APROJECT REPORT

ONSALES MANAGEMENT OF

LG CONSUMER DURABLES HOUSE HOLD PRODUCTS

Company Profile

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

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.

Scope of project

This project gives us great exposure to the consumer durable product for household because it includes product knowledge and field survey job in which we visited the LG stores in Delhi.

While visiting the Showroom we ( LG Exclusive Showroom) Paul Electronic Lajpat Nagar

1. Found out the problems that the dealer are facing while selling the LG products.

2. Found out the customer response for LG products by asking the owner of the shop.

3. Found out the distributor name from who they were purchasing their products and also whether they have direct dealership and which brand.

4. Checked whether demo calls are attended or not

Key findings:

1. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealers who are capable of being an LG dealer.

2. We also came to know while visiting the shops that there was big problem of after sales service.

3. Many dealers were facing the problem of after sale service because there is no follow up calls from LG.

4. Demo calls also not done properly

LG Sales Management process

Company sales Head: Company sales ascertain in a country according to the states. The main responsibility of the Company Sales Head is to control all zonal sale Head who comes under him and solve all type of queries related to sales and resolve the difficulties faced by them.

Zonal Sales Head: Zonal sales Head comes under the Company Sales Head. His responsibilities is to solve the problem related to sales in different Zone like south zone , north zone , East Zone and west zone. There is one Zonal head for Each Zone. They are responsible for solving the sales related queries of Area sales Manager and generating revenue. Like for Delhi there will be 4 zonal sales Head who is controlling the Area sales Manager.

Area Sales Manager: Area Sales Manager is the key Player. His responsibility is more complicated. He has to deal With Retailer, Franchise and dealer. The responsibility to sell the product and made available at right time to the consumer at right place. Other important function of ASM

1) Provide information from the field and help in implementation of the marketing program

2) They are an integral part of any new marketing campaign, or new product; at times they help set the break up between advertising, distribution, price, etc.

3) Aggressive pushing of the distribution network is done by them to ensure that the company meets its objectives through the channel

Sales Demonstrator: To improve sales from every Retail outlet company is placing its own sales representative in each Retail outlet where chances of revenue generation is more. This help company to know the problem faced by the Sales promoter while selling the product from outlet, demand of the different Household product, and whether there is proper display of the product or not in the show roometc.

Pre Sales Approach

In pre sales approach area manager find out the possibilities from where he can generate the business. For this he conducts market survey with the help of Sales manager and product demonstrator who work under him or by references. After Market research or by cold calls from directory inquiry he finds out following type of Dealer and Retailer

1. New Dealer: He is the person who has just entered into such type of dealing business or he has not start dealing with LG Product yet. To convince such Dealer ASM conduct meeting with Dealer, give product demo, talk about the benefits and offer provided by the company to the dealer and also talk about the existing Dealer in the market. If he is able to convince then he will talk about the small order or the Dealer wants further clarification and wants more better offer and ASM can’t offer this then ASM conduct

another meeting with His Immediate Boss who have more power then him to offer better schemes and Deals.

2. Existing Dealer: It is the person who is already dealing with LG products but the output is not that good as before, in such a case ASM will conduct meeting with the dealer and try to solve the obstacles faced by the dealer while selling the goods or the dealer is not very happy with the schemes offered by the company.

3. New Retailer: He is the person who has just entered into such type of dealing business or he has not start dealing with LG Product yet. To convince such Retailer ASM conduct meeting with Retailer, give product demo, talk about the benefits and offer provided by the company to the dealer and also talk about the existing Retailer in the market. If he is able to convince then he will talk about the small order or the Retailer wants further clarification and wants more better offer and ASM can’t offer this then ASM conduct another meeting with His Immediate Boss who have more power then him to offer better schemes and Deals.

4. Existing Retailer: It is the person who is already dealing with LG products but the output is not that good as before, in such a case ASM will conduct meeting with the dealer and try to solve the obstacles faced by the dealer while selling the goods or the dealer is not very happy with the schemes offered by the company.

INTRODUCTION

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.

Classification of consumer durables for House Hold

1. Consumer electronic include vcd/dvd, home theatre, music player, color television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc

2. White goods include dishwashers, air conditioners, heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc.