A Project Report On MARKETING STRATEGIES OF LG ELECTRONICS INDIA LTD.

PROJECT SUBMITTED FOR THE PARTIAL FULFILLMENT TOWARDS THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT

Under Supervision of: Mr. Narendra Singh A!A" No.$%$&'&&&()

Submitted by: LALIT KUMAR #nr.

DIRECTORATE OF DISTANCE EDUCATION,

ANNAMALAIUNIVERSITY, 2 !!

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FORM OF SU"MISSION OF PRO#ECT

Name of the student Enrolment number Program with subject management,Mercentile And Commercial Law, Project Management, ales Management, Product And !rand Management, Mar"eting of er#ice $ MAR&E%'N( %RA%A() *+ ,L( ELC%R*N'C / )ears LALIT KUMAR YADAV, S/O S0RI RAG0UVEER SING0 YADAV, MO012 S0RI NAGAR, PIPAL C0O3K, MAT0URA ROAD, 0AT0RAS, POST 4 DISTT1 0AT0RAS, 0AT0RAS12 $! ! 5U.P.6 Mb0 123 2/42536/24 Mr. NARENDRA SING0 TERRITORY SALES OFFICER MARKETING 7 YEARS 9RA!:' %RA7'N( C*MPAN) ;<=3/4, ARAN NA(AR, *PP0 >'%A !REA7 +AC%*R) NEAR RA?7EEP APPAR%MEN%, NE@ A(RA, 7A)AL !A(:, A(RAA/B/CC4 C45/A6C4326; (RE '7EN%'AL$ (7/' 12A NE3 LAS0KERPUR MUG0AL ROAD, KAMLA NAGAR, AGRA1282 7 &(!( !%22& LALIT KUMAR YADAV $%$ & '( M"A )n App*)e+ M,n,-e.ent (Customer Relationship

%itle of the project Period of stud. Address of the candidate

Name of the guide 7esignation with e8perience Address of the (uide 5OFFICIAL6

D,te o9 :;<.)::)on o9 project

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*+a,e: student----!ate: .uide-----..

Signature of the Signature of the

DECLARATION
I here by de,+are that the pro/e,t report entit+ed

MARKETING STRATEGIES OF L.G. ELECTRONICSSubmitted me as a part 0f My M.1.A. ++nd year of master of 1usiness Adminiatration 2App+ied Management3 To The NIS A,ademy4Agra.

2 Annama+ai University 5hennai 3

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Lalit Kuma !a"a# E$ .N%.&'&()(((*+ BATCH,-(() . -(//

ACKNO3LEDGEMENT
This report bears the imprint of many persons 6ho have he+ped me in numerous 6ays in 6riting this report. It gives me great p+easure in presenting this report to the T01 NIS A2a"1m3. I 6ou+d +i7e to ta7e this opportunity to e8,hange my heart fu++ gratitude to a++ those 6ho he+ped me in presenting this report.

I 6ou+d +i7e to ta7e this opportunity to than7s M . NARENDRA SINGH for providing the attention4 guidan,e4 ,onsistent4 en,ouragement and support I needed to ,omp+ete this pro/e,t. It stipu+ated time 6ith out his a,tive guidan,e.

I 6ou+d a+so +i7e to ta7e this opportunity to than7s a++ tea,hers and fa,u+ty members spe,ia++y for ,ooperating me a +ot in this pro/e,t and for providing advi,e to ma7e my pro/e,t more usefu+ and impressive.

My overriding debt is to my parents 6ho provided me mora+ support 9 inspiration needed to prepare this report.

LALIT KUMAR YADAV M"A5AM6 **n+ Ye,r

CERTIFICATE Certified that the marketing strategy of L.G. electronics Is work done by Mr./Ms. LALIT KUMAR YADAV during the period of his/her study under my guidance, and that the project has not previously formed the basis for the award of any Degree, Diploma, associate ship, fellowship or similar other titles and that it is an independent work done by his/her.

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Signature of the guide: Place: Date: with seal:

Name: Official address

CERTIFICATE
This is certify that Mr.Lalit Kumar Yadad, a student of M.B.A. (AM) llnd year has done this project under my (Narendra Singh) supervision .The title of project is Marketing strategies of L.G. Electronics. To the best of my knowledge this is his original work and has not been submitted for the award of any degree/diploma any where he has been a science student of this institute. I wish him all success in life.

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DATE: PLACE: Mr.Narendra Singh

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E=E=UTIVE SUMMARY
This report is an ana+ysis of the Mar7eting Strategies of L.. L. is a Mu+tinationa+ 5ompany having its presen,e a++ over the 6or+d. A thorough study of L. #+e,troni,s4 ho6 it ,ame into e8isten,e 9 operations of L. #+e,troni,s India4 has been presented a+ong 6ith an Indian industry ana+ysis. Ana+y:ing the ,ompany in the ba,7drop of the Indian ;ome #+e,troni,s 6as ,onsidered to be important be,ause it is a high+y ,ompetitive mar7et and it is very important to 7no6 6here a ,ompany stands in this industry. There after an intense study has been done into L.<s ,orporate history4 its origin4 deve+opments4 e8pansions4 strategies et,. A dis,ussion about L.<s operations in India fo++o6s4 and thereby the t6o ,hosen areas i.e. Mar7eting is dis,ussed in the subse=uent se,tions. The four *<s of mar7eting have been dis,ussed in detai+ individua++y a+ong 6ith the produ,t<s brand a6areness under the mar7eting se,tion.

P %"u2t, ;igh+ights the addition and ,hange in the produ,t range of

the ,ompany and the signifi,an,e of ea,h of its produ,t +ines.

P i2i$4, The basis used for pri,ing and ho6 the produ,ts have been
pri,ed.

Pla21, The 7ind of distribution net6or7 used to mar7et its produ,ts. P %m%ti%$: A++ the promotion a,tivities to promote the ,ompany<s
brand and its produ,ts in order its in,rease its mar7et share.

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>indings and re,ommendations have been dra6n 7eeping the industry and ,ompany ana+ysis in mind. .raphs 9 Tab+es have been in,+uded in the data ana+ysis ,hapter.

ACKNOWLEDGEMENT
.etting a pro/e,t report ready re=uires the hard 6or7 and effort of many peop+e. >irst of a++4 I gratefu++y a,7no6+edge the ,ontinuous assistan,e and inspiration given to me by the >a,u+ty of Rohini4 ?IMS. Spe,ia+ than7s to 5555555555555555555555 for her inva+uab+e support and guidan,e during my training period and supervising my 6or7. A+so I 6ou+d a+so +i7e to than7 a++ those 6ho have ,ontributed in ,omp+eting this pro/e,t report. >ina++y4 I 6ou+d +i7e to than7 my fami+y for providing me monetary and non@monetary support4 as and 6hen re=uired4 6ithout 6hi,h this pro/e,t report 6ou+d not have been ,omp+eted.

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TABLE OF CONTENTS
C0a6t1 /, I$t %"u2ti%$ A.A 0vervie6 of the Industry A.B *rofi+e of the 0rgani:ation A.) *rob+ems of the 0rgani:ation A.$ 5ompetition Information A.C S.D.0.T. Ana+ysis of the 0rgani:ation C0a6t1 -, O8912ti#1 : M1t0%"%l%43 B.A Signifi,an,e of the study B.B Manageria+ usefu+ness of the study B.) 0b/e,tives of the study B.$ S,ope of the study B.C Methodo+ogy Limitation C0a6t1 +, C%$216tual Di<2u<<i%$ C0a6t1 &, Data A$al3<i< C0a6t1 ;, Fi$"i$4< : R12%mm1$"ati%$< A$$1>u 1 Bi8li%4 a603 S3$%6<i< (/7&) &A BA $B $$ $E ;(7;+ C& C& C& CA CA C) ;&7==+7== =)7)& );7)) /((

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C0a6t1 . / INTRODUCTION
/./ A PRE?IEW TO THE INDUSTR!
T" perhaps is a most po6erfu+ media today in India. The so,io e,onomi, impa,t of this media in a ,ountry +i7e India is tremendous. The e8tensive use of the media as a po6erfu+ too+ for entertainment information and edu,ation by other ,hanne+ o6ners added impetus to this gro6th. After +ibera+i:ation in A''A4 one sa6 a +ot of p+ayers in the #+e,troni,s mar7et due to 6hi,h in,rease in the #+e,troni,s that boosted the sa+e of home #+e,troni,s. After +ibera+i:ation bought itse+f a dramati, ,hange in the ,ompetitive stru,ture of the mar7et. Ana+y:ing the mar7et stru,ture one finds that +ong@term dominan,e of Mou+ine84 1raun4 *hi+ips4 5rompton4 Ina+sa4 1a/a/ et,. The ,omings of the MN5s have resu+ted in a de,+ine in profit margins for the domesti, p+ayers. Most of these MN5s started operations in A''B and by A'')4 had some infrastru,ture in p+a,e. Some of them started 6ith fu++y o6ned subsidiaries and some 6ent in for a tie up 6ith domesti, p+ayers. >or e.g.4 1raun estab+ished themse+ves in A'''@'%F Mou+ine8 in A''BF *hi+ips in A''$@'CF Ken6ood4 L.4 Softe+4 fo++o6ing in A'''@'%F L. in A''B. The entry of these mu+tinationa+s ,hanged the mar7et. As a first step4 they started to set up distribution and servi,e net6or7s. Simu+taneous+y they ,on,entrated on in,reasing the visibi+ity of their produ,ts in the shops of the dea+ers they

appointed. They +aun,hed te,hno+ogi,a++y advan,ed mode+s 6ith attra,tive pri,e tags4 7eeping the dea+ers margins inta,t to he+p push the produ,ts. Indian ,ompanies that 6ere ,omp+a,ent ear+ier4 fe+t the heat. After some =ui,7 rethin7ing they +aun,hed ne6 mode+s at attra,tive pri,es. !espite a++ this the Indian ,ompanies have remained strong. The rate at 6hi,h foreign brands are gro6ing is on+y due to the fa,t of a dynami, business environment. !omesti, #+e,troni,s firms are guided by ob/e,tive of ma8imi:ing short run profit rather than +ong term gro6th and the firms< ,ompetitive strategy is guided by produ,t differentiation and pri,e manipu+ation@Ina+sa<s money ba,7 offer4 Soften pri,e +ed 6ars4 Mou+ine8 pri,e ,onsideration4 Samsung<s s,hemes@ despite a++ this L. and ?"5 have opposed e8,hange offers and pri,e +ed 6ars. 1ut a++ other domesti, p+ayers have overGrea,ted and this has di+uted the strategi, issues of te,hno+ogi,a+ innovation through ,ustomer after sa+es servi,e and ads. The #+e,troni,s domesti, p+ayer has not understood the importan,e of te,hno+ogi,a+ innovation. The ,oming in of the MN5s has ,reated a ne6 s,enario 6ith a ne6 mar7et profi+e. The entren,hed position of the Indian mar7et +eaders in #+e,troni,s 1a/a/4 5rompton and 1+a,7 and !e,7er has been ,ha++enged by the MN5s su,h as Mou+ine84 1raun4 ?"54 L.4 Ken6ood and L..

The domesti, p+ayers have a B$H mar7et share. MN5s have managed to grab a %(H in a very short span. #ar+ier this 6as A':(. The mar7et +eaders ,urrent+y in the #+e,troni,s industry are 1a/a/ and 5rompton 6ith AAH and A)H share respe,tive+y in B&&E@B&&'. #ar+ier ti++ B&&&@B&&A these t6o +eaders had shares of $$H and C$H respe,tive+y. #ven today4 1a/a/ is ,onsidered to be the mar7et +eader. Ma9% Pla31 < !omesti, Internationa+ , , 5rompton4 1a/a/4 *hi+ips4 1+a,7 and !e,7er. L.4 Ken6ood4 1raun4 Mou+ine84 L.4 Ina+sa4 ?"5
5urrent+y the four ma/or p+ayers in the mar7et are

1A?A? L. *hi+ips Mou+ine8 Ken6ood

AAH mar7et share EH mar7et share A'H mar7et share ABH mar7et share AAH mar7et share

These >ive p+ayers ,over (AH of the mar7et.

Ma @1t <0a 1< i$ t01 +A(((A((( u$it< ma @1t B-(()C a 1, Cu 1$t S21$a i%, The re,ent he+p age e8tempo has spurred a sudden gro6th

Bla2@ a$" D12@1 'E C %m6t%$ )E

Ot01 < //E

S01FFi1l" //E LG =E

Ba9a9 //E

K1$D%%" //E

P0ili6< /)E 1l12t %lu> /-E

in the ?ui,er Mi8er .rinder segment. The segment gre6 by $$H in August B&&' over the same period +ast year. August B&&' a+so sa6 the highest sa+es during the one@year period Apri+ B&&C to August B&&'. The 6or+d he+p age e8tempo have been a trigger but4 under+ying this boom is the story of mar7eting te,hni=ues by the MN5s.

The ne6 MN5 ;ome #+e,troni,s brands are on a ro++ armed 6ith +atest te,hno+ogy4 aggressive mar7eting and advertising budgets. These ,ompanies are ,apturing a signifi,ant share of the Indian ;ome #+e,troni,s mar7et. In terms of sa+es and mar7et share Indian ,ompanies sti++ o,,upy the top s+ots but MN5s are s+o6+y gaining ground. These MNC< 0a#1 6%<iti%$1" t01m<1l#1< 83 %FF1 i$4 <u61 i% t120$%l%43 a$" "i<2%u$t<A at01 t0a$ %l" t120$%l%43 t0at t01 I$"ia$ 2%m6a$i1< Fail1" t% "% <%. H%m1 El12t %$i2< ma @1t <0a 1<A Ma3 -(() BP%<t 1>t1m6%C

S01FFi1l" /(.(E Ot01 < /+.(E

Ba9a9 +.(E

I$al<a /-.(E B au$ //.(E

K1$D%%" =.(E C %m6t%$ ;.(E

M%uli$1> /&.(E P0ili6< /).(E LG ;.(E

A,,ording the +atest survey ,ondu,ted by 0R.@.#K for ?u+y B&&C4 the he+p age e8tempo driven spurt in ;ome #+e,troni,s sa+es appears to have spi++ed over to ?u+y<&'.

Top ( <r,n+: 9or #;*>? & @ere

L. *hi+ips Mou+ine8 B%H BEH A%H

Seeing the figures for May<B&&' L. 6as number B 6ith B%H. T? ma @1t <0a 1< . Jul3G() *hi+ips Mou+ine8 L. 1a/a/ L. 1raun A(H EH 'H (.CH 'H %H Ken6ood Ina+sa 5rompton 0thers %H A'H $H ABH

TOSTERS India has been one of the rapid+y e8panding mar7ets for Toasters for the past ,oup+e of years. The Indian mar7et has ,onsiderab+e demand potentia+ for this produ,t.

This attra,ted most of the ma/or mu+tinationa+ p+ayers. The entry of p+ayers su,h as L.4 Mou+ine8 and 1raun had the effe,t of ga+vani:ing the industry. The industry p+ayers as a ,onse=uen,e are gearing up for both the ,ustomers and the ,ompetition.

The Toasters industry ,an be broad+y ,+assified into $ segments: a. 5oo+ body b. Sheet meta+ ,. 1ag 1ody d. *op@up@toasters

5oo+ body4 1ag body4 Sheet Meta+ are Sand6i,h toasters and pop@up@toasters are use for 5risping. The 5oo+ body and *op@up@toasters segment is the +argest in terms of va+ue4 a,,ounting for an estimated Rs.BA ,rores. This segment has been the fastest gro6ing amongst the +ot4 6ith a gro6th rate of AEH or so in B&&'@A&. The 6or+d over4 sa+e of 5oo+ body dominates the tota+ shipments. In India4 ho6ever the sa+e of pop@up@toasters a,,ounts for a +arger share. ;o6ever this phenomenon has been ,hanging in the past ,oup+e of years. The demand for pop@up@toasters and Sand6i,h toasters main+y ,omes from house

<

ho+ds. ;ouse ho+ds are estimated to a,,ount for around EBH of the tota+ demand. The demand from the hote+ se,tor though it a,,ounts for a sma++er portion4 is the fastest gro6ing segment. A+so4 a +arge portion of the demand from this segment@around A(H re+ates to buyers of se,ond units. The demand for Toaster is genera++y restri,ted to ma/or ,ities and to6ns. #ight ,ities 6hi,h in,+ude the four metros are estimated to a,,ount for %BH of the tota+ househo+d demand. !e+hi and Mumbai a+one is estimated to a,,ount for one@third of the tota+ industry sa+e to househo+ds. The ma/or p+ayers in the mar7et for Sand6i,h Toasters are 1a/a/4 Mou+ine84 1raun4 *hi+ips4 Ken6ood4 Ina+sa4 L.4 5rompton. There are a+so a host of other sma++er p+ayers su,h as 1+a,7 and !e,7er4 Su/ata4 Usha et,. The Sand6i,h toasters segment is ho6ever dominated by Usha4 La8man S+yvania though L. is ma7ing a +arge head6ay into this segment too. The *op@up@toaster mar7et is dominated by *hi+ips.

Ot01 < /+.&E I$al<a /-.'E

S01FFi1l" *./E M%uli$1> /=.-E

B
B au$ -/.-E P0ili6< -=.;E

Ma @1t <0a 1< i$ t01 =(A((( u$it< ma @1t BR1tailC -(()

WHITE GOODS BMi>1 G i$"1 : Cit u< Jui21 C, A PRE?IEW OF THE INDUSTR! The 6hite goods industry is 6itnessing dynami, ,hanges. A,=uisitions of units by some4 e8its by a fe6 others4 mar7eting tie@ups4 ,apa,ity e8pansions4 booming vo+ume gro6th in the first si8 month of B&&'@A& a++ these ,hanges are the ,hara,teristi,s of the industry. Mi>1 G i$"1 , Mi8er .rinder a,,ounts for the +argest segment in the 6hite goods industry. It ,an be ,+assified into: a. !omesti, Mi8er .rinder b. Industria+ .rinder i. Three atta,hment 6ith $$& 6atts i. Three atta,hment 6ith CC& 6atts

!omesti, grinder industry 6ith a turnover of $& ,rores is dominated by the organi:ed se,tor. The si:e of the industry is about B.C mn units. This industry has benefited from the ,onsumers buying prefer5reated by MA;A?AN .RA*;I5Sen,es. After a T" and Toasters4 the most +i7e+y produ,t on the buying +ist 6ou+d be a Mi8er .rinder. This has resu+ted in a higher penetration +eve+ for Mi8er .rinder.

