International School of Management,

Patna

(APPROVED BY AICTE, MINISTRY OF HRD GOVT. OF

INDIA)

BBA BATCH 2022-2025

PROJECT REPORT

ON

“TRAINING AND DEVELOPMENT AND BRAND LOYALTY OF LG

ELECTRONICS INDIA PRIVATE LIMITED”

SUBMITTED IN A PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF THE DEGREE OF BBA

RESEARCH GUIDE: SUBMITTED BY:

MR.PRABHAKAR KUMAR ASHISH KUMAR
ASST. PROFESSOR REG NO. 22302313002

1
 International School of Management,

Patna

(APPROVED BY AICTE, MINISTRY OF HRD GOVT. OF

INDIA)

BBA BATCH 2022-2025

PROJECT REPORT

ON

“TRAINING AND DEVELOPMENT AND BRAND LOYALTY OF LG

ELECTRONICS INDIA PRIVATE LIMITED”

SUBMITTED IN A PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE
AWARD OF THE DEGREE OF BBA

RESEARCH GUIDE: SUBMITTED BY:

MR. PRABHAKAR KUMAR ASHISH KUMAR
ASSISTANT PROFESSOR REG NO. 22302313002

INTERNAL EXAMINER: EXTERNAL EXAMINER:

2
 DECLARATION

I hereby declare that the Project Work entitles in training and development in brand loyalty of
“LG electronic Pvt. Ltd.” has been carried out by me under the guidance of Mr. Prabhakar
Kumar, Assistant Professor at International School of Management, Patna. The research work
is original and has not violated any of plagiarism norms.

I also declare that this Project has not been submitted to any University/ Institute for the
award of any Degree/Diploma.

PLACE: PATNA ASHISH KUMAR

DATE: REG NO. 22302313002

3
WORK ASSIGNMENT COURSE LETTER

4
 EXPERIENCE CERTIFICATE

Research Guide:

Mr. Prabhakar kumar

Assistsnt Professor

5
 ACKNOWLEDGEMENT
The most awaited moment of successful completion of endeavor is always a result of persons
involved explicitly or implicitly there in. It is impossible without the help and guidance of the
people around to carry on this research work. I take the opportunity to express my sincere
gratitude to each and every person who gave me the guidance and help for preparing the
report.

I take this opportunity to thanks to (Management), International School of Management for

providing me an opportunity to work for this research.

I am also desirous of placing on record profound indebtedness to Mr. Prabhakar kumar,

Assistant Professor, ISM Patna and all the members of faculty of International School of
Management, Patna, for the valuable advice, guidance and support that they offered.

Last but not the least; I would also like to thanks all the respondents for giving me their time
and relevant information.

My strength and inspiration are the blessings of my parents and my friends. I owe all my
success and achievements to them.

ASHISH KUMAR
BBA

6
 TABLE OF CONTENTS

SR NO. CONTENTS PAGE NO.

1. Abstract 8

2. Introduction 10

3. The study’s reach 12

4. The study’s significance 13

5. The study’s purpose 14

6. Consumer durable history 15

7. Overview of LG’s history 23

8. Overview of SAMSUNG’s history 31

9. Survey and data collection 39

10. The analysis and interpretation of data 42

11. Customer survey research 46

12. Conclusion 48

13. Reference 49

7
 ABSTRACT

This dissertation topic compares LG and Samsung's consumer satisfaction data with their
market strategies for their respective white goods items.

• What elements have an impact on consumer satisfaction?

• identifying the elements that influence customer happiness.

• How important are those aspects in terms of customer satisfaction?

For the first time in the second half of this year, Korean companies LG and Samsung have
nearly all of the Rs 10,000 crore (Rs 100 billion) Indian home appliances market to
themselves. While LG currently holds the market lead with about 35% of the total market,
Samsung boosted its position from about 13 to about 16%.

In fact, the two now have combined turnovers bigger than the other brands in all the key
market sectors, with the exception of the refrigerator segment. Samsung has emerged as the
biggest gainer since the end of the previous financial year in the refrigerator sector, which
makes up the largest portion of the market with approximately Rs 4,000 crore (Rs 40 billion)
this year. In addition to surpassing Godrej to move up to third place behind LG and
Whirlpool since April, it has steadily increased its market share from about 12.5 percent of
the entire value to roughly 17 percent at this time.

In the past seven months, the company, which had a 15% market share in the retail consumer
air conditioning sector, was also able to strengthen its position by roughly 1.5%.
Though LG remained the market leader, it did not change. It is the market leader in all four
product categories and holds about 50% greater market share than the next-closest rival in
each category. By value, the firm holds about 30% of the market for refrigerators, 34% of the
market for washing machines, 40% of the market for home air conditioners, and 38.7% of the
market for microwaves.

