market share of LG

Acknowledgement

I would like to thanks my faculty guide Mrs. RUCHI SHARMA .I also

acknowledge my indebtedness to all those who rendered direct or indirect help

in completing this project, especially dealers of LG and its competitor who gave

me their precious time and help me in my research study.

Table of Contents

AcknowledgementSynopsis

Chapter I : Introduction

Objectives

Methodology

Chapter II : Industry Profile

Market Overview

The sector has been growing steadily

Consumer Electronics Production

Competitive Advantages

Key Domestic and Foreign Players

India will be a high growth market in this market

Chapter III : Company Profile

Overview of company

Company’s products

Refrigerators

Air-Conditioner

Washing Machine

Microwave Oven

Important Issues about Company

Graph of Market share of LG

in Gorakhpur city and nearby region in 2007 to 2008

Milestone of LG so far in India

Chapter IV : Analysis of the Content

Discussion

Limitation

Result or Finding Conclusion and Recommendation Annexure : Glossary

Appendices

Bibliographie

List of Tables

Table 1: Dealers dealing with LG

Table 2: Perception about LG in dealers and customers view

Table 3: LG Products which is mostly liked by customers

Table 4: Most preferred brand by customers

Table 5: Main competitor of LG

Table 6: Feature of LG mostly like by customers

Table 7: Customers awareness of exchange offer on LG

Table 8: Company is giving extra benefit to pull up its Market Share

Table 9: Satisfaction level of dealers with LG strategies

Table 10: Complaint against LG

Table 11: Dealers advice for company to pull its market share

Table 12: dealers action to promote the sales of LG

List of Graphs

Graph 1: Market share of LG in Gorakhpur and nearby region in 2007-2008

Graph 2: Ranking of LG on different parameters

Graph 3: Dealers dealing with LG

Graph 4: Perception about LG in dealers and customers view

Graph 5: LG Products which is mostly liked by customers

Graph 6: Most preferred brand by customers

Graph 7: Main competitor of LG

Graph 8: Feature of LG mostly like by customers

Graph 9: Customers awareness of exchange offer on LG

Graph 10: Company is giving extra benefit to pull up its Market Share

Graph 11: Satisfaction level of dealers with LG strategies

Graph 12: Complaint again LG

Graph 13: Dealers advise for company

Graph 14: What dealers do to promote the sell of LG

SYNOPSIS

OBJECTIVE:-The title of my project is “TO KNOW THE MARKET SHARE & GROWTH OF LG in Gorakhpur city and nearby region since 2007-2008.

Methodology

Sampling unit:

The survey targeted the Dealers of LG and dealers of main competitors like Samsung, Whirlpool, and Videocon in Gorakhpur city and nearby region.

Sample size:

My whole sample size is 35 dealers of LG, Samsung, Videocon & Whirlpool..

Data collection method:

The data was collect through questionnaire method. The questionnaire consists of both open and close ended question to get the better understanding of the survey.

Nature of data:

Primary data collected through questionnaire, structured interview.Secondary data collected through.

Chapter 1

IntroductionObjectiveMethodology

Introduction

Our project title is “To know the market share and growth of LG in

Gorakhpur city and nearby Region since 2007 to 2008. The nature of this

project is dealer’s survey in Gorakhpur city and nearby region.

I took interviews of dealers in region and asked them questions that could

determine the market share in previous as well as this year. To know about the

growth of LG in region, I am using a questionnaire technique for dealers which

are based on customer satisfaction and their status of mind towards the brand.

I am in the process of acquiring deep knowledge about market position of LG

and its growth.

Objective of project work

The major objective of my project to find the market share of LG in year 2007

and 2008 so far. Market share is a calculation which shows what is the position

of sales of company product in compare with competitor’s product. To find the

market share of company, the things that I had to find are:-

1. LG total sale in year 2007 to 2008.

2. Total sale of competitor product in period 2007-2008.

The above data that are required to calculate the market share of LG, gathered

by survey method. Total sale of product could found by dealer survey. So,

through the questionnaire we survey all the dealers of Competitor Company

LG in region. The main competitor of LG in Home Appliances industry is

Whirlpool, Samsung& Videocon.

Methodology

Sampling unit:The survey targeted all the Dealers of LG and dealers of main competitors like Samsung, LG, and Videocon in Gorakhpur city and nearby region.

