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Bhanu LG Vs ITS COMPETITORS ITS COMPETITORS

This document is a research report on a comparative study of LG Electronics and its competitors submitted for an MBA program. It includes an introduction outlining the objective to understand dealer, retailer, and consumer behavior regarding TVs, washing machines, refrigerators, and air conditioners. It also acknowledges assistance from others. The abstract previews that surveys were conducted with dealers, retailers, and consumers to compare LG's sales and brand perception to competitors like Samsung. It indicates the analysis will consider factors influencing consumer purchase decisions.

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0% found this document useful (0 votes)

313 views

Bhanu LG Vs ITS COMPETITORS ITS COMPETITORS

Uploaded by

Ali

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOC, PDF, TXT or read online on Scribd

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A

RESEARCH REPORT
ON

“COMPARATIVE STUDY
OF
LG ELECTRONICS WITH
ITS COMPETITORS
SUBMITTED IN THE PARTIAL
FULFILLMENT OF THE REQUIREMENT OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO SUBMITTED BY

CERTIFICATE
1
This is to certify that the project work done on the “Comparative Study of LG
Electronics with its competitors" is a bonafide work carried out by
under my supervision and guidance. The project report is submitted
towards the partial fulfillment of full time MBA Programme.
This work has not been submitted anywhere else for any other
degree / diploma.

Date:

2
ACKNOWLEDGEMENT

The project might have been outgrowth of my personal experience but it is

not a sole effort. It would be highly selfish to neglect the assistance of many
others whose experiences and advices helped me throughout the training
period.

I express my gratitude to and for giving

me the opportunity of getting acquainted with the organizational
environment. I express my deep gratitude for making it possible for me
to do my project training.

I am thankful to pay my sincere gratitude to my for his active interest,

encouragement and proper guidance without which it was impossible to
complete this task within the given span of time.

Finally, I am thankful to all those who have helped me directly or indirectly in

completing my project.

3
TABLE OF CONTENTS

1. ABSTRACT
2. INTRODUCTION
A. OVERVIEW OF CONSUMER DURABLE SECTOR
B. COMPANY PROFILE
C. FUTURE CHALLENGES AND TRENDS
D. OBJECTIVE OF STUDY
E. IMPORTANCE OF STUDY
F. LIMITATIONS OF STUDY
3. REVIEW OF LITERATURE
4. PROPOSED METHODOLOGIES
5. DATA ANALYSIS AND INTERPRETATIONS
6. RECOMMENDATIONS
7. REFERENCES
8. QUESTIONNAIRE

4
1. ABSTRACT

“All human actions have one of these seven causes: chance, nature, compulsion, habit,
reason, passion and desire”. As a human being the major cause to take over this project
was reason. The reason is to accomplish my task, aim, and motive of enhancing my
knowledge and to know more about the consumer durable industry. Consumer durables
have become inseparable in this era of modernization and thus influence even the
common men’s life. This is one of the fastest growing industry with an growth of about
8% every year. Invention and the launch of new technology is the most important tool of
this industry. To maintain the quality of products provided to the customers the
companies dealing in the consumer durable products has to undergo extensive study and
research work. This project work is a small attempt to understand the dealer, retailer as
well as the consumer behavior in regards to the Colour television, Washing machine,
Refrigerator & Air conditioners and to find out the position of LG Electronics among its
competitors.
This SIP project is being conducted on Consumer durables i.e. CTV, Washing Machine,
Refrigerator & Air conditioner for (LG Electronics India private limited), I am focusing
on Comparative Market and consumer behavior study of consumer durables of LG
vis-à-vis its competitors i.e. Samsung, Videocon, Haier, Bluestar in CTV, Washing
Machine, Refrigerator & A.C segment. For this, Survey was conducted with a set of
questionnaire containing the questions which helped in obtaining the desired information
from the dealers & retailers. In the next segment of study the consumers will be targeted
with a set of questionnaire for the desired information. Till date around 50 dealers and
Retailers were approached in the Noida and its neighboring districts. The information
was obtained through questionnaire. The copy of questionnaire is being attached with this
report. The method of personnel interview was also adopted for those who were
unwilling to give any information in writing. At present around 100 of such interviews
have been conducted keeping in mind the requirements of the survey being conducted.

5
2. Introduction

A comparative marketing study of LG Electronics vis-à-vis competitor’s(Samsung,

Haier, Videocon, Godrej ) in the area of Noida and Delhi……………

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to investigation” Research inculcates scientific and inductive
thinking and it promotes the development of logical habits of thinking and organization.

Research is a common parlance refer to a search of knowledge. The advanced learner’s

Dictionary of current English lays down the meaning of research as a careful
investigation or inquiry specially through search for new facts in any branch of
Knowledge.

What is comparative Marketing study? In comparative marketing research we take our

competitor’s products and make comparison through consumer with our own products.

Why Comparative Marketing study? Comparative marketing study/research comprise

one of the most important and fascinating task of marketing. It provides information for
marketing decision making, any problem that are identified and investigated further by
using problem solving techniques with the objective of arriving at solution. The most
important innovation in the new approach is to study simultaneously different
organizational forms of business interest representation. The aim of the study is to point
out the best (in this respect) among the alternatives that are being studied. The final
aim perhaps is not only to find the best, but also to improve it or similar objects later
on.
LG Electronics India Ltd. (LGEIL) is the youngest and fastest growing consumer durable
brand. Today, LGEIL is an US$ 1456 million behemoth, with a sprawling product range,
and market leadership in nearly all product categories.

6
The study will also include the survey which will be targeting about 20 dealers and
around 100 consumer in the NCR . The main emphasis in the survey will be given on the
sales of LG in comparison to its competitors in CTV, WASHING MACHINE,
REFRIGRATOR & AC segment, the consumer perception about the brand will also be
taken into consideration while conducting this survey.

The analysis of the buying behavior in respect to CTV, WASHING MACHINE,

REFRIGERATOR & AC will be another important component of my study. Buying
behavior of the consumer is a study of how individuals make decisions to spend their
available resources ( time, money & effort ) on consumption related items(what they buy,
why they buy, where they buy , how often they buy and use a product or service). The
heterogeneity among people across the world makes understanding consumer buying
behavior an intricate and challenging task. The consumers’ identity, his beliefs, specific
needs, attitudes and the kind of product and brand available in that product category
influence his buying behavior. The marketing efforts of a firm have a profound impact on
the buying decisions of customers. Therefore the attempt of my survey will be to obtain
an in- depth knowledge of the customers buying behavior.