After a good year in B&&E4 the si:e of the Mi8er .rinder segment ,ontra,ted in B&&A. This trend has reversed in B&&E@&'. In the first si8 months of B&&E@&'4 the vo+ume gro6th 6as in doub+e digits i.e.4 BCH. The .rinding mar7et ,onsist of $$& 6atts and CC& 6atts mode+s 6hi,h has the fo++o6ing demand: $$& 6atts@ ACH of the demand for refrigerators. CC& 6atts GECH of the demand for refrigerators. The a,tion is s+o6+y moving to6ards CC& 6atts mode+s of the grinding segment. 5ompanies are steadi+y upgrading the e,onomy mode+s ,apa,ity from $$& 6atts to CC& 6atts. The CC& 6atts Mi8er .rinder segment has been gro6ing faster than the $$& 6atts segment in re,ent past. The s+o6er rate of gro6th of $$& 6atts mode+s for,ed 5rompton to fina++y +aun,h CC& 6atts mode+s in 0,t<'(. 1oth Usha and *hi+ips made signifi,ant inroads in B&&%. *hi+ips and Ina+sa ,ontinue to be the mar7et +eader in the CC& 6atts segment a+though its mar7et share has ,ome do6n. In the $$& 6atts segment4 5rompton ,ontinues to be the +eader. ;o6ever the year B&&' sa6 the entry of many >ran,e and Korean ,ompanies. A++ these ,ompanies have entered in the CC& 6atts and above ,apa,ity ni,he

3C

segment that ,an be imported in fu++y assemb+ed form and 6here margins are higher. The entry of these giants has opened up an entire+y ne6 and te,hni,a++y superior segment ,omprising $$& 6atts .rinding. The g+oba+ giants +i7e Ina+sa4 Mou+ine84 1raun4 *hi+ips4 L. have entered the Indian mar7et 6ith their internationa+ range of produ,ts. There has been signifi,ant e8pansion in ,apa,ity in this industry. Ina+sa4 p+ants at ;aryana and Mou+ine8 p+ants 6ere ,ommissioned re,ent+y 6ith ,apa,ities of )&+a,s 9 AC +a,s units respe,tive+y. The e8,ess ,apa,ity in the Mi8er .rinder industry has deterred p+ayers su,h as Usha4 1a/a/ and L. from going ahead 6ith their p+ans. This has +ed to ,ertain mar7eting tie@ups 6hi,h Usha4 1a/a/4 Su/ata and L. have ta7en advantage of. 1oth L. are outsour,ing Mi8er .rinder from *o+ar manufa,turing fa,i+ity4 6hi+e Mou+ine8 and 1raun are sour,ing Mi8er .rinder and 5itrus /ui,er from 5hina respe,tive+y. Ma @1t <0a 1< i$ t01 =(A((( u$it< ma @1t B&&( Datt< H ;;( Datt<CA i$ 61 21$t -(().

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K1$D%%" //.&E

2 %m6t%$ =.=E

Ba9a9 /.=E

Ot01 < ;.-E

S01FFi1l" =.=E U<0a ;.'E

B au$ /-.+E M%uli$1> /'.*E <um11t -=.&E

Cit u< Jui21 , The si:e of the 5itrus ?ui,er industry is sma++ ,ompared to the Mi8er .rinder industry4 at around $$4&&& units. The psy,he of the ,onsumer 6ho +oo7s at 5itrus ?ui,er as a +u8ury produ,t and the infrastru,tura+ prob+ems su,h as the non@avai+abi+ity of e+e,tri,ity has been the ma/or hindran,es for the gro6th of the industry. After a good year in B&&E4 the si:e the 5itrus ?ui,er segment ,ontra,ted in B&&'. The trend has reversed in B&&'@A&. In the first si8 months of B&&'@A&4 the vo+ume gro6th 6as in doub+e digits i.e.4 gro6th of B(H. There are t6o types of 5itrus ?ui,er in this segment: a. ;a+f +tr b. 0ne +tr

3/

*hi+ips has mar7et share of CCH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is: ,. ;a+f +tr d. 0ne +tr BBH %EH

*hi+ips is the +eader in both ha+f and one +tr. Segments. The ,ompany<s position in the 0ne +tr. segment is under serious atta,7 by a range of te,hni,a++y superior foreign mode+s 6hi,h are a+so avai+ab+e in +arge ,apa,ities. 5urrent+y a+most a++@foreign ,ompanies are operating in +arge ,apa,ity one +tr segment. Ma9% 2%$t1$"1 <@L.4 Mou+ine84 1raun4 Ken6ood. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of 5itrus ?ui,er. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of 5itrus ?ui,er 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+i:ation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over )&H in the ne8t fe6 years from the present gro6th rate of (H.

3;

Ma @1t <0a 1 i$ t01 &&A(((7u$it ma @1t B0alF lt H %$1 lt C i$ 61 21$t B-(()C.

Ba9a9 B au$ +.*E ;.;E M%uli$1> /&.*E

Ot01 < *.;E

S01FFi1l" *.+E

K1$D%%" +.*E I$al<a /).-E

P0ili6< &(.'E

Ju4 K1tt1l: The si:e of the ?ug Kette+ is +arge ,ompared to the 5itrus ?ui,er industry4 at around %'4&&& units. The psy,he of the ,onsumer 6ho +oo7s at ?ug Kette+ as a +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry. After a good year in B&&C4 the si:e the ?ug Kette+ segment inf+ated in B&&'. The trend has reversed in B&&'@A&. In the first si8 months of B&&'@A&4 the vo+ume gro6th 6as in doub+e digits i.e.4 gro6th of BEH. There are t6o types of ?ug Kette+ in this segment:

36

a. Dith ,ord b. 5ord+ess *hi+ips has mar7et share of $%H in B&&E4 dominating the mar7et. The demand for the above types in the mar7et is: ,. Dith ,ord ABH d. 5ord+ess EEH *hi+ips is the +eader in 6ith ,ord and 5ord+ess segments. The ,ompany<s position in ,ord+ess segment is under serious atta,7 by a range of te,hni,a++y superior foreign mode+s4 6hi,h are a+so avai+ab+e in +arge ,apa,ities. 5urrent+y a+most a++@foreign ,ompanies are operating in +arge ,apa,ity ,ord+ess segment. Ma9% 2%$t1$"1 <@L.4 Mou+ine84 1raun4 Ken6ood. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of /ug Kette+. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of ?ug Kette+ 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+i:ation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing men and 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the

34

mar7et is e8pe,ted to gro6 by over )$H in the ne8t fe6 years from the present gro6th rate of EH. Ma @1t <0a 1 i$ t01 ')A((( u$it ma @1t BDit0 2% " H 2% "l1<<C i$ 61 21$t B-(()C

Bla2@ a$" D12@1 '.-E K1$D%%" /(.+E

Ot01 < +./E

R1m<%$ '.-E

S01FFi1l" -(.*E

B au$ //.+E

M%uli$1> //.+E

P0ili6< -=.)E

Hai D 31 <: The si:e of the ;air !ryers industry is higher ,ompared to the 5itrus ?ui,er industry4 at around (E4&&& units. The psy,he of the ,onsumer 6ho +oo7s at hair dryers as a +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry.

35

After a good year in B&&E4 the si:e the hair dryers segment inf+ated in B&&C. The trend has in,reased in B&&'@A&. In the first si8 months of B&&'@A&4 the vo+ume gro6th 6as in trip+e digits i.e.4 gro6th of CBH. There are t6o types of ;air dryers in this segment: a. Three K G More po6er b. >our K G +o6 po6er Nationa+ has mar7et share of $EH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is: ,. Three K G More po6er ($H d. >our K G Lo6 po6er )(H

Nationa+ is the +eader in both Three K and >our K segments. The ,ompany<s position in the three K segment is under serious pressure by a range of te,hni,a++y superior foreign mode+s 6hi,h are a+so avai+ab+e in +arge ,apa,ities. 5urrent+y a+most a++@foreign ,ompanies are operating in +arge ,apa,ity Three@K segment. Ma9% 2%$t1$"1 <@L.4 1raun4 Mou+ine84 *hi+ips4 Ken6ood4 Nationa+4 Sony4 *anasoni,4 1a/a/.

3<

5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of ;air !ryer. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of ;air !ryer 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+i:ation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. Ma @1t <0a 1 i$ t01 *=A((( u$it ma @1t BT0 11 K H F%u KC i$ 61 21$t B-(()C.

3B

P0ili6< /-E

Ot01 < -.'E

S01FFi1l" 'E

Ba9a9 ;E K1$D%%" *E B au$ &E M%uli$1> *E

Nati%$al -=E

S%$3 =E Pa$a<%$i2 &E

I %$, The si:e of the Iron industry is +argest industry4 at around B +a,s units. The psy,he of the ,onsumer 6ho +oo7s at Iron as a a++ ,+ass +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity have been the ma/or advantages for the gro6th of the industry. After a good year in B&&E4 the si:e the Iron segment inf+ated in B&&C. The trend has in,reased in B&&'@A&. In the first si8 months of B&&'@A&4 the vo+ume gro6th 6as in A& time<s i.e.4 gro6th of E&H. There are four types of Irons in this segment: a. Steam Iron

32

b. !ry Iron ,. Light 6eight Iron d. ;eavy 6eight Iron *hi+ips has mar7et share of CBH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is: e. Steam Iron f. !ry Iron g. Light 6eight Iron h. ;eavy 6eight Iron CBH B$H A$H A&H

*hi+ips and Nationa+ are the +eader in both Steam Iron and !ry Iron segments. The ,ompany<s position in the !ry Iron segment is under serious pressure by a range of te,hni,a++y superior foreign mode+s4 6hi,h are a+so avai+ab+e in +arge ,apa,ities. 5urrent+y a+most a++@foreign ,ompanies are operating in +arge ,apa,ity !ry Iron segment. Ma9% 2%$t1$"1 <@L.4 1raun4 Mou+ine84 *hi+ips4 Ken6ood4 Nationa+4 1a/a/4 Usha4 5rompton and Kenstar. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of

/C

;air !ry Iron. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of !ry Iron 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+i:ation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing 6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. Sti,7 1+ender: The si:e of the sti,7 1+ender industry is medium industry4 at around BE4&&& units. The psy,he of the ,onsumer 6ho +oo7s at Sti,7 1+ender as a a++ ,+ass +u8ury produ,t and the infrastru,tura+ merits su,h as the +o6 ,onsumption of e+e,tri,ity 9 high speed 6or7 have been the ma/or advantages for the gro6th of the industry. After a good year in B&&E4 the si:e of the sti,7 b+ender segment inf+ated in B&&C. The trend has in,reased in B&&'@A&. In the first si8 months of B&&'@A&4 the vo+ume gro6th 6as in t6i,e i.e.4 gro6th of B$H. There are t6o types of sti,7 b+ender in this segment: i. Dith atta,hment G 6ith ,hopper

/3

ii. Dithout atta,hment G6ithout ,hopper Mou+ine8 has mar7et share of )EH in B&&'4 dominating the mar7et. The demand for the above types in the mar7et is i. Dith atta,hment ii. Dithout atta,hment *hi+ips4 1raun4 Mou+ine84 is the +eader in both 6ith atta,hment 9 6ithout atta,hment segments. The ,ompany<s position in the 6ithout atta,hment segment is under serious pressure by a range of te,hni,a++y superior foreign mode+s 6hi,h are a+so avai+ab+e in +arge ,apa,ities. 5urrent+y a+most a++@foreign ,ompanies are operating in +arge ,apa,ity. Ma9% 2%$t1$"1 <@L.4 1raun4 Mou+ine84 *hi+ips4 Ken6ood4 Nationa+4 1a/a/4 Usha4 5rompton and Kenstar. 5urrent+y sin,e the +eve+ of indeginisation is very +o6 for the foreign ma,hines4 the high pri,e ,harged in a ma/or stumb+ing b+o,7 for the first time shoppers of sti,7 b+ender. As +ong as ,ompanies ,an not /ustify the premium pries to ,ustomers4 +o6 pri,es of domesti, brands of sti,7 b+ender 6i++ ,ontinue to di,tate the pur,hasing de,ision of ma/ority of buyers. The ,apa,ity uti+i:ation +eve+s are sti++ =uite +o6 in the industry. The situation is e8pe,ted to improve signifi,ant+y in the future4 6ith the number of 6or7ing

//

6omen on the rise and the diffi,u+ty in avai+abi+ity of domesti, he+p the mar7et is e8pe,ted to gro6 by over CEH in the ne8t fe6 years from the present gro6th rate of B$H. R1ma @<, !omesti, ,ompanies 6i++ have to gain a,,ess to +atest te,hno+ogy from outside4 +aun,h ne6 produ,ts in =ui,7 su,,ession4 +everage their strong dea+er net6or7 and promote their produ,ts effe,tive+y to remain ,ompetitive in this e8treme+y ,ompetitive mar7et. The strategy used by the MN5s is Ite,hno+ogy< and they have positioned themse+ves by offering superior te,hno+ogy4 6hi,h the Indian ,ompanies have fai+ed to do so. >oreign brands hen,e are e8pe,ted to gain the mind spa,e of the pri,e dis,erning Indian ,onsumer in not very distant future.

/.- LG ELECTRONICS 7 CORPORATE PROFILE

The US J%) bi++ion L. group is one of the 6or+d<s top ,ong+omerates today4 having estab+ished its suprema,y in diverse fie+ds ranging from e+e,troni,s4 ,hemi,a+s et,.4 to trade and servi,es. The L. group 6as born as ILu,7y 5hemi,a+s< in A'$%4 a pioneer in the f+edg+ing ,hemi,a+ industry. Dith a pioneering spirit4 founder ,hairman In ;6i@ 7oo p+anted the seed of industry in a baren +and. The seed gre6 into a dream fa,tory for hope. !uring the A'C&<s amidst the ruins of the >ran,en 6ar4 the

/;

ILu,7y< brand emerged as the representative brand of >ran,e4 offering dreams and /oy to the impoverished >ran,en e,onomy. L. 6as the first >ran,en ,ompany to ma7e ,osmeti,s and to enter the syntheti, resins industry. L. estab+ished I.o+dstar< in A'CE4 opening the door to the home #+e,troni,sin >ran,e. Sin,e deve+oping >ran,e<s first radio in A'C'4 L. #+e,troni,s has pioneered and +ed the >ran,en ;ome #+e,troni,sfor over four de,ades .L.# 6as a+so the first ,ompany to produ,e the first e+e,troni, fan 1KD te+evision. In A'(&<s 6ith the +aun,h of a nationa+ e,onomi, deve+opment p+an L. emerged as the +eader of >ran,en industria+ gro6th. L.<s su,,ess is ensuing the genia+ a++ian,e bet6een the >ran,en government and the organi:ation. The South >ran,en .overnment guided the five ,haebo+s into different industries and produ,t +ines. In the the beginning of A'%&<s after passing of the founder K ,hairman In@;i6i Koo4 5ha@Kyung Koo too7 over as the ,hairman. Under his ab+e +eadership4 in a de,ade L. estab+ished more than B& sister ,ompanies and s,hoo+s in,reased its sa+es by )( times4 its e8ports by '& times and ,onfirmed its p+a,e as >ran,e<s +eading business group. In parti,u+ar4 it opened a ,entra+ R 9 ! ,entre4 the first >ran,en ,ompany to do so4 6hi,h served as a ba,7 bone for strengthening internationa+ ,ompetitiveness. 1y mid E&<s L. gre6 into a +eading ,omprehensive ,hemi,a+ ,ompany. It e8panded its e+e,tri, and e+e,troni, business4 advan,ed into the information

/6

and ,ommuni,ation se,tor4 e8panded its resour,es and materia+s business promoted the gro6th of the industria+ e+e,troni,s and ,omponent e+e,troni,s industry4 strengthened its finan,e ,onstru,tion4 distribution and servi,e business and e8panded its none profit business and sports sponsorshipF a++ of 6hi,h ,ontributed to enhan,ing the image of L. group. L.<s period of first ,hange ,ame in the +ate A'E&<s. Innovation be,ame the 7ey 6ord in every aspe,t of management and L. began to ,hange to a =ua+ity oriented management4 and adopted a ne6 management phi+osophy of I5reating va+ue for ,ustomers< and IManagement respe,ting human dignity<. In A''C4 to prepare for the ,oming BA st ,entury4 ,hairman 1on@Moo Koo too7 the he+m of the L. group. At t01 <am1 tim1 LG lau$201" a 4l%8al ma$a41m1$t <t at143 F% t01 -/ <t 21$tu 3A a$" 20a$41" it< 2% 6% at1 i"1$tit3 F %m Lu2@3 4%l"<ta t% ILGG. #ven though this o,,urred in a very short period the L. brand 6as su,,essfu++y transformed. L.# no6 meets the 6or+ds ,ustomer 6ith L. brand. L. is 7no6n as a premium =ua+ity brand 6ith more usefu+ fun,tions and produ,ts popu+ar for their superior design. LGG< #i<i%$ i< t% 8 i$4 t01 I<mili$4 Fa21G t% 1#1 3 0%m1 2 %<< t01 4l%81 The Lsmi+ingM fa,e +ogo symbo+i:es five 7ey ,on,epts 6or+d4 future4 youth ;uman and Te,hno+ogy. L. be+ieves that an effe,tive ,ombination of these e+ements for the organi:ation. L.# has been e8p+oring 6ays to deve+op4 ,ombine4 app+y te,hno+ogies that 6ou+d ,ustomi:e produ,ts and servi,es to

/4

meet ,ustomer needs and e8,eed their e8pe,tations L.# is performing this tas7 by identifying its fo,us on R 9 ! ,entres. 0utside >ran,e4 L.# has seven R 9 ! ,entres in ?apan4 United States4 Ire+and and Russia4 among other ,ountries and t6o R 9 ! ,entres in >ran,e. L.#<s +ong term strategy is to e8pand its R 9 ! ,entrer base 6or+d6ide ad to invest EH of the tota+ revenue into R 9 !. L.<s business strategy for the BA st ,entury is very aggressive. Information and ,ommuni,ation4 e+e,tri, and e+e,troni,s ,hemi,a+ and energy4 mu+timedia4 bioengineering and semi@,ondu,tors industries 6i++ be promoted. LGE i< a$ i$t14 at1" 1l12t %$i2 4%%"< ma$uFa2tu 1 t0at %61 at1< t0 11 8u<i$1<< "i#i<i%$<, Multim1"ia Di#i<i%$, The mu+timedia division hand+es a range of mu+timedia produ,ts su,h as ,omputers4 5!@R0MS4 0KA e=uipment information and ,ommuni,ations e=uipment4 opti,a+ data devi,es4 audio e=uipment4 "5R<s ,am@,orders4 printed ,ir,uit boards 2*513 and magneti, tapes 2MT3. At present L. is p+a,ing high priority to ne6 business 6hi,h in,+uded !igita+ "ideo !is7 2!"!34 persona+ ,ri,uit 1oards 2*!A34 hand he+p *5<s 2;*534 Net6or7 ,omputers 2N534 and other re+ated produ,ts and hopes to ,apture the mar7et at fu++@thrust as these