8
 Introduction

Consumers anticipate that their electrical home equipment will be secure for them, their kids,
and their elderly relatives.
Households' real and imputed final consumption spending on the goods and services they
need to fulfil their unique requirements and wants is referred to as individual consumption
expenditure.
A significant group of businesses that sells electrical products in the industrial, commercial,
and residential markets includes the White Goods organisation. It was a part of Complete
Energy Systems, a larger company, at the time the events in this case occurred rather than a
separate business. Only the domestic market (households) was the focus of the division,
while the commercial and industrial markets were handled by two other divisions. The case is
split into two sections, each of which deals with the proposed reorganisation. The scenario
that gave rise to the proposed reorganisation is described in the first section, and the
management suggestions for the actual reorganisation are described in the second section
along with the responses of different staff groups and individuals to the proposals.

A significant group of businesses that sells electrical products in the industrial, commercial,
and residential markets includes the White Goods organisation. It was a part of Complete
Energy Systems, a larger company, at the time the events in this case occurred rather than a
separate business. Only the domestic market (households) was the focus of the division,
while the commercial and industrial markets were handled by two other divisions. The case is
split into two sections, each of which deals with the proposed reorganisation. The scenario
that gave rise to the proposed reorganisation is described in the first section, and the
management suggestions for the actual reorganisation are described in the second section
along with the responses of different staff groups and individuals to the proposals.

In a household, institutional, commercial, or industrial setting, a significant appliance,

sometimes known as a domestic appliance, is typically characterised as a sizable equipment
that performs some routine housekeeping duty, such as cooking, food preservation, or
cleaning. Because an appliance operates with energy other than water, typically utilising

9
electricity or natural gas/propane, it differs from a plumbing fixture. An item powered by a
watermill is also referred to as an appliance. Although definitions of "white goods" can vary,
the phrase "white goods" is also used for these items, mainly where British English is spoken.
The word "white goods" is more frequently used in the US to describe linens than appliances.

Major appliances are distinguished from small appliances by their size, difficulty to move,
and overall degree of fixation in place. They are frequently provided to tenants as part of
otherwise unfurnished rental properties since they are frequently thought as as fixtures and
parts of real estate. Major appliances frequently require significant amounts of electricity,
which necessitates specific electrical cabling to offer more current than regular electrical
outlets can deliver. This restricts the locations they can be used in a house.

Major appliances are distinguished from small appliances by their size, difficulty to move,
and overall degree of fixation in place. They are frequently provided to tenants as part of
otherwise unfurnished rental properties since they are frequently thought as as fixtures and
parts of real estate. Major appliances frequently require significant amounts of electricity,
which necessitates specific electrical cabling to offer more current than regular electrical
outlets can deliver. This restricts the locations they can be used in a house.

10
 The study's reach

The electrical goods are those goods which already exist in the market. Because without it, it
is not possible that anybody can survive with his/her life. We define scope of Mathura region.
Scope is a very broad term. The customers purchase the electrical appliances through market,
exhibition, and showroom for fulfillment of needs.

This report analyzes the markets for Electric Household Appliances in Thousand Units by
the following Segments: Major Electric Household Appliances (Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water Heater (Electric), Room ACs, &
Other Major Electric Household Appliances), and Small Electric Household Appliances
(Blenders, Bread Makers, Broilers, Can Openers (electric), Coffee Makers, Electric Knives,
Food Choppers, Food Processors, Irons, Mixers, Toaster Ovens, Toasters, Waffle Irons, &
Miscellaneous Small Electric Household Appliances). The report provides separate
comprehensive analytics for the Patna.

This report is prepared in Patna region with the help of owner and customer. It defines the
marketing strategy (product, price, place, promotion) of LG with Samsung.

LIMITATIONS OF THE STUDY:

• Due to the study's subjective nature, various people may perceive its results
differently.

• Area and regional variations could alter the study's focus.

• Different CRM (customer relationship management) implementations can be seen in

various locations.
• Information obtained from the Internet and other sources may differ from actual
customer experiences.

11
 The study's significance

To understand LG's and Samsung's market positions as well as the effects of market strategy
on consumer durables in the Patna region.
Up until the early 1990s, all marketing-related efforts were directed towards perfecting the
four

"P"s: product, price, place, and promotion. Only a few marketers came to understand in the
early 1990s that consumers did not simply exist to purchase a company's products, but rather
that companies basically existed to serve consumers.
LG and Samsung both are big white goods product manufacturing companies from South
Korea. Both are equally strong, global companies, and more or less with equal presence in
Indian market. So it will be quite rational to compare these two brands.

ISSUES TO BE ADDRESSED:

• What are the factors that affect the consumer satisfaction?

• Determining the factors affecting the consumer satisfaction.

• What is the magnitude of those factors regarding the consumer satisfaction?

RESEARCH PROJECT AIM:

• This work's main goal is to compare how satisfied LG and Samsung customers are.

• To get knowledge of the elements influencing consumer satisfaction with white goods
throughout the globalization's transitional period.

12
 The study's purpose

While pursuing a BBA, the research will offer a priceless chance to perform a study, put
theoretical knowledge into practise, and evaluate the results in light of actual circumstances.

I am a student with a "HR, Marketing" specialisation, therefore this will provide me the
chance to learn more in-depth information about consumer behaviour and concerns pertaining
to comparative study.