Sample size:My whole sample size is 35 dealers of LG, Samsung, Videocon & Whirlpool..

Data collection method:

The data was collect through questionnaire method. The questionnaire consists of both open and close ended question to get the better understanding of the survey.

Nature of data:

Primary data collected through questionnaire, structured interview.Secondary data collected through->

i. Website(www.lge.com)

ii. News paper(Business Times)

iii. Magazines(Business Today)

iv. Broacher of Whirlpool products

v. Books( Fortune 500 company analysis)

CHAPTER II

Industry Profile

Market Overview The sector has been growing steadilyConsumer Electronics Production Competitive Advantages Key Domestic and Foreign PlayersIndia will be a high growth market in the

electronics market

Market Overview

The global electronics industry is growing rapidly. From an estimated size of

US$ 950 billion in 2005, it is estimated to grow to nearly US$ 2100 billion by

2010. The market is dominated by Asian countries such as China, Taiwan,

Singapore and South Korea. The industry is characterized by rapid innovation

and speed to market, short product life

cycle, highly automated manufacturing to give consistent quality at low cost,

high volume production, continuous improvement in capabilities for reducing

costs and profit accrual through volumes.

India’s electronics industry is nascent by global standards. Despite a population

of over one billion, India has a relatively small electronics market. It is ranked

twenty-sixth worldwide in terms of sales and twenty-ninth in terms of

production. The total size of the industry in 2004-05 was US$11 billion. India’s

Electronics sector has six key segments The Indian electronic industry is

divided into six segments: Consumer electronics, Industrial electronics,

Computers, Strategic electronics, Communication and Broadcasting equipment

and Electronic components. The consumer electronics sector dominates the

industry with 27 per cent share and has benefited from a large and expanding

market. The industrial electronics and computer sector each has a share of over

15 per cent.

Electronics Production (2004-05) Consumer 34%Electronics Industrial Electronics 15%Computers 18%Commn. & Broad. Eqpt. 9%Strategic Electronics 6%Components 18%

Consumer electronics

Consumer electronics consists of products that are directly consumed by end-users, such as televisions, VCD/MP3 players, microwave ovens, washing machine, refrigerator, air-conditioner, etc. This segment has a large manufacturing base, and is quite competitive, with presence of several global players in India.

Industrial Electronics

The Industrial electronics segment includes products that are used by other industries, such as process control instrumentation, automation systems, Test and measuring (T&M) instruments and medical instruments.

Computers

This segment includes personal computers, servers, workstations,supercomputers, data processing equipment and peripherals such as monitors, keyboards, disk drives, printers, plotters, digitizers, SMPS, modems, networking products and add-on cards.

Strategic Electronics

The strategic electronics segment covers Satellite base communications, Navigation and surveillance, underwater electronics and infra red based detection, disaster management and GPS based Vehicle tracking systems. The segment has a number of manufacturing units both in the public and Private sectors.

Communication and Broadcasting Equipment

The communication and broadcasting equipment segment includes digitalExchanges (EPABX, RAX, TAX and MAX), Transmission equipment touch as HF/VHF/Microwave trans-receivers, satellite communication terminals, optical

Fiber communication equipment, troposcatter equipment, two-way radio communication equipment, etc.

Electronics Components

The electronics components segment caters to the requirements of consumer electronics, telecom, defense and information technology sectors. The components in production in India at present include TV picture tubes (black & white and colour), monitor tubes, diodes and transistors, power devices, ICs, hybrid microcircuits, resistors, capacitors (plastic film, electrolytic, tantalum, ceramic), connectors,

Switches, relays, magnetic heads, DC micro motors and tape deck mechanism, PCBs, crystals, loudspeakers and hard and soft ferrites. The consumer electronic sector in general and the colour television (CTV) industry in particular is the growth engine for electronic components.

The sector has been growing steadily across most segments

India’s electronics industry has been growing at approximately 11 per cent CAGR over the past 5 years, and was worth US$ 11 billion in 2004-05. The following sections discuss the growth and current status of Consumer Electronic segments.

