports. They also often have cranes and forklifts for moving goods, which are usually
placed on ISO standard pallets loaded into pallet racks.
In warehouse 7 locations is set up for the products.
Loc 1, Loc 2, Loc 3, Loc 4, Loc 5, Loc6, Loc 7
Loc 1 – selling
Loc 2 - second sale
Loc 3 - insurance claim
Loc 4 - write off material
Loc 5 – destroy the item
Loc 6 - court case material
Loc 7 - for repair
5’s of warehouse, which the LG strictly follow.
1. Sweeping
2. Sorting
3. Systematic Arrangement
4. Simplification
5. Self- discipline
In warehouse, the products are pinup with 3-color paper to get the knowledge about the
delivery.
1. Red Card – To stop the product going into market,
2. Green card – To allow the product for delivery in market,
3. Yellow Card – After the product labelled with green, allow this
to move in market
Distribution Time:-
• Local delivery – 4 hrs.
• Upcountry delivery - 12 hrs.
• Within 200 km. – 24 hrs.
• Beyond 200 km. – 48 hrs.
The above distribution time is the time of delivery of products from warehouse to the
market place, which the logistic department follows to fulfil the demand in the market at
right time. In LG, we have the following process, which is followed in logistic through
ERP.
· Order Processing
· Invoicing
· Indenting
· Report
Order Processing booking for dealers /distributors
Invoicing after billing process/bill generation
Indenting requirement (Production Unit to branch unit)
Report distributed to all
In warehouse, there are two mode of dispersion of product from one place to another
within.
a) Hydraulic
b) Manual
In addition, there are 35 fire extinguishers to prevent the accidental hazard within the
warehouse due to fire. These fire extinguishers are valid up to year 2011. One has to
follow the rule of “NO Smoking” within the warehouse
Logistics Ten Commandments – Golden Rules
1 - Warehouse 5S – to be strictly followed – FG – 2, 5 & 7 to be properly maintained.
2 - 100% Bar-coding for all inward & outward transaction.
3 - Follow standard pick – ship process religiously.
4 – No inventory mismatch, shortage or excess – monthly 100% physical stocktaking.
5 – Nil 30+ for FG – 2, 3 & 5.
6 – Nil transit damage.
7 – File insurance claim within 2 days. Settle all claim all within 30 days.
8 – No inter – branch transfer without HO clearance.
9 – PSI feeding into system by 25th of every month. Ensure 90% accuracy.
10 – Apply physical FMFO.
Problem
1- In transit material damage checking.
2- Cost target achievement.
3- Natural events tracking.
4- Fluctuation in demand-supply Equipments
1- 100% bar code scanner.
2- ERP – Invoice Generation Process.
3- Hydraulic Trolleys for material movement.
4- Pallets for safety of material.
CUSTOMER SERVICE:
The best and the biggest international brands are here in India –but the irony if it all:
where is the after-sales-service? So integral to a brand, so critical for its success and so
taken for granted in developed markets! In India, after sales service is, for want of a
better description, the pits. So what’s stopping the best companies from pulling out all the
stops when it comes to providing the best service? Do customers expect for too much? Or
is it that in India they don’t really care. Brand Equity fanned out to MNC as well as
Indian consumer durable companies, stockiest and dealers, analysts and market
researchers to get feel of what’s really keeping after sales from being used as a cutting
edge marketing tool in pushing products across categories. Customers support following
the purchase of a product or service. In some cases, after-sales service can be almost as
important as the initial purchase. The manufacturer, retailer, or service provider
determines what is included in any warranty (or guarantee) package. This will include the
duration of the warranty traditionally one year from the date of purchase, but increasingly
two or more year’s maintenance and/or replacement policy, items included/excluded,
labor costs, and speed of response. In the case of a service provider, after-sales service
might include additional training or helpdesk availability. Of equal importance is the
customer's perception of the degree of willingness with which a supplier deals with a
question or complaint, speed of response, and action taken.
LG also had a big problem of after sale service in India. During the project we also came
to know that after sale service becomes the big issue in the region. Customers as well as
dealer were facing the problem of after sales service. Because of this problem many
dealer in the region were not ready to sell LG product. So it becomes the big issue. But
LG has taken some solid steps towards improving customer’s perception and experience
of after sales service. Because it very important in competitive market to provide the best
service. L G Electronics has signed a memorandum of understanding with 23 Industrial
Training Institutes to strengthen its after sales service in India. The company aims to
recruit 10,000 people by the end of this year as a part of its branding strategy to focus on
service and move away from discounting. L G Electronics has identified eight states with
high after sales service call rates to ink the deals with the ITI. Y V Verma, director HR
and management system, LG Electronics said, "The Company was trying to find a
solution for effective after sales service since last two years. There is a huge need of
trained manpower for the after sales service to align with the company's expansion and
focus on the GSM mobiles and the personal computer segments."
1. In the initial phase the company has entered into agreements with ITIs in the states like
Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of
signing with Uttar Pradesh.
2. L G Electronics, with 1200 service centers, has already recruited 300 students and
plans to beef up the number to 10,000 by the year-end.
3. "The company has offered a scholarship to the selected students for the last six months
of their training program,"
4. The company will invest Rs 8 crore (Rs 80 million) in employee development program
this year with an aim to attain a 8 per cent attrition rate.
5. The company moved away from the discounting strategy since last year and is putting
thrust on the quality and service in its brand communication to position LG as a premium
consumer electronics brand.
6. At the top, the Service Division in Korea reports to the Global CMO. (as mentioned in
Dermot’s public interview in ET on Wednesday). This shows commitment that Service
must be made into a marketing differentiator, and leveraged thus.
7. LG has the widest service network across the country; some estimates put it at a
significant multiple of service-infrastructure from our nearest competitor. While the sale
size may also be a nice multiple from nearest, it shows the company is ready to put our
money where our mouth is.
8. The company has introduced a 211 service - once you register your complaint, we will
call you back in 2 hours (hence 2), set up an appointment for the next convenient day for
you (hence the first 1), and show up in the promised 1-hour slot (hence the second 1). If
the next convenient day for you is the next day, that’s great too. It’s a disruptive action in
an industry (including LG) having traditionally shied away from
its service responsibilities, and thus not leveraging any mileage from it.
9. The company is promoting 211 through ATL, probably the first time after sales service
is being communicated in this fashion by any product company. You may have seen the
TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters,
both of which revolve around prompt response.
10. The first LG-owned service centre opened in Gurgaon. (Service in India generally
works through authorized service centers, in LG’s case they work exclusively for LG.) A
company-owned service centre tries that much harder, knows things better, and can even
contribute as a revenue center.
MARKETING STRATEGY
Initially, when LGEIL started in India the marketing campaign was centered on product
setting, technological superiority and feature base.
Later, (after about 1 ½-2 years), the campaign focused on “health” platform. CTV
focused on golden eye (focusing on eye’s protection), refrigerator on PN system
(preserve nutritional value of food preserved in the refrigerator), washing machine
focused on fabicare (taking care of clothes and hence of those who wear clothes), air
conditioners focusing healthy air (focused on fresh air), microwave oven on health ware
(on nutrition cooking) and vacuum leaner focused on health-guard (for sanitized
cleaning).
The campaigns focused on health platform till it went down the psyche of the customer.
Later the campaigns did not follow any such common platform. Campaigns were
launched on the basis of product in question.
Marketing campaigns of LGEIL have been one of the most successful strategies.
Rural Marketing
By the year 2000-2001, LGEIL had a strong presence throughout the length and breadth
of the country. LG was doing well in almost all metropolitan cities, especially in the
northern and eastern belts of the country, although it still had some catching up to do in
the south and west.
This was achieved in 2002-2003, when LGEIL emerged as an undisputed market leader.
Yes, it was hardly the reason to sit on their laurels. The problem of further growth had to
be addressed and there was this pressing need to explore and find new markets. In the
metros although LG was doing pretty well, the cost of selling was too steep to enable it to
cut good profits, as their competitors were also focused on just these markets.
The process was kick started with a few feasibility studies that threw up three pre-
conditions for their success in the hinterland:
a. They had to appoint remote area offices (RAOs) and have amongst the best
qualified and committed people for this job.
b. They had to be empowered in every possible manner.
c. The connectivity issue between the RAOs, the branch and the head office had to
be resolved, which meant an additional expenditure of US$ 55,000 to US$ 66,000
peer office, at the minimum.
Earlier, their research had revealed that a few of their competitors had failed to dent this
market only because they unwittingly made rural posting a punishment posting for some
of their sales staff. Or, they floundered because they hadn’t pumped in
Enough resources into linking their rural-urban infrastructure. In the end, although they
did dispatch men to these outposts, they didn’t dispatch enough material support, so the
men quickly ran out of ammunition and lost the battle.
LGEIL wanted to fight this battle on a different scale and with a different level of
preparedness, because it was determined to score a different outcome. Armed with the
three afore mentioned strategies, the LGEIL management went the whole hog into the
field and in one stroke, set up, not one or two, but dozen-odd RAOs in just over a year’s
time. In nearly eight months, it had a strong rural network in place.
Meanwhile, in the metros, while LGEIL was still engaged in car fights with our
competitors and where, all of them were staying afloat by cutting prices or offering
bigger discounts to their trade partners and bleeding in the effort to remain afloat and
remain their market share- in the rural sector, it was unchallenged and pretty much left to
follow their own devices, with very little competition. They became dominant on this turf
in less then a few years’ time. In any case, by this time, LGEIL owned a premier , well –
established brand and commanded the necessary infrastructure , so it took a little effort to
glide over and gradually overcame all the other Mon and Pop outfits that were earlier
ruling the roost in rural India, and cum up trumps in the characteristic LGEIL way.
Dual Marketing
As would be clear from the preceding discussion, so far, LGEIL had only incurred cost
and made little effort in executing all these expansion plans so now was the time to reap
the fruits of earlier labor and the only acceptable way of doing that was without
compromising on the quality factor. That left just one option- nip corners at the cost end.
Since this was the only route that would not have diluted the perception of the premium
brand, the corporation started making serious efforts at cutting cost through product
innovation. A portion of even these savings LGEIL intended to pass on to the Indian
customer.
In short, the endeavor was to try and improve the market share without denting our
profitability. It had already reduced the overheads by increasing sales and through
optimum utilization of our installed capacity, now the next logical step was to attack the
cost of production.
The LGEIL concept that was later lauded by McKinsey as- Premium marketing to the
masses and was communicated to the customers in the form of a strong marketing
campaign- more value at much less than the price!
With this done, the affordability of the products became the bulwark of all their
marketing campaigns. This strategy caught competitors unawares. A few reacted by
announcing price cuts of their own, not realizing that LGEIL was not just cutting prices it
was also focusing strongly on cost innovation at our end. So, while their price cuts led to
more losses and pressures on cost, LGEIL’s led it to more customers and increased
profitability. In the end, with this simple strategy, it managed to kill two birds with one
stone.
Some of their competitors later saw through their game plan, but by then it was too late
for them to follow suit and in any case, they still hadn’t unraveled the full strategy, which
was, not to cut prices uniformly across the country, but stagger them across different
segments.
Very cleverly, while LGEIL was launching premium products in different categories, it
was also varying the pricing strategy from state to state that kept competition
Guessing and on tenterhooks all the while. Time and luck were both in LGEIL’s favor.