/5

produ,ts be,ome more ,ommon in business operations. The division posted US J B.C bi++ion sa+es in B&&). H%m1 El12t %$i2< Di#i<i%$, This division is divided into t6o main produ,t ,ategories 6ith Air 5onditioners4 6ashing ma,hines4 refrigerators4 mi,ro6ave ovens4 va,uum ,+eaners et,. in the home #+e,troni,s ,ategory4 and the e+e,troni,s ,omponents ,ategory 6hi,h ma7es ,ompressors and motors for use in home #+e,troni,s. In B&&)4 this division posted US J ) bn in sa+es. The divisions< produ,ts have p+ayed a signifi,ant histori,a+ ro+e at L.# and embra,e a so+id share of mar7ets throughout the 6or+d. The division has a,,e+erated its g+oba+i:ation strategy and has manufa,turing p+ants in seven ,ountries4 6hi,h has great+y enhan,ed overseas produ,tion and sa+es efforts. L.#<s home #+e,troni,s produ,ts are admired in various ,ountries. L.# 5itrus ?ui,er ho+ds the top position in Libya4 ?ordan4 Tunisia4 South Afri,a and in most regions of Asia. The division a+so +eads mar7et share figures for 5itrus ?ui,er in Singapore4 *anama4 5hi+e4 1o+ivia and over A& ,ountries throughout Asia and Latin Ameri,a. Refrigerator e8ports have in,reased tremendous+y o,,upying top positions in AA ,ountries spanning every region of the 6or+d. "a,uum ,+eaner e8ports are a+so rising rapid+y as 5IS mar7et is being ,on,entrated. The division<s

/<

Mi,ro6ave ovens are the +eading produ,ts in #urope and North Ameri,a. Air@ ,onditioner sa+es have in,reased tremendous+y 6ithin the +ast )@$ years and have re,eived a,,o+ades from ,ustomers in Afri,a4 Latin Ameri,a and #astern #urope. Di<6la3 Di#i<i%$ The !isp+ay division produ,es T" sets 2;ome #+e,troni,s34 5o+our *i,ture Tubes 25*T3 5o+our disp+ay Tubes 25!T3 Monitors 2MNT34 !ef+e,tion o7es

2!>3 and other disp+ay re+ated produ,ts and has gro6n rapid+y amidst +arge s,a+e mar7et e8pansion. The !isp+ay !ivision is fighting va+iant+y as the ,ompetition intensifies 6ith pri,e depre,iation due to ,ompetitors dumping produ,ts. ;o6ever4 the division is standing firm in the mar7et and is re,ogni:ed as high =ua+ity brand a++ a,ross the g+obe. Dith the 5hinese and Indonesia ,omp+e8es running fu++ s,a+e sin,e<'(4 a vast g+oba+ produ,tion net6or7 has been ,reated. In the turmoi+ of ,onstant+y rising ta8es4 the division sti++ managed to boost sa+es in B&&& by USJ ).( bi++ion4 a B%H in,rease over the previous year. The ,ompany registered as the mar7et share +eader in over B& ,ountries throughout #urope4 Afri,a and Latin Ameri,a. L.# has estab+ished fa,i+ities in B% ,ountries 6ith a g+oba+ net6or7 of C$ subsidiaries and offi,es 6ith C&4&&& dedi,ated emp+oyees.

/B

L. is an estab+ished brand in more than A%A ,ountries offering futuristi, te,hno+ogy and ,ustomi:ed produ,ts that de+iver u+timate satisfa,tion to the ,onsumers. L.# is no6 in the pro,ess of forging its image as a +eading g+oba+ enterprise. The produ,ts that are manufa,tured g+oba++y in,+ude mu+timedia p+ayers4 "ideo 9 Audio produ,ts4 ;ome #+e,troni,s4 Information systems produ,ts4 5ommuni,ation !evi,es4 !isp+ay produ,ts4 Magneti, re,ording Media4 #+e,tri, K #+e,troni, ,omponents. T01 2%m6a$3G< $1D 6 %"u2t <t at143 i< 21$t1 1" a %u$" it< "i4ital t120$%l%43 a$" F1atu 1< $1>t741$1 ati%$ "i<6la3 "1#i21< a< it< 2% 1 6 %"u2t 4 %u6. L.# is a+ready re,ogni:ed for its te,hno+ogy superiority in digita+ te+evision and is ,hanne+ing appropriate resour,es into this ,ategory to a,hieve gro6th and +eadership position. .oing for6ard4 LGE i< ma@i$4 4 1at <t i"1< t%Da "< 1aliJi$4 it< #i<i%$ of be,oming the IB1<t Gl%8al C%m6a$3G i$ t01 -/ <t 21$tu 3. As L.# pursues this vision4 it remains ,ommitted to de+ivering outstanding produ,ts and servi,es to ,ustomers around the 6or+d.

/2

LGG< ?i<i%$ L. #L#5TR0NI5S envisions a future 6here +ife is ,onvenient and p+easant 6here +iving spa,es are fu++ of happiness. And 6here the promise of the future 6e a++ dream of ,omes true. LG O8912ti#1< A,hieve gross sa+es of USJ%E bi++ion. Se,ure ordinary in,ome of ( per,ent of gross sa+es. Attain a return on investment of AC per,ent. 1ui+d a brand reputation for tota+ satisfa,tion. 5reate more ,omfortab+e4 ,onvenient homes e+e,troni,s ,ompanies .in every ,orner of our g+oba+ vi++age4 the ,ompany is dedi,ated to ,reating a better future for a++ ,onsumers4 6herever they may +ive.

;C

LGE 6la$< t% 8uil" DIGITAL 1J LG a< it< 6 1mi1 8 a$" ima41 a$" i< ma@i$4 2a 1Ful 6 16a ati%$< t% ta@1 t01 21$t1 <ta41 i$ 16 1<1$ti$4 t01 2utti$471"41 1l12t %$i2< i$"u<t 3 i$ t01 $1D mill1$$ium. LG C% 6% at1 I"1$tit3 L.<s symbo+ mar7 is the most important e+ement of the ,orporate identifi,ation system. It is the representative symbo+ of L. throughout the 6or+d. The symbo+ mar7 ,reates a unified menta+ image of L. ne,essary in internationa+ ,ommuni,ation. De ,a++ this mar7 the Lfa,e of the future.M It in,orporates five ,on,epts and sentiments:

%he face made from the DLEand D(Es.mboliFes that human beings are the central aspect of our business and e8presses the resolution to do our customers and ensure their satisfaction0

Re+ Co*or2 re)n9orce: ,n ).,-e o9 @,r.tA ,n+ 9,.)*),r)t> @)tA o;r -*o<,* c;:to.er:.

;3

LGG< 7R : D L.# has estab+ished fa,i+ities in B% ,ountries 6ith a g+oba+ net6or7 of C$ subsidiaries and offi,es 6ith C&4&&& dedi,ated emp+oyees L.# has reinfor,ed R 9 ! a,tivities in higher digita+ te,hno+ogy to get to the g+oba+ digita+ mar7et 6ith smart produ,ts that ,an simp+ify +ife. M% 1 t0a$ *E %F t01 t%tal 1#1$u1< a 1 <61$t %$ R : D 1#1 3 31a . B3 t01 31a -((= at l1a<t =E t01 t%tal 1#1$u1 Dill 81 6ut 8a2@ i$t% 1<1a 20 a$" "1#1l%6m1$t. L. nurtures its emp+oyees4 obtains patents for revo+utionary produ,ts and en,ourage R 9 ! a,hievement 6ith diverse in,entive. It<s A) domesti, +abs in,+uding the L. produ,tion #ngineering resear,h ,entre and our A& overseas +aboratories are doing their at most in basi, te,hno+ogy4 manufa,turing s7i++s4 =ua+ity4 performan,e4 standardi:ation and design. Dith the ,ompany interna+ ,ampaign for =ua+ity innovation4 L.# is gunning for g+oba+ +eadership in digita+ te,hno+ogy. L.#<s ,ustomer@oriented performan,e is ba,7ed by energeti, R 9 ! a,tivities. R 9 ! based TL B&&C +oo7s ahead at yet to be invented te,hno+ogies and sensationa+ produ,ts that 6ith de+iver outstanding

performan,e to better your +ife LG7R:D ?i<i%$,

;/

A. >o,us on performan,e ma8imi:ation based on mar7et +eading R 9 ! 2B&&&3 B. 5reate g+oba+ +eading produ,ts 2B&&&@B&&B3 ). Se,ure te,hno+ogi,a+ identity to +ead the gro6th of L.# 2B&&B@B&&C3 R:D A66 %a20 a$" "i 12ti%$ A. Se,ure profitabi+ity based team 6or7 6here business and te,hno+ogy be,ome one B. #nhan,e R 9 ! performan,e to promote produ,tion of mar7et driven produ,ts. ). #n,ourage business mindset of R 9 ! teams. LG7St at14i2 I$itiati#1< R1"1<i4$ Bu<i$1<< 6% tF%li%K"1#1l%6 $1D <t at14i2 8u<i$1<< It is important to revamp the ,ompany<s e8isting produ,t stru,ture to strategi,a++y foster our image as the best g+oba+ ,ompany. De need to redesign our business portfo+io to fa,i+itate the bran,hing out into the ne6 se,tors4 a,tive efforts 6ou+d be made to advan,e into: A. The soft6are and the servi,e se,tors B. The information and ,ommuni,ation se,tor

;;

). The hea+th and environmenta+ e=uipment $. Ma/or parts and ,omponent se,tor And others by pursuing friend+y M 9 A<s and strategi, a++ian,es 6ith other ,ompanies. Gl%8aliJati%$ L.# p+ans to have five more regiona+ head=uarters in operation by B&&& and A& by B&&E4 as resu+t4 L.# hopes to raise its overseas sa+es by US J (&(n4 or E&H of its tota+ sa+es and in,rease its overseas produ,tion to %&H of its tota+ produ,tion. A,=uiring promising differentiated te,hno+ogy entai+s beating the ,ompetition on gaining a footho+d in 7ey industries of future 6here ho+ding a ,ompetitive advantage is feasib+e. L.# 6ou+d attra,t and ,u+tivate +eading individua+s in the ,ore te,hno+ogy fie+ds and estab+ish R 9 ! ,enters at ma/or regiona+ bases around the 6or+d and thereby boost te,hno+ogi,a+ ,o@ordination. Culti#at1 HPLG< Hi40 61 F% mi$4 l1a"1 < In order to produ,e ear+y and effe,tive management resu+ts great efforts 6i++ be made to train and foster the most promising management graduates. At +east BC& subsidiary +eaders 6ho are e8e,utive +eve+ or higher 6i++ be ,u+tivated and

;6

trained as spe,ia+ists on ne6 business deve+opment4 M 9 A4 ,ore te,hno+ogy and other areas. LG C% 6% at1 Cultu 1 C%u t1%u< 8%u$"a 3 l1<< a$" 1m6%D1 i$4 The drive is to evo+ve a highenergy L1oundry+essM ,orporate ,u+ture4 6here inte++e,tua+ freedom is high4innovative thin7ing is va+ued and ,ross fun,tiona+ bonhomie ,reates a ,o++e,tive 6i++ to a,hieve goa+s. #mp+oyee empo6erment is the right 6ay to go. Not on+y are the peop+e empo6ered4 the right peop+e are empo6ered. #.g the >ran,ens have empo6ered the Indians@ the peop+e 6ho 7no6 the mar7et 6e++. LG 8a<i2 60il%<%603 5ompete in the internationa+ mar7et 6ith a g+oba+ mindset Ma8imi:e va+ue for ,ustomers4 emp+oyees and shareho+ders *ursue the best in the ,+ass through Imanagement by prin,ip+e< 5ontribute to so,iety through good L,orporate ,iti:enship.M LG Ma$a41m1$t P0il%<%603

;4

C 1ati$4 ?alu1 F% t01 Cu<t%m1 , The 6ho+e purpose is to ,reate va+ue for the produ,ts and to serve the ,ustomers in every thing 6e do. Dith satisfied ,ustomers4 L. 6i++ natura++y ,ontinuous+y and ,onsistent+y innovate and deve+op to a,hieve our goa+ of providing the a+most va+ue per ,ustomers. Ma$a41m1$t Ba<1" E<t11m F% Huma$ Di4$it3, *eop+e are the origin of a++ va+ues in a++ management a,tivities. Management based on human dignity he+ps us a,hieve a++ goa+s. *eop+e shou+d pra,ti,e ,ompany<s vision4 sense of va+ue and goa+ in vie6 of o6nership to the ,ompany. LG7L%4% C%$216t

;5

LG 7 +D LOGO

CORPORATE LOGO

;<

I"1$tiFi2ati%$ %F t01 <3m8%l Ma @ Symbo+ mar7 is the most important e+ement of ,orporate identifi,ation system. It is the representative symbo+ of L.# throughout the 6or+d. Symbo+ mar7 ,reates a unified menta+ image of L.# ne,essary in internationa+

,ommuni,ation. The symbo+ mar7 6hi,h represents the L>a,e of >utureM in,orporates five ,on,epts and sentiments of 6or+d4 future4 youth4 human and te,hno+ogy. The ,ir,+e 6ith the +etters LLM and L.M symbo+i:es that human being are the most important aspe,t of our business and e8presses the reso+ution to do our best to maintain ,+ose ties 6ith our ,ustomers and to ensure their satisfa,tion. The red ,o+or reinfor,es an image of 6armth and fami+iarity 6ith our g+oba+ ,ustomers and high+ights L.<s ,ha++enge to be,ome a 6or+d ,+ass ,ompany. B a$" Ma @ 1rand mar7 is the most important e+ement of brand identifi,ation system. It is the representative symbo+ of L.# throughout the 6or+d. 1rand mar7 ,reates a unified menta+ image of L.# ne,essary in internationa+ ,ommuni,ation. LG i$ I$"ia

;B

L. #+e,troni,s India Limited 2L.#IL3 is a 6ho++y o6ned subsidiary of L. e+e,troni,s4 South >ran,e. The ,ompany 6as estab+ished in ?anuary B&&& after ,+earan,e from the >oreign Investment *romotion 1oard 2>I*13. Its ear+ier t6o attempts one in A''B and one in A''C had fai+ed. It first entered the ,ountry in A''B 6ith the .o+dstar brand name se++ing ;ome #+e,troni,s<s in partnership 6ith !e+hi@based home #+e,troni,s ,ompany 1estavision4 the marriage fai+ed to ,+i,7 right from the start. T6o years and a host of prob+ems +ater4 it snapped ties 6ith 1estavis,on and tried to form a /oint venture 6ith the 5.K. 1ir+a group. That move4 too4 fai+ed in the negotiation stage itse+f. 1y then4 the .o+dstar had a,=uired a poor reputation 6ith dea+ers and ,onsumers a+i7e. Dith the ,hange in its ,orporate identity in A''C 6or+d6ide from I.o+dstarM to LL.M it proved to be +u,7y in India on+y the third time around4 despite being one of the first mu+tinationa+s to hit the Indian mar7et after +ibera+i:ation. The ,ompany +aun,hed in !e+hi in May B&&&4 6ith4 ten mode+ of ,o+our te+evision4 ranging from A$ in,hes to B' in,hesF eight mode+s of +arge ,apa,ity Mi8er .rinder ranging from )B& +t to (C& +t and three mode+s of 5itrus ?ui,er from C.C 7gs to B& 7g and subse=uent+y +aun,hed the same in 5handigarh4 Lu,7no64 ?aipur4 1ombay4 *une4 5a+,utta4 Anmedabad4 Indore4 1anga+ore4 5hennai and ;yderabad .

;2

These entire produ,ts bear the L. brand name4 6hi,h the ,ompany has de,ided to ,hange from its previous brand L.o+dstarM around the 6or+d starting from B&&&. Today in a short span of B$ months4 L. has t6enty si8 mode+s of ,o+our te+evision ranging from A$ in,hes to (& in,hesF A$ mode+s of +arge ,apa,ity Mi8er .rinder ranging from A%C +t to E'& +tF seven mode+s of 5itrus ?ui,er ranging from C.C 7gs to B& 7gsF nine mode+s air ,onditionersF three mode+s of mi,ro 6ave ovensF t6o "5!<s and have subse=uent+y +aun,hed the same a++@ India. The ,ompany is envisioning a tota+ investment of US J BE' mi++ion 2Rs. A&$& ,rore3 over the ne8t of ' years 6hi,h 6i++ give it a ma/or manufa,turing presen,e in India in and range of 6hite a bro6n goods as 6e++ as in a range of e+e,troni, ,omponents by B&A&. A+ong the 6ay the ,ompany p+ans to e8port produ,ts 6orth. J A&& mi++ion in a ten@year period is starting from the ,ommen,ement of mass produ,tion in India. It a+so has a p+an to invest BCH of its e=uity to the Indian pub+i, or to an Indian investor after C years of operation. In the Fi <t 60a<1 of investment from B&&& to B&&A4 the ,ompany has de,ided to invest USJ A&& mi++ion 2Rs. C&& ,rore3 to estab+ish manufa,turing fa,i+ities in .reater Noida. This fa,i+ity 6i++ be ,apab+e of ,hurning out %4&&4&&& ;ome #+e,troni,s4 $4&&4&&& Refrigerators4 B4&&4&&& 6ashing ma,hines4 A4&&4&&& Air

6C

,onditioners and C4&&4&&& Mi,ro6ave ovens per annum. The fa,i+ity has started produ,tion sin,e Apri+ B&&A. In the <12%$" 60a<1 from B&&A to B&&C4 L. e+e,troni,s 6i++ invest J B&& mi++ion 2Rs. C&& ,r3 to in,rease its e8isting ,apabi+ities in finished produ,ts and add ,apabi+ities to manufa,ture ,ompressors4 p+y ba,7 transformers4 motors and def+e,tion yo7es. After setting up of L. soft6are 5enter in 1anga+ore in A'''4 L.# a+so 6i++ set up an Lin house R 9 ! and A!"#RTISIN. ,enterM in India not on+y to train the Indian emp+oyees4 but a+so to serve foreign emp+oyees of L.# in South #ast Asia and Northern Afri,a. I$ Fi#1 31a < F %m $%DA LGEIL Dill 812%m1 %$1 %F t01 2%l%<<al i$"u<t ial 0%u<1< i$ I$"ia L.#IL has a+ready a,hieved a turnover of Rs. C&& ,rores in the period ?an@?u+y<B&&B. L.#IL by introdu,ing a 6ide range of produ,ts to the Indian ,onsumers has su,,essfu++y ,arved a ni,he for itse+f. Its su,,ess story is a resu+t of its investment in ,utting edge te,hno+ogy and its re+ent+ess efforts to bring home the smi+ing fa,e. In the past five years4 India has attra,ted a number of mu+tinationa+ ,ompanies to invest in the ,ountry4 offering a p+ethora of ,hoi,es to the Indian ,onsumers. Thus the ,onsumers see7 internationa+ brands that offer va+ue for money as 6e++ as a high standard of servi,e. L.#IL ,ease+y strives to be responsive to ,onsumer needs4 desires and habits.

63

Today L.#IL is regarded as one of the top home #+e,troni,s ,ompanies in India 20R.@MAR. Survey3. L.#IL has AE ,ompany o6ned and $& authori:ed servi,e ,entres a,ross the ,ountry 6here the servi,e engineers are avai+ab+e t6enty@four hrs throughout the 6ee7. The ,onsumer durab+e industry 6i++ ,ontinue to 6itness the gro6th in demand. The ,ompany 6i++ a+so have to ta7e a +eap for6ard by in,reasing the vo+ume of sa+es. It is e8pe,ted that in the ,oming years there 6i++ be stiffer ,ompetition. The ,ompany is ta7ing measures to redu,e ,osts and improve produ,tivity. Dith emphasis on =ua+ity and improved servi,e to the ,ustomers at an affordab+e pri,e4 the ,ompany 6i++ endeavor to gain additiona+ mar7et share. A+so in vie6 of the +ibera+i:ation of the Indian e,onomy4 ,ompany<s te,hni,a+ 7no6 ho64 superiority4 servi,e ,ompeten,e and the good 6i++ is 6hat the ,ompany ,ommands in the mar7et. The ,ompany is optimisti, of ,onsistent and sustained gro6th in its business. LG G %u6< 6 1<1$21 i$ I$"ia L. #+e,troni,s India Limited L. Soft6are L. 5hemi,a+s L. 5onstru,tion

6/

P %"u2ti%$ Fa2ilit3 L.#IL set up its $% a,res manufa,turing fa,i+ities at .reater Noida in Apri+ B&&A. Today the fa,tory ,huns out 6ashing ma,hines4 ,o+our te+evisions4 Toasters and mi,ro 6ave ovens. Mi8er .rinder is e8terna++y sour,ed from A++6yn<s manufa,turing fa,i+ity at ;yderabad. 5urrent+y L.#IL has tied up 6ith "o+tas Ltd.4 to sour,e about (&&4&&& Mi8er .rinder over ) years from ?an B&&) to !e,. B&&C. "o+tas 6i++ produ,t Mi8er .rinder a,,ording to the spe,ified standards of design and =ua+ity given by L. e+e,troni,s. "o+tas 6ou+d in,rease its ,apa,ity of AE&4&&& units to BC&4&&& units per year of 6hi,h L.# 6i++ be sour,ing about E&H. At present4 the average Indigenisation +eve+ in L. produ,ts is about $C per,ent and it p+ans to in,rease it to EC per ,ent in the ne8t ,oup+e of years. Dhen it had started the produ,tion of air ,onditioners4 the +eve+ of indigenisation 6as a mere B& per ,ent that shot up to '& per ,ent a+most instant+y. #+e,troni,s 6ou+d a+so be rea,hing su,h +eve+s by the end of the year. ;ome

LGG< P %"u2ti%$ Ca6a2it3

6;

5o+ur T"<s Semi Automati, 5itrus ?ui,er Air 5onditioners Mi,ro 6aves Mi8er .rinder Ma$uFa2tu i$4

C&&4&&& units B&&4&&& units A&&4&&& units C&4&&& units #8terna++y sour,ed

At its state of the art manufa,turing p+ant a,ute ,ost ,ontro+ has been on the agenda from day one. Some of the 6ays used to ,ontro+ ,osts at the p+ant are: a. >u++@optimi:ation of resour,es b. Smoothening the ,+o,7 6or7 ,. Raising the effi,ient+y of emp+oyees d. Minima+ inventory +eve+s. At the p+ant4 it is made sure that there is no 6astage of materia+ and every thing must 7eep moving a++ the time. Sin,e money has time va+ue4 nothing that has hogged money shou+d +ie id+e for too +ong. Inventory is 7ept minima+4 for 6hi,h stri,t guide+ines are fo++o6ed re+igious+y a++ through the ,hain. The p+ant 7eeps no more than seven days sto,7 of materia+ from vendors and AC@B& days of imported parts. 1ran,h offi,es must have4 at

66

the end of every month4 /ust $& per,ent of the re=uirement for the ne8t month4 6ith the rest being rep+enished by the AC th. 5ost ,utting has a+6ays been a high priority for L. operations around the 6or+d. In 7eeping 6ith this aim4 the ,ompany has been trying to a,hieve mu,h +o,a+i:ation as possib+e4 as fast as possib+e. At 6 1<1$t t01 a#1 a41 l1#1l %F i$"i41$iJati%$ i$ LG 6 %"u2t< i< a8%ut &; 61 21$t. The ,ompany hopes to in,rease that to ECH 6ithin the ne8t ,oup+e of years or so4 thus insu+ating itse+f from e8,hange rate vo+ati+ity and ,rushing ,osts in genera+. The ,ha++enge is to ,u+tivate high =ua+ity +o,a+ vendors =ui,7+y. Dhen L. first started ma7ing A5s in India4 the indigenous ,omponent a,,ounted for a mere B& per,ent of the va+ue of the fina+ produ,t4 but 6ithin a fe6 months4 the figure shot up to '& per ,ent +eve+. ;ome #+e,troni,s 6i++ hit a ,omparab+e position by the end of B&&C. Sin,e the US* of L. has been high te,hno+ogy4 it ,annot +et any defe,tive produ,t pass through the gates. #ven ensuring that the ma,hines ,an hand+e Indian ,onditions has been top priority for L.. #very produ,t is put to an #ar+y Life Test 2#LT34 6hi,h sub/e,ts of to the misery of $& degrees ,entigrade heat for a pro+onged period. The defe,t e+imination programme fo++o6s a statisti,a++y optimi:ed pro,ess of random samp+e ,he,7s.

64

I$$%#ati%$ at LG At L. innovation is a po+i,y. The management<s pet phrases are IT*I C&< and T!R. The former tota+ produ,tivity innovation of C& per ,ent urges emp+oyees at a++ +eve+s to in,rease produ,tivity by C& per ,ent. And the +atter is the too+ that he+ps to do thatGTear !o6n Re@engineering4 by 6hi,h emp+oyees4 espe,ia++y at the assemb+y +ine4 are dire,ted to tear do6n a++ pro,esses to the ground and start afresh by using +ess tine4 more innovative te,hni=ue and so on. In this manner4 it is be+ieved the ,ompany is bringing do6n ,osts for the future and through T!R and T*I C& e8pe,ts to ,reate signifi,ant profits this year. #ngineers at L. don<t say Ino< to any idea. If the ,ompany has to ,ompete in the +ong run4 it ,annot do so by mere+y ,utting ,osts. It is innovation that 6ins the ra,e even in a mar7et as budget ,onstrained as India. P1 F% ma$21 R1#i1D L. e+e,troni, India *vt. Ltd.4 has in a very short span of si8 months a,hieved a turnover of Rs. A&& ,rores 6hi,h is a brea7through in the #+e,troni, industry. The performan,e a,hieved in L.<s finan,ia+ pro/e,tion 6as ,ommendab+e as it rea,hed the first Rs. C& ,rores in first A.C month as against its initia+ target of A&& ,rores in AB months meeting its annua+ targets in /ust ( months. In the year B&&'@A&4 L.#IL has a,hieved a turnover of Rs. B&& ,rores against a pro/e,ted Rs. A&& ,rores. In the first year of operation in India L. has

65

a,hieved the number one position in the $$& 6atts Mi8er .rinder in the )&& +t and above ,ategory and Neuro@>u::y segment 6ashing ma,hine. In the ;ome #+e,troni,s segment L. is No.(. Moreover it has +aun,hed 6or+d ,+ass state of the art te,hno+ogies as *N system and refrigerators4 .o+den eye series of ;ome #+e,troni,s<s4 ,haos te,hno+ogy in 5itrus ?ui,er and Air ,onditioners. At the end of Mar,h B&&E4 the ,ompany had se,ured a mar7et share4 above CCH in ;ome #+e,troni,s )%H in )&& +trs No. frost refrigerator4 and )CH in Neuro >u::y 6ashing Ma,hines. This 6as by far one of the most impressive performan,e any ,ompany had in its first year of operation. In B&&'4 its first ,omp+ete year of operation in India4 it so+d produ,ts 6orth Rs. $%% ,rore The ,ompany for the period ?an@?une<B&&E4 has re,orded a turnover of Rs. C&& ,rores. Last year in the same period the turnover 6as on+y B&& ,rores. This is a 6hopping gro6th of appro8imate+y AC&H. 0n+y 5rompton and 1a/a/ groups have more turnover than L. in home #+e,troni,s and ;ome #+e,troni,s industry in this period.

/.+ PROBLEMS OF THE ORGANISATION

Cu 1$tl3 LG 0a< a ma @1t <0a 1 %F )E. It has so+d A4E&4&&& ;ome

#+e,troni,s in the first si8 month4 ti++ ?une<&B4 ma7ing it the fifth +argest p+ayers in the ;ome #+e,troni,s mar7et.

6<

In the $$& 6atts refrigerator4 )&& +t N ,ategory4 L. is a+ready the mar7et +eader 6ith a+most )(H mar7et share4 it has so+d A(4BC& units against a mar7et si:e of appro8 $C4&&& units in the first ( months of ,urrent ,a+endar year. This is a gro6th of )AH over +ast year ,orresponding period. In the CC& 6atts refrigerator segment ho6ever the ,ompany has on+y )H mar7et share be,ause of ,apa,ity ,onstraints due to out sour,ing. It has so+d $B4&&& units in the first si8 month4 6hi,h is a gro6th of about ))&H over +ast ,rores pounding period. In the fu++y automati, 2>u::y Logi, ,ategory3 5itrus ?ui,er too L. is the mar7et +eader 6ith )%H mar7et share. It so+d about (4(&& units against the industry sa+e of AE4&&& units in the first si8 months of ,urrent ,a+endar year. This is a gro6th of 'BH over ,ost year ,orresponding period. 0vera++ in the semi automati, 5itrus ?ui,er ,ategory the ,ompany has ABH mar7et share and a No. $ ran7ing. It so+d about $A4B&& units against the industry sa+e of ).$C +a,s units in the first si8 month of ,urrent ,a+endar year. This is a gro6th of %'&H over +ast year ,orresponding period. In the mi,ro6ave oven segment ,ompany has a BAH mar7et share and a No. B overa++ position. It so+d about %&&& units against the industry sa+e of ))4&&& units in the first si8 months of ,urrent ,a+endar year. This is a gro6th of $(&H over +ast year ,orresponding period.

6B

In the Air 5onditioner organi:ed segment the ,ompany has a A%H mar7et share and a No. B position on overa++ basis. It so+d about B$4B&& units against the industry sa+e of A.$C +a,s units in the first si8 month of ,urrent ,a+endar year. This is a gro6th of $A&H over +ast year ,orresponding period. >or any ,ompany to a,hieve su,h a position in su,h a short time is a re,ord. Amongst the MN5s in this industry L. no6 is the undisputed Numero Uno. A,,ording to ,ompany sour,es4 at L. it ,an be said 6ith pride that in B( months of e8isten,e4 L. stands at a +eve+ that many ,ompanies in this industry have attained in B( years of their e8isten,e.

/.& ABOUT LGGS COMPETITORS

P0ili6< I$"ia *hi+ips is one of the o+dest mu+tinationa+s to enter India near+y (& years ago. *hi+ips has had a fair+y su,,essfu+ run as a ma/or p+ayer in the te+evision mar7et. The ,ompany has identified domesti, #+e,troni,s4 persona+ ,omputers and monitors4 soft6are as its target business. In the year ending !e,<'E *hi+ips India has not,hed up sa+es of Rs. A$E) ,rore.

62

Sam<u$4 El12t %$i2< Samsung e+e,troni,s4 another >ran,e ,ompany +aun,hed about five years ba,7 entered India 6ith a sta7e of J C mi++ion in the India subsidiary Samsung India e+e,troni,s Ltd.4 in 6hi,h it ho+ds a CA per ,ent ,ontro++ing share. The produ,t portfo+io of Samsung #+e,trons ranges from Mu+timedia produ,ts4 home #+e,troni,s and te+e,ommuni,ation produ,t systems. In India the ,ompany has estab+ished a +eadership position in the produ,t ,ategories in ;ome #+e,troni,s<s $$& 6atts Mi8er .rinder 5! based systems4 6ashing ma,hines4 mi,ro6ave over and "5!<s. In B&&& it had a mar7et share of EH. The ,ompany p+ans to set up a manufa,turing fa,i+ity for home app+ian,e at the Noida ,omp+e8. This fa,i+ity for 6hi,h the investment is estimated at around US J AC@B& mi++ion 6i++ have a produ,tion ,apa,ity of C&4&&& units ea,h for refrigerator and 6ashing ma,hines. The ,ompany p+ans to set up four fa,tories at the Noida ,omp+e8 by the year B&&& for ;ome #+e,troni,s<s refrigerators4 6ashing ma,hine4 mi,ro6ave over and room A5<s 6ith a tota+ investment of Rs. B(& ,rore. BPL 5rompton Ltd.4 the mar7et +eader in ,onsumer e+e,troni,s4 the f+agship ,ompany of the Rs. )&&& ,rore 5rompton group has turned in an improved

4C

performan,e in B&&&@'E over the previous year. The ,ompany<s sa+es have risen )C.% per ,ent to Rs. A%$( ,rore over the previous years. The ,ompany is invo+ved in the manufa,turing of 1 9 D4 ;ome #+e,troni,s and ,o+our pi,ture tubesF 6ashing ma,hineF mi,ro6ave ovensF va,uum ,+eaners et,. in order to fight the ons+aught of the mu+tinationa+s in the ,onsumer e+e,troni, industry4 5rompton 6hi,h is in te,hni,a+ ,o++aboration 6ith Sanyo is a++ set to un+eash a host of ne6 produ,ts for the domesti, ,onsumer. In B&&) the ,ompany had mar7et shares of BAH in ;ome #+e,troni,sF (.BH in refrigerator A'.BH in 6ashing ma,hinesF $$.(H in mi,ro6ave 5rompton is the on+y ,ompany is trying to fa,e ,ompetition on the te,hni,a+ front 6ith the various MN5s that are :ooming into the ,ountry 6ith their Ldigita+M range of produ,ts. W0i l6%%l This ,ompany invested in India in A'E% beginning 6ith the venture 6ith T"S private +imited. In A''$4 T"S Dhir+poo+ Ltd. ,hanged its name to Dhir+poo+ 5itrus ?ui,er Ltd. Its dominan,e is main+y in the 6hite goods industry. It A''C Dhir+poo+ re=uired ,ontro++ing interest in Ke+vinators of India4 one of ,ountry<s +argest manufa,turing and mar7eter of refrigerators. In A''' the ,ompany is in the pro,ess of manufa,turing .+oba+ No. frost Mi8er .rinder in the forth,oming pro/e,t. Its mar7et shares in B&&E 6ereF Mi8er .rinder A'.)HF 5itrus ?ui,er A$.(H.

43

IFB I>1 stands for Indian fine ban7. It started its operations in A'E' 6hen it +aun,hed its first 6ashing ma,hine. It has a signifi,ant presen,e in the high end 5itrus ?ui,er mar7et4 6ith its fu++y automati, 6ashing ma,hine. I>1 has p+ans to in,rease its ,ustomer base by in,reasing its produ,t range. 5urrent+y the ,ompany is into the manufa,ture of mi,ro6ave ovens4 dish6ashers and ,+othes dryers. Its mar7et shares in B&&E 6ereF 5itrus ?ui,er (.CF mi,ro6ave BB.$H. Amt 1> Hita20i It has strategi, a++ian,e 6ith ;ita,hi Ltd.4 of ?apan. It entered 6hite and bro6n goods mar7et in India about seven to eight years ba,7 and is aiming at a mar7et share gro6th by A(H. It is ma/ority into the mar7eting of high end A5<s ea,h in sp+it and 6indo6s segment. Its mar7et shares in B&&E 6ere: air ,onditioner BA.BH. G%" 19 GE El12t %$i2< The ,ompany has posted a +oss of Rs. (& ,rore in A'''. It posted a )& per ,ent gro6th in sa+es vo+ume in the refrigerator business during the si8 G month period ended !e,<'%4 higher than the industry average. .odre/ is the mar7et +eader in the refrigerator segment. In B&&A4 it re,orded a mar7et share of )A.AH. In the 5itrus ?ui,er segment it re,orded a mar7et share of C.CH. It is the on+y nationa+ p+ayer in the ,oo7ing range mar7et in India. It is a a+so

4/

p+anning to venture into business +i7e 6ater purifier systems in the near future4 a strategy 6hi,h has enab+ed it to be,ome a mu+ti app+ian,e ,ompany. El12t %lu> A1 #+e,tro+u84 the 6or+d<s +argest manufa,ture of househo+d #+e,troni,s4 rea,hed an agreement to obtain ma/ority o6nership in an Indian 5itrus ?ui,er manufa,turer4 Intron Ltd. #+e,tro+u8 invested US J B.$ mi++ion in the step to obtain CAH o6nership in Intron Ltd. In A''C it too7 ma/ority ,ontro+ of Mahara/a Int<+ Ltd.4 an Indian refrigerator manufa,turer. Dith these t6o manufa,turing bases it even has $&H sta7e in #ure7a >orbes #+e,tro+u8 p+ans to +aun,h a 6ide range of environment friend+y househo+d #+e,troni,s in India. The ,ompany has presen,e main+y in the refrigerator and 5itrus ?ui,er segment. It has been +aun,hing 6or+d ,+ass produ,ts in India at regu+ar interva+s. B&&) 6itnessed the +aun,h of seven upgraded 6or+d ,+ass mode+s of Ke+vinator refrigerator. In B&&A it +aun,hed premium .o+d ,o++e,tion from Ke+vinator. Mar7et shares in B&&E 6ere: refrigerator '.%H.

/.; S.W.O.T. ANAL!SIS OF THE ORGANILATION

St 1$4t0< *remium pri,ing4 no dis,ounts >o,us on te,hno+ogy and =ua+ity

4;

Strong ,ommitment from parent In G house manufa,turing ,apabi+ity *rodu,ts +o,a+i:ed to suite Indian tastes

W1a@$1<<1< La,7 of transparen,y 6ith dea+ers >o,us on ni,he segments !ominan,e of >ran,en 6or7 ,u+ture Litt+e presen,e in A91 ,+ass to6ns

O66% tu$it3 5onvert image into mar7et share Dide produ,t portfo+io *ositive rub@off due to high =ua+ity ;ea+thy resour,e generation

T0 1at< Day behind mar7et +eader

46

Stagnant urban demand Nothing uni=ue about strategy ;igh+y ,ompetitive mar7et

44

C0a6t1 . - OBJECTI?E : METHODOLOG!