I am focusing on creating a questionnaire and gathering data. In addition to that, I also gather
secondary data for this research, primarily from journals, newspapers, and the internet.

PROFESSIONAL OBJECTIVE:

This dissertation research will compare the customer satisfaction levels of LG and Samsung's
white goods products as a basis for its study of consumer satisfaction.
• What elements have an impact on consumer satisfaction?

• identifying the elements that influence customer happiness.

• How important are those aspects in terms of customer satisfaction?

PERSONAL OBJECTIVE:

Personal goals for this project include gaining experience in the market, connecting with
people, and learning about consumers' viewpoints. Another goal that will be beneficial in the
future for marketing is improving indirect learning about the market and consumer
behaviour.

13
 CONSUMER DURABLE HISTORY

The Consumer Durables industry consists of durable goods and appliances for domestic use
such as televisions, refrigerators, air conditioners and washing machines. Instruments such as
cell phones and kitchen appliances like microwave ovens were also included in this category.
The sector has been witnessing significant growth in recent years, helped by several drivers
such as the emerging retail boom, real estate and housing demand, greater disposable income
and an overall increase in the level of affluence of a significant section of the population. The
industry is represented by major international and local players such as BPL, Videocon,
Voltas, Blue Star,
MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer
Electronics and Consumer Appliances. Consumer Appliances can be further categorized into
Brown Goods and White Goods. The key product lines under each segment were as follows.
Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign players
like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these
players control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very
fast because of rise in living standards, easy access to consumer finance, and wide range of
choice, as many foreign players are entering in the market
With the increase in income levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for consumer durables has increased
significantly. Products like washing machines, air conditioners, microwave ovens, color
televisions (CTVs) are no longer considered luxury items. However, there are still very few
players in categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the emergence of MNCs, exchange offers,

discounts, and intense competition. The market share of MNCs in consumer durables sector
is 65%. MNC's major target is the grwing middle class of India. MNCs offer superior

14
technology to the Consumers whereas the Indian companies compete on the basis of firm
grasp of the local market, their well-acknowledged brands, and hold over wide distribution
network. However, the penetration level of the consumer durables is still low in India.

INDUSTRY SIZE, GROWTH, TRENDS:

The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08.
More than 7 million units of consumer durable appliances have been sold in the year 2006-07
with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of
volumes. CTV, refrigerators and Air-conditioners together constitute more than 60 per cent
of the sales in terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool
segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have
registered double-digit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic category with a higher base and
fullyautomatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to
229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have
grown by 32 per cent and that of split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite high, the markets
for both C-TV and refrigerators were shifting to the semi-urban and rural areas. The growth
across product categories in different segments is assessed in the following sections.
Consumer appliances are electronically operated machines that are used primarily in
domestic activities like cooling, heating, cooking, cleaning, refrigerating, entertainment etc.
Based on the tasks performed by them they are classified as entertainment products, cooling
products, heating products, photographic products, household etc.

Appliances which are required for fulfilling daily needs of a household come under kitchen
appliances. Consumer appliances are electronically operated machines that are used primarily
in domestic activities like cooling, heating, cooking, cleaning, refrigerating, entertainment

15
etc. Based on the tasks performed by them they are classified as entertainment products,
cooling products, heating products, photographic products, household appliances etc.

Appliances which are required for fulfilling daily needs of a household, come under kitchen
appliances like refrigerator, water purifier, air purifier, toaster, microwave ovens etc.
Entertainment products are further divided into two sectors- audio & video. The audio sector
consists of hi-fi systems, cassette, CD, MP3 players, stereos, wireless headphone. While the
video sector consists of television, plasma TV, LCD TV etc. Another industry which is on a
boom is gaming industry consisting of video games, game consoles etc.

The growing needs of the consumers are driving the latest technological innovations in the
consumer appliances industry. A look at today's consumer appliances market, there are
consumer electronics products with features like ultra thin designs, function convergence,
environmental protection, energy saving and lower prices. New products, which are easy to
use and provide a lot of facilities, are being launched by the consumer appliance
manufactures, which provide a wide choice to the consumers. With so many selections and so
many different technologies, products have increased considerable market demands and
giving a hard time to manufacturers & suppliers of consumer electronics appliances.

China, Taiwan and Italy are the largest manufacturers of consumer appliances. Global
consumer appliances industry's sales revenues reached US$950 billion in 2006.According to
an estimate the consumer appliances industry in China will be the strongest by 2010, as the
demand for consumer appliances is rising because of the rapid pace of economic
development taking place in China and low cost of manufacturing of these appliances. China
is expected to become the second largest market for consumer appliances in the world after
US.

One of the biggest working parts of any household is home appliances for the kitchen, and
without a solid line up, could be difficult to manage home cooking. When choosing any set of
appliances, it's important to look at several key features, prices, and warranty information.