Consumer electronics

The Consumer electronics industry contributes about 33.80 per cent of the total electronics production in India. The total production of consumer electronics was US$ 3.74 billion in 2004-05, registering a growth of 13 per cent over production in the previous year. The growth has been primarily powered by colour televisions (CTV), which grew from 8.9 million units in 2003-04 to over 10 million in 2004-05. CTV growth in turn is driven by growth in Flat Screen TVs (FST) that is estimated to constitute nearly 20 per cent of the CTV market. Other growth segments in consumer electronics include microwave ovens and VCD/MP3 players - the microwave oven industry is estimated to be growing at the rate of 25-30 per cent.

Consumer Electronics Production

These trends are a reflection of increasing consumption and aspiration levels among Indian consumers, driven by demographic and lifestyle changes. As these trends are positive for the future, the outlook for consumer electronics segment is quite positive.

Competitive Advantages

While the Electronics sector in India is currently small, there are several

Advantages that India offers that can be effectively leveraged to achieve higher

growth. These can be categorized under four heads:

• Manpower

• Market Demand

• Supporting institutions and

• Policy and Regulatory Support

These areas are further discussed below

Availability of skilled human resources in India at competitive cost is a Key

advantage for the electronics sector India’s human resources advantage derives

from three key features – Availability in terms of numbers, Capability in terms

of the right skills and Low costs. India has the potential to ensure adequate

availability of manpower to support the electronics industry well into the future

India’s population is predominantly young – in 2001, nearly 54 per cent of the

population was less than 25 years of age. By 2013, nearly 200 million more

people will join the nation’s productive age bracket representing a quantum

growth in the consumption class. This implies that India will have a large pool

of productive manpower well into the future. India’s manpower is trained and

has a good mix of capabilities.

Lab our costs in India extremely competitive when compared to other

Developing countries. India’s cost of skilled labour is among the lowest in the

world. For example, average labour rate per employee in the electronics sector

is about $3,000 per year. Labour cost as a percentage of value added is only 21

per cent in India as compared to 23 per cent in China and 30 per cent in

Taiwan. Taking advantage of this many MNCs have set up manufacturing

bases in India for domestic consumption as well as exports. Many multinational

companies in the electronics sector have leveraged India’s manpower

advantage to grow in the domestic Market, as well as source products and

services from India.

Electrolux

Electrolux has set up Research and Development (R&D) centre with an

Investment of US$ 8.6 million. It is the headquarters of its South Asian

Association for Regional Cooperation (SAARC) countries, excluding Sri Lanka.

This centre will be the regional hub for developing new technologies and

products.

Philips

Several Philips India employees are working on key regional/ global Philips

projects, committees and assignments. Several managers who started as

employees of Philips in India are now based in Philips organizations across the

world.

Samsung

Samsung invested US$ 11 million in setting up an R&D in India. Samsung R&D

Centre at Noida helps the company customize its CTV range as per the

preference of Indian customers. Indian market provides favorable demand

conditions for the electronics sector to grow India has been experiencing a

strong growth in the demand of consumer products and durables in recent

years, driven by consumer demographic trends. This has facilitated growth in

the electronics sector both directly and indirectly. Growth in demand of

consumer durables such as CTVs, VCD / MP3 players and PCs directly benefits

the sector. Also the demand for products such as automobiles, white goods, air-

conditioners, textiles, etc, leads to growth in the electronics sector as these

products contain a significant number of electronic components. At the same

time, consumer demand has boosted growth in India’s overall manufacturing

sector as well, which, in turn, has a positive impact on industrial electronics.

On the whole the domestic market in India is very attractive from the point of

view of the electronics sector, and current trends indicate high growth potential

for the sector in the future. Some of the key trends that have a positive impact

on the sector are:

• Growing consuming class (defined as people having annual income of

US$ 980 (INR 45000) or above) that has greater disposable income and

propensity to spend. It has been estimated by NCAER that this group will

constitute over 80 per cent of the population of India by 2009-10.

• Lifestyle changes such as greater exposure to global trends and increasing

affinity for convenience and lifestyle products.

Key Domestic and Foreign Players

Philips

Philips in India is a subsidiary of Royal Philips Electronics of the Netherlands.

It is promoted by Koninklijke Philips Electronics N V. Philips India Limited

(PIL) is a leader in lighting, consumer electronics, semiconductors, domestic

appliances and personal care with an unmatched range of products backed by

superior design and technology. PIL also has an excellent distribution and

after-sales service network. Philips has a plant each in Thane, Pune, Loni-

Kalbhor, Mohali and Baroda and three plants in Kolkata. The revenue in the

year 2004 was US$ 524 million and the net profit was US$ 22 million.