-./ SIGNIFICANCE
5onsidering the 6ide variety and avai+abi+ity of produ,ts in the ,ategory of home #+e,troni,s as a industry on+y the five fo++o6ing produ,ts have been ,onsidered for study: ?ui,e #8tra,tor4 Sand6i,h Toaster4 *opup Toaster4 ;and Mi8er4 Sti,7 1+ender4 ;air !ryer4 ?ug Kett+e4 Steam Iron4 !ry Iron4 ;eat 5onve,tor4 ?ui,er Mi8er .rinder4 Mi8er .rinder4 0.T...4 Light Deight Automati, Iron. L. being a ,ompany having its operations in diversified areas4 on+y L. e+e,troni,s is a part of this study.

-.- MANAGERIAL USEFULNESS OF THE STUD!

It 6i++ be very usefu+ for the Managers to 7no6 the position4 mar7eting strategies and the performan,e of the L. #+e,troni,s India.

-.+ OBJECTI?ES
To find out 6hether S,heme has he+ped to in,rease the sa+e of the !ea+ers or notO Dhether this S,heme has he+ped to ,hange the 1rand Loya+ty of the 5ustomers or notO To find out the 0vera++ Response of this S,hemeO To identify and ana+yse the position in the ,onsumer durab+e industry of L. #+e,troni,s India.

45

Ana+y:ing the Mar7eting Strategies of the above ,ompany. To ana+y:e its performan,e sin,e to in,eption.

-.& SCOPE OF THE STUD!

Identify and ana+yse the position of L. #+e,troni,s in the 5onsumer !urab+e Industry and its performan,e sin,e in,eption 6i++ he+p ,ompany to 7no6 6here L. #+e,troni,s stand in this ,ompetitive mar7et.

-.; METHODOLOG!
Information through: 2a3 *rimary Sour,es 2b3 Se,ondary Sour,es 0ffi,ers of the fo++o6ing departments 6ere approa,hed to obtain information about the ,on,erned sub/e,t. Mar7eting ;uman Resour,e Management regarding the 5onsumer ;ome #+e,troni,s4 organisation4

Mar7eting Strategies4 ;uman Resour,e Management has been obtained

P ima 3 S%u 21<,

4<

Puestionnaire4 Intervie6 and !is,ussions 6ith the Senior Mar7eting #8e,utives of the 5ompanies to get re+evant information. S12%$"a 3 S%u 21< 2i3 2ii3 2iii3 2iv3 Internet Libraries Arti,+es 5ompany bro,hures4 +iterature and pamph+ets.

5on,+usions and re,ommendations have been thereby given. Thus in my opinion4 this 6as the best method4 that ,ou+d have been used 6hi,h in,+uded the use of both the primary and se,ondary sour,es sin,e on+y the se,ondary or the primary sour,es ,ou+d not have provided su,h an in@depth and detai+ed information.

4B

LIMITATIONS
In every Resear,h pro,ess4 there is ,han,e of errors and errors +ead to un,ertainity. #rrors4 6hi,h have affe,ted the study4 6ere:

!ue to +a,7 of time4 I ,ou+d not ,over a++ over !e+hi so that my study

6as restri,ted to North !e+hi on+y.

Some time 5o@operation from respondents 6as missing.

Most of the time respondents 6ere not interested to ans6er the

=uestion4 ta7ing it as ordinary matter of the ,ompany.

Most of the times respondents 6ere biased and having shortage of

time.

42

C0a6t1 . + CONCEPTUAL DISCUSSION

Ma @1ti$4 St at143 In a short span of /ust B( months4 sin,e its in,eption in May B&&'4 t01 8 a$" 0a< attai$1" a 8 a$" aDa 1$1<< l1#1l %F a8%ut )(E i$ t01 2%$<um1 "u a8l1 I$"ia$ ma @1t. 5onsidering the fa,t that L. e+e,troni,s is a >ran,en mu+tinationa+4 entering the Indian mar7et meant estab+ishing itse+f in a different mar7et a+together 6ith varied ,u+ture and ,onsumer tastes and preferen,es. A+so that so many mu+tinationa+s are s6eeping into the ,ountry4 it is evident that ea,h and every ,ompany has a ,utting edge over another. T01<1 4l%8al 2% 6% ati%$< a 1 "1#iati$4 F %m t01i i$t1 $ati%$al m1t0%"%l%4i1< a$" im6 %#i<i$4 t01i <t at14i1< F% l%2al ma @1t<. L.<s +o,a+i:ation of strategy ,overs the fo++o6ing areas: E$t 3 St at143, It is a+6ays better to estab+ish as fu++y o6ned subsidiaries. It is ,onsidered better if the ,ompany has a +o,a+ partner but4 sin,e L.<s ear+ier t6o attempts had a+ready fai+ed4 it de,ided to do it a++ a+one this time. T01 <t at143 t0at LG 0a< a"%6t1" i< 6 1<1$ti$4 a$ I$"ia$i<1" Fa21 t% it< 6 %"u2t< 8ut @116i$4 t01 t120$%l%43 at 4l%8al l1#1l<. O61 ati%$<, L. opted for starting its o6n manufa,turing fa,i+ity at .reater Noida. The B& month s,hedu+e to ,ommission its manufa,turing p+ant 6as ,ompressed to A& months. The ,ompany de,ided to go in for a green fie+d pro/e,t rather than a,=uisitions or mergers. 2>or a++ produ,ts e8,ept refrigerators3. P %"u2t<, L. de,ided to go in for P %"u2t A"a6tati%$ St at143. .+oba++y L. does not operate in the dire,t ,oo+ refrigerator4 semi automati, 5itrus ?ui,er

5C

and BA in,h ;ome #+e,troni,sQ. 1ut the ,ompany had to deve+op these produ,ts for the Indian mar7et be,ause these areas ,onstitute a ma/or bu+7 of buys for the Indian ,onsumer. A+so L. +aun,hed4 sampoorna4 IndiaQs first T" 6ith a devangiri s,ript on s,reen disp+ay on the C& th anniversary of Indian independen,e. L.<s strategy of +o,a+i:ing its produ,ts to suit Indian tastes added to its strength. S14m1$tati%$, The 5ompany de,ided to enter the high end midd+e@,+ass on6ard segment in the initia+ stages4 sin,e most of the Indian brands 6ere targeting the +o6 and midd+e end ,ustomers. In the past ) years due to L.<s distin,t strategy it has ,arved a ni,he for itse+f in a ,ro6ded segment of B& manufa,turers. B a$", The ,ompany +aun,hed its produ,ts in ,ountry 6ith LL.4 the g+oba+ +eader M. It did not opt for any estab+ished brands in the ,ountry to be asso,iated 6ith it. L1a"1 <0i6, At L. e+e,troni,s4 7eeping the +o,a+i:ed strategy in mind4 an Indian heads the strategi, areas su,h as sa+es and mar7eting. .enera++y it happens that the senior management is deprived of Indians in a transnationa+ but L. did to 6ant to fo++o6 this path4 it 6anted that the mar7eting division be headed by an Indian be,ause he 6ou+d be versed of the Indian mar7et and ,u+tures. U+timate+y it is this4 6hi,h determined 6hether the ,ompany 6ants to ma7e profits or obtain a mar7et share. L. definite+y 6ants to be the +eader in the home #+e,troni,s industry. Seeing the progress that the ,ompany has made in the past ) years4 it has revised its p+ans for be,oming the number one home #+e,troni,s ,ompany to the year B&&E from B&&'. The ,ompany even p+ans to brea7 even this year. B3 t01 31a -(() it< tu $%#1 i$ I$"ia Dill 2%m6 i<1 $1a l3 - 61 21$t %F it< 4l%8al tu $%#1 . This is signifi,ant for a mu+tinationa+ that has been in the mar7et for /ust t6o years.

53

1efore +aun,hing itse+f in the mar7et in B&&)4 it ,arried out an e8tensive resear,h study to understand ,onsumer motivations to ,reate magneti, produ,ts4 pri,e them strategi,a++y4 position them sharp+y and 7eep ma7ing the magnetism more potent. ;aving understood the finer differen,es in ,onsumer motivations4 it opted for sharp arro6 Ireason to buy< differentiation over the b+an7et a++@approa,h 2,ategory 6ise3 ta7en by most of the other p+ayers.

5/

LGG< Gl%2ali<ati%$ <t at143 F% I$"ia THE BUSINESS MODEL MARKETING THE SEGMENT THE PRODUCT THE BRAND

Ni,heK Mass

Top@of@+ine K Mass Mar7et

.+oba+

*remiumK mid@ rangeO THE PRICE *remium K #,onomy 0*#RATI0NS ALLIANCE >u++y@o6ned ENTR! STRATEG! .reenfie+d IN?ESTMENT In,rementa+ BOTTOMLINE OBJECTI?E Mar7et share

.ro6n

LEADERSHIP Indian

After the initia+ pre+iminary mar7et studies the sa+es9 mar7eting department de,ided to start off 6ith ) produ,t ,ategories: 5o+or te+evisions 5itrus ?ui,er 2Automati,3

5;

Mi8er .rinder 2)&& +t N >>3

Dithin the first $.C months the ,ompany 6ent a++@India. As the ,ompany business began to rise4 L. introdu,ed the fo++o6ing produ,ts to e8pand its produ,t portfo+io:

Air ,onditioners CC& 6atts refrigerator Semi automati, 5itrus ?ui,er Mi,ro6ave ovens.

In a broad perspe,tive4 L.<s sa+es and mar7eting su,,ess ,an be attributed to its% *<s of mar7eting. In addition to the produ,ts4 pri,e4 p+a,e and promotion4 the 7ey fa,tors that have ,ontributed to L.<s su,,ess are the fo++o6ing ) additiona+ *<s: Pa21A P1%6l1 a$" Pa<<i%$ The most important 6inning fa,tor of the sa+es and mar7eting has been its I*assion<. It is this attribute 6ithin a++ the 6or7ers that drives the other ( *<s. ;o6ever L.<s Mar7eting Strategy is based on ) *<s 4 apart from the ,onventiona+ $ *<s of mar7eting : P 1mium pri,ing to maintain margins 1reathta7ing Pa21 to ,reate ri,hes !eep P1$1t ati%$ to in,rease vo+umes.

56

P 1mium P i2i$4 , L. e+e,troni,s 6as one

of the +ate entrants4 the AE th

p+ayer. Dhi+e other ,ompanies 6ere /ost+ing to p+ay the +o6 pri,e high vo+umes game4 L. de,ided to ,on,entrate on the high end of a++ the produ,t segments. The ma8imum pri,e of a ;ome #+e,troni,s 6as Rs. BA4&&& for a BAin,h mode+4 6as A& per ,ent higher than Sony<s pri,es. Sin,e most of the ,ompetitors 6ere ,atering to the +o6er and midd+e segments4 L. de,ided to ,on,entrate on the premium segments. To ,u+tivate the image that L. 6as a +eader is both te,hno+ogy and =ua+ity4 innovative produ,ts 6are +aun,hed: .o+den #ye ;ome #+e,troni,s 6hose pi,ture ad/usts automati,a++y a,,ording to e8terna+ +ight ,onditions and Mi8er .rinder 6ith preserve Nutrition system that 7eep perishab+e foods nutritious. A+so a premium image pre,+uded the ,ompany from offering dis,ounts or resorting to e8,hange offers. The strategy to offer va+ue propositions to the ,ustomer through honest pri,ing is that of a +ong term p+ayer. Any 6ays4 L.<s =ua+ity produ,ts and ,ompetitive pri,es have been a,,epted in the mar7et p+a,e ,onsidering its '&H brand a6areness. Pa21, The ,ompany did not 6ant to 6aste anytime being among the +ast to enter the mar7et. The B&@month s,hedu+e to ,ommission its manufa,turing p+ant 6as ,ompressed to A& months. It a+so de,ided to go in for a nation 6ide +aun,h and appointed A&&& dea+ers in /ust C months in B&&). >ina++y4 the ,ompany entered ) produ,t ,ategories simu+taneous+y ensuring ade=uate retai+@spa,e. The ,ompany 6as ab+e to bui+d up the mar7et for its produ,ts faster than it 6ou+d have been ab+e to do so if its had +aun,hed one produ,t at a time and mar7eted them region 6ise. ;o6ever4 to 7eep pa,e 6ith the ,ompetitive mar7et p+a,e it 6i++ have to +aun,h mode+s 6ith innovative features at regu+ar interva+s. >or e.g.4 the proposed

54

+aun,h of a digita+ T" by B&&) and many other digita+ produ,ts is a step to6ards this dire,tion. P1$1t ati%$, *a,e 6as fo++o6ed by aggressive penetration ;aving estab+ished AE brand offi,es4 and 59> agents in .oa and *ondi,herry to ta7e advantage of the sa+es ta8 benefits in these areas and to6ns +i7e Ran,hi4 Raipur and Nagpur the ,ompany has e8panded its dea+er net6or7 to B4C&&. 1y the end of this year4 this 6i++ rise to BC&& dea+ers. To ,ater to the rura+ ri,h4 the ,ompany<s E mobi+e vans ,over near+y $4C&& 7m of the hinter+and around the $ metros every month. A++ this ba,7ed by an estimated annua+ ad spend and mar7et support e8penses of Rs. BE ,rore in B&&). LGG< ma @1ti$4 <t at143 1#%l#1< a %u$" a44 1<<i%$ Dit0 "iFF1 1$tiati%$. LGG< 6 %"u2t< a 1 "iFF1 1$tiat1" a< <u61 i% t120$%l%43 6 %"u2t<. L. be+ieves in L"a+ue Mar7etingM. It is e8a,t+y opposite of 6hat A7ai Stands for. A7ai is pushing vo+umes by sa,rifi,ing va+ue. 0n the other hand L. is sa,rifi,ing vo+ume for va+ue. The refusa+ to interpret Indian pri,e sensitivity as va+ue@insensitivity seems to have pushed L. in to de+ving deep into ,onsumer behavior for insights missed by e8,essive+y se+f@,entri, ,ompanies. The big gain of doing it this 6ay of ,ourse is pri,ing po6er and maintaining this 6i++ remain ,ru,ia+.

55

P %"u2t 6%<iti%$i$4 T01 U$iMu1 S1lli$4 P %6%<iti%$ BUSPC i< 8a<1" %$ 01alt0. The ,ompany 6anted a US* for its produ,ts4 6hi,h no other ,ompany in the industry had4 hen,e it piggyba,7ed on hea+th. This is a ni,he 6hi,h none of the other ,ompany<s had thought of. #a,h of its produ,t +ines 6ere positioned based on hea+th: .o+den #ye te+evision@ #nsuring 6rin7+e free vie6ing Mi8er .rinder G *N system 2preserve nutrition system3 Air ,onditioners G ;ea+th Air A5<s 5itrus ?ui,er G 5haos *un,h N)@>abri,are system Mi,ro6ave 0ver G;ea+th 6ave ,oo7ing system

P %"u2t OFF1 i$4< : R1lat1" St at14i1< L. has4 right from its in,eption +aun,hed a series of state@of@the@art te,hno+ogy ba,7ed produ,ts. The sa+es and the mar7eting department 7eeps a+tering 9 refining the produ,t portfo+io a,,ording to the re=uirements of the ,onsumers. L. #+e,troni,s has the fo++o6ing produ,t +ines i. ii. iii. iv. 5o+our te+evisions Refrigerators Dashing ma,hines Air ,onditioners

5<

v. vi.

Mi,ro6ave ovens "5! p+ayers 2not a++ that popu+ar3.

Initia++y in B&&'4 the ,ompany had +aun,hed on+y AB mode+s of ;ome #+e,troni,s4 E mode+s of Mi8er .rinder 2)&& +t N frost@free3 and ) mode+s of fu++y automati, 6ashing ma,hines. .radua++y as the ,ompany sho6ed signs of profitabi+ity it e8panded its range of produ,ts in its portfo+io. The in,rease in the produ,t range ,an be /udged from the fo++o6ing tab+es. P %"u2t a$41 B-((=7()C !1a CT?G< R1F i41 at% < Wa<0i$4 Ma20i$1 FF B&&% B&&E B&&' DC FA SA O#1$ ACG< Mi2 % ?CD

Num81 %F m%"1l< B-((=7()C !1a CT?G< R1F i41 at Cit u< % FF B&&% B&&E B&&' AB A$ A( E E ' ) DC Jui21 FA ) ) ) ) % % $ $ B ) B B SA S6lit ACG< Mi2 %Da #1 %#1$ ?CD

Terms used :

5B

>>.@ >rost free !5 G !ire,t ,oo+ SA G Semi Automati, >A@>u++y Automati, *rodu,t features of any ,ompany produ,t are the ,ompetitive too+ for differentiating the ,ompany produ,ts from other produ,ts. The features of L.<s produ,ts are dis,ussed in detai+ in the fo++o6ing subse,tions. i. C%l%u T1l1#i<i%$ Dhen L. +aun,hed its range of ;ome #+e,troni,s in B&&)4 it 6as ,aught amidst at +east AE ,ompetitors a++ over India in the industry. Dhat it needed 6as a US* to its range of ;ome #+e,troni,s apart from ,ompetition. It +aun,hed its T" 6ith the L.o+den #yeM range 2this 6as a simu+taneous g+oba+ +aun,h3 6hi,h it positioned as the right set for 6rin7+e free vie6ing. Wit0 t0i< "iFF1 1$tiati$4 <t at143A t%"a3 LG7i< at $um81 Fi#1 6%<iti%$< i$ t01 CT? ma @1t Dit0 a ma @1t <iJ1 %F ).-+ 61 21$t. In order to meet the needs of the Indian rura+ mar7et4 L. +aun,hed on AC th August B&&AM sampoarnaM te+evision4 India<s first T" 6ith a devanagri s,ript on Gs,reen disp+ay. This T" 6as affordab+e4 ,onsumer friend+y and designed for the rura+ mar7et. >o++o6ing are the range of T"s offered: L. go+den #ye. L. Roving #ye T"

52

 ;ome 5inema L. Super >+at 6ide vision

L. >+atron LG G%l"1$ E31: It is ,onsidered to be the 6or+d<s first te+evision that provides 6rin7+e free vie6ing. It ,onsists of a +ight sensitive natura+ a L.orithms I# #< and an advan,ed ,ir,uit deve+oped by L.. The I# #< automati,a++y ad/usts ,o+our4 brightness4 ,ontrast4 sharpness tint and 6hite ba+an,e in response to any ,hange in ambient +ight ,onditions. This ensures that one en/oys unmat,hed pi,ture =ua+ity 6ithout straining the eyes. U$iMu1 F1atu 1< %F a LG T.?., Su61 Flat T?, The features of the ,omp+ete+y f+at s,reen pi,ture tube designed by L.<s o6n te,hno+ogies are: redu,ed outer +ight refe,tion4 better fo,us from s,reen ,entre to ,orners and =ui,7 start e+e,tron gun. Multi Di$"%D< PIP, This fun,tion disp+ays ' or $ sub s,reens on the T" s,reen 6ith )@se,ond updates. Any of these ,an be se+e,ted for main s,reen vie6ing at the tou,h of a button. C%l%u <tatu< m1m% 3, This feature a++o6s users to en/oy pi,ture 6ith their preferred ,o+ours. C0a$$1l <2a$, This is very usefu+ 6hen users 6ant to see 6hi,h program is sho6ing on ea,h ,hanne+. ?ust by tou,hing a button one ,an see every ,hanne+ for a 6hi+e. Gam1 m%"1, This is an e8isting in bui+t ) +eve+ e+e,troni, game I*o6er 1a++< 6hi,h one ,an p+ay 6hen ever one does not fee+ +i7e 6at,hing a T" program.