16
Making an educated decision about these things can help save time and money.

First and foremost, before buying anything in regards to home appliances for the kitchen, it's
important to measure the space that you have free. This is a crucial thing to remember no
matter what you're purchasing in the near future. By measuring the free space that you have,
you can make sure that you will be utilizing your appliance without any major complications.
The second step is to set a budget. Setting a budget might seem trivial, but it will save you
energy when you're ready to purchase your items, and are faced with a purchasing decision.

After measuring your space and setting a budget, consider looking at the various color
options that are available to you. Many people want to match their kitchen décor with their
appliances. It's important to consider what style and décor you want to go with, especially if
you're buying home appliances for the kitchen, separately. If you purchase a limited edition
color, or a color that isn't necessarily the norm, you might have a hard time matching
everything in your kitchen. Consider something standard like black, white, or stainless steel if
you're purchasing items one by one. If you're buying sets, you might be able to match
everything with relative ease, but it might cost more up front.

Energy star rated options are gaining popularity amongst all different walks of life. Look for
highly efficient, energy saving appliances, and you'll ensure money is saved over time.
Highly efficient machines run better and faster, and consume at least 30% less energy than
other options. You'll be amazed at the low cost of use, and definitely be happy to own one. It
is true that they cost more up front, but you will save money over time. Traditional options
still abound, so if you're not ready to take the energy saver leap, do not fret, there are still
other options available for the consumer.

Another key point to looking at home appliances for the kitchen is warranty information.
Never forget to read the fine print on any warranty information that comes coupled with your
investment. Some manufacturers offer a limited time; limited warranty and that could end up
costing you down the road. To make sure you have peace of mind, always look for extended
warranty options, or make sure you understand the terms of your limited warranty. Making
sure your appliance works for the longevity you desire from your home is vital to picking out
the right appliance.
17
There is a plethora of options to explore in regards to ovens, sinks, refrigerators, and so much
more. Always shop around for the best price, and make sure you look at several key points
before investing in anything. You can ensure peace of mind by doing some preliminary
thinking, and investing in the right option that fits your needs.

18
CONSUMER DURABLE PRODUCTS

LG Refrigerator

LG Washing machine

19
 LG Led TV

LG microwave oven

20
 SWOT ANALYSIS: CONSUMER DURABLE HISTORY

STRENGTH:

• “Accessory to Necessary” Air-conditioners are no longer perceived to be a item of

luxury.
• Advancement of technology which gives the companies ability to introduce new
products and new product features.
• High Growth. Key drivers being Urban and Rural.

• Government Policies in favor of Industry includes infrastructure development,

reduction in excise duty and so on.

WEAKNESS:

• Supply continues to outstrip Demand. Demand Cyclical and seasonal.

• Volatile performance of the agricultural sector have a negative impact on demand.

The sector's performance is highly dependent on monsoon and reforms, which has
failed often.

OPPORTUNITY:

• Diversification. Developing new products for new markets.

• Easy availability of finance has stimulated consumers to buy durables.

• Changes in Consumer Outlook from spend now-save later mentality leading to high
disposable income.

THREAT:

• Dozen companies operating in the white goods segment. Prices would continue to
remain depressed and margins will be under pressure.
• Threats of cheaper imports from China and other South East Asian countries

21
 Overview of LG's history

LG INDIA PVT.LTD

After receiving approval from the Foreign Investment Promotion Board (FIPB), LG
Electronics India Pvt. Ltd., a fully owned subsidiary of LG Electronics, South Korea, was
created in January 1997.

With the start of operations in May 1997, LG completed the fastest-ever nationwide launch in
just 4 and 1/2 months, setting the precedent for the rest of the industry. With an investment of
Rs 500 Crores, LG built a cutting-edge manufacturing facility in Greater Noida, close to
Delhi, in 1998. This factory produced microwave ovens, air conditioners, washing machines,
and colour televisions. At its manufacturing facility in Greater Noida, LG also started
domestic manufacture of its environmentally friendly refrigerators and set up an assembly
line for its PC monitors in 2001. The first domestically made Direct Cool Refrigerator was
introduced at the start of 2003 from the company in Greater Noida.

In Pune, Maharashtra, LGEIL built a second greenfield manufacturing facility in 2004, and it
will start producing products there in October of this year. The factory, which spans more
than 50 acres, produces GSM phones, washing machines, air conditioners, refrigerators,
microwave ovens, colour monitors, and colour televisions. One of the most environmentally

22
friendly LG manufacturing facilities in the world, the Greater Noida production line was
created using the most recent technologies, on par with international standards in Korea. In
just eight years, LG has developed a premium brand posture in the Indian market and is now
the most popular brand in its category. Numerous studies have demonstrated that consumers
are knowledgeable about health issues.

One of the first businesses to recognise the emergence of a shift in consumer needs was LG,
which made the decision to differentiate its goods based on technology that attracted
customers with the promise of improved health.