Strong Employee Foundation
The enormous speed at which LGEIL grew in those days would not have been possible
without logical and rational systems. The management knew they had to do something
remarkably different from competition. So we set about recruiting people, who among
other things, were perceived to be high on:
a. Physical energy
b. Emotional energy
Next they were provided with:
a. A big vision.
b. Melt-ins so that all decisions could be made by consensus and nothing got
unilaterally imposed on anyone.
c. Each was given absolute freedom within certain pre-defined parameters and held
accountable for results.
Meanwhile, the tools that the employees were encouraged to use mainly comprised of:
a. Creating total transparency relating to the company’s performance including a
discussion of sensitive issues, such as profitability.
b. Sharing with them news and details of the future line-up of our products.
Showing genuine respect and acceptance of everybody’s ideas and suggestions.1.5 S.W.O.T Analysis of LGEIL
STRENGTH
Good ad support.
Strong financial booking
Good Marketing network
Being nearer to corporate office Ghaziabad branch has additional advantages of
good channel of communication.
Being nearby corporate office & Manufacturing unit, brand awareness is more in
this area as compare to other places.
Korean technology is considered as world best technology.
WEAKNESSES
Lack of experience of Indian market.
L.G. Rural marketing is not so strong.
Weak price control policy of company over distributors.
Lack of brand publicity in case of vacuum cleaner. As per various analyses (taken
from secondary data) only 13% of respondent were aware of fact that L.G. is also
in the field of vacuum cleaner.
Lack of well Dispersed availability.
OPPORTUNITY
Being a new brand there is no perception (Negative or positive So L.G. has full
opportunity to develop positive brand image.
Ghaziabad & Noida are growing at faster pace with this number of working
women is rising, which is an opportunity for home appliance company like L.G.
According to various surveys (taken from the secondary data) 10-11% of
customers are dissatisfied with Videocon and whirlpool product. This is the
market which is open for L.G.
THREAT
Electrolux Kelvinator Merger May become biggest threat to L.G.
Ghaziabad market is price sensitive market & Videocon is sill perceived as price
leader as per my survey.
According to secondary sources available respondents give 74.2% importance to
past experience. Being a new company this figure is threat to L.G.
Old established brands are also threat to LG.
COMPETITOR PROFILE
.
A brief summary of some of the top most durable companies with their sole objectives of
being there in the Indian market structure and have stayed and maintained their positions
is discussed below
Whirlpool
Whirlpool, right from its inception in 1911 as first commercial manufacturer of
motorized washers to the current market position of being world's number one
manufacturer and marketer of major home appliances, has always set industry milestones
and benchmarks. The parent company is headquartered at Benton Harbor, Michigan,
USA with a global presence in over 170 countries and manufacturing operation in 13
countries with 11 major brand names such as Whirlpool, Kitchen Aid, Roper, Estate,
Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond
achievable feat of any other in the industry.
Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it
emerged as truly global leader in the1980's. This encouraging trend brought the company
to India in the late 1980s. It forayed into the market under a joint venture with TVS group
and established the first Whirlpool manufacturing facility in Pondicherry.
Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into
Indian refrigerator market as well. The same year also saw acquisition of major share in
TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to
create Indian home appliance leader of the future, Whirlpool India. This expanded the
company's portfolio in the Indian subcontinent to washing machines, refrigerator,
microwave ovens and air conditioners.
Today, Whirlpool is the most recognized brand in home appliances in India and holds a
market share of over 25%. The company owns three state-of-the-art manufacturing
facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups
features an infrastructure that is witness of Whirlpool's commitment to consumer interests
and advanced technology.
In the year ending in March '06, the annual turnover of the company for its Indian
enterprise was Rs.1, 375 Crores. According to IMRB surveys Whirlpool enjoys the status
of the single largest refrigerator and second largest washing machine brand in India.
The company's brand and image speaks of its commitment to the homemaker from every
aspect of its functioning. It has derived its functioning principles out of an undaunted
partnership with the homemakers and thus a slogan of “You and whirlpool, the world's
best homemaker” dots its promotional campaigns. The products are engineered to suit the
requirements of ‘smart, confident and in-control' homemaker who knows what she wants.
The product range is designed in a way that it employs unique technology and offers
consumer relevant solutions.
Samsung
Since its founding in 1938, SAMSUNG has maintained a mission statement that responds
both to its own change, and to new developments in the world: "Economic contribution to
the nation", "Priority to human resources", "Pursuit of rationalism". Each slogan
represents significant moments in Samsung’s history, reflecting different stages of the
company's growth from a domestic industrial leader into a global consumer electronics
powerhouse.
In the 1990's, it transformed its mission statement to keep pace with their growing global
operations, rapid changes in the world economy, and escalating competition from well-
established rivals.
The management philosophy at Samsung is,"We will devote our human resources and
technology to create superior products and services, thereby contributing to a better
global society."
Their management philosophy represents its strong determination to contribute directly to
the prosperity of people all over the world. The talent, creativity and dedication of its
people are key factors to our efforts, and the strides they've made in technology offer
endless possibilities to achieve higher standards of living everywhere.
At SAMSUNG, the success of their contributions to society and to the mutual prosperity
of people across national boundaries truly depends on how it manages the company. Its
goal is to create the future with its customers.
Videocon
Videocon’s mission: a reflection of continuity and change
Videocon’s mission expression has been crafted to envelope both extant
and emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing and
inspired thinking about the future.”
A breakdown of the statement above reveals a ‘means and end’ approach, where the end
is articulated at the beginning with the means linked to it.
“To delight and deliver beyond expectation…”: the end
This segment not only underlines the importance of the ultimate goal - customer
satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate
processes and principals, which have contributed to building a robust, dependable
Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers
and reliable associates, Videocon is able to exceed expectations.