The effect of external variables on purchasing pattern of customer will also be considered
here the external variables refer to all those factors which will be affecting the consumer
purchasing decisions, these can be price of the goods and on its attitude to respond to
functional needs. The critical variable under this approach is the availability of adequate
information about purchase alternatives (price, product functionalities) to support the
decisional process .

7
a. Overview of the Consumer Durable Sector
Background: Prior to liberalisation, the Consumer Durables sector in India was
restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas.
Together, they controlled nearly 90% of the market. They were first superceded by
players like BPL and Videocon in the early 1990s, who invested in brand-building and in
enhancing distribution and service channels. Then, with liberalisation came a spate of
foreign players from LG Electronics to Sony to Aiwa. The graph of top three consumer
durable giant is shown blow,

Both rising living standards, especially in urban India, and easy access to consumer
finance have fuelled the demand for consumer durables in the country. Also, the entry of
a large number of foreign players means the consumer is no longer starved for choice.
But this has also resulted in an over-supply situation in recent times as growth levels have
tapered off.

8
Major Players: The major players in the consumer durables industry, operating in
different sectors such as air conditioners, washing machines, refrigerators & television
include:
Blue Star Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation
Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd. &
Thomson Ltd.
Demand/Supply: The colour television (CTV) segment of the consumer durables
industry has been hit by stagnant demand in recent times. CTV manufacturers like BPL
and Videocon have effected price cuts while others have lowered production levels in the
face of rising inventories. They have also initiated drives to clear old stocks.

The results are mixed. For instance, demand for 14-inch CTVs was hit by the reduction in
the prices of 20-inch CTVs. Demand for larger sets (25 & 29 inch) has also slowed
because of the price factor. So companies like LG and Samsung are now expected to
reduce prices in the premium categories.

As for the other segments, air conditioner demand was up in recent months. In the case of
refrigerators, a chunk of the sales are still in the direct cool segment as against the frost-
free one, But replacement buyers tend to go for technologically improved models. Hence,
sales of frost-free refrigerators have grown steadily over a period of time.

9
The washing machine market consists of two broad segments - semi-automatic and fully
automatic. The first accounts for a chunk of the market. In terms of loading type, top
loading machines sell in greater numbers than front-loading ones.

CONSUMER DURABLES MARKET PIE IN FY06

10
b. LG Electronics: Company Profile

It started as a big dream in small town of the north Indian state of Utter Pradesh -----a
township by the name of Greater Noida.

Back in 1997, it was just a piece of wilderness. Nobody, least of all the owner of a
fortune 500 company would have dared to choose it as a canvas to script a transnational
corporation’s success story in India, but, then, LG, if you go into the history of the seoul-
based company that has footprints in nearly all parts of the glove, is a different kind of an
entity altogether.

LGIL has competition yet it has managed to become one of the most admired companies
in India though innovation.

(The economic times 12 jan 2001)

LGEIL-THE NEXT INDUSTRIAL GIANT: LGIL is youngest and fastest growing

consumer durable brand. LG at the no. one slot is targeted to end the year with a turnover
of us$ 1.5 billion. After China, LG plans to make India its second largest manufacturing
hub. Today, LGIL is an US$ 1456 million behemouth, with a sprawling product range,
and market leadership in all product categories. The Indian operation of LG Electronics
in fact rank among the best three in LG Electronics world-wide.

To be sure, life was not always this good for LGEIL. The mud trail that led us to plot
no.51,Uydyog Vihar, Surajpur Kasna Road in Greater Noida was strewn with massive
potholes and road blocks

Before 1997, LG had made two concerted attempts at penetrating the Indian market.
Unfortunately, both met with miserable failure. The first was in the form of a joint
Venture with Bestavision and second a JV with a Birla Group company. For several
unaccountable reasons, both the attempts came to a naught and talks petered off as
quickly as they had started.

11
They came a vital policy shift. The Government of India liberalized its economic policy
and allowed transnational corporations to set up shop in India. One of the first to respond
to this invitation was LG-Korea, a corporation that strait took the dive and this time made
the strategic decision of setting up a 100 per cent subsidiary of the Korean company in
India. This time, it did not need the support of any partners.

In March,1997, K R Kim who was the serving in panama was called to India to spearhead
the Indian operations. However no sooner was the announcement made that the business
magazine and newspapers in India started to write us off predicting a bleak future for the
company. Some went started to write us off predicting a bleak future for the company.
Some went so far as to forecast our premature demise mainly because of our earlier,
failed attempts at breaching the Indian turf. A few industry watchers also felt that our
timing was bad, as the consumer durable market in India was already saturated with
indigenous and global players, leaving no room for another entity; worst a foreign one at
that.

LGEIL-OF, BY AND FOR INDIANS : The unchallenged trend those days at most
transnational corporations was that expatriates manned all crucial functions. All the
policies were formulated at the headquarter and then unquestioningly executed at the
various branch office. This left very little elbow room for local managers to maneuver
things at their end. Consequently, none of these initiative factored in local considerations
leading to huge disconnect between what the local consumer wanted and what the
corporate office though they wanted!

In contrast, the LGIL story in India got scripted very differently from this, as it bore a
strong local imprint. In retrospect, I think, it must have made for a bold, cultural strategy
implemented with lot of internal conviction.

The strategy got vested in three crucial decisions, which have now entered into the very
fabric of our organizational cultural. Briefly, the three decision were:

1. Indian employees would be appointed as the key decision makers at LGEIL. The role
of the Foreign Service Employees (FESs) would at best remain limited to that of

12
facilitators, which implied that they would co-ordinate with LG korea and provide
expertise, where needed.

2. The head of Human Resources division and the head of Sales & Marketing division
would always be Indians.

3. The Head of Manufacturing and the Head of Finance and Accounts would be FSEs but
even they would be assisted by Indian managers: who would provide key support to these
functions.

These decision became the cornerstone of LG’s operational strength in India the evident
of which can be found in the following statistics :

 From a turnover of US$ 31 million in 1997, it went to US$ 583 million in 2002
and further to US$ 1456 million in the last financial year 2005
 Our headcount, meanwhile has grown from 402 in 1997 to 2900 in 2005
 In just over five-six years, we have shot to NO#1 in the rerfrigrators (29,4 per
cent market share); and No#1 in washing machine (30% market share) No#1 in
microwave oven(36.7% market share ) products category and No#1 in the air
conditioner (34% market share )

LGEIL POLICIES :
 SETTING PRECISE TARGETS: How a Korean company managed to outsmart
its foreign and Indian rivals is a story about culture change. Like the other Korean
companies that have been successful in India- Samsung and Hyundai, India’s no -
2 car producer. LG had good products and smart marketing. But LG went further
by challenging Indian work habits……negative management traits, such as
ducking challenges and tolerating excuses, Indian work habits….. negative
management traits such as duckling challenges and tolerating excuses, are
overcome with bonus schemes that can add 80% to salaries Employee are
assessed against precise targets.