As a result, it developed its company concept to improve people's lives and make them more
convenient and healthy. Its mission was to become a "Health Partner" for its customers
around the world. The LG CTV line features "Golden Eye" technology, which detects the
light levels in the space and modifies the image to be easier on the eyes. The "Health Air
System" found in every model of LG air conditioners not only keeps pollution out while
cooling. In a similar vein, refrigerators have the "PN System," microwaves have the "Health
Wave System," and washing machines have the "Fabricare System," which extends health
considerations to one's clothing. The company's R&D teams created proprietary technology
for each of the goods it offers, which give consumers a more wholesome setting to live in.

In the industries of consumer electronics, home appliances, and computer peripherals, LG

experienced the industry's fastest growth in 2001. Since its founding in 1997, the firm has
generated a total revenue of Rs 5000 crores in India, which makes it the company with the
fastest-ever Rs 5000 crores turnover in the Indian consumer electronics and home appliances
sector. After reaching this milestone, LG set a new record by selling the first ever lakh of
windows and split ACs in a calendar year.

As of one month before the target date, LG has already sold one million units of colour
televisions, exceeding its sales goal for the year of one million. For colour televisions,
semiautomatic washing machines, air conditioners, frost-free refrigerators, and microwave
ovens in 2003, LG has become the market leader. In 2004, LGEIL outperformed industry

23
estimates by selling more over 1 million refrigerators, breaking sales records in both the
Direct Cool and Frost
Free segments.

The firm with the fastest rate of growth in the consumer electronics, home appliances, and
computer peripherals sectors is LG Electronics India. More than 50 lakh families in India
receive excellent technology products from LG Electronics every year at a great value. The
company, which holds a coveted position in the GSM mobile phone market, earned a revenue
of Rs. 6500 crore in 2004 and aspires to reach a revenue of US$10 billion by 2010. In its
plant in Pune, it has already begun producing GSM phones.

As part of its corporate social responsibility efforts, LG India has also been involved in a
number of initiatives. LGEIL is pleased to have adopted roughly 24 of the nearby villages
near our facilities in Greater Noida. LG offers free exams and daily medication distribution as
part of its Free Medical Care programme. LGEIL is also creating chances for people to work
for themselves by teaching them how to knit, sew, etc. In addition to all of this, LG also
frequently dispatches veterinarians to these settlements. In addition to all of this, LG India is
one of the very few businesses in the nation with an internal Department of Energy,
Environment, Safety, and Health. Energy conservation, environmental concerns, workplace
fire and safety, as well as other tasks are all addressed by this role for the welfare of the
workers, occupational health.

VISION OF LG INDIA PVT.LTD.

By offering cutting-edge goods and cutting-edge designs, LG Electronics hopes to establish

itself as a truly global digital leader. By 2010, the company wants to be one of the top three
global consumer electronics and telecoms companies. To do this, we have adopted the motto
"Great Company, Great People," realising that only exceptional individuals can build a
fantastic organisation.

24
AWARDS

24th of October 2007, New Delhi: By receiving the Electronics and Computer Software
Export Promotion Council of India's (ESC) award for excellence in exports of electronic
hardware today, LG Electronics India Pvt. Ltd. set a new record.After reaching a milestone of
USD 186 million in exports for the calendar year 2006, this accomplishment is additional
icing on the cake for the business. This accomplishment has reaffirmed LG's leadership
position both domestically and internationally.

On October 24, 2007, at a ceremony held at the Hall Kamal Mahal of the Hotel Maurya

Sheraton, Sardar Patel Marg, New Delhi, Mr. Ajay Sapra, DGM, Corporate Exim, LGEIL,
and Mr. Jatin Madan, AGM, Exports, LGEIL, accepted the award on behalf of LG. The
Awards were given out by Shri A. Raja, Union Minister for IT and Communications.

The Middle East, Asia, and Africa are among the most competitive markets for consumer
electronics, and LG has established itself as a leading exporter of a variety of goods into
those regions. For its outstanding export performance in consumer electronics (CTV,
Monitors, GSM, Personal Computers, and ODD) for the fiscal year 2005–2006, LG received
the prize. During this time, LG produced exports of specified product categories totaling
USD 133 Million.

GOOD INNOVATION

The goal of quality assurance is to offer clients with products that are flawless and ensure
their complete pleasure.

25
LG proceeds in a hierarchal manner. It is named as “LG WAY”.

From top to bottom:

No.1 LG – is the VISION

“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed through fair
management practices and constantly developing our business skill.
a) Honest with our customer

b) Providing great values to customer through constant innovation & and development.
c) Equal opportunities

d) Equal Treatment

Management Principle - Creating value for customer

26
 LG INDIA
In January 1997, LG Electronics India Pvt. Ltd., a fully owned subsidiary of LG Electronics,

South Korea, was created after receiving approval from the Foreign Investment Promotion
Board (FIPB). In 1998, LG invested Rs 500 crores in the construction of a cutting-edge
manufacturing facility in Greater Noida, close to Delhi.
The LG corporate headquarters are in Greater Noida, India, at Plot No. 51, Udyog Vihar,
Kasna