Videocon International Ltd.

In 1985, through a technical tie-up with Toshiba Corporation of Japan,

Videocon International Limited launched India’s first world class Color

Television. Today, Videocon International Ltd. the flagship company of the

Videocon Group, is India’s leading manufacturer of consumer electronic

products. Videocon is now a global player, the first Indian company to win the

prestigious CE approval for exporting its color TV to Europe. Videocon is now

entering world market with its Operations in the Middle East, Europe,

Indonesia and South Africa. It currently manufactures color TVs, black &

white TVs and audio products - a range of home audio systems, stereo radio,

recorders and personal stereos. At its plant at Chitegaon and Aurangabad it

has also undertaken complete backward integration to manufacture all critical

and important components of its products, such as electronic tuners, FBTs,

ATDMs and Deflection Yokes. The company had revenues of US$ 873 million

in 2004.

Mirc Electronics

MIRC makes and markets the Onida brand of products. Today, apart from

being a leading player in the CTV market, it also manufactures other

household appliances including air-conditioners, washing machines, DVDs,

plasma television and home theatre systems. For office use, Onida has also

introduced state-of-the-art multi-media presentation products. Its plant is

located at Thane, Maharashtra. In the year 2005 the company had revenues of

US$ 243 million and made a net profit of US$ 8 million.

Samsung

Samsung India Electronics Ltd., a subsidiary of the US$56 billion Samsung

Electronics Co. Ltd., has been operating in India since 1995. It is a leading

provider of high tech consumer electronics, home appliance, IT and telecom

products in the country. Samsung India has set up manufacturing facilities for

colour televisions, microwave ovens, washing machines, air conditioners, colour

monitors and more recently, refrigerators in the country. It has a plant in

Noida. The revenue in 2003 was US$ 715 million.

LG

LG Electronics India Pvt. Ltd. (LGEIL) is a wholly owned subsidiary of LG

Electronics, South Korea. It has a plant each in Noida and Pune. Its products

include TV, air-conditioner, refrigerator, washing machine, monitor, vacuum

cleaner and projector. LG India Pvt. Ltd. recorded a growth of 37 per cent

from the consumer electronics division, contributing to 46 per cent of the total

turnover in 2003.

CHAPTER III

Company Profile

Overview of company

Company’s products and their specifications

Refrigerators

Air-Conditioner

Washing Machine

Microwave Oven

Important Issues about Company.

Milestone of LG so far in India.

Graph of Market share of LG in Gorakhpur city

and nearby region from 2007 to 2008

Graph of Ranking of LG on different parameters.

Overview of company

LG is one of the leading manufactures in home appliances in the world.

ORGANISATIONAL STRUCTURE -

LG electronics is largely divided in 22 units. On the domestic side, there are

four business units, the marketing division, and seven functional divisions in the

head office. The overseas network consists of seven regional headquarters and

three functional areas (support,R&D,design).

There are seven business sites (in Pyeongtaek, Cheongju, Changwon, Gumi)

under the four business unites. The overseas operations include 36 sales

subsidiaries, 22 production subsidiaries,8 product sales subsidiaries,5 service

subsidiaries,and branch offices.

EMPLOYES --

The number of employees at LG electronics stood at aproximately 82,000 as

the end of 2007.Of the total,29000 were stationed in Korea and

53,000 abrod ,meaning that over 60% of employee are

working in overseas.The number of overseas employees

should continue to increase in line with our localization

strategy.Female employees comprices 16% of total domestic

workforce(2% for manager and above) and the figure is on steady rise.The

average age of entire workforce,male and female,is 33.8 years,disabled people

represent 0.8% of total workforce.

CORE BUISNESS --

LG electronics is composed of four business divisions ,which are Digital

appliance,Digital display,Digital media and Mobial communication .