“…through ingenious strategy…” the means
In the cutthroat world of today, it is only by taking recourse to advance planning and
strategy that a business can hope to survive. Although textbook strategy has its uses,
reproducing it in verbatim for the real world would be foolish because of the absence of
textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and
improvisation that is flexible enough for scenarios both imaginable and unimaginable.
Videocon’s ingenious man oeuvres are actually flexi-strategy that abstracts from shifting
ground conditions and decides game-plans, or sometimes changes the rules of the game.
“…intrepid entrepreneurship…” the means
An enterprise with the odds stacked against it makes great business sense. This is because
higher the obstacles lower the number of players likely to be active in that field - thus,
fetching extraordinary returns. The only requirement is a bold and confident attitude
willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid
endeavor that arises from immense faith on the surefooted competence of the company’s
in-house managerial talent.
“…improved technology…” the means
Technology is no more a premium input; it has become the bare minimum in recent
years. Rapid advances have only fuelled this phenomenon. Videocon is extremely
vigilant in shunting out dated technology and replacing it with the best-in-class offers of
the times.
“…innovative products…” the means
Product development, innovation and customization are the tools Videocon uses to stay
ahead of the competition. This is because a continuous stream of innovative Products
excite the market and enhance brand recall. A strategy that Videocon banks on a lot,
especially on the domestic front.
“…insightful marketing…” the means
The market share battle scene has long shifted from technology and processes to the
psyche of the customer. This means that those with deeper insights into the elusive mind
of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read
better the pulse of the market and help create products that map perfectly into customer
preferences.
“…inspired thinking about the future.” the means
The future is unpredictable, but not doing anything about it is fraught with grave risk.
Videocon extrapolates future trends on the basis of current changes in technology and
preferences as well as sheer gut feel. Fine-tuned business instincts are worth their weight
in gold, lots of it. The company has perfected its practice almost into an art form with
some calculated gambles like oil and gas proving to be absolute money-spinners.
CHAPTER 2- OBJECTIVES & METHODOLOGY
OBJECTIVE
2.1 Objectives of Study
The research objective is a statement, in as precise terminology as possible, of what
information is needed. The research objective should be framed so that obtaining the
information will ensure that the research purpose is satisfied.
Research objective have three components.
2.2 Objectives of the Research
The research objectives for the project undertaken can be defined as follows:
To determine the demographic variables of the customers of dual – sim handsets.
Examine the customer perception about dual- sim.
To judge the satisfaction level of dual - sim owners of different brands.
The research tracks responses at following two layers
1. customer related parameters
2. Dealer related parameters
To analyze the psychographic variables of the customers of different brand of the
dual – sim handsets.
2.3 Scope of the study
It is aimed to study the dual - sim market and buying behavior of the customer. The
project is analyzed the demographic, psychographic and buying characteristics of the
customers in buying the handsets. It includes the detailed study of customers focusing on
the various parameters that lead to identifying and understanding the perception of the
customer in buying the dual – sim phone brands.
2.4 Significance of the study
A brand is a set of expectations and associations evoked from company or product. A
brand is how key constituents- customers, employees etc. experiences what you do. Some
brands are of such great importance to people, that we speak of them as a part of one’s
life and identity, being used to express one. Some would say that these brands have their
own personality, the brand perception, which can be defined as the set of human
characteristics associated with a given brand.
Because many people interact with brand as though they were other people, it is
important to understand what a brand perception consists of, and how its characteristics
can be used to affect the relationship between the brands and its users. Knowing and
understanding the brand perception gives a good insight into this relationship, and into
peoples’ attitudes towards the brand, and is also an important guide to communicating the
brand.
Like apparel and lifestyles brands, a handset is extension of one’s perception. People buy
handsets which either matches their personalities or those which provide them
opportunities of being perceived as somebody they aspire to be. This becomes significant
as consumers move up the value chain from small compact handsets to midsize and
upwards.
Research Methodology
2.5 Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods
A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all
aspects of the research project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key
question.
INTRODUCTION TO THE STUDY
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and
concepts used during primary research in order to arrive at findings; which are also dealt
with and lead to a logical deduction towards the analysis and results.
RESEARCH DESIGN
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to
study buyer’s behaviour, consumption pattern, brand loyalty, and focus market changes.
A research design specifies the methods and procedures for conducting a particular study.
According to Ker linger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control
variance.
I propose to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be selected, which I feel remain unanswered or liable to
change, this shall be further taken up in the next stage of exploratory research. This stage
shall help me to restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry.
The various tasks that I have undertaken in the research design process are:
Defining the information need
Design the exploratory, descriptive and causal research.
RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research
analysis
It has a logical and hierarchical ordering:
Determination of information research problem.
Development of appropriate research design.
Execution of research design.
Communication of results.
Each step is viewed as a separate process that includes a combination of task, step and
specific procedure. The steps undertake are logical, objective, systematic, reliable, valid,
impersonal and ongoing.
EXPLORATORY RESEARCH
The method I used for exploratory research was
Primary Data
Secondary data
PRIMARY DATA
Primary data:
For primary data collection, we have to plan the following four important aspects.
Sampling
Research Instrument
Secondary Data - The Company’s profile, journals and various literature studies are
important sources of secondary data.
Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart
Questionnaires:
This is the most popular tool for the data collection. A questionnaire
contains question that the researcher wishes to ask his respondents which is always
guided by the objective of the survey.
Pie chart:
This is very useful diagram to represent data , which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors, which
are proportional to the values they represent. The total value is represented by the full
create. The diagram bar chart can make comparison among the various components or
between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value they represent.
New data gathered to help solve the problem at hand. As compared to secondary data
which is previously gathered data. An example is information gathered by a
questionnaire. Qualitative or quantitative data that are newly collected in the course of
research, Consists of original information that comes from people and includes
information gathered from surveys, focus groups, independent observations and test
results. Data gathered by the researcher in the act of conducting research. This is
contrasted to secondary data which entails the use of data gathered by someone other than
the researcher information that is obtained directly from first-hand sources by means of
surveys, observation or experimentation.
Primary data is basically collected by getting questionnaire filled by the respondents.
SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose.
Sources include census reports, trade publications, and subscription services. Data that
have already been collected and published for another research project (other than the one
at hand). There are two types of secondary data: internal and external secondary data.
Information compiled inside or outside the organization for some purpose other than the
current investigation. Data that have already been collected for some purpose other than
the current study. Researching information which has already been published. Market
information compiled for purposes other than the current research effort; it can be
internal data, such as existing sales-tracking information, or it can be research conducted
by someone else, such as a market research company or the U.S. government. Published,
already available data that comes from pre-existing sets of information, like medical
records, vital statistics, prior research studies and archival data.
Secondary source of data used consists of books and websites
My proposal is to first conduct a intensive secondary research to understand the full
impact and implication of the customers and dealers, to review and critique the dual – sim
handset industry norms and reports, on which certain issues shall be selected, which I feel
remain unanswered or liable to change, this shall be further taken up in the next stage of
exploratory research.
DESCRIPTIVE RESEARCH
Type of research is Descriptive Research:
The type of research adopted for study is descriptive. Descriptive studies are undertaken
in many circumstances when the researches is interested to know the characteristic of
certain group such as age, sex, education level, occupation or income. A descriptive study
may be necessary in cases when a researcher is Interested in knowing the proportion of
people in a given population who have in particular manner, making projections of a
certain thing, or determining the relationship between two or more variables. The
objective of such study is to answer the “who, what, when, where and how” of the subject
under investigation. There is a general feeling that descriptive studies are factual and
Very simple. This is not necessarily true. Descriptive study can be complex, demanding a
high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher give sufficient
thought to framing research.
Questions and deciding the types of data to be collected and the procedure to be used in
this purpose. Descriptive studies can be divided into two broad categories: Cross
Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample
of elements from a given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from sample elements are
collected and analyzed. Cross sectional studies are of two types: Field study and Survey.
Although the distinction between them is not clear- cut , there are some practical
differences, which need different techniques and skills. Field studies are ex-post-factor
scientific Inquiries that aim at finding the relations and interrelations among variables in
a real setting. Such studies are done in live situations like communities, schools,
factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained
from a sample of large population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research Includes survey and fact finding enquiries of
different kinds of the major purpose. Descriptive research is description of the state of
affairs, as it exists at present. The main characteristic of this method is that the researcher
has no control over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are survey
Methods of all kinds including comparative and co relational methods. The reason for
using such needs to be flexile in its approach, but a descriptive study
STEPS in the descriptive research:
Statement of the problem
Identification of information needed to solve the problem
Selection or development of instruments for gathering the information
Identification of target population and determination of sampling Plan.
Design of procedure for information collection
Collection of information
Analysis of information
Generalizations and/or predictions
DATA COLLECTION
After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data.One of the
important tools for conducting market research is the availability of necessary and useful
data.
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal
responses to questions, written or oral. I found it essential to make sure the questionnaire
was easy to read and understand to all spectrums of people in the sample. It was also
important as researcher to respect the samples time and energy hence the questionnaire
was designed in such a way, that its administration would not exceed 4-5 mins. These
questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires.
The primary data collected by directly interacting with the people. The respondents were
contacted at shopping malls, markets. The data was collected by interacting with 30
respondents who filled the questionnaires and gave me the required necessary
information. The respondents consisted of house wives, students, business men,
professionals etc. the required information was collected by directly interacting with
these respondents.
DETERMINATION: THE SAMPLE PLAN AND SAMPLE SIZE
TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is
intended. It attempts to describe them as they are rather than as the describer would like
them to be. Also called the audience to be served by our project includes key
demographic information (i.e.; age, sex etc.).The specific population intended as
beneficiaries of a program. This will be either all or a subset of potential users, such as
adolescents, women, rural residents, or the residents of a particular geographic area.
Topic areas: Governance, Accountability and Evaluation, Operations Management and
Leadership. A population to be reached through some action or intervention; may refer to
groups with specific demographic or geographic characteristics. The group of people you
are trying to reach with a particular strategy or activity. The target population is the
population I want to make conclusions about. In an ideal situation, the sampling frames to
matches the target population. A specific resource set that is the object or target of
investigation. The audience defined in age, background, ability, and preferences, among
other things, for which a given course of instruction is intended.
I have selected the sample trough Simple random Sampling
SAMPLE SIZE :
This involves figuring out how many samples one need. The numbers of samples you
need are affected by the following factors:
Project goals
How you plan to analyze your data
How variable your data are or are likely to be
How precisely you want to measure change or trend
The number of years over which you want to detect a trend
How many times a year you will sample each point
How much money and manpower you have
I have targeted 150 people in the age group above 20 years for the purpose of the
research. The sample size is influenced by the target population. The target population
represents the Delhi regions. . The people were from different professional backgrounds.
SAMPLING TECHNIQUE
Simple random sampling technique has been used to select the sample
A simple random sample is a group of subjects (a sample) chosen from a larger group (a
population). Each subject from the population is chosen randomly and entirely by chance,
such that each subject has the same probability of being chosen at any stage during the
sampling process. This process and technique is known as Simple Random Sampling, and
should not be confused with Random Sampling.
Research Design
Research design is a conceptual structure within which research is conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a
series of advanced decision taken together comprising a master plan or a model for
conducting the research in consonance with the research objectives. Research design is
needed because it facilitates the smooth sailing of the various research operations,
thereby making research as efficient as possible yielding maximum information with the
minimum effort, time and money.