Road.
This factory produced microwave ovens, air conditioners, washing machines, and colour
televisions.
"Company is establishing a chain of upscale, exclusive showrooms." By the end of the first
quarter of this year, LG intends to open 60 upscale Brand Shoppes. Currently, there are 83
LG stores in all, 45 of which are shops and 38 of which are exclusive stores. Brand shops will
be positioned in the premium market, and customers interested in high-end and premium
goods will make up the target market.
With a more interactive setting and additional lifestyle displays, LG Brand Shoppe goes
above and beyond the idea of a typical exclusive store, allowing the consumer to truly
experience the LG items in his or her own home.
With a 27% market share in consumer durables, LG Electronics India Ltd (LGEIL), the
industry leader, is developing a new image. The corporation will introduce a new marketing
plan in order to draw in innovative and youthful customers throughout India. The business
will spend Rs 360 crore on the process.
The firm with the fastest rate of growth in the consumer electronics, home appliances, and
computer peripherals sectors is LG Electronics India.
More than 50 lakh households in India are continuously served by LG Electronics' high-
quality technological goods at affordable prices. This year, LGEIL is commemorating its
11th birthday.

The largest R&D facility for LG Electronics outside of Korea is located in Bangalore and is
called LG Soft India. In order to serve LG Electronics, we at LGSI concentrate on specialised
technological fields such biometrics software, digital video broadcast, and mobile application

27
development. We are driven to see LG rank among the top three brands globally by our love
of technology, commitment to the company, and excellent workplace culture.

A well-known consumer electronics business, LG Electronics Inc., has stated that it

anticipates a 15% increase in product sales in India in 2008. According to Moon Bum Shin,
managing director of LG Electronics India, the company has set aside 4.8 billion rupees this
year for investment purposes in India. New products will be manufactured and marketed
using the aforementioned funds.

The original South Korean company LG Electronics, which has a presence in India, reported
that in 2007, it sold GSM mobile phones, colour televisions, air conditioners, and other home
items worth 95 billion rupees ($2.4 billion) in the Indian market. Shin predicted that 2008
sales would be close to 110 billion rupees.
According to Shin, LG Electronics will focus on serving the high-end consumer market in
order to meet its goal, which will assist increase sales this year. Six (6) percent of LG
Electronics' $42 billion in annual global sales are generated in India. The LG branch in India
exports goods to 40 nations.

28
 Overview of Samsung's history

The center of operations for Samsung's South West Asia Regional business is located in
India. In addition to India, the South West Asia Regional Headquarters also oversees
Samsung's operations in Nepal, Sri Lanka, Bangladesh, the Maldives, and Bhutan. In less
than ten years since it began operations in India in December 1995, Samsung India has grown
its sales to over US$ 1 billion.
Samsung India, which has its main office in New Delhi, has a network of 19 Branch Offices
spread out around the nation. The Samsung manufacturing complex, which houses
production lines for refrigerators, washing machines, color televisions, and color monitors, is
situated in Noida, close to Delhi. From its Noida manufacturing facility, Samsung exports
"Made in India" products such refrigerators, color televisions, and color monitors to the
SAARC, CIS, and Middle Eastern nations. Over 1600 people work for Samsung India now,
with 18% of those people employed in research and development.

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GROWING TO BE THE BEST: By the year 2006, Samsung India wants to be India's "Best
Company." "Best Company" in terms of the internal working environment and the operating
environment outside the company. Samsung wants to expand in India by bolstering the
Indian economy and enhancing the quality of life for its customers through the creation of
high-caliber products.

“Our aim is to gain technological leadership in the Indian marketplace even as our goal is to
earn the love and respect of more and more of our Indian consumers.”
(Mr. S.H. Oh, President & CEO)

Samsung South-West Asia Regional Headquarter.

MANUFACTURING:

Samsung's expansive Noida Complex is home to the company's cutting-edge, highly

automated manufacturing facilities. Samsung India takes great satisfaction in its
Manufacturing Value Innovation, which has earned it the top productivity ranking among all
Samsung subsidiaries and recognition as the subsidiary with the "Best Quality System."

As of the year 2004, the following Samsung devices could be produced in India:

Samsung India collaborates with and supports the growth of the national component industry
in the nation. The business is collaborating with its suppliers to enhance the efficiency of its
production processes. In order to assess their own processes, Samsung vendors are therefore
deployed to various Samsung subsidiaries to meet with Samsung abroad vendors.
Additionally,

30
Samsung is educating its suppliers on eco-partnership so that the parts they produce adhere to
ROHS standards and are "environment friendly."

VISION OF SAMSUNG INDIA PVT. LTD.

Leading the Digital Convergence Revolution is SAMSUNG Electronics' ambition, and

"Digital Company" is how we intend to achieve it.
There are two prerequisites for becoming a "Digital-Company," and the first is unmistakably
about being "Digital" and creating goods that stimulate digital integration throughout our
entire organization, not just digital ones. The use of - Processes connecting R&D, production,
and marketing to customers, partners, and the market-disciplined approach is how we add
value to every link in our supply chain, including product data and customer relationships
through
Enterprise Resource Planning (ERP). This is the second component of being a ""

To create a complete solution for the digital convergence era, SAMSUNG Electronics will
network key components such memory chips, system-LSI, and LCDs as well as A/V,
computers, telecommunications devices, home appliances, and other stand-alone goods.