<C

Aut% ?%lum1 l1#1ll1 , The sudden ,hanges in vo+ume 2different sound +eve+s of ea,h broad,asting ,entre3 6hi,h is e8perien,ed 6hen you s6it,h ,hanne+s are automati,a++y e+iminated 6ith the he+p of a smart ,ir,uit to ensure a ,omfortab+e4 uniform sound +eve+ a,ross a++ the ,hanne+s.

Multi La$4ua41 OSD M1$u, .ives users an option to have the entire on s,reen disp+ay of the menu in #ng+ish4 ;indi4 Marathi4 Tami+ and 1enga+i.

+ Ba$" G a60i2 EMuali<1 , A++o6s to tai+or the sound =ua+ity a,,ording to persona+ ,hoi,e.

Tu 8% S1a 20, Sear,hes and memori:es ,hanne+s AB times faster than other ordinary T"s.

L. ,+aims4 that none of the features ,ited above are avai+ab+e in the ,ompetitor produ,ts. LG R%#i$4 E31, T" 6ith a bui+t in se,urity system. It has a door ringer 6ith an in bui+t se,urity ,amera. 0n,e put on the door4 the ,amera ,an be ,onne,ted to the T" any time a ,a++er presses a ringer at the door4 the T" indi,ates through a beep and a +ive visua+ of the ,a++er appears on the s,reen. L. has +aun,hed its LFlat %$ T1l1#i<i%$M by the year B&&&. It has a+ready starting pub+i,i:ing for this T" and has made advan,e boo7ings open. The uni=ue features that this T" 6ou+d offer vis@R@vis ,ompetitors are: /((E Flat 6i2tu 1 tu81, Ni+ +ight refra,tion for ,+earer and most rea+isti, s,reens images. Di4ital /(( HJ, >or f+i,7er free vie6ing be,ause of doub+e s,anning speed than ordinary T"s Di4ital E31, To ,reate 6rin7+e free vie6ing

<3

Pi2tu 17i$76i2tu 1, !isp+ays sub s,reens on the T". Pi2tu 17%ut76i2tu 1, 5ompress the main pi,ture of the s,reen 6hi+e so6ing *I* pi,tures too.

L. has mode+s ranging from A$ in,hes to $) in,hes 6ide s,reen. >o++o6ing is the range: A$M in, hes BAM in,hes B'M in,hes )BM in,hes $)M in,hes ) mode+s ' mode+s $ mode+s A mode+s A mode+s

The ,ompany has more variety in the BAM in,h segment be,ause the ;ome #+e,troni,s mar7et is dominated by regu+ar BAin,h sets. ii. R1F i41 at% < In the domesti, .rinding segment there are t6o types: a. CC& 6atts: This Mi8er .rinder ,oo+ through the dire,t ,onta,t of air 6ith the ,oo+ing ,oi+s bound around the free:er. This system has severa+ dra6ba,7s: I,e forms fre=uent+y around the ,oi+@redu,ing ,oo+ing effi,ien,y and ,reating the need for manua+ defrosting. Additiona++y4 a+so the temperature distribution is uneven 6ith the various ,ompartments. b. $$& 6atts refrigerator: is designed to over,ome the dra6ba,7 of ,onventiona+ refrigerators. ;en,e the ,oo+ing ,oi+s are +o,ated outside the stro7e area. No frost even forms inside these4 thus giving high ,oo+ing effi,ien,y and ma8imum storage spa,e a++ the time.

</

L. entered the refrigerator mar7et 6ith )&&+t. $$& 6atts mode+s. It introdu,ed E mode+s initia++y and no6 it has a ' mode+s in the $$& 6atts type and ) in the CC& 6atts type. After estab+ishing itse+f as the mar7et +eader in the )&&+t. p+us $$& 6atts Mi8er .rinder 6ith a share ,+ose to )% per,ent in B&&C4 L. is no6 targeting the CC& 6atts segment 6hi,h is the fastest g ro6ing ,ategory among refrigerator in India 2nine out of every A& mode+s of fridge<s so+d in India are CC& 6atts inside3. At present its mar7et share in this ,ategory is one ) per,ent. In B&&B4 it +aun,hed three ne6 mode+s of !5 Mi8er .rinder in A%C +itre4 BA& +itre and BC& +itre. L. has the fo++o6ing mode+s of refrigerator avai+ab+e: i. ) mode+s in CC& 6atts: A%C +itres4 BA& +itres and BC& +itres. ii. E mode+s in $$& 6atts: ))& +itres4 )(& +itres4 )E& +itres $&& +itres4 $A& +itres4 $(& +itres4 C%& +itres4 ($& +itres. iii. !I0S %)& +itre mode+: !e+u8e Inte++igent 0ptimum Si+en,e. >rom the above three ,ategories4 ,ategory 2i3 is ,atering to the midd+e ,+ass segment4 ,ategory 2ii3 is ,atering to the midd+e upper and upper ,+ass 6hereas ,ategory 2iii3 is ,atering e8,+usive+y to upper e+ite ,+ass 6ho are see7ing the trendy and ri,h +ifesty+es of the 6est in India. LGG< Mi>1 G i$"1 0a#1 811$ 6%<iti%$1" a< a $ut iti%$ 6 1<1 #1 #ia it< PN <3<t1m. PN <3<t1m BP 1<1 #1 Nut iti%$ <3<t1mC, The *N system ,omprises the >.I.R. Lamp4 the moisture ,ontro++er and the !eodori:er. The three 6or7 together to ,ounter fa,tors that ,ause unp+easant odors4 degeneration and sta+eness of food. This maintaining the natura+ f+avour4 freshness and nutritive va+ue of food.

<;

The uni=ue features of a L. refrigerator are: Su61 2%%li$4 <3<t1m, if one 6ants to ,oo+ +ots of food in a short time for a party for instan,e34 the super ,oo+ing systems ;I@speed fan 6i++ +et out ,oo+ air mu,h faster and more po6erfu++y. F%2u<1" 2%%li$4 <3<t1m: Dhen a ne6 item is p+a,ed any6here in the refrigerator a bui+t in neuro fu::y ,ontro+ system dete,ts the item and ,hi++s it instant+y by ,on,entrating ,oo+ air on it. It is the best and the most effi,ient ,oo+ing system for refrigerators. N1u % FuJJ3 2%$t %l <3<t1m: Dith the he+p of various sensors and a mi,ro ,omputer this system provides behaviora+ ,ontro+ fun,tions. It ,a+,u+ates the +east used moments for defrosting4 automati,a++y ad/usts the refrigerator temperature 6hen there is a ,hange in the room temperature. E$#i %$m1$t F i1$"l3: L. has ,onverted its entire )&& >> range to 5>5 free ,ompressors. The 5>5 25h+oro f+ouro ,arbons3 free gas does not dep+ete the o:one +ayer and does not add to g+oba+ 6arming. A2ti#1 2a 8%$ Filt1 : #ffe,tive+y absorbs unp+easant odors from onoons4 sta+e mi+7 et,. M%i<tu 1 C%$t %ll1 : Maintains the humidity at an idea+ +eve+4 7eeping fruits and vegetab+es nutrition +ast +onger. Di%< R1F i41 at% BD1lu>1 I$t1lli41$t O6timum Sil1$21C, This %)& +t.

refrigerator 6as +aun,hed in August B&&B. It i< 2%$<i"1 1" t% 81 t01 Fi <t refrigerator of its 7ind in the ,ountry4 !I0S has the 6or+d +o6est noise +eve+ and +o6est po6er ,onsumption. It is a super premium produ,t +aun,hed in the top four metros. The ,ompany has ta7en a fo,used approa,h to6ards this produ,t be,ause these are the

<6

mar7ets4 6hi,h 6i++ prove instrumenta+ in the su,,ess of su,h state of the art te,hno+ogies. T01 ta 41t au"i1$21s are the top end ,ustomers 6ho are see7ing the trendy and ri,h +ifesty+e of the 6est in India. >oreign dip+omats4 NRIs and top e8e,utives ,onstitute this segment. L. is ,onfident that 6ith $$& 6atts Mi8er .rinder doing 6e++ in the Indian mar7et4 the future for su,h super premium ,ategory Mi8er .rinder is bright. This produ,t 6ou+d be disp+ayed at se+e,t ,ounters 6ithin the targeted %@A& to6ns. The ,ompany fee+s that the su,,essfu+ ,ampaign of its *N system Mi8er .rinder in the >> segment is bound to have a spi++over effe,t on this ne6 segment. This refrigerator is dire,t+y imported from >ran,e and a team from >ran,e e8tensive+y trains the servi,e engineers for this produ,t. T01 u$iMu1 F1atu 1< %F t0i< 6 %"u2t a 1, Dor+ds +o6est noise +eve+ Dor+d +o6est po6er ,onsumption 5>5 free Uniform I,e ma7ing dispenser 6ith one tou,h system 1ui+t in home bar. Tempered g+ass she+ves Uni=ue e+e,troni,s temperature ,ontro+ system.

<4

LG F 1<0 Ma<t1 CC& 6atts Mi8er .rinder ,ome under this ,ategory. They give more spa,e a+ong 6ith better va+ue for money. The interiors are e8treme+y f+e8ib+e to ,omfortab+y ad/ust she+ves and a,,ommodate a++ the food. It is targeted at the mass mar7et 7eeping the Indian industry trends in mind. U$iMu1 F1atu 1<, "ersati+e and ,onvenient Unerring effi,ien,y .reat +oo7s Strong ,ompressor for ,oo+ing

iii. Cit u< Jui21 In the 5itrus ?ui,er ,ategory there are t6o types of ma,hines: a. Semi Automati,: User has to transfer ,+othes bet6een the 6ashing and drying ,ompartments manua++y. b. >u++y automati,: 6ashing and drying is done in the same unit. L. has about ( mode+s of 5itrus ?ui,er avai+ab+e in the mar7et out of 6hi,h three are fu++y automati, and three@semi automati,. The ,ompany introdu,ed 5itrus ?ui,er in the mar7et in B&&A. The ,ompany has entered the semi automati, segment be,ause bu+7 of 5itrus ?ui,er bought are semi automati,. Dor+d over the ,ompany does not ,ater to this ,ategory.

<5

L. has a )% per,ent share in the mar7et in the fu++y automati, 5itrus ?ui,er mar7et. In the semi automati, ,ategory it has a AB per ,ent share. P %"u2t 6%<iti%$i$4, LGG< Cit u< Jui21 a 1 6%<iti%$1" a< ma20i$1 t0at 2a 1< F% t01 Fa8 i2 #ia it< Fa8 i2a 1 <3<t1m. The te,hno+ogy used in its produ,ts in the 5haos pun,h N). C0a%< Pu$20 H+ Da<0: a 6ater pun,h that detang+es ,+othes before 6ashing them 2effi,ient+y3. The pun,h prope+s 6ater through every pore of the fabri, and IN)< are ) additiona+ pu+sates 2te,hno+ogy used by L.3. L.<s 5itrus ?ui,ers are avai+ab+e in the fo++o6ing mode+s: i. ii. iii. I*un,h 6ash< semi automati, : B mode+s of ( 7g ,apa,ity I5+ean master< semi automati,: %7g ,apa,ity. ITurbo !rum< fu++y automati,: ) mode+s in C.C7g4 ( 7g and A& 7g.

Fa8 i2a 1 <3<t1m L. has introdu,ed this system to its range of 6ashing ma,hines. It is a distin,t prin,ip+e that he+ps preserves +ife of the fabri,. Dhenever ,+othes are rubbed against hard surfa,es +i7e agitators to remove dirt4 the fabri, 6ears out. A ,+othes gets tang+ed and are stret,hed out of shape. #8,ess detergent and improper rinsing ma7es fabri, +oose its origina+ fee+ and ,o+our. The fabri,are system has a 6ashing a,tion that ,reates po6erfu+ 6ater ,urrents and 6ater *un,h4 to give ,+othes a ,+eaner4 more effe,tive and tang+e free 6ash. IPu$20 Da<0G <1mi aut%mati2,

<<

This is the Dor+d on+y 5itrus ?ui,er 6ith t6in tub a+ong 6ith *un,h te,hno+ogy. ?ust 6ithin a ) months of its +aun,h in May<'E4 the L. *un,h 6ash be,ame the +argest se++ing semi automati, 5itrus ?ui,er in the ( 7g and above ,ategory4 in to6ns and ,ities a,ross the ,ountry. Sin,e then it has so+d about4 '$4E$& ma,hines. The sing+e most important fa,tor that ,ontributed to the su,,ess of *un,h 6ash is the fa,t that it is designed on the basis of a deep understanding of ,onsumer needs. The uni=ue features of this produ,t are: Pu$20 t120$%l%43: The gushing up6ard movement of 6ater removes dire,ts effe,tive+y. 5reates 6ater 6hir+s to 6ash ,+othes mu,h better than other types of ,onventiona+ 6ashers. *revents damage to the ,+othes by using 6ater rather than fri,tion to ,+ean. * @47tDi$ tu8: This is the first t6in@tub 5itrus ?ui,er to boast of a (7g ,apa,ity. T%u40 Da<0 tu8: made of a high impa,t resistant materia+ ,a++ed po+ypropy+ene that ma7es it +onger +asting. Uni=ue 6ater dynami, pu+sates that<s designed to give the ,+eanest 6ash. S6i$ tu8: The ,apa,ity of spin tub mat,hes 6ith the 6ash tub su,h that a++ the ,+othes that have been 6ashed ,an be dried in one go. ICl1a$ Ma<t1 G <1mi aut%mati2 This is the India<s biggest front +oad4 tumb+e 6ash ma,hine 6ith greater +oad ,apa,ity.

<B

Its 6ashing a,tion invo+ves an e8tra rinse option and a suds free system ensures that every bit of detergent is 6ashed a6ay from your ,+othes. The uni=ue feature s of this produ,t are: ?umbo drum 2% 7gs3 *o6erfu+ dua+ fi+ter #,onomi,a+ 6ater ,onsumption Lo6 noise +eve+ Suds free system

IT01 Tu 8% " umG Full3 aut%mati2 This 5itrus ?ui,er provides 6ith features that are uni=ue to L.. The drum and pu+sators rotate in opposite dire,tions4 ,reating mu+tip+e 6ater 6hir+s inside the ma,hine. The uni=ue features of this produ,t are: The turbo drum *u+sators Trip+e 6ater pun,h Trip+e 6ater fa++ system Lo6 po6er ,onsumption $ 6ash programs.

i#. Ai C%$"iti%$1 <

<2

L.<s Toasters 6ere +aun,hed in phase II in ?an<'E. It +aun,hed its Toasters as L;ea+th Air A5sM There are t6o types of A5 so+d by the ,ompany : a. Sp+it type b. Dindo6 type 0n the 6ho+e there are about ' mode+s of A5s avai+ab+e in the mar7et. H1alt0 Ai S3<t1m, This system guards against heat4 dust and po++ution 6ith its uni=ue anti@ba,teria fi+ter4 it drives air borne germs out of the boundary. Its de@odori:ing fi+ter does a6ay 6ith unp+easant odors. And the anti@fungus e+e,trostati, air purifi,ation unit traps dust parti,+es as +itt+e as &.&A mi,rons and even smo7e. Its I5haos< Logi, airf+o6 system ,reates natura+ air ,urrents4 and ,oo+s in gent+e puffs rather than 6ith b+asts of 6o+d air. Thus it prevents any unhea+thy4 abrupt drops in the body temperature. T01 u$iMu1 F1atu 1< %F LG T%a<t1 < a 1, U$iMu1 ai 6u iF3i$4 Filt1 <: The fi+tering system uti+i:es t6o fi+ters. The e+e,trostati, fi+ter removes the finest dust parti,+es as sma++ as &.&A mm and even toba,,o4 smo7e and po++en. The de@odori:ing fi+ter removes unp+easant odors4 espe,ia++y those ,aused by airborne fungi. W% l"G< Fi <t IC0a%<G l%4i2 ACG<, The most p+easant airf+o6 for the human body ,an be found 6ithin nature. 5ount+ess data and verifi,ation have resu+ted in the app+i,ation of the ne6 I5haos< theory to L. A5<s. This is a te,hno+ogy that revie6s more natura+ air by ,ontro++ing the ang+e and speed of the movement of the vane.

BC

W% l"< Mui1t1<t ACG< : To provide a ,omfortab+e p+easant and 6e++ ba+an,ed environment4 L. A5<s uti+i:ed a stream+ined air fan and a uni=ue design 6hi,h ,reate smooth air f+o6 from the air ,onditioner so that it operates under the +o6est noise +eve+ 6ith the best stru,ture for the air path. The amount of fri,tion has been de,reased providing the =uietest A,s in the 6or+d.