EXTENT (Territory in which survey is to be carried out)
East Delhi- Laxmi nagar, Mayur vihar, Vasundhra Enclave
North Delhi-Rohini, Rajauri garden, Kamla Nagar
SOUTH DELHI-Lajpath nagar, Malviya nagar, Sarojni nagar, Green Park
NIODA- SEC 125 & 18
CHAPTER 4 – DATA ANALYSIS
CHAPTER 4- DATA ANALYSIS
1. Do you own a mobile phone?
Yes no
Response of customer Number of customers
Yes 120
No 30
Table 1 - Showing Number of customer of dual sim mobile brand.
Chart showing no of customer of dual sim mobile brand.
Interpretation-
Above chart depicts the mobile phone customer.
2 .Do you own a dual sim phone?
Yes no
If yes, which is your current handset? If No terminate the questionnaire.
Apple Blackberry
Nokia Samsung
LG Micromax
Sony Ericsson Maxx
Karbonn Lava
G-five Spice
Others (Specify) ___________
Table 2- Showing consumption proportion of dual sim mobile brand.
Mobile brand Consumption proportionApple 15Nokia 10
LG 10Sony Ericsson 10
Karbonn 5G-Five 5
Blackberry 20Samsung 35Micromax 5
Maxx 0Lava 0Spice 5Others 0
Chart 1- Pie chart Showing consumption proportion of dual sim mobile brand.
Interpretation-
Above chart depicts the popularity of the mobile brands in the market. Samsung is
having highest consumption while Micromax; G-five are having lowest consumption.
3. What is your educational background? High school Intermediate Graduate Post graduate
Particulars Number
High School 25
Intermediate 35
Graduate 20
Post Graduate 40
Table 3- Showing Educational background of customer.
Above pie – chart depicts the educational background of the various respondents
using mobile phones.
Interpretation-
Above pie-chart showing the educational background of the no of user.
4. How often do you change your mobile phone?
How often do you change your mobile phone?
Less than 1 year
1- 2 year
2 – 4 year
Above 4 year
Frequency of changing mobile phones Number of respondents
Less than 1 year 15
1-2 years 35
2-4 years 45
Above 4 years 25
Table 4 - Showing Number of respondents who change their mobile phone.
Interpretation-
Above graph depicts the variation of time span within which consumers shift to various
other mobile handset brands.
5. Consider the TV advertisement you like the most – which brand is
it promoting?
Consider the TV advertisement you like the most – which brand is it promoting?
Nokia
Samsung
Sony Ericsson
LG Motorola
Micromax
Blackberry
Others
Mobile brand Number of respondents
Nokia 25
Samsung 30
Sony Ericsson 15
LG 12
Motorola 10
micromax 10
Blackberry 15
Others 3
Interpretation-
Above graph depicts that mobile brand whose advertisements were able to leave impacts on the consumers.
6. What amount will you be willing to pay for a mobile phone?
Amount Number of respondents
Less than 10,000 45
10,000 to 20,000 35
20,001 to 40,000 25
Any amount 15
Table 6 - Showing Number of respondents what amount willing to pay for a mobile phone.
Interpretation-
Above graph depicts the ratio of amount consumers are willing to pay for purchasing a particular brand of mobile phones.
7. Which of the following factors do you consider while buying a brand of mobile phone?
Factors consider Most important
International brand 15 40
Latest technology 30 40
Durability 15 15
Reliability 15 7
Recommended by dealer 15 14
Large selling brands 20 15
Widely available 10 5
Table 7 - Showing Number of respondents consider while buying a brand mobile phone.
Interpretation-
The various factors consist of parameters such as International brand, latest technology,
durability, reliability, dealer recommendation, etc. The variation is provided on the basis
of 2 bases – considered factors and most important factors.
8 - Which of the following features did you look for when buying your
current phone?
Please mention 3 main features on which you selected your current
handset? (Mark as 1, 2, and 3 on importance)
features Consideration of respondentsStylish design 35
Camera function 10Easy to use 10Loud sound 5
Type of keypad 5Display screen size 5Long lasting battery 5
Durable 0Internet connectivity 20
Micro SD card 0Dual-sim function 10
Warranty 5Affordable price 10
Interpretation-
Above pie – chart reflects the analysis of various features that a consumer
preferred while purchasing the current handset they consume, such as, stylish
design, camera function, easy to use, etc.
9. There are different types of Dual SIM in the market, out of these
which one was the type of phone you picked up
Type of Dual-SIM Market proportionDual sim single talk 35Dual sim dual talk 25
Dual sim CDMA+GSM 35Dual sim CDMA+CDMA 10
Dual sim GSM+GSM 15
Interpretation-
This chart depicts the proportion of various types of dual – sim handsets present in the
market and their consumption ratio.
Consumer preferences on the major reasons for purchasing a
Dual – Sim phone
1. A brand is more important than the desired features in the mobile
phone
opinion Number of respondents
Completely disagree 50
Disagree 30
Neither disagree nor agree 10
Agree 20
Completely agree 10
Interpretation-Above graph depicts the mindset of the consumers while their preference for the purchase
of a dual – sim handset.