AWARDS

• Manufacturing Value Innovation – Gold Award for Productivity, Cost, Speed at the

Visual Display Plant – November 2004.

• Management Innovation Award – December 2004

• Samsung Quality Award – November 2004 for Colour Television & Colour Monitor

Plants

• Samsung Innovation Award – November 2004 for Refrigerator Plants.

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 LG V/S SAMSUNG

COMMUNICATION STRATEGY OF LG

Tag line “Life’s Good”.

• Brand ambassador “Abhishek Bachchan”.

• LG positioned itself as an Indian brand. They are hitting the emotional attributes of
Indian consumer.
• The warmth and affection that a brand showers upon its target audience will be
reciprocated.

➢ For Television market they are using child, because child plays the role of
influencer in purchase of TV sets.
➢ LG home appliances communication message is totally based on health message
like

“Golden eye technology” and “Intello”.

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 ➢ They want to position the brand as being young, vibrant and premium. So they
picked

Abhishek as he portrays Indian values.

COMMUNICATIONSTRATEGY OF SAMSUNG
Tag line “Everyone's Invited or Its hard to Imagine”

- Brand ambassador “Amir Khan”.

- Samsung the second market in home appliances in India.

- Brand communication message “Digit All Inspiration”.

- They positioned themselves as a brand which offers freshness and technology strong.
- Samsung in India signed seven cricket celebrities to cash the image and popularity of
cricket.
➢ In order to create brand awareness, they came up with Team Samsung India.

➢ They want to tap their target audience by offering them fresh product.

MAJOR PLAYERS OTHER

Haier Group Corporation is a Chinese multinational home appliances and consumer

electronics company headquartered in Qingdao, Shandong. Its Haier Smart Home Company
affiliate, of which it owns 35%, designs, develops, manufactures and sells home

33
appliances including refrigerators, air conditioners, washing machines, dryers,
and microwave ovens under the brand names Haier, Casarte, Leader, GE Appliances, Fisher
& Paykel, Aqua and Candy. Its Haier Electronics Group affiliate manufactures consumer
electronics such as mobile phones, computers, and televisions. Its Thunderobot brand is
focused on gaming computers and accessories. Haier Smart Home Company is ranked 407th
on the Fortune 500.[3]
According to Euromonitor International, Haier was the number one brand globally in major
appliances for 10 consecutive years from 2009 to 2018.[4] The Haier brand was also
recognized by BrandZ in 2019 as the most valuable IoT ecosystem brand in the world, with a
brand value of $16.3 billion.

Brand Panasonic was founded in 1918 and as a Group we are committed to enhancing the
well-being of people and society and conduct businesses based on founding principles
applied to generate new value and offer sustainable solutions for today’s world.

Panasonic Life Solutions India is a diversified technology company that provides solutions to
enrich people’s lives at home and work and strives to build a greener future for our planet for
over a century. It is a worldwide leader in the development of home appliances, industrial
devices, automotive, lifestyle and connected solutions. We have a long-term commitment to
India’s growth, and its investments are aligned to contributing to national priorities.

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 SURVEY AND DATA COLLECTION

Primary data was collected through formal structured questionnaires, which were
administered personally. The structured format ensured greater control over responses and
facilitated easy tabulation, editing and analysis.
✓ Steps involved in this process are as follows:
• First step was the literature review about the research topic and then the preliminary
proposal was prepared. For all this internet, news paper was explored.
• The next step involved was selecting research topic and assessing the feasibility of
topic regarding research and developing hypothesis for which I contacted my mentor.
• Then, questionnaire for the interview was prepared. It was the most critical and
important phase. The whole research and it relevance was based on the right
questionnaire.
• Then, all data gathered was sorted, compiled and arranged for analysis.

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 CONSUMER ELECTRONICS

OVERVIEW
The consumer electronics market is valued at $25 billion in 2006 and is growing at a rate of
20% per annum.

PRODUCT COVERED
The consumer electronics sector can be segmented into VCD/DVD, home theatre, music
players, and color televisions (CTVs), MP3, digital cameras, laptop etc. and white goods,
such as, dish washers, air conditioners, waterheaters, washing machines, refrigerators, etc.

MAJOR PLAYERS
Before economic liberalization, there were only a few players like Kelvinator, Godrej,
Allwyn, and Voltas in the consumer durable market. 90% of the market was captured by
these companies alone.
Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo
and Aiwa came into the picture. And today, these players control major share of the
consumer durable market.
Consumer electronics market is projected as shown in the graph

Growth

Consumer Durable/ White Goods Growth

Air Conditioner 20-25%

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Refrigerator 5-10%

Microwave Ovens 25%

Washing Machines 5-10%

Consumer Electronics (Overall) 9%

GROWTH DRIVERS

The electronic market is expanding quickly due to increased living standards for consumers,
easy access to consumer finance, increasing consumerism, rising disposable income, and a
wide range of options due to the entry of numerous foreign players. But occasionally there
can be an oversupply problem because there are so many participants in the consumer
electronics sector.