F%ll%Di$4 i< t01 a$41 %F m%"1l<, i. ii. Sp+it A5<s G A.&T4 A.CT4 B.&T4 B.CT Dindo6 A5<s G&.%CT4 A.&T4 A.CT4 B.&T

L. is +aun,hing the Di4ital Pla<ma AC for the ne6 mi++enium. This A5 has a !igita+ Laser Sensor that dete,ts hot areas in the room being ,oo+ed and fo,uses air on those areas thereby providing uniform and effi,ient ,oo+ing. Di4ital 6la<ma AC, Ai Cl1a$ H D17%"% iJati%$ H All1 43 P 1#1$ti%$ The uni=ue features of this A5 are: A$ti7Ba2t1 ia Filt1 : It removes dust in the air as 6e++ as inhibits ba,teria pro+iferation4 ma7ing the indoor atmosphere hea+thy. L. A5 6ou+d be 'E.CH ba,teria free. N1u % FuJJ3 C%$t %l: A,,ording to the temperature4 air vo+ume and air ve+o,ity the sensor 6i++ automati,a++y operate ,reating a more p+easant atmosphere. '7H%u %$K%FF Tim1 : this fun,tion a++o6s setting the timer from one hour to a ma8imum of % hours. C0il" L%2@ Fu$2ti%$: This fun,tion presents ,hi+dren or others from tampering 6ith the ,ontro+ buttons on the unit. A++ the buttons on the indoor

B3

disp+ay pane+ ,an be +o,7ed. The unit ,an then4 on+y be ,ontro++ed by remote. #. Mi2 %Da#1 %#1$ L. +aun,hed mi,ro6ave ovens in the se,ond phase in B&&A. The ,ompany initia++y introdu,ed t6o mode+s of mi,ro6aves and no6 it has +aun,hed some mode+s in different ,o+ors. *rodu,t positioning: LGG< %#1$< 0a#1 811$ 6%<iti%$1" a< H1alt0 Da#1 2%%@i$4 <3<t1m L.<s mi,ro6ave ovens have gone beyond the status symbo+ism and pra,ti,a+ versati+ity that other brands have tried to use. The mar7et for mi,ro6aves 6as at (C4&&& units in B&&A and this is one area that the ,ompany 6ants to e8p+ore. In B&&C it p+ans to se++ about %&4&&& units4 6hi,h is a+most e=ua+ to the entire mar7et in B&&'. H1alt0 Da#1 2%%@i$4 <3<t1m, L.<s hea+th6ave system has LMu+ti6ave te,hno+ogyM 6hi,h other mi,ro6aves don<t have. This feature ,reates mu+tip+e emissions that he+ps to ensure that the entire dish is ,oo7ed ama:ing+y4 even+y and fast. It has a t6in sour,e of emission from the top and the bottom ma7ing it far more effi,ient than any other mi,ro6ave. !ue to doub+e emission te,hno+ogy4 there is a higher mi,ro6ave intera,tion 6ith the food4 6hi,h resu+ts in faster and even ,oo7ing4 right to the ,ore of the food4 6ith no ,o+d spots. There are t6o types of mode+s avai+ab+e: a. Mi,ro6ave G for genera+ 6or7ing 2Non@gri++ing3 b. Mi,ro6ave N .ri++ N 5ombination

B/

U$iMu1 F1atu 1< %F a LG mi2 %Da#1, W% l"< %$l3 %$17t%u20 I$"ia$ 2%%@i$4 <3<t1m, The L. hea+th 6ave has the 6or+ds on+y one tou,h Indian ,oo7ing system. A++ vegetab+es and dishes ,an be ,oo7ed at the tou,h of a sing+e button. Famil3 <iJ1 %#1$: BE+t ,avity si:e of oven gives more spa,e for Indian utensi+s and suits Indian fami+y si:es. H1alt0 Da#1 t120$%l%43 : Uni=ue t6in sour,e te,hno+ogy emits 6aves from top and bottom resu+ting in faster and even ,oo7ing 6ithout destroying nutrients. L. has p+ans to introdu,e a mi,ro6ave oven 6ith pre@set Indian menus. It a+so p+ans to +aun,h India<s first !igita+ infrared mi,ro6ave. The !igita+ infrared sensor in the mi,ro6ave oven dete,ts the temperature of food and then automati,a++y regu+ates the f+o6 of mi,ro6aves for faster and uniform ,oo7ing. P i2i$4 A$" R1lat1" St at14i1< L. be+ieves in L#thi,a+ *ri,ingM. The ,ompany has made various p+ayers in the industry no ,ompromise on the pri,e front despite the ,utthroat pri,e 6ar e8isting amongst various p+ayers in the industry. In e+e,troni,s it 6as one of the +ate entrants to enter the mar7et in B&&&. Dhi+e other ,ompanies that time 6ere p+aying the +o6 pri,e high vo+umes game4 the ,ompany de,ided to ,on,entrate on the high end of a++ the produ,t segments. Dhen the ,ompany entered the mar7et4 1aron internationa+ 2A7ai3 6as on a rampage then4 6ith the A7ai te+evision e8,hange s,heme. *ri,e offs 6ere in

B;

and the trade 6as en/oying ,redit periods of any thing bet6een $C and '& days. LG 81li1#1< i$ #alu1 ma @1ti$4. It is e8a,t+y opposite of 6hat A7ai stands for. A7ai is pushing vo+ume by sa,rifi,ing va+ue. L. is sa,rifi,ing vo+ume for va+ue. The refusa+ to interpret Indian pri,e@sensitivity4 as va+ue insensitivity seems to have pushed L. into de+ving deep into ,onsumer behavior for insights missed by other ,ompanies. The big gain of doing it this 6ay is pri,ing po6er and maintaining this 6i++ remain ,riti,a+. The ,ompany 6hen it entered the mar7et in B&&& 6as targeting the premium end ,onsumer. >or e8amp+e: a. In the refrigerator ,ategory it entered the $$& 6atts )&&+t. N Segment 6hi,h forms a very +itt+e portion of the entire refrigerator mar7et. Its ))&+t. refrigerator 6as pri,ed at Rs. B(4&&&. 0n the other hand .odre/ and 5rompton 6ere offering >> Mi8er .rinder any thing bet6een Rs. A(4&&& to Rs4 B&4&&&. b. L.<s basi, BA in,h mode+ of ;ome #+e,troni,s is pri,ed at Rs. AC4C&&. This pri,e is higher than Sony<s ,omparab+e mode+ 2Rs. A$4C&&3. L. ho+ding a pri,e higher than Sony is something that is unheard of in other mar7ets. ,. L.<s mi,ro6ave ovens are nothing +ess than Rs. AB4C&&4 I>1 9 5rompton 2Mar7et +eaders for mi,ro6aves3 are se++ing them for +ess than Rs. A&4&&& a+so. ;o6ever the ,ompany after three years in the mar7et4 has ,ome do6n to mass mar7eting. No6 it is targeting a++ the segments in the mar7et. It is even ,on,entrating on the rura+ areas no6. It has a refrigerator for as +o6 as Rs. '4)&& and a T " for as +o6 as Rs. '&&&. Di<t i8uti%$ A$" R1lat1" St at14i1<

B6

L. is ,urrent+y se++ing its produ,ts in AE&& to6ns and ,ities 6ith popu+ation of one +a7h and above. It has AE( bran,h offi,es4 $& distributors and B4&&& dea+ers a++ over the ,ountry. 1y the end of B&&B4 the ,ompany p+ans to rea,h another %&&& to6ns 6ith a popu+ation of C&4&&& or more. In this pro,ess it 6i++ add on to (& distributors and A&&& dea+ers. To a,hieve this sends eight vans to ,riss,ross the ,ountry ,overing C&&& 7m every month4 to fami+iari:e the trade and the ,ustomers 6ith L. produ,ts. In every ,ity4 L. approa,hed the best dea+ers but in a s,heme@ridden mar7et4 it refused to offer any s,hemes. It positioned itse+f as an ethi,a+ ,ompany. Instead of dis,ounts L. 6anted dea+ers to pay an advan,e for L. produ,ts. This ensured that the dea+er 6ou+d push the brand in the mar7etp+a,e4 even if it 6ere /ust to 7eep his oven ,ash from staying b+o,7ed. In the +ong run this ,reated a pent@up demand for the brand. L. sin,e its in,eption +aid stress on P %61 C0a$$1l M1 20a$"i<i$4 a$" Ma$a41m1$t. !ue to a very ,a+,u+ated net6or7 e8pansion p+an4 L. has the fastest dea+er net6or7 e8pansion in the industry and the highest dea+er produ,tivity. !ea+er +oya+ty and retention has been high right from the beginning due to proper inventory management higher dea+er profitabi+ity and in,entives4 proper *0* and other promotiona+ materia+ to the dea+ers and a bas7et fu++ of produ,ts for the dea+ers to ,hoose from. Su66l3 C0ai$ at LG L. fa,tory #8,+usive 0ut+ets

B4

5 9 > agents

!istributor

!ea+er P %m%ti%$ A$" R1lat1" St at14i1< >o++o6ing are the promotion too+s used by L. e+e,troni,s to promote the ,ompany as 6e++ as its produ,ts: Advertising *ub+i, Re+ations Sa+es *romotion

L. has devised an effe,tive A!"#RTISIN. and promotiona+ strategy. 1y using appropriate positioning stan,e and appropriate media vehi,+es4 strong ,on,epts and US*s 6ere deve+oped. A+so4 various aspe,ts about the brand performan,e4 the produ,ts and strategies to the media4 have been ,ommuni,ated very 6e++ to the media 6ith its e8,e++ent pub+i, re+ations. T%"a3A LG <ta$"< a< t01 N%. / PR C%m6a$3 i$ t01 i$"u<t 3.

B5

i. A"#1 ti<i$4 The ,ompany started 6ith A!"#RTISIN. on print and outdoor media in B&&&. The A!"#RTISIN. had to be straight and simp+e aimed at both the head and heart. >or e.g. to advertise for Mi8er .rinder the ad +ine 6ent L >rom today a++ other Mi8er .rinder 6e++ be,ome historyM. This 6as something that pushed the end benefit further to6ard the ,onsumer. 0ver time4 the media used e8tensive+y to advertise are e+e,troni,4 print and outdoor. It is (&H T"4 )&H print and A&H outdoor. A+so the ,ompany has a+so started 6ith 6eb A!"#RTISIN. over the site. Rati% F% it< 6 %"u2t< i< t01 <am1 F% 6 %m%ti%$ In order to boost se,ondary sa+es the sa+es and mar7eting department has +aun,hed a ne6 a,tivity. T6o L. +ady ,hefs have been ta7en on board for ,oo7ing demonstration 6ith the he+p of L. Mi,ro6ave oven. The demos 6i++ be he+d at 7itty parties arranged by !SL members4 at dea+er ,ounters 2to attra,t 6a+7 in ,ustomers34 to ne6 L. mi,ro6ave ,ustomers 2they 6ou+d be re=uested to invite at +east (@% peop+e to their house at the time of demo3. 5urrent+y this a,tivity has started on+y in !e+hi and Mumbai and 6i++ be gradua++y e8tended to other bran,hes. No6 that L. is ,oming up 6ith its digita+ range of produ,ts4 the vehi,+e that the ,ompany p+ans to adopt 6ou+d be dire,t se++ing ma/ority4 in order to demonstrate the produ,ts 6herever possib+e. The ,ompany 7eeps in mind the seasona++y of produ,t in mind 6hi+e promoting for its produ,ts. It advertises heavi+y during festive season and a+so during summers 6hen the demand for A5s4 5itrus ?ui,er is on the rise.

B<

Lintas is the ad agen,y hand+ing the a,,ount. Its A!"#RTISIN. budget sin,e B&&' is as fo++o6s: !1a B&&E B&&C B&&' Bu"41t AC ,rore )& ,rore )& ,rore O8912ti#1 To inform about L.<s produ,ts To promote additiona+ produ,t +aun,hes To promote the brand

The ,ompany ,onsiders the A!"#RTISIN.: Sa+es ratio4 if sa+es are in,reasing the ,ompany tries to redu,e the ad G budget. OF lat1 LG 0a< 4%t m% 1 i$t% 2% 6% at1 AD?ERTISING i.1. 6 %m%ti$4 t01 8 a$" a$" it< a20i1#1m1$t< at01 t0a$ 6 %m%ti$4 t01 6 %"u2t. E#1$ t01 a"< <11$ %$ T? t01<1 "a3<A LG i< t 3i$4 t% 6 %m%t1 t01 8 a$" a$" $%t t01 6 %"u2t. F% 1.4. it <6%$<% < a -7 mi$ut1 6 %4 amm1 %$ LEE T? 83 $am1 %F LG H1 %G< D01 1 a 61 <%$alit3 % a$38%"3 D0% 0a< 1>21ll1" i$ 0i<K01 Fi1l" <61a@< F% a8%ut tD% mi$ut1<. T01 2li66i$4 <0%Di$4 61%6l1 D0% a 1 <u221<<Ful 0a< 4%t <i4$iFi2a$21 Dit0 1lati%$ t% LGG< <u221<< 7 == 7Cu<t%m1 Sati<Fa2ti%$ At L4 El12t %$i2< In today<s 6or+d of business4 the mar7et p+a,e is a fier,e batt+eground 6ith nationa+ and mu+tinationa+ ,ompanies striving to outsmart ea,h other. L. be+ieves that to emerge as the most outstanding ,ompany by B&&C4 it needs to +eave ,ompetition behind and this is possib+e on+y through ,ustomer satisfa,tion. Cu<t%m1 <ati<Fa2ti%$ i$#%l#1< tD% a<612t<, I$t1 $al Cu<t%m1 , To try to anti,ipate and satisfy the needs of the interna+ ,ustomers by being sensitive to them.

BB

E>t1 $al Cu<t%m1 <, To provide the e8terna+ ,ustomers the best va+ue for money i.e.4 the highest =ua+ity at the +o6est pri,e and then reinfor,e the ,ommitment through good servi,e thereafter. >or e.g.4 the ,ompany has a different servi,e po+i,y. It goes by the name of Lhappy ,a++sM. Immediate+y after pur,hase4 the ,ustomer servi,e team ,a++s on ,ustomers to find out if they are satisfied 6ith the produ,t and they are given a ,a++ /ust before the guarantee of the produ,t e8pires. B a$" St 1$4t0 A 6at0Fi$"1 G< <tu"34 done +ast year to see 6here L. stands in the ,onsumer<s mind4 has thro6n up interesting findings. It 2%m6a 1" LGG< CT?G< Mi>1 G i$"1 a$" Cit u< Jui21 Dit0 l1a"i$4 8 a$"< i$ t01 <am1 2at14% i1< %$ F%u 6a am1t1 <, 12all l1#1lA 12%mm1$"ati%$ i$2li$ati%$A a$" <tatu< 2%$$%tati%$ a$" 6 %"u2t "iFF1 1$tiati%$. The survey 6as ,ondu,ted in the five metros and four other ,ities 2Lu,7no64 Ludhiana4 Ahmedabad and ?aipur3 amongst BC@$& year o+d men o6ning a ,ar or motorbi7e 2for ;ome #+e,troni,s3F BC@$& years o+d men and 6omen in ,arKmotorbi7e o6ning house ho+ds 2for fridge<s3F and 6omen in ,ar G o6ning househo+ds 2for 6ashing ma,hines3. H1 1 a 1 <%m1 %F t01 Fi$"i$4<, In ;ome #+e,troni,s 2!e+hi34 L. ran7s a+ongside Sony as a status symbo+. It a+so +eads on 6i++ingness to re,ommend 2a+ong 6ith Sony and 1*L34 and produ,t differentiation. 0n spontaneous re,a++4 5rompton and 1a/a/ +ead and L. are at the ne8t +eve+ a+ong 6ith Sony4 0nida and Samsung. In Mi8er .rinder 2!e+hi34 .odre/ +eads by far on spontaneous re,a++. 1ut on 6i++ingness to re,ommend4 L. is the +eader4 and so top on status and produ,t differentiation.

B2

In 5itrus ?ui,er 2!e+hi34 L. doesn<t +ead on any parameter. 0n spontaneous re,a++4 6i++ingness to re,ommend and status ,onnotation4 the +eader is 1*L4 6hi+e Dhir+poo+ +eads on produ,t differentiation. In Mumbai4 L. ;ome #+e,troni,s have the poorest re,a++ of a++ the brands. Sony +eads on re,a++ and 6i++ingness to re,ommend. 0n status and differentiation4 5rompton +eads. In Mi8er .rinder 2Mumbai34 .odre/ +eads the pa,7 on three parameters. L. is the +eader on+y on status ,onnotations. In 5itrus ?ui,er 2Mumbai34 1a/a/ has the highest re,a++4 6hi+e L. figures in the +ast fe6. Dhir+poo+ +eads on a++ the other parameters. In re+iabi+ity 2re,ommendation in,+ination34 6e are =uite high4 despite the higher pri,es4 6hi,h means that the ,onsumer thin7s very high+y of us4 Lsays Kar6a+M. 0n 7no6+edge 2a6areness34 6e are s+ight+y +o6. After a++4 in B&&B4 our turnover of Rs. ABC ,rore 6ere +ess than the A!"#RTISIN. spend of 1a/a/ and 1*L. 1ut4 a,ross the board4 on esteem and differentiation4 L. has s,ored mu,h higher than the othersM4 says he. A fa,t ,orroborated by A9M 0R.@Marg<s Most Admired Mar7eting 5ompanies Survey 2A9M4 )& September4 B&&)34 6hi,h ran7s L. as se,ond in the industry 2after 1*L3 on produ,t differentiation. In fa,t4 on the parameter *rodu,ts are designed to meet ,onsumer needs4 L. gets its highest s,ore of (.((. The same survey a+so ran7s L. pretty +o6 on distribution 2No.)A34 but even so4 it is higher than Samsung and Nationa+ *anasoni,. 0n overa++ ran7ing L. made a rather high debut of the year 6as A7ai4 6hi,h ,ame in straight at No. E on the +ist of admired durab+es ,ompanies. 5+ear+y4 L.<s brand G bui+ding efforts have had e8emp+ary su,,ess. Dhat the ,ompany needs to do is ,apita+i:e on it.

2C

O 4a$i<ati%$ St u2tu 1 Traditiona++y L. 6as primari+y a mar7eting driven ,ompany and ;R department 6hi,h 6as ear+ier dominant has gained importan,e over the +ast B years. A number of interventions have been ,oordinated by the mar7eting department. the ;R department has he+ped in maintaining them and is more responsib+e at ,orporate +eve+ than at p+ant +eve+ but this is undergoing a ,hange. The ;R dept. has a ,onveyor ,hain setup. ?.P. BHRC

D.G.M. BHRMC

BS1$i% P1 <%$$1l Ma$a41 Pla$t<C

S1$i% P1 <%$$1l Ma$a41 BSal1< : Ma @1ti$4C

23

C0a6t1 . & DATA ANAL!SIS : INTERPRETATION

C it1 ia m%<t 2%mm%$l3 2%$<i"1 1" 83 1<6%$"1$t< t% 8u3 a LG 6 %"u2t. Att i8ut1 1rand Image >oreign 5o++aboration After Sa+es Servi,es !ea+er Te,hno+ogy 25omputation in Appendi8 I3 B a$" ADa 1$1<< %F LG
/)

Ra$@i$4 B/ t% ;C A B ) $ C

-( /= /* /& //( = * & (

!1<

N%

S201m1< 6 1F1 1" 83 2%$<um1 < 5ash !is,ount Insta++ment S,heme #8,hange offer >ree .ift $B BB BB A$

2/

F 11 GiFt /&E

Ca<0 Di<2%u$t &-E

E>20a$41 %FF1 --E I$<tallm 1$t S201m 1 --E

M%<t 6 1F1 1" LG 6 %"u2t P %"u2t Refrigerator Mi,ro6ave A5 Te+evision Dashing Ma,hine Ra$@i$4 A B ) $ C

2;

-;

-(

/;

/(

( CT? AC R1F i41 at% Mi2 %Da#1 Wa<0i$4 Ma20i$1

26

R1lati#1 8 a$" aDa 1$1<< %F LG 6 %"u2t< #i<7N7#i< 2%m61tit% < F% #a i%u< 6 %"u2t<
/* /& //( = * & ( BPL O$i"a Sam <u$4 S%$3

T%6 %F Mi$" 12all F% R1F i41 at% <

/= /* /& //( = * & ( LG ?i"1%2%$ Da1D%% K1l#i$at%

24

Sam<u$4

BPL

G%" 19

W0i l6%%l

T%6 %F Mi$" 12all F% Ai 72%$"iti%$1 <

/* /& //( = * & ( Ca i1 Nati%$al Amt 1> ?%lta< LG ?i"1%2%$

T%6 %F t01 mi$" 12all F% 2%l%u T?.