13
 BENCHMARKING AGAINST THE BEST: Around this time, we had also
begun to realize that any exercise at setting up a KPI system was incomplete
without benchmarking our parameters against the best in the industry. We also
discovered that most companies hired external(read foreign ) consultant to handle
this job that not just charged an exorbitant fee, but also took six-seven months’
timeframe to accomplish y task, next year, use X/2 resources to accomplish y, or
better still 2y tasks. Sounds impossible? But we know the system works.
 THE “PUSH” AND THE “PULL” STRATEGY: from the word go, LGIL has
had a very strong customer and sales-driven ideology. Dub is as a strategic
balance of the push and pull factors. The push came from the loyal customers. To
reinforce this vision, we made it a customary practice that any LGEIL executive,
visiting any city or branch had to first do field visit of the local market and
experience the market first hand. There were no two ways about it. The feedback
had to come straight, honest and delivered direct to each one of us. This requires
that every LG brands ambassador had to meet a few local dealers/distributors and
sell one or two products over a direct interface with the customers. Later at the
corporate managers meeting, they had to make a presentation and be quizzed on
what values customers looked for in LGEIL products could be sent back to the
R&D.
 POLICY ON PRICE CUT: LG has also shaken things up on the marketing side.
It has driven prices down by 18% to 20%. Over the past two years LG has
steadily increased distribution outlets and the breadth of products ranges
 STRONG AND SPEEDY EXECUTION: Strategy planning, as reiterated
above, has always been a dynamic process at LGEIL, and, Prompt execution our
hallmark.This bring prompt execution our hallmark. At LGEIL,execution also
became strong because we genuinely empowered our employees and held them
accountable for their, as well as the company eventual progress.This also
generated a strong sense of ownership in them. And secondly passion and positive
energy kept their emotional involvement high at all times. They were
experiencing a start-up environment, which always bring out the best in
everybody while simultaneously honing their survival instincts.

14
PRODUCT DIVERSITY : LGEIL had a strong portfolio of products, viz CTV, air
conditioners, washing machines, refrigerators and microwave ovens, to name just a few ,
from the very beginning, we were among the few , front- running consumer durable
companies in India to command such a vast array of products. The benefits is that even if
one or two are not performing very well in the market there are others to tide us through.
In fact, there is always one product that remains on at any point of time in the year, so
there was never a rainy season.

RURAL MARKETING : By the year 2000-2001, LGEIL had a strong presence through
the length and breadth of the country. We were dong ewll in almost all metropolitan
cities, especially in the northern and eastern belts of the country although we still had
some catching up to do in the south and west

This was achieved in 2002-2003, when LGEIL emerged as the undisputed market leader.
Yet, it was hardly the reason to sit on our laurels. The problem of further growth had to
be addressed and there was this pressing need to explore and find new markets. In the
metros, although we were doing pretty well the cost of selling was too steep to enable us
to cut good profits as our competitors were also focused on developing just these
markets.

DUAL MARKETING: As would be clear from the preceding discussion, so far, we had
only incurred cost and made little profit in executing all these expansion plans so now
was the time to reap the fruits of our earlier labour and the only acceptable way of doing
that was without compromising on the quality factor. That left just one option nip corner
at the cost end.

Since this was also the only route that would not have diluted the perception of the
premium of the premium brand, the corporation started making serious efforts at cutting
cost through product innovation. A portion of even these saving we intended to pass on to
the Indian customer.

15
In short, our endeavour was to try and improve our market share without denting our
profitability. We had already reduced our overheads by increase capacity. Now the next
logical steps was to attack the cost end of our production.

This LGEIL concept that was later lauded by McKinsey as Premium marketing to the
masses and was communicated to the customers in the form of a strong marketing
campaign more value at much less than the price!

With this done, the affordability of our products became the bulwark of all our marketing
campaigns. This strategy caught our competitors in the form of a strong marketing
campaign. A few reacted by announcing price cuts of their own their own, not realizing
that LGEIL was not just cutting prices we were also focusing strongly on cost innovation
at our end. So while their price cuts led to more losses and pressures on cost, ours led us
to more customers and increased profitability in the end, with this simple strategy, we
managed to kill two birds with one stone.

Some of our competitors later saw through our game plan, but by then it was too late for
them to follow suit and in any case, they still hadnot unravelled the full strategy, which
was not to cut prices uninformly across the country, but stagger them across different
segments

Very cleverly while we were launching premium products in different categories we were
also varying our pricing strategy from state to state that kept competition guessing and on
tenterhooks all the while. I remember how one MNC sought to hike its subsidy from the
parent company simply to counter our prices strategy, at the core of which lay simple
fiscal discipline measure that they too could have followed but probably couldnot
because of lack of focus or strong execution.

Time and efforts were both in our favour. And the rest as they say is history.

16
LGEIL-ORGANISATIONAL STRUCTURE

CEO
Expatriate- Korean

VP
VP
VP VP (Finance &
(Manufacturing
(Human Resource) (Sales & Marketing) Accounts
Expatriate- Korean )
Expatriate-Korean)

GM GM
Manufacturing Manufacturing

As it is clear from the figure Except for the CEO, VP-Manufacturing and VP-finance &
Accounts, all other position were held by the Indians.

This kind of people planning was deliberate and the result of a carefully 1thought-out
strategic intent, initially, when we recruited people, we took them in their respective area
of expertise, but onse the company stabilized, we started rotating them as per their
request, inclination, acquired skills and expertise.

STRONG EMPLOYEE FOUNDATION : the enormous speed at which LGEIL grew

in those days would possible without logical and rational system. The management knew
they had to do something remarkable different from competition. So we set about
recruiting people, who among other things, were perceived to be high on:

17
 Physical energy
 Emotional energy

Next, they were provided with:

1. a big vision
2. Melt-ins so that all decisions could be made by consensus and nothing got
unilaterally imposed on any one
3. each was given absolute freedom within certain pre-defined parameters and held
accountable for results.

Meanwhile, the tools that the employees were encouraged to use mainly comprised of;
1. creating total transparency relating to the company’s performance including a
discussion of sensitive issue , such as profitability
2. Sharing with them news and details of the future line-up of our products
3. Showing genuine respect and acceptance of everybody ideas and suggestions
4. Resposing total trust and faith in their intention endeavours and capabilities
5. Building strong communication links (these details are discussed in a later
chapter )
Proactively sorting out employee grievances, even when immediate solutions were
not within as issue went beyond the scope and policies of the originations

LGEIL : LOGO Any attempts at understanding LG would be incomplete ,without

understanding LG Logo: Life is Good. Our vision, our corporate philosophy and our core
values are all encapsulated in this simple logo. The circle in the logo represents the globe,
i.e. the full reach or our aspiration to emerge as a global company. It also implies the face
of a smiling customer, conveying that we are extremely customer-focused, or that we
represent a world that is futuristic youthful and humane.

The bull’s eye on the circle represent the organization ‘s single minded focus on goals
and determination to achieve results with a smile. The white space deliberately left at the
upper right end stand for of creativity. The red color conveys friendliness and LG’s
commitment to quality, while the gray stands for technology and reliability.

18
Products or other exterior manifestations of a company to my mind do not reveal its true
character which is manifest in its value system, practiced philosophies and accepted
norms. Products people system are all outcome of this core value system and this is what
the LG logo conveys.

LGEIL is like a gushing, turbulent river, cascading at full length and speed from a rugged
mountain. A powerhouse of raw energy, it resounds unilaterally but at times collide head
on with each other but that is ok,so strong bulwarks on either direction to contain all the
roaring action of mightly river.

LG Electronics : vision

LG Electronics vision for the 21st century is to become a true global digital leader
through fast growth and fast innovation and to be known as a company who can make its
worldwide customers happy through its innovative digital products and services. LG
Electronics has set its mid-term and long-term goal to rank among the top 3 electronics,
information, and telecommunication firms in the world by 2010. We aim to utilize our
core capabilities of product leadership, market leadership and people leadership and
enhance our corporate culture of team work and fun workplace to achieve our mission of
becoming "2 by 10", that is, double our sales volume and profit by year 2010.

LGEIL – Product Portfolio

Flat Panel Refrigerator Washing

GSM IT Products Televisions
Display s Machine

Air Microwave Vacuum Digital

Conditione Ovens Cleaner Audio / Video

19
r
Internal Culture

As we all know requirement of trained and experienced Professional with the desired
mindset is the need of the hour for any Organization to Survive and Grow in this
competitive environment.

To cope with the growing expectations of business and in order to give the organization a
competitive edge to the business we in LG have streamlined the whole system by
integrating the HR fundamentals with Information Technology and have adopted some
practices unique to LG.
LG as a brand and a market leader in India attracts candidates in hordes and its Industry
leadership status serves as a major factor in attracting employees. Therefore LG has the
ability to hire the best in the industry.

Once these candidates are hired, they undergo and exhaustive induction programmed for
duration of 14 days under which the candidate is acquainted which each and every aspect
of the organization. A thorough integration with HR & Business Processes takes place
and the formulation of a KPI is done within three days of taking the candidate onboard.
Customer Department/Vendor Department interaction also takes place.

LG as an organization takes pride in the fact that they have the highest manpower
productivity and the lowest manpower cost in comparison to the industry. Infect LG is
benchmarked in terms of manpower costing.

20
Employees are given a chance to visit Korea on completion of...years in LG. Apart from
this LG also has a family ambassador programme where a dedicated mentor goes to the
workers house and talks to his family, their problems etc. and tries to make their
Situation better. All workers are served lunch along with the other senior employees so
that no demarcation is made. Infect lunch is first served to workers and then to the white
collar employees. On the first Monday of every month the workers meet the MD and 50
workers amongst of them get awards for outstanding performance.

Corporate Social Responsibility (CSR):

With the advent of globalization in India, the concept of Corporate Social Responsibility
has emerged as one of the most important aspects of corporate behavior. Acknowledging
this responsibility is crucial for an organization's sustainable development and future
access to the global market. A definite corporate social responsibility(CSR) plan has
therefore not only become an integral part of an organization's brand building strategy,
but has also emerged as an important tool to enhance the organization's credibility, attract
potential investors and clients and employ the best of industry talent.

As a leading corporate in India, we at LG believe that corporate contribution to society

when guided by self-interest results in long term goodwill building, and have therefore
endeavored to assume responsibility for the needs of its people, the environment and the
society. We have consistently looked beyond its immediate business environment to
address larger societal issues. This concern springs from the belief that a true corporate
vision must embrace the wider community rather than just shareholders, customers and
suppliers. At the same time, there is nothing idealistic about LG's CSR vision, nor is it in

21
conflict with hard-headed business sense. It is purely an understanding on LG's part that
the time, resources and in-house professional expertise invested in social development
projects pay rich dividends to the company and the communities in which it operates.
Therefore at LG the message is clear: creating profits can and should go hand-in-hand
with generating goodwill.

A slew of numerous initiatives have been undertaken by LG ever since its inception in
India. The company has been actively involved in providing social benefits to the
disadvantaged sections of the society. We also have a focused plan for providing health
services to the under privileged children, undertake animal health care and enhance
professional skills of the unemployed youth.

LG India has worked jointly with Prayas, a Delhi-based NGO by undertaking

campaigns / activities for the welfare and upliftment of Underprivileged Street and slum
children and providing those services in the field of education, health care, shelter,
vocational training and other rehabilitation programmes. The company also tied up with
HELPAGE India, the country's largest voluntary organization working for the cause and
care of disadvantaged older people.

LGEIL also takes care of 24 villages around Greater Noida out of which six have been
adopted formally. The company has on its pay roll three doctors who visit these villages
daily and offer Free Medical Care, which comprises of free check ups and a free
distribution of medicines.

22
LG's commitment to contribute substantially to the community led to the formation of the
'Tinkha,' a community development club consisting of 10 people. It recently organized
Blood Donation Camp where 172 employees donated blood in one day.

c. Future challenges and trends

Companies like LG Electronics are exploring the online route to grow their business. It
plans to connect around 1,700 direct dealers and distributors to its recently launched B2B
portal, www.lgdealernet.com as part of its drive to become an integrated online business
undertaking by the end of 2003.

In the CTV segment, a number of new and innovative products are being launched.
Technological upgradation and pricing are the key drivers in this highly competitive
market.

Even in the case of washing machines and refrigerators, new models are being developed.
In refrigerators, companies like Electrolux (which has four established brands in
Electrolux, Kelvinator, Voltas and Allwyn) are specially targeting high-end consumers.
The demand for fully automatic washing machines is expected to increase over semi-
automatic ones. Also, second-time buyers are likely to go in for larger machines.

Research and development is expected to be a key issue in future as players try to keep
pace with changing consumer preferences and expectations as well as the ever-growing
competition

23
d. OBJECTIVES OF THE STUDY

The consumer durable market has grown considerably in last few years in India. With the
growth, the level of competition has grown with the entry of new players & existing
players expending their product portfolio. Literally every day companies come up with
new attractive offers to grab the better share of the market. The challenge is not only to
get the new customer but also to continue with the existing customers.

The objectives are :

1. Identify the Dealer as well as Consumer perception about the LG products with respect
to its competitor.

2. To suggest some differentiating strategies like (Product differentiation strategy,

Price differentiating, Service differentiating, Channel Differentiation) to stay ahead in

competition

for LG .

3. To identify the factor affecting the purchasing decision like

(price,promotion,Advertising)

4. To identify the aesthetics and USP’s of other competitive brands.

24
e. Importance of Study

As far as the topic Comparative Marketing Study of LG Electronics vis-à-vis its

competitor is concerned, The project study follow Consumer as well as Dealer perception
(attitude) Toward LG products (CTV, Refrigerator, AC, Washing Machine) with respect
to other competitor products.
In this study the research work is to find out the Strengths, Weakness, Opportunities and
Threats (SWOT) Analysis of LGEIL and this will help LG to improve its weak areas.
These are mention blow-
1. Display Share Tracking: Display share tracking helps us to find out these
information

1.1 It helps to reveale potential demand of each product.

1.2 With the help of display tracking we can find out the highest selling product
and lowest selling product in the market.

1.3 It helps in tacking decision during the line expansion and line pruning.

2. Consumer perception: This is done with the aim of capturing the true words and
emotions of consumer, and in turn using this information to improve or developed
products or to determine people attitude toward the products.

2.1 It helps company to get feedback from consumer.

2.2 It prevents the undervaluation of competitor and we can find the strength
and Weakness of our products
2.3 This helps us to stay ahead in competition.
2.4 It encourage value creating investment.
2.5 It help in maximizing the consistency of value creation.
2.6. Measuring performance
2.7 It helps us for market share analysis.

So as to conclude I can say this study is more suitable for LG to compete and survive
in global market.

25
f. Limitations of the study:

1. The study was limited in its scope because of the relatively short time available (Three
months ) for completing the whole study including literature survey, development of
hypothesis, collection of data, analysis of data and writing the draft report. Due to
constraints of time and opportunity, the sample for the study had been collected from
Chandigarh and Mohali from few selected dealers. For the sake of simplicity few variable
were taken into account

2. The Data which has been collected from the Dealer and Consumer might not be very
correct to tack strategic decision as they may hide a lot of information

3. Lack of interest in giving responses by Dealer and Consumer.

4. The sample size which I have taken is too small to make a universal statement.

5. The final conclusion can be affected by some of the extraneous variables like

Promotional offer and new launch of product.

6.Lack of sufficient information about the company because we cannot access

confidential data of company.

7. Lack of the instruments to find out the reasonable outcome.

8. Lack of proper experience.

9. Though the study will represents the position of LG in Chandigarh and Mohali. Due to
small sample size, the finding may not be a true representative and it cannot be
generalized. However it will provide a good base for future study and may have wider
application in future.

26
3. Review of Literature

While Research on consumer durable is extensive in developed countries, Little has been
done in this area in developing economies. Consumer durable sector in India is not
mature enough and its having huge opportunities so companies are concentrating on
advertising and promotion.

Research which has been conducted by Business world at national level in year(2007) in
major Cities i.e. Bombay, Bangalore, Calcutta, Chennai and Delhi. The aim of the survey
was to find out the market leader in CTV, Washing Machine, Refrigerator and AC
Segment. The survey was conducted through structured questionnaire followed by
personal interview. The Research brings out one point very sharply: there is no single
brand that has managed to delight customers in all the categories. A brand may excel in,
say, refrigerators, but turn in a sub-par performance in another catagory like air-
conditioners.

The second important finding is that the difference between the best and the also-rans
has narrowed even more. The difference between the topper and the number four or five
in any category is mostly in single digit percentage points.

Finally, the survey also brings out how companies have excelled in one area of product or
service delivery, only to falter in another. There are brands which score extremely high
on product quality - but fall way behind in complaint management. And vice versa.
Check out the category tables (page 48 to 57) to get a handle on how each brand fares on
each parameter.

And now for some of the other findings. Almost two-thirds of the customers rate the
durable brands they own as excellent or very good. This phenomenon is common across
all categories. By and large, customers in Mumbai and Chennai give high ratings to the
brands they own. However, customers from Bangalore are significantly more
circumspect.

27
4. Proposed Methodology:

a. Research Design: Exploratory research study

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. The method of research utilize in exploratory research are survey methods of
all kinds, including comparative and co relational methods. My research is comparative
in nature so I am using exploratory research study

b. Method of Data collection:

In order to study the consumer perception regarding the uses of LG Products with
respect to other companies :- Samsung, Videocon, Haier in NCR, both primary and
secondary data has been collected.

 The study proposed to collect Primary data through questionnaire using survey
method. So as to give a precise, accurate, realistic and relevant data.
 The secondary data as it has always been important for the completion of any
report provides a reliable, suitable, equate and specific knowledge. The data is
collected from various magazines, fact sheets newspapers and websites
published by the company.

c. Sampling Technique: The study proposed to use convenience sampling.

This sampling methods involves purposive or deliberate selection of particular unit of the
universe for constituting a sample which represents the universe. In this research I will
secure data from consumer durable buyers which are homogeneous in nature.

d. Sample Area: In order to study the consumer perception as well as dealer perception
of LG products with respect to its competitor, the data for the study has been collected
through a survey of people residing in NCR.

28
e. Sample Size:

Consumer sample size: 100

Dealer sample size: 20

f. Statistical Technique: The data is analyzed uses percentage, Ranking and analysis of
variance (ANOVA) method and finally shown with the help of BCG metrics. The
respondent in Consumer questionnaire was asked to indicate their preferences on a five
point -Likert Scale. They were asked to choose among the option Excellent, Very Good,
Good, Poor and Very Poor regarding various statement. The data was processed and
analyzed using means, standard deviation and f-value to present the result of the study.

g. Proposed Questionnaire:
Questionnaire for Consumer: It consists of data pertaining to the activities, interests and
opinions relating to purchase behavior, socialization, brand opinion and the like. A five-
point scale ranging from 1 – strongly disagrees to 5 strongly agree is used.

Parameters measuring the consumer perception are

 Price
 Packaging
 Product Features
 Brand name
 Quality
 Design
 Durability
 After sales service

29
Questionnaire for Dealer: The questionnaire for dealer has been used to find out
following facts

 How many brands products a dealer is selling.