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 The analysis and interpretation of data

Q1.Which brand are you using?

INFERENCE

➢ This illustration displays the 55 survey respondents and the percentage of

respondents who utilise particular brands.

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Q2. Have you purchased any consumer durable during Exhibitions?

• Yes

• No

INFERENCES

➢ 65% of customers have not bought any consumer durables from exhibits. Only 35%
of people have made a purchase.
➢ It demonstrates that consumers attend exhibitions to learn more about the products
and to determine whether or not there is a real pricing difference between the
exposition and shops.
➢ The consumer wants to compare various brands that are offered at the show.

➢ Exhibitions are thus more effective at raising brand awareness.

➢ People are less inclined to buy products at shows.

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 Q3. While purchasing consumer durable which parameter influences you?

 Price

• Product feature

• Brand

• Service

• Durability

INFERENCES

➢ Price is important to 30% of customers. Therefore, it demonstrates how price-

sensitive Indian customers are. They prioritise price over brand more often than not.

➢ 26% think brands are important. Therefore, for customers, price and brand are quite
important. They also seek the greatest brand at the lowest price.
➢ 19% place a high value on the features service 16% and durability 9%. Customers
place more importance on service than durability and are less concerned with it.

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 Q 4. You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
• Attractive Price • Service
• Demonstrations
• Offers

INFERENCES
➢ Customers buy from showrooms because of the service and convenience. These are
two main factors.
➢ Customers are preferred to buy from the showroom because of they think that these
convenient store may provide good after sell service.
Customer also thinks that there is more chance to bargain and they can get more
discounts in these showrooms.
➢ Price also a factor that attract the customer in these showrooms.

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 CUSTOMER SURVEY RESEARCH

➢ Secondary supports are crucial in the minds of customers and raise awareness among
them. Demonstration, exhibition, and even sponsors are examples of secondary support.

➢ The majority of consumers do not purchase consumer durables during exhibitions,

according to the report. Just to see the newest model from the company, they go to
exhibitions.

➢ The showrooms or corporate showrooms are where they wish to purchase. Service is
significant to them.Service is a crucial aspect in addition to convenience and other
things.

➢ Additionally, the majority of customers do not wish to use financing to buy durable
goods.

➢ There was a lot of demand on weekends, thus several ISDs were appointed on that day.

Additionally, live demo calls aid in sales. Exchange offers can lead to sales as well.

➢ Customers are becoming extremely selective when making purchases, thus it is crucial
for businesses to cultivate brand loyalists.

➢ According to our poll, LG has the largest market share across all categories. LG
dominates the categories of LCD, refrigerator, washing machine, and CTV.
In the TV and ref. categories, there is fierce competition between LG and Samsung.

➢ The product is well known and always on customers' minds.

➢ Customers are becoming extremely selective when making purchases, thus it is crucial
for businesses to cultivate brand loyalists.

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 RECOMMENDATIONS AND SUGGESTIONS

➢ The number of sales generated by exhibitions is not very high, yet they nevertheless need
to be held frequently. This aids in spreading consumer awareness of the goods, which
ultimately aids in sales.

➢ Additionally, it aids in new product advertisement. The revolutionary LCD SCARLET

was advertised in this exhibition, for example. Always put the customer first as a
business.

➢ As LG also feels that "JO DIKHTA HAI WO BIKTA HAI" and in SAMSUNG that "AB
KULKHE JEEYO INDIA," display share should be enhanced where there is less than
50%. Service should be improved by the company. Although the company's products
theoretically have an advantage over those of rivals, in the long run, this could hurt the
company's profitability.

➢ The company has to focus more on its three main revenue generators: LCD, IT, and
GSM. Effective branding and advertising are important because they leave a lasting
impression on customers.

➢ As some sub dealers have the potential for huge sales, the company should also take care
of their needs.

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 CONCLUSION

It would be wise to communicate the most important lessons discovered from this study before
drawing a conclusion. These have been listed below in the following order:

➢ The unique learning from this project was that it gave us firsthand insight to the white
goods market and the level of satisfaction of its customers.

➢ Since everyone has a unique personality and attitude, effective communication is

essential when dealing with customers.

➢ gaining in-depth understanding of Indian white goods market, consumer loyalty, and
consumer behaviour.

➢ The world's leading manufacturer of home appliances is LG Electronics & SAMSUNG

Electronics Digital Appliances Company. committed to improving customer lifestyles
through its fashionable and cutting-edge products by providing innovative solutions for
consumers' daily lives.

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 Reference
The majority of the project has been primarily our own research finding and endavor. Wherever
the support of the Internet and books has been taken, the name of sites and books used are as
mentioned below:-
• C.R.Kothari (Business Research Methodology)
• Business Line Newspaper
• LG Magazine
• Samsung Magazine
• www.1gindia.com
• www.LG.com
• www.samsung.com
• www.google.co.in
• www.haier.com
• www.panasonic.com

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