Category Main product

Digital appliance Air conditionar,Refrigerator,washing

machines ,Vacume cleaners,Microwave ovens,Air-

conditionar compressors,Cool air

compresors ,MGT moters

Digital display TVs,Monitors,PDPs,Video tapes, DVD–R

Disc ,prism sheet,Green sheet

Digital Media Optical storage,Audio, notebook PC,DVD-

Player/DVD-REC/combi,security,PDA,Telimetics

Mobial communication Mobial telecommunication, WLL handsets,

Telecommunications systems,Transmitters &

exchangers,key phone ,PBX,PCB

CORPORATE GOVERNANCE –

The launch of the holding company system laid the ground work for heightened

transparency ,The LG group was able to put an end to the cross-shareholding

among affiliates ,As the holding company was fully responsible for investments

and LG electronics was able to concentrate on increasing corporate value and

its own operations.

In particular, LG electronics saw the installstation of a system of professional

management,while a board of directors focused system has has been

improveing corporate transparency, in this way, LG electronics has set up the

framework to strengthen business competitiveness at home and abroad,

ultimately increasing shareholder and corporate value.

LG Vision

Every home, everywhere with pride, passion and performance. We create the

world’s best home appliances, which make life easier and more enjoyable for

people. Our goal is a LG product in every home everywhere and a way to

achive global top 3 status till 2010.

LG Mission

Every one passionately creating loyal customers for life.

LG Strategy

Brand focused and value creation (BFVC).

Defines how company will create value by building unmatched

customer loyalty to our brands.

Culture and values: - Diversity with inclusion.

It defines how company is and what it believes in.

Core competencies: - Customer Excellence, innovation,

Customer centered ,costomer insight management.

It defines the unique skills that enable company to

build the customer loyalty.

Company’s products and their

specifications

Presently Whirlpool offers four products in market.

Refrigerators (Frost free/ Direct cool)

Air-conditioners (Window/ Split)

Washing Machine (Semi/ Fully automatic)

Microwave Oven (Solo/Grill/Convection)

Refrigerators

This is the section in which LG is making a grate business at present market in

home appliance industry. The main reason of the leading sale of Whirlpool

refrigerator is new and attractive models at regular time to attract customers,

the best quality product at the same price level in compression of that of

competitors, fastest cooling capacity, and the exchange offer that is a strategy of

company to promote the sale.

Air-Conditioner

The new ranges of LG Air-Conditioner are equipped with the 6 th sense

technology. The new ranges of Magiccool ACs also know what you want and

keep customers cool even in the peak of summer. With a lost of features that

are sure to delight you.

Washing Machine

Washing mavhin LG lead to the US market for front –loading washers as LG

continued to expand the capacity and functionality of our fore-front loding

washers and dryer lineup in 2007.LG increased capacities to 15 kg and created

a dryer control panal that can be rotated 180 degrees, enabling uniting

stacking withouting compromising operating convenience .

Microwave Oven

As for as cooking appliance concerned LG continued to refine and expands its

lightwave oven family in 2007 with the new solar cube series.LG’s lightwave

technology uses a halogen heater to cook food up to four times faster then

conventional ovens while retaining all the flavor and nutrients .

Important Issues about Company

1. Employer Type: Private limited

2. Stock Exchange: Korea stock exchange(KOSCOM)

5. M.D. : Mr. Moon B. Shin

3. Vice Chairman and CEO: Mr Yong Nam

4. 2007 Employees: 82,000

5. 2007 Revenue ($ billion.): 43.8

Graph 1

Milestone of LG so far in India

1. Most admired company in India by A&M magazine in 1998.

2. No.1consumer durable company by A&M magazine in 1999.

3. Techies award best flat screen monitor by computer world magazine in

2000.

4. Best employer by business today/hewitt assts in 2001.

5. Entrepreneur of the year by Ernst &young in 2002.

6. Gold rating for environmental performance by CII in 2003.

7. Green technology gold award by Green tech foundation in 2003.

8. Award for IT innovation by business today in 2004.

9. Consumer durable retailer of the year by ICICI bank in 2005.

10. Excellence in corporate leadership and entrepreneurial sprit by

CNBC TV in 2005.

11. 4P Award: Refrigerator and air-conditioner in 2006.

12. India’s most trusted brand 2007, by brand equity in 2007.

13. Brand for excellence 2008 award by VAR India in 2008.

14. Most preferred brand-consumer electronics and home appliances

award by CNBC Awaaz consumer awards in 2008.