2. An International renowned brand is more important than an Indian brand
opinion Number of respondentsCompletely disagree 10
Disagree 20Neither disagree nor agree 10
Agree 40Completely agree 40
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
3. Usually buy phones which are latest on the market
opinion Number of respondentsCompletely disagree 15
Disagree 20Neither disagree nor agree 10
Agree 35Completely agree 40
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
4. It gives freedom to choose between operators/plan.
opinion Number of respondentsCompletely disagree 25
Disagree 25Neither disagree nor agree 25
Agree 35Completely agree 10
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset
5. Usage of both the sim cards, one as a permanent number and other for
better services found.
opinion Number of respondentsCompletely disagree 20
Disagree 10Neither disagree nor agree 10
Agree 30Completely agree 50
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
6. Usage of the sim cards, one for work/ business/ official purpose and
the other as a personal number.
opinion Number of respondentsCompletely disagree 20
Disagree 10Neither disagree nor agree 20
Agree 40Completely agree 30
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
7. It’s just a feature and thinking of using it sometime later in life.
opinion Number of respondentsCompletely disagree 5
Disagree 30Neither disagree nor agree 40
Agree 30Completely agree 15
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
8. Dual – sim is the latest technology
opinion Number of respondentsCompletely disagree 0
Disagree 40Neither disagree nor agree 25
Agree 30Completely agree 25
Interpretation-Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
9. This feature is not that important, overall final purchase does not
depend on it.
opinion Number of respondentsCompletely disagree 20
Disagree 15Neither disagree nor agree 15
Agree 35Completely agree 35
Interpretation-
Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
10. Purchase dependent on lower price of the handset.
opinion Number of respondentsCompletely disagree 0
Disagree 40Neither disagree nor agree 25
Agree 30Completely agree 25
0
Interpretation-
Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
11. Recommendation of the dealer/friends
opinion Number of respondentsCompletely disagree 10
Disagree 20Neither disagree nor agree 10
Agree 35Completely agree 45
Interpretation-
Above graph depicts the mindset of the consumers while their preference for the
purchase of a dual – sim handset.
Usage rate of Dual – Sim function
Usage Number of respondentsDaily use 50
Once a week 25Once a month 0
2 – 3 times a week 10Once in 2 weeks 15
never 20
Interpretation-
Above graph depicts the usage rate or the usage pattern of the consumers while
purchasing a dual – sim phone. The analysis portrays the rate at which the dual – sim
feature is used by the consumers on an average
CHAPTER 5 – FINDINGS and RECOMMENDATIONS
CHAPTER 5- FINDINGS AND RECOMMENDATIONS
Overview of dual sim usage
Dual SIM cell phones are a craze among youngsters these days. Often flipping from one
number to another, these make a good lord of benefit for them. Double SIM cell phones
can operate the two connections simultaneously. Some of the best double SIM handsets
are with the facility of using CDMA and GSM connection at the same time.
Dual SIM cellulars are becoming more and more popular to the users who are using two
different connections, generally from two different cell phone service providers. It is
necessary for some consumers to carry two different cell phones to keep their personal
and professional life separate. But the Double SIM cell phones give us the option to use a
single cell phone rather than carrying two different mobile phones.
Those who keep one mobile number of the office and one for home now do not have to
carry two different cells, and can manage their work with a two SIM mobile phone. LG,
Samsung and a host of smaller gadget makers have ventured into the dual-SIM cell phone
market. Spice Mobiles, a part of Spice Corp, claims that it is the first Indian company to
make double SIM mobile phones.
Two SIM phones are of two types- standby double SIM phone and active twin SIM
phone. In standby twin SIM phones, dual-SIM adapters were made available to use in
regular mobile phones to allow them to contain two SIMS and to switch from one to the
other according to the requirement. The active two-SIM phones can work with two
SIMS, both of which may be active at the same time.
With Double SIM handsets we can switch off our business number while keeping our
private number open for family and friends. Double SIM mobile phones release the
burden of carrying two mobile phones. Certainly, dual SIM mobile phones are made for
those who wish to keep their personal and professional contacts activate round the clock.
These twin SIM mobiles are not only facilitating when it comes to calling but are bundled
with many other attractive features. Often people think that operating two SIMS in a
mobile can create chaos but that is not the case always. Almost all the twin Dual SIM cell
phones are a craze among youngsters these days. Often flipping from one number to
another, these make a good lord of benefit for them. Double SIM cell phones can operate
the two connections simultaneously. Some of the best double SIM handsets are with the
facility of using CDMA and GSM connection at the same time.
Dual SIM cellulars are becoming more and more popular to the users who are using two
different connections, generally from two different cell phone service providers. It is
necessary for some consumers to carry two different cell phones to keep their personal
and professional life separate. But the Double SIM cell phones give us the option to use a
single cell phone rather than carrying two different mobile phones.
Those who keep one mobile number of the office and one for home now do not have to
carry two different cells, and can manage their work with a two SIM mobile phone. LG,
Samsung and a host of smaller gadget makers have ventured into the dual-SIM cell phone
market. Spice Mobiles, a part of Spice Corp, claims that it is the first Indian company to
make double SIM mobile phones.
Two SIM phones are of two types- standby double SIM phone and active twin SIM
phone. In standby twin SIM phones, dual-SIM adapters were made available to use in
regular mobile phones to allow them to contain two SIMS and to switch from one to the
other according to the requirement. The active two-SIM phones can work with two
SIMS, both of which may be active at the same time.
With Double SIM handsets we can switch off our business number while keeping our
private number open for family and friends. Double SIM mobile phones release the
burden of carrying two mobile phones. Certainly, dual SIM mobile phones are made for
those who wish to keep their personal and professional contacts activate round the clock.
These twin SIM mobiles are not only facilitating when it comes to calling but are bundled
with many other attractive features. Often people think that operating two SIMS in a
mobile can create chaos but that is not the case always. Almost all the twin SIM mobiles
have FM radio feature and auto focus camera. These mobile imbibe easy internet and
infrared connectivity features.
There are several Double SIM cell phones launched by leading and latest brands in Indian
market since they became popular. There is a wide range of options available to
consumers in India for top quality Double SIM mobile phones at much affordable prices.
Users can expect some extremely advanced and well build dual SIM handsets in future as
the supply is increasing seeing the growing demand among the people. mobiles have FM
radio feature and auto focus camera. These mobile imbibe easy internet and infrared
connectivity features.
There are several Double SIM cell phones launched by leading and latest brands in Indian
market since they became popular. There is a wide range of options available to
consumers in India for top quality Double SIM mobile phones at much affordable prices.
Users can expect some extremely advanced and well build dual SIM handsets in future as
the supply is increasing seeing the growing demand among the people.
RECOMMENDATION OF A POSITIONING – MARKETING –
COMMUNICATION STRATEGY FOR LG MOBILE Phones’ NEW
INTRODUCTIONS IN DUAL SIM PORTFOLIO.
There are many marketing strategies that LG could adopt, as it fights in the competitive
market. It could choose to be a premium player, charge above-average prices for the
value that you deliver and be a status symbol ; or it could choose to appeal to a select
group of consumers , not compete with the big buyers and be a niche player; or, it could
stick to the very basic product and compete on the price base, becoming a low-price,
value for money producer.
Competing on price is something that has been tried across industries – and is a strategy
that has been often executed as well. There are price leaders in every other industry and
consumer would love to get their products and services at bargain rates. If you are
strategically positioned to give the best value for money, and if LG could manage its
internal profitability with thin margins or by controlling costs to have decent margins
despite its low prices, it should arguably be the price leader in the market industry.
However, being the price leader is not the same as being the market leader in an industry.
Price is definitely one of the key inputs in the consumer decision process and a product
that competes on price is more likely to make the consumer give it more than a thought.
But then, the price proposition has to be projected to the customer in such a way that the
consumer values the offer that he has been made. Price is definitely not the only factor
that would title consumer’s attitude in favor of the brand. It is important that the
consumer is made to feel special when he gets the product.
Ultimately, the consumer has to love the product that he buys – not just the price that he
pays. Focus on the consumer and their preferences is more important then the focus on
price.
ANNEXURES
ANNEXURES
QUESTIONAIRRE
(Dual SIM Users)
Name : ______________________________
Age : _________________
Gender : Male female
Location: ______________________________
Do you own a mobile phone?
Yes no
Do you own a dual sim phone?
Yes no
1. If yes, which is your current handset? If No terminate the questionnaire.
Apple Blackberry
Nokia Samsung
LG Micromax
Sony Ericsson Maxx
Karbonn Lava
G-five Spice
Others (Specify) ___________
4. What is your educational background?
High school
Intermediate
Graduate
Post graduate
5. How often do you change your mobile phone?
Less than 1 year
1- 2 year
2 – 4 year
Above 4 year
6. Consider the TV advertisement you like the most – which brand is it promoting?
Nokia
Samsung
Sony Ericsson
LG Motorola
Micromax
Blackberry
Others
7. What amount will you be wiling to pay for a mobile phone?
Less than 10,000
10,000 – 20,000
20,001 – 40,000
Any amount
6. Which of the following factors do you consider while buying a brand of mobile phone?
Parameters Consider Most Important
International brand
Popular brand
Has latest technology
Has many features
Makes products which are durable, long lasting, sturdy
Has a large service center network
Makes products which are reliable and don’t have
faults
Makes products for Indian customers
Is recommended by dealer, sales man
Is recommended by friends, family
Is a large selling brand and its phones are seen with
many people
Offers phone which give good value for money – I get
the best phone for the budget that I have
Is widely available
7. Which of the following features did you look for when buying your current phone?
Please mention 3 main features on which you selected your current handset? (Mark as 1,
2, and 3 on importance)
Features Consider Most Important
Stylish design
Camera function
Easy to use
Loud sound
Type of keypad
Display screen size
Long lasting battery
Durable, Sturdy, Tough phone for Indian conditions
Internet connectivity
Micro SD card
Dual SIM function
Warranty, Guarantee
Affordable price
8. There are different types of Dual SIM in the market, out of these which one was
the type of phone you picked up
Dual SIM single talk
Dual SIM Dual Talk
Dual SIM CDMA+GSM
Dual SIM CDMA+CDMA
Dual SIM GSM+GSM
9. What was the main reason that you picked up the dual Sim phone?.
Now I would like to know more about your Dual-Sim phone and its usage. We asked
a few more users of Dual SIM phone and they gave different reasons to buy the Dual
SIM phone, please give response on a scale of 1-5.
Completely
Disagree
Disagree Neither
disagree nor
agree
Agree Completely
Agree
A brand is more important for me than the
desired features in the mobile phone
A international renowned brand is more
important for me than an Indian brand
I usually buy phones that are the latest in the
market
I bought a dual sim phone because it gives me
freedom to choose between operators/plan
I use both the SIM cards regularly, One is my
permanent number and the other is what I use
if I find better services
I use both the SIM cards regularly, One is my
work/business/official phone and the other is
my personal number
Dual SIM is just a feature on my phone and I
bought it thinking it will be useful sometime
later in life
Dual SIM phone is the latest technology and I
wanted it
Dual SIM is not important for me, I bought the
phone because it had another feature which I
wanted
Dual SIM is not important for me, I bought the
phone because it was giving me lot of features
at a low price
I didn’t know much about the phone, I bought
it because the dealer/friends recommended it to
me.
10. How many times do you use the Dual SIM function that is available on the phone?
Daily use 2~3 times a week
Once a week Once in 2 Weeks
Once a month Never
BIBLIOGRAPHY
BOOKS:
a. Malhotra K. Naresh (Marketing research)- Prentice Hall of India 6th editionb. Dr. Verma V. Yasho - Passion The Untold Story- 1st edition 2007
MAGAZINES, JOURNALS & NEWSPAPERS:a. consumer reportsb. CE lifestyles
INTERNET:www.lgindia.com
www.aegiscomgroup.com
www.thehindubusinessline.com