 How many models of each brand they are displaying.
 Highest selling brand of each company
 Level of preference of LG with respect to other brands.
 Is customer is ready to pay premium price or not.
 The parameters on which consumer makes his purchase decision
 Annual estimated sales
 Dose customer come with prior knowledge/information about the product or not
 What is the most acceptable size of these products CTV, AC, Refrigerator and
Washing Machine
 What are the different complaints faced by the consumer

30
5.Data Analysis and Interpretation

An attempt has been made to compare the four consumer durable brands namely LG,
Samsung, Videocon and Haier, I had picked up four different product categories - frost-
free refrigerators, Colour televisions of 21" or bigger size, air-conditioners, and washing
machines, by understanding the perception of 100 Consumers and 60 Dealers, So as to
conclude which consumer durable brand is more suitable to compete and survive in the
global market.

The survey hasn't merely measured the customer satisfaction for different brands but has
actually ranked brands on the basis of customer delight. The difference is simple. Almost
every big brand in the market today meets a certain threshold level of product and service
performance. But certain brands exceed customer expectations. These are the brands
which delight the customer, not merely satisfy him

DEALERS SURVEY ANALYSIS

a. Intorduction
In order to understand dealers’ perception about consumer behavior towards purchase of
refrigerators, ctv, washing machine and ac a survey was on dealers. The survey was
conducted on small scale. Due to time constraint, survey was conducted on 15 dealers of
each products.rs.
The data collection instrument was a questionnaire which consisted of 14 questions on
each product and which measured different attributes
b. Analysis of Survey<Refrigerators>
b1. How long are customers in the retailing of refrigerators? (Please Tick)

31
Response:

ATTRIBUTES NO. OF % AGE OF

RESPONDENTS RESPONDENTS

< 1 Year 2 10
1 < 2 Year 4 20

2 < 3 Year 6 30

3Years or 8 40
Above

NO. of RESPONDENTS

8 4

< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of refrigerators. As can be seen from the pie chart that 60% of the dealers
have been in retailing of refrigerators for than 3 years and 40% have an experience more
than 2 yrs but less than 3yrs same i.e. they have been into this business for more than 2
yrs but less than 3yrs. Similar 20% of respondents fall in the category of more than 1yrs

32
but less than 2yrs. While 10% of the total respondents have been in the retailing of
refrigerators for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors
B2.. Which of the following brands of refrigerators, You are dealing in? (Please
Tick)

Response:

BRAND NO. of % age of

RESPONDENTS respondents
LG 19 93.33
Haier 11 76.67
Samsung 17 86.67
Videocon 13 76.67
Any Other 10 36.67

The above given graph tells us how frequently respondents (dealers) deals in above given
brands of refrigerators. 93.33% of dealers are preferred to deal LG brand while 37% of
dealers are preferred to deal with other brand (BPL, Allwyn etc.). Samsung is second
most brand preferred by dealers.

33
As we can see from the graph that Samsung, LG, Videocon are most likely brand among
the dealers whereas Godrej, BPL, Allwyn are less preferred by dealers than other brands.
B3.. To what extents, following brands of refrigerators are preferred by
customers?
(Mark the appropriate preference level by ticking against respective brand)

Response:

Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0

ATTRIBUTES RESPONSE PREFERANCE

LEVEL
LG 17 3.56
Samsung 14 3.47
Haier 12 2.70
Videocon 17 3.17

Brands of Refrigerator prefered by customer

0
LG Samsung Haier Videocon

RESPONSE Preference LEvel

34
graph that LG is first preference by the customers followed by Samsung that is second
most preferred by customers. While Haier is less preferred by customers.

B4. Please rank each of the following features from 1 to 5 on the basis of their
importance to customers.
Rank 1= the most importance feature
Rank 5=the least important feature

Feature Rank Order

a) Space _________
b) Front Door Design _________
c) Cooling Effect _________
d) Colour _________
e) Brand Name _________

At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00

36
Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit At Second Visit At Third Visit Any Other

This chart tells us about the customers’ willingness towards purchase of refrigerators. As
can be seen from the pie chart that 60% of the dealers said that customers finalize that
their decision towards purchase of refrigerators in first visit to showroom and 33% of
dealers said customer does second visit while 7% of dealers said customers need third
visit to finalize their decision.
B7. Does customer come with prior knowledge/information about particulars
brands of refrigerator?
a) Yes  b) No 

Response:

ATTRIBUTES NO. of DEALERS

Yes 54
No 46

37
Prior Knowledge/Informations

46%

54%

Yes No

As above pie-chart tells us about prior knowledge about refrigerators among the
customers. As we can be seen from the pie chart that 54% of dealers say that customers
come with some information or knowledge about refrigerator while 46% of dealers say
that customers doesn’t have prior knowledge about refrigerators.
B8.. When customers mostly visit customersr showroom for buying refrigerator?
a) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

Response:

Attributes No. of DEALERS

During Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00

38
Customer Mostly Visit Showroom

0%
27%

50%

23%

Exchange Offer Gift Option Discount Offer Any Other

B9.. What is the most acceptable size in refrigerator now days?

a) 165 L  e) 365 L 
b) 210 L  f) 410 L 
c) 310 L  g) 600 L 
d) Any Other (Please Specify) ___________________________

Response:

Attributes No. of RESPONSE AVERAGE SCORE

165 L 20 0.67
210 L 21 0.70
310 L 21 0.70
365 L 11 0.37
410 L 11 0.37
600 L 06 0.20
Any Other 00 00

39
Acceptable Size in Refrigerator

0.8
0.7
0.6
Average Score

46%

54%

Yes No

As above pie-chart tells us about prior knowledge about CTV among the customers. As
we can be seen from the pie chart that 54% of dealers say that customers come with some
information or knowledge about CTV while 46% of dealers say that customers doesn’t
have prior knowledge about CTV.
C7. When customers mostly visit customersr showroom for buying a CTV?
b) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

Response:

Attributes %age of DEALERS

During Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00

46
Customer Mostly Visit Showroom

0%
27%

50%

23%

Exchange Offer Gift Option Discount Offer Any Other

C8. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)
e) Television ________ e) Radio ________
f) Newspapers ________ f) Magazines ________
g) Pamphlets ________ g) Internet ________
h) Trade Shows ________

Response:
Attributes Rank
Television 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07

47
C9. Please rank each of the following” modes of payment” from 1 to 5 opted by
customers.
Rank 1 = the most adopted mode of payment
Rank 5 = the least adopted mode of payment

Modes of payment Rank

f) Cash in Full _________

g) Installments Through _________
Cash
h) Cheque _________
i) Installments Through Cheques _________
j) Credit / Debit Card _________