15. Most admired MNC in India by 4Ps award in 2008.

Chapter (IV)

Limitation

Discussion

Conclusion and Recommendation

Result or Finding

Appendices

Limitation

Every project faces some limitation; because of this limitation the required and necessary data to complete the project may not gathered in proper manner. The time constraint, not well response by dealers, an average data in place of actual data given in survey, the location of dealers point, and polluted environment of Gorakhpur city and nearby area region are some issue comes in to picture in this heading “limitation”. Some of the dealer point are far and that was a though task to reach them to collect data. Some few dealers did not give good response when we went there to find data. Most of the dealers gave an original data, where we were looking for actual data.

Discussion

As our project title is to find the market share and growth of LG in 2007-2008

at Gorakhpur and nearby Region. Accomplish this project and to make

report .I survey the dealers of LG and its competitors. I gather data and after

data analysis, I conclude that the market share of LG in Gorakhpur city and

nearby Region from 2007 –2008 is 30%. LG is market leader followed by

Samsung, whirlpool in third position in market at NCR. The total sale of LG in

2007 -2008 is 12000 units.

Table No 1: - Dealers dealing with LG

Category No. of Respondent Percentage of RespondentLast 1year 10 31%Last 2 Year 5 16%Last 5 Year 3 9%

More than 5 year 14 44%

GRAPH 3

Interpretation : - Maximum number of dealers having dealership of LG since more than 5 years. The percentage of those dealers is 44%.

Table No 2: - Perception about LG in dealers and customers view

Category No. of Respondent Percentage of RespondentGood 13 37%

Very Good 22 63%Average 0 0%

Below Average 0 0%

GRAPH 4

Interpretation: - 63% dealers are having very good perception about LG product.

Table 3: -LG Products which is mostly liked by customers

Category No. of RespondentWashing Machine 15

Refrigerator 10Air-Conditioner 8

Microwave Oven 2

GRAPH 5

Interpretion: - 15 dealers say that customers like LG Refrigerators in its product line. Microwave gets less point in customer attraction.

Table No 4: - Most preferred brand by customers.

Category Average SaleWhirlpool 9Samsung 10

LG 12Videocon 4

GRAPH 6

Interpretation: - As I surveyed 35 dealers , 12 of themsaid that LG is the most preferred brand. Whirlpool is in third number, following Samsung in the brand awareness of customers in Gorakhpur city.

Table No: -5 Main competitor of LG.

Category No. of Respondent Percentage of RespondentSamsung 20 55%Whirlpool 10 28%Videocon 5 14%

Any Others 1 3%

GRAPH 7

Interpretation : -I found in survey that, the main competitor of LG is Sumsung. LG is the market leader so 55% dealer said that Samsung is the main competitor.

Table No: -6 Feature of LG mostly like by customers: -

Category No. of RespondentService& Performance 4

Performance 17Performance&ASS 4

After sale service 10

GRAPH 8

Interpretation: - All Dealers says that customers like to exchange their old product with new LG product.

Table No: - 7 Customers are aware about the exchange offer of LGCategory No. of Respondent Percentage of Respondent

Yes 35 100%No 0 0%

GRAPH 9

Interpretation: - 100% Dealers says that customer wants to exchange there old products with LG products, they want to utilize this offer.

Table No 8: -Company is giving extra benefit to pull up its Market Share

Category No. of Respondent Percentage of RespondentYes 35 100%No 0 0%

GRAPH 10

Interpretation: - All Dealers said that company is giving some extra benefit to pull-up its Marker share.

Table No: - 9 Satisfaction level of dealers with LG strategies


GRAPH 11

Interpretation: - Every surveyed dealer says that we are fully satisfied with company’s strategy.

Table 10. Complaint against LG product


Sometimes 21 60%Never 0 0%

GARPH 12

Interpretation: -60% dealers say that they find complaint sometimes from customers. 40% says that they get complaint on regular basis.

Table 11: - company should adopt different methods to enhance the market share and growth.

Category No. of Respondent

Percentage of Respondent

Yes 35 100%No 0 0%

GRAPH 13

Interpretation: - 100%customers said that Company should adopt different methods like promotional schemes, gifts, exchange offer, exhibition of company product, road show of products etc time to time to enhance its sales and market share.

Dealers Advise for company

Yes100%

No0%

Yes No

Table No: -12 what dealers do to promote the sales of LG products.

category No. of Respondent

Percentage of Respondent

Exchange Offer 23 55%Sell on Dealer

price12 45%

GARPH 14

Out of 35, 55% Dealers says that they are giving exchange offer and 45% dealers sell their product on dealer price to promote sale of LG.