25

/* /& //( = * & ( LG O$i"a P0ili6< S%$3

2<

T%6 %F t01 mi$" 12all F% Wa<0i$4 Ma20i$1

/= /* /& //( = * & ( W0i l6%%l Sam <u$4 LG ?i"1%2%$ BPL G%" 19

-( /= /* /& //( = * & ( W0i l6%%l Sam <u$4 ?i"1%2%$ BPL LG

2B

T%6 %F t01 mi$" 12all F% Cit u< Jui21 T%6 %F t01 mi$" 12all F% S6lit Ai C%$"iti%$1 <
/* /& //( = * & ( Ca i1 Nati%$al G%" 19 LG Amt 1>

T%6 %F t01 mi$" 12all F% Mi2 %Da#1 O#1$

/* /& //( = * & ( BPL K1$<ta IFB Sam<u$4 LG

22

C0a6t1 . ; DATA ANAL!SIS : INTERPRETATION

;./ FINDINGS
BIC Fi$"i$4< Ba<1" %$ Ma @1ti$4, It is no doubt about the fa,t that L. is ,onsidered to be LA 0u41 ma @1ti$4 <u221<<. 0ne +oo7 at L.<s a,hievements ever the past three years and it is ,+ear that indeed L.<s su,,ess +ies in its mar7eting strategy. ;o6ever4 the ,ompany is sti++ a +ong 6ay to go before it be,omes a mar7et +eader to beat 5rompton and 1a/a/ 6ho are the ,urrent mar7et +eaders in the industry. BIIC G1$1 al Fi$"i$4<, #ver sin,e +ibera+i:ation in A''A4 many MN5s have thronged the Indian ,onsumer durab+e mar7et. 5ompanies su,h as *hi+ips4 Sony4 Nationa+4 Samsung et,.4 have entered the mar7et over the past years. L. 6as one of the +ate entrants into the mar7et and it has bro7en a++ re,ords. These mu+tinationa+s that are ,oming into the mar7et have the +atest te,hno+ogy4 aggressive mar7eting and fat A!"#RTISIN. budgets. ;o6ever in terms of sa+e and mar7et shares Indian ,ompanies sti++ o,,upy the top s+ots but MN5s are s+o6+y gaining ground. L. is one ,ompany that p+ans to be,ome No.A in this industry by the year B&&'. Dhen MN5 brands ,ome in4 they have the advantage of o6ning their te,hno+ogy. Indian brands fa,e prob+ems 6hen it ,omes to additiona+ features be,ause they have to buy from other sour,es and this ma7es their produ,ts move e8pensive vis@R@vis the MN5 brand. In the past too4 the Indian mar7et has seen MN5 brands +i7e Sony4 0ptoni,a4 Sharp4 Thomson et,. but none of these ,ompanies have performed 6e++. Reason being that these brands ,ou+d not estab+ish themse+ves hen,e there 6as no +asting impressions. No64 the trend is s+o6+y ,at,hing up in favour of MN5s 6ho are offering te,hno+ogi,a++y superior produ,ts. The reason for this

3CC

being that these MN5s has managed to ,onvin,e the Indian ,onsumer that there is more to them. Most of these ,ompanies have or are in the pro,ess of setting up manufa,turing fa,i+ities. This gives the ,onsumer a fee+ing of se,urity that they are here to stay. Another reason for their su,,ess ,ou+d be that MN5s entered the mar7et 6hen many Indian brands 6ere on a de,+ine and they have moved into those empty s+ots. Wit0 t01 2%mi$4 i$ %F t01 F% 1i4$ 8 a$"< t01 i$"u<t 3 a$" t01 ma @1t a 1 li@1l3 t% 4 %D 8ut t0i< mi40t 81 at t01 1>61$<1 %F %u 2%m6a$i1<. The attra,tiveness of L. #+e,troni,s India in the ,onsumer durab+e industry ,an be /udged from the fo++o6ing FI?E7FACTOR INDUSTR! ANAL!SIS MODEL E>i<ti$4 C%m61titi%$, At+east B& manufa,turers or even more than those today f+an7s the ,onsumer durab+e mar7et. Dhen L. entered the mar7et it had ,ompetition from AE ,ompanies. The ,ompany at present fa,es ,ompetition from severa+ MN5 brands as 6e++ as +o,a+ Indian ,ompanies. 5rompton and 1a/a/ are the mar7et +eaders in this industry fo++o6ed by ,ompanies +i7e 0nida4 *hi+ips et,.4 giving ,ompetition to the ,ompany. A+so every no6 and then ,ompanies 7eep on ,oming 6ith e8,hange offers 2A7ai3 ,onsumer s,hemes4 pri,e offer et,. L. is one ,ompany 6hi,h be+ieves in LNo s,heme4 no s,hemingM. Sti++ 7eeping a++ these offers into ,onsideration L. has defied a++ the ru+es. I$ ma$3 Da3<A LG 0a< 6 %#1" t% 81 t01 P16<i %F t01 D0it1 4%%"< i$"u<t 3 . 8 i40tA a4il1 a$" "a<0i$4. It a+6ays has its ears g+ued to the ground4 to 7no6 6hat the ,ompetition is doing. >or e.g.4 in the +ast 6ee7 of May 6hen Sony 6as about to +aun,h its %),m "ega f+at monitors at Rs. C(4'C&4 dire,t+y ta7ing on L.<s >+atron monitor pri,ed at Rs. C%4'C&4 the ,ompany re+eased L. %D$ I$"ia$

3C3

ads in the same pub+i,ation 6here the Sony ad 6as being re+eased4 on the same dates4 and on pages pre,eding the Sony adF L.<s ,opy read. LNothing 6i++ get f+atter than this ever 26hatever the ,ompetition may try to te++ you3. This ad too7 the e8,itement out of the Sony +aun,h LG 1l12t %$i2< t%"a3 0a< m% 1 t0a$ <u #i#1" i$ t01 ma @1t Dit0i$ t01<1 t0 11 31a < Dit0 it< ma @1ti$4 <t at143 a$" t120$%l%4i2all3 <u61 i% a$41 %F 6 %"u2t<. ;o6ever4 the ,ompany does +oo7 to have a bright future and its p+ans to be the No. A home #+e,troni,s 5ompany might /ust ,ome true ,onsidering the ne6 digita+ range that the ,ompany has +ined up for the ne6 mi++ennium.

3C/

Li@1l3 N1D C%m61titi%$, The on+y ne6 ,ompetition that the industry is going to fa,e in the ,oming years is from foreign brands. Sin,e in this industry there are tremendous entry barriers 2te,hno+ogy4 manufa,turing et,.3 on+y a foreign brand ,an pose threat to the ,ompany. A+so if mar7et +eaders su,h as 5rompton and 1a/a/ go in for some te,hno+ogy tie@ups 6ith foreign brand to have a,,ess to te,hno+ogy4 it ,ou+d be a threat to the ,ompany in the +ong run. These ,ompanies are ,onsidered to be the mar7et +eaders and if they start ,oming up 6ith produ,ts simi+ar to 6hat L. is offering it ,ou+d pose a serious threat to the ,ompany. This 6ou+d ho6ever re=uire huge investments4 tie@up 6ith a g+oba+ +eader et,.4 to beat the MN5s4 6hi,h is not +i7e+y to be possib+e in the near future. ;o6ever4 any other g+oba+ ,ompany that ,omes into the mar7et 6ith its uni=ue mar7eting strategy 6ou+d definite+y be a serious threat to L.. Su8<titut1< A#aila8l1, 5o+our T"<s4 5itrus ?ui,er and Mi8er .rinder don<t have a substitute to them. 1ut ho6ever a ,oo+er ,ou+d be a substitute to an A5 or an oven ,ou+d be a substitute to a mi,ro6ave Any6ay these t6o substitute are not very signifi,ant hen,e the industry is attra,tive to stay in.

3C;

Ba 4ai$i$4 6%D1 %F 8u31 <, The buyers in this business ,an be divided into t6o i.e. the dea+ers and the ,onsumer. The dea+ers in ,ase of L. e+e,troni,s don<t have mu,h of bargaining po6er to e8er,ise sin,e4 the dea+ers are supp+ied produ,ts on a ,redit basis4 so that they ,an push the produ,t. Su,h a strategy 6as never heard of ear+ier in the mar7et. A+so4 transa,tions bet6een the ,ompany and the dea+er are ,arried out on the basis of targets a,hieved by the dea+ers. The ,ompanies a+so provide the dea+ers 6ith various *0* materia+s to in,rease the viabi+ity at the out+ets and as a re+ationship bui+ding e8er,ise. The ,onsumer ho6ever en/oys neg+igib+e buying po6er. A+though the ,onsumer is the most important entity for the organisation the bargaining po6er by them is +oo7ed do6n upon sin,e pri,es et, are fi8ed the ,ompany 6hi,h are not negotiab+e. Ba 4ai$i$4 6%D1 %F <u66li1 <, The supp+ies in the ,ase of L. e+e,troni,s ,an be divided into vi: +o,a+ vendors and imported supp+ier from >ran,e. The ,ompany has greater ,ontro+ over the supp+ies from >ran,e. ;o6ever in ,ase of +o,a+ vendors ,ompany +ays do6n the terms and ,onditions in advan,e so that no negotiations are ,arried out in +ater stages. The +eve+ of indegeni:ation in L. produ,ts in about $C per,ent. The ,ompany hopes to in,rease that to ECH 6ithin the ne8t ,oup+e of years and for that the ,ompany 6ou+d have to deve+op high =ua+ity +o,a+ vendors. L. #+e,troni,s India being a subsidiary of >ran,e mu+tinationa+ has its o6n e8port division in the ,ountry. This 6as on+y set up after the ,ompany had estab+ished itse+f 6e++ in the +o,a+ mar7et. Its e8port operations 6ere started in ?an B&&B. The ,ompany p+ans to e8port in B&&)4 US J ).E mi++ion 6orth of goods to the e8porting ,ountries. 1y the year B&&% it p+ans to e8port US J %.( mi++ion 6orth of goods and by B&&' US J A&& mi++ion 6orth of goods. The ,ompany fo++o6s a

3C6

rigorous pro,edure in order to ,omp+y 6ith the ru+es and regu+ations of the ,ountry. ;o6ever4 in order to meet its above target of USJ A&& mi++ion e8ports4 the ,ompany 6ou+d have to ,onsider e8p+oiting more ,ountries in the neighboring areas and e8p+oit the potentia+ mar7ets to the fu++est. The e8porting ,ountry<s image and su,,ess in its o6n mar7et a+so effe,ts the position of e8ports. 5onsidering the su,,ess L.#IL is ma7ing in the +o,a+ mar7et4 if it ,ontinues 6ith the same pa,e4 the e8port potentia+ ,ou+d a+so be improved. ;o6ever4 ,urrent+y the ,ompany is into e8ports present+y to fu+fi++ the e8port ob+igation against the +i,enses that have been ta7en for the duty e8emption of the import of ra6 materia+s from >ran,e. In the ,oming years it is p+anning to e8p+ore more internationa+ potentia+ mar7ets for its produ,ts.

;.- RECOMMENDATION
Though L. e+e,troni, has done fair+y 6e++ in the Indian mar7et4 but in order to gain a mar7et share in the +ong run4 ,ertain re,ommendation are high+ighted be+o6 based on the ana+ysis ,ondu,ted ear+ier and the ,on,+usions. LG <0%ul" 2 1at1 a ma<< ma @1t ima41 F% it<1lF iF it Da$t< t% a20i1#1 it< %8912ti#1 t% 812%m1 t01 ma @1t l1a"1 83 t01 31a -((), #ven to day after three years of its e8isten,e in the mar7et4 the ,ompany has a premier image in the ,onsumers mind. If it 6ants to a,hieve the above stated ob/e,tive the ,ompany shou+d go in for mass mar7eting. The ,ompany has started moving on this path4 but despite that its premium image sti++ e8ists. To a,hieve this the ,ompany shou+d ,reate su,h ,ampaigns4 6hi,h high+ight the midd+e and the +o6er end ,onsumer a+so. >or produ,ts su,h as

3C4

the !I0S refrigerator4 >+atron T.". et,4 it shou+d high+ight them as premium produ,ts for the e+ite ,+ass. 0ther produ,ts su,h as A$M ;ome #+e,troni,s or A%C+t. Mi8er .rinder shou+d target the +o6er end of the ,ustomer. LG <0%ul" 2%$21$t at1 m% 1 %$ t01 u al ma @1t<, 5urrent+y sa+es of the ,ompany form a very insignifi,ant portion from the rura+ mar7et. It on+y a,,ounts for about )& per ,ent of the tota+ sa+es. This is very +itt+e ,onsidering the vast potentia+ that +ies in our ,ountry. The ,ompany shou+d ,onsider e8p+oiting the untou,hed areas of popu+ation even +ess than C&4&&&. It ,ou+d probab+y form groups of A& to AB su,h to6ns in a state and appoint a sing+e distributor for ea,h group. The entire responsibi+ity of se++ing the produ,ts shou+d be given to the distributor and his per performan,e shou+d be eva+uated after every AC days. The ,ompany ,ou+d offer him attra,tive s,hemes and in,entives to do this. This ,ou+d be test mar7eted in a ,oup+e of states initia++y to find its su,,ess rate. I$ % "1 t% 1a6 l%$4 t1 m 81$1Fit<A t01 2%m6a$3 <0%ul" 4% i$ F% 21 tai$ 0%$1<t <201m1<: Ma/ority of ,ompanies in this industry today are se++ing their produ,ts via s,hemes4 offers et,.4 in order to survive in this ,ompetitive mar7et. It is =uite doubt fu++ that L. 6ith its po+i,y of Lno s,hemes4 no s,hemingM 6ou+d be ab+e to do mu,h. The ,ompany definite+y does not have to go the A7ai 6ay but ,ertain s,hemes and offers 6ou+d he+p the ,ompany in the +ong run. Sin,e L. be+ieves in Lva+ue mar7etingM it does not have to go in for e8,hange offers 6here by you get a ne6 5itrus ?ui,er or T" if return the o+d one. ;ere the ,ompany has to sa,rifi,e on va+ue to get vo+umes 6hatever said and done. Some of the s,hemes that the ,ompany ,ou+d opt for is L1uy a refrigerator 2)&&+tN.3 and a mi,ro6ave and get some rupees offM or Lbuy refrigerator N 5itrus ?ui,er and get the 5itrus ?ui,er at ha+f the pri,eM.

3C5

ANNEOURES
LGG< Tu $%#1 Bi$ R<. C % 1C B&&E B&&C B&&'
-(((( /=((( /*((( /&((( /-((( /(((( =((( *((( &((( -((( ( -((' -((= -(()

A&)%& ,r A)&&&,r A'&&& ,r

Sal1< Fi4u 1< B-((=7(*C !1a CT? R1F i41 at% +(( lt BFFC NA C$4C&& A(BC& DC NA )(4%&& $B&&& Wa<0i$4 Ma20i$1 SA FA NA )'B&& $AB&& )C&& $'&&& ((&& ACG< Mi2 %Da# 1 NA C&&& %&&&

B&&E B&&C B&&'

NA A4'C4&&& AE&4&&&

NA A&4&&& B$B&&

LG7Ma @1t S0a 1 -(() P %"u2t Nam1 Te+evision Refrigerators CC& 6atts $$& 6atts 5itrus ?ui,er >u++y Automati, Semi Automati, P1 21$ta41 ' ) )( )% AB

3C<

Air 5onditioners

A%

PUESTIONNAIRE
;o6 is L. positioned versus other p+ayers in the mar7etO ;o6 is ea,h of its produ,t +ine differentiated from others: ;ome #+e,troni,s Refrigerators Dashing Ma,hines ;o6 has the produ,t mi8 ,hanged sin,e B&&EO Dho are the target audien,es for ea,h of its produ,t +inesO 0n 6hat basis has segmentation been doneO ;o6 does the L. supp+y ,hain operateO Dhat is the ,urrent mar7et share of L.O Dhat does the +ogo I!igita+ e:< stand forO Dhat are the most ,ommon+y used media to advertise for L. produ,tsO ;o6 has the ad budget ,hanged sin,e B&&)O Dhat a++ promotiona+ a,tivities does the ,ompany underta7e for: A A 5onsumers !ea+ers A5<s Mi,ro6aves

3CB

In India4 6hat is L.<s mar7eting program +i7e G is it a standardi:ed mar7eting mi8 or is it an adapted mar7eting mi8O

Cu<t%m1 < Pu1<ti%$$ai 1

Name Add 5onta,t

: : :

A. !o you o6n K a6are of L5T" N !"!M S,heme of L. O

es No

B. Dhere did you ,ome to 7no6 about these S,hemes from O

Ads on T" Ads in maga:ine Through friends and fami+y At sho6room K dea+er *aper Insert

). Dhat do you thin7 about this S,heme K ;o6 6i++ you rate it O

*oor Average .ood "ery .ood #8,e++ent

3C2

$. Are you satisfy 6ith this S,heme O

es No

If No : C. Is there4 any ,omp+aint regarding this S,heme O

es No

If es : (. Dhat 7ind of ,omp+aint4 you registered O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ %. Das there4 any a,tion ta7en by the ,ompany O

es No

If No : E. If you had to ma7e improvements in this S,heme4 6hat 6ou+d they be O

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

33C

333

D1al1 < Pu1<ti%$$ai 1

D1al1 Nam1, A"" 1<< , C%$ta2t N% , A. Dhether L5T" N !"!M S,heme of L. attra,ted the ,ustomers O

es No

B. Dhat do you thin7 about this S,heme K ;o6 6i++ you rate it O

*oor Average .ood "ery .ood #8,e++ent

). Dhether the S,heme has he+ped to in,rease the sa+e O

es No

$. Are you satisfy 6ith the promotiona+ programs for the S,heme O

es No

C. Is there any ,omp+aints against the S,heme O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ (. If es4 !etai+s of ,omp+aints O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

33/

%. our suggestions for further improvement of the S,heme O @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

BIBLIOGRAPH!
BOOKS Mar7eting Management @ L*hi+ip Kot+erM ;uman Resour,e Management @ LAsh6athapaM ;uman Resour,e Management @ LT.N. 5hhabraM INTERNET 666.+gei+.,om 666.goog+e.,om NEWS PAPERS #,onomi, Times >inan,ia+ #8press Times of India Indian #8press MAGALINES 1usiness Today A9M 1usiness India 1usiness Dor+d 1usiness Standard INDUSTR! REPORTS Investors .uide to Indian Industry B&&'

33;

COMPAN! LITERATURE LL. *arivarM the L. in@house maga:ine. L.+oba+ Ne6sM L. 6ee7+y ne6s bu++etin.

336