Response:

Attributes Rank
Cash in Full 1
Installments Through Cash 3
Cheque 4
Installments Through Cheques 2
Credit / Debit Card 5

48
d. Analysis of Survey<AC>
d.1. How long are Dealer in the retailing of AC? (Please Tick)

Response:

ATTRIBUTES NO. OF % AGE OF

RESPONDENTS RESPONDENTS
< 1 Year 2 10
1 < 2 Year 4 20
2 < 3 Year 6 30
3Years or Above 8 40

NO. of RESPONDENTS

8 4

< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above

This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of AC. As can be seen from the pie chart that 60% of the dealers have been in
retailing of AC for than 3 years and 40% have an experience more than 2 yrs but less than
3yrs same i.e. they have been into this business for more than 2 yrs but less than 3yrs.
Similar 20% of respondents fall in the category of more than 1yrs but less than 2yrs.
While 10% of the total respondents have been in the retailing of AC for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors

49
D2.. To what extents, following brands of AC are preferred by customers?
(Mark the appropriate preference level by ticking against respective brand)

Response:

Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0

ATTRIBUTES RESPONSE PREFERENCE

LEVEL
LG 17 3.85
Samsung 14 3.47
Haier 12 2.7
Videocon 17 3.17

RESPONSE

LG
Videocon

Sony Samsung

The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that LG is first preference by the customers followed by Samsung that is second
most preferred by customers. While Haier is less preferred by customers

50
D3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank

o Price ……..
o Packaging .…….
o Product Features …….
o Brand Name …….
o Product Quality …….
o Product Design . ……

Parameters Rank order

Price 1
Packaging 6
Product Features 4
Brand Name 3
Product Quality 2
Product Design 5

D4. At which visit, customer generally finalize his/her decision for buying a AC?

Response:

Attributes No. of DEALERS

At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00

Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit At Second Visit At Third Visit Any Other

51
This chart tells us about the customers’ willingness towards purchase of AC. As can be
seen from the pie chart that 60% of the dealers said that customers finalize that their
decision towards purchase of AC in first visit to showroom and 33% of dealers said
customer does second visit while 7% of dealers said customers need third visit to finalize
their decision.
D5. Does customer come with prior knowledge/information about particulars
brands of AC?
f) Yes  b) No 

Response:

ATTRIBUTES %age of DEALERS

Yes 54
No 46

Prior Knowledge/Informations

46%

54%

Yes No

As above pie-chart tells us about prior knowledge about ACamong the customers. As we
can be seen from the pie chart that 54% of dealers say that customers come with some
information or knowledge about AC while 46% of dealers say that customers doesn’t
have prior knowledge about AC

52
D6.. In which season, customer mostly purchase AC? (Please Tick)

Response:

Attributes No. of Dealers

Off Season
16
Summer Season
84
Any Other
00

Season in Which Customer Mostly Purchase Refrigerator

0% 16%

84%

Off Season Summer Season Any Other

As above pie-chart tells us about in which season customer mostly purchase AC i.e. in
which season most of the sales happen. As we can be seen from the pie chart that 84% of
dealers say that customers purchase AC in summer while 16% of dealers say that
customers purchase refrigerators in off season.

53
D7. When customers mostly visit customersr showroom for buying a AC?
c) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

Response:

Attributes %age of DEALERS

During Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00

Customer Mostly Visit Showroom

0%
27%

50%

23%

Exchange Offer Gift Option Discount Offer Any Other

54
D8. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)
i) Television ________ e) Radio ________
j) Newspapers ________ f) Magazines ________
k) Pamphlets ________ g) Internet ________
l) Trade Shows ________

Response:

Attributes Rank
Television 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07

D9. Please rank each of the following” modes of payment” from 1 to 5 opted by
customers.
Rank 1 = the most adopted mode of payment
Rank 5 = the least adopted mode of payment

Modes of payment Rank

k) Cash in Full _________

l) Installments Through _________
Cash
m) Cheque _________
n) Installments Through Cheques _________
o) Credit / Debit Card _________

55
Response:
Attributes Rank
Cash in Full
1
Installments Through Cash
3
Cheque
4
Installments Through Cheques
2
Credit / Debit Card
5

e Analysis of Survey<Washing Machine>

e1. How long are Dealer in the retailing of Washing Machine? (Please Tick)

Response:

ATTRIBUTES NO. OF % AGE OF

RESPONDENTS RESPONDENTS
< 1 Year 2 10
1 < 2 Year 4 20
2 < 3 Year 6 30
3Years or 8 40
Above

NO. of RESPONDENTS

8 4

< 1 Year 1 < 2 Year 2 < 3 Year 3Years or Above

56
This chart tells us about the work experience of dealers i.e. for how long have they been
in retailing of Washing Machine. As can be seen from the pie chart that 60% of the
dealers have been in retailing of Washing Machine for than 3 years and 40% have an
experience more than 2 yrs but less than 3yrs same i.e. they have been into this business
for more than 2 yrs but less than 3yrs. Similar 20% of respondents fall in the category of
more than 1yrs but less than 2yrs. While 10% of the total respondents have been in the
retailing of Washing Machine for less than 1yrs.
This particular aspect was considered in the research because after knowing about the
work experience of different dealers we can interpret the kind of perception about
customer behaviors
e.2. To what extents, following brands of Washing Machine are preferred by
customers?
(Mark the appropriate preference level by ticking against respective brand)

Response:

Very High -4, High – 3, Low – 2, Very Low – 1, Nil – 0

ATTRIBUTES RESPONSE PREFERENCE

LEVEL
LG 14 3.56
Samsung 17 3.47
Sony 12 2.7
Videocon 17 3.17

RESPONSE

LG
Videocon

Sony Samsung

57
The above given graph gives us the information regarding the preference level given to
different brands by customers with preference level of ‘0’ for the brand that is not
preferred, ‘1’ standing for the brand that is preferred by less customers while ‘4’ and ‘3’
standing for that brands which are most likely by customers. As we can see from the
graph that Samsung is first preference by the customers followed by LG that is second
most preferred by customers. While Haier is less preferred by customers
e.3. What are the parameters on which consumer makes his purchase decision?

Parameters Rank

o Price ……..
o Packaging .…….
o Product Features …….
o Brand Name …….
o Product Quality …….
o Product Design . ……

Parameters Rank order

Price 1
Packaging 6
Product Features 4
Brand Name 3
Product Quality 2
Product Design 5

E4. At which visit, customer generally finalize his/her decision for buying a
Washing Machine?