Result or Finding

After surveyed 35 dealers of LG and its main competitors of LG like Whirlpool,

Samsung, and Videocon. I calculated the market share of LG in Gorakhpur city

and nearby region is 30%. My sample size is 35 dealers of LG and its

competitor firm. The total sale of LG in period 2007- 2008 was given by

company person is 12000 unit. From survey I got the different total sales figure

of competitors in period 2007-2008: -

Total sale figure of Samsung is 10553units

Total sale figure of Whirlpool is 10225 units

Total sale figure of Videocon is 7144 units

To find the market share of LG in gorakhpur city and near by area the formula

I used was: -

Total sale in units of LG in 2007-2008

Market Share of LG = 100 Total sale of LG + Total sale of competitors

So, Market share of LG = 12000100

12000 + 227922 =30%

Conclusion and Recommendation

As data analysis shown that the total unit sale in initially 2008 is declined in

comparison to total sale of years 2007. It may be a threat for the company.

So company should keep close eye on the market situation. yet, customer

were price sensitive, but the changing market trend and customer view and

preference shown that customer are now quality sensitive .they want quality

product ,good services and better performance by the product. Customers

also looking for other benefited like exchange offers gifts at the time of

purchase, affordable price and more warranty/guaranty year.

After analyzing the whole data gathered by survey it is find that:-

i. Customer like best quality product on any price, so company should

add latest technology to their products.

ii. After sales services is the area where company can highly satisfy the

existing customer, because they can make more customer through their

word of mouth of mouth. So company should provide latest and reliable

service to their customers.

iii. Customers always look for some extra benefit with purchasing. They

demand for affordable price for product and gifts with purchasing.

Company should

iv. Arrange events like “Exchange mela”, free gift offer, scratch card

offer time to time to attract customer and promote the sale.

v. Company should make strategy to cater every income group

customers in city. Upper income group are affordable to purchase but lower

income group is not. So company should make policies to send their product

and every home.

vi. The company should give more emphasis on advertising to create

market awareness and to make a brand image in the minds of investors.

vii. The company should do more publicity through road shows,

newspaper and advertisement. As this will create awareness about he fund

and schemes that are at present managed by the company.

viii. They should keep a close eye on competitor strategy.

Appendices

Questionnaire

Topic: - To find the market share and growth of LG since 2007 to 2008.

1. Since how long you are dealing LG?

(A) Last year (B) last 2 years (c) last 5 years (D) more than 5 2. What is your perception about LG?

(A) Good (B) very good (C) average (D) less than avg

3. Which product of LG customers like most?

(A) Washing machine (B) Fridge (C) AC (D) Microwave

4. Are you dealing other companies products also, beside LG?If yes, what are they?(A) Samsung.(B) LG.(C) Videocon.(D) Electrolux.

5. What is the total sale of Whirlpool from your showroom in previous year 2006 and this year 2007 so far?

Total sales

6. What was the total sale of these company’s products from your showroom in previous year and this year so far?

(A)Samsung (B)Whirlpool (B) Videocon (D) Electrolux

7. In your view which companies product customers prefer most?(A) Whirlpool(B) Samsung(C) LG(D) Videocon(E) Electrolux

8. Who is the main competitor of LG?

(A) Samsung (B) Whirlpool (C) videocon (D)Any other

9. What is perception of customers about LG?

(A) Very good (B) good (C) Avg (D) Below Avg.10. What customers like very much in LG products?

(A) Attributes (B) Service (c) performance (d) after sale service

11. Do customers like to exchange there old products with LG products?

(A) Yes (B) No

12. Is company giving you extra benefit to pull up its market share?

(A) Yes (B) No

13. Are you satisfied with the strategy of company?

(A) Yes (B) No

14. Do you get complaints, reported against LG from customer?

(A) Yes (B) No (C) Sometimes (D) Never

15. Do you think company should adopt different methods to enhance its market share and growth?(A) Yes (B) No If yes specify

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Bibliographie

News paper: - The Economic Times.

Business Standard.

Journals: - Business World, Business Today.

Website: - www.lge.com

Book: - Principle of Management by Philip Kotler.

Documents

market share of LG