Response:

Attributes No. of DEALERS

At Fist Visit 60
At Second Visit 33.33
At Third Visit 06.67
Any Other 00

58
Visit In Which Customer Finalize their Decision

7% 0%

33%

60%

At First Visit At Second Visit At Third Visit Any Other

This chart tells us about the customers’ willingness towards purchase of Washing
Machine. As can be seen from the pie chart that 60% of the dealers said that customers
finalize that their decision towards purchase of Washing Machine in first visit to
showroom and 33% of dealers said customer does second visit while 7% of dealers said
customers need third visit to finalize their decision.

59
E5. Does customer come with prior knowledge/information about particulars
brands of Washing Machine?
g) Yes  b) No 

Response:

ATTRIBUTES %age of DEALERS

Yes 54
No 46

Prior Knowledge/Informations

46%

54%

Yes No

As above pie-chart tells us about prior knowledge about Washing Machineamong the
customers. As we can be seen from the pie chart that 54% of dealers say that customers
come with some information or knowledge about Washing Machinewhile 46% of dealers
say that customers doesn’t have prior knowledge about Washing Machine.

60
E6. When customers mostly visit customersr showroom for buying a Washing
Machine?
d) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

Response:

Attributes %age of DEALERS

During Exchange Offer 50
During Gift Option Offer 23
During discount Offer 27
Any Other 00

Customer Mostly Visit Showroom

0%
27%

50%

23%

Exchange Offer Gift Option Discount Offer Any Other

61
E7. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)
m) Television ________ e) Radio ________
n) Newspapers ________ f) Magazines ________
o) Pamphlets ________ g) Internet ________
p) Trade Shows ________

Response:

Attributes Rank
Television 01
Newspapers 02
Pamphlets 06
Trade Shows 03
Radio 05
Magazines 04
Internet 07

E8. Please rank each of the following” modes of payment” from 1 to 5 opted by
customers.
Rank 1 = the most adopted mode of payment
Rank 5 = the least adopted mode of payment

Modes of payment Rank

p) Cash in Full _________

q) Installments Through _________
Cash
r) Cheque _________
s) Installments Through Cheques _________
t) Credit / Debit Card _________

62
Response:

Attributes Rank
Cash in Full 1
Installments Through Cash 3
Cheque 4
Installments Through Cheques 2
Credit / Debit Card 5
Intorduction:
Consumer survey has been completed on four brands namely LG, Samsung, Videocon
and Haier by taking four products CTV, Washing Machine, Refrigerator and AC.
Customers were administered a structured questionnaire that covered their entire
relationship with the consumer durable company, including an assessment of overall
attitudes and loyalty, as well as specific aspects of the relationship, starting from
purchase experience, dealership, product features, quality, design and performance, after-
sales service, complaint management and resolution, and advertising.

As has been highlighted above, the approach has been to measure the brands on their
ability to delight their customers on the perceived quality of products and service, and not
just to satisfy them. Thus, the numbers and the rankings are based on the percentage of
customers who have given an excellent or a very good on the relevant parameters (which
are the top two boxes on the 5-point scale of excellent, very good, good, Poor & Very
poor). I also looked at those giving a fair or poor to arrive at the extent of dissatisfaction
with any brand. Based on their answers, I first mapped out the total customer experience
index and also the overall loyalty index. The customer delight index was derived by
taking the mean of the two indices.
The questioning aimed to find out Which brand customers like and why they like that
brand only.and their attitudes and practices around them. Then more particular questions
were asked about technology in everyday life

63
Consumer Quality Rating Chart

Haier 8 34 16 17 25

Vediocon 13 35 14 27 11

Samsung 28 50 12 7 3

LG 16 60 14 6 4

0% 20% 40% 60% 80% 100%

Excellent Very Good Good Poor Very Poor

Consumer Features Rating Chart for CTV

Haier 15 24 6 30 25

Vediocon 12 25 14 38 11

Samsung 19 68 13

LG 23 57 15 5

0% 20% 40% 60% 80% 100%

Excellent Very Good Good Poor Very Poor

64
Conumer After Sales Service Rating Chart For CTV

Haier

Haier 7 24 14 30 25

Customer experience index is the composite of his total experience with the brand, from
product quality to after sales service.

Loyalty index is a composite measurement of the proportion of consumers who will buy
the product again and will also recommend it.

The delight / dissatisfaction indices are derived by finding the mean of the experience
and the loyalty indices. The delight indice measures only the people who rated their
product better than 'good'. The dissatisfaction index measures only the people who rated
the product as less than 'good'.

70
The loyalty stakes looks at only the 'most loyal' and the 'most likely to defect', not the
people in between.

74
75
After showing the diagram of the all four product analysis of variance is also used
perform the SWOT analysis of these four brands with the help of mean and standard
devialtion

CTV

Mean Std. Deviation Std. Error Lower Limit Upper

Limit
Quality

LG 3.78 .927 .093 3.598 3.962

Samsung 3.93 1.076 .108 3.72 4.4142
V/C 3.12 1.277 .128 2.869 3.371

Feature
LG 3.98 .838 .083 4.143 3.817
Samsung 4.08 .567 .057 3.948 4.172
V/C 2.96 1.41 .114 2.736 3.184

After Sales Services

LG 3.92 .762 .076 3.771 4.068

Samsung 4.14 .613 .063 4.016 4.264
V/C 2.83 1.216 .121 2.592 3.068

Design
LG 4.16 .663 .066 4.036 4.29
Samsung 3.63 1.012 .101 3.432 4
V/C 2.75 1.341 .134 2.642 3.012

Refrigerator

Quality
LG 6.38 2.391 .239 5.912 6.848
Samsung 3.98 .633 .063 3.857 4.103
V/C 3.09 1.115 .111 2.287 3.307

features
LG 3.81 .935 .094 3.837
Samsung 3.84 .663 .066 3.710 5.133
V/C 2.97 1.414 .141 2.69 3.24

After Sales Services

76
Lg 3.97 .956 .096 3.78 4.158
Samsung 3.56 1.012 .101 3.363 3.757
v/c 3.02 .875 .078 1.5 4.548
Design
LG 3.81 .926 .093 3.62 3.992
Samsung 3.70 .736 .074 2.25 5.950
Videocon 3.04 .635 .063 1.80 4.27
Washing Machine

Quality
LG 3.90 .678 .068 2.57 5.232
Samsung 3.61 .935 .094 1.77 5.452
V/c 3.00 1.232. .123 2.759 3.241

Features
LG 3.90 .678 .078 2.38 5.42
Samsung 3.24 1.246 .124 2.97 3.48
V/c 3.39 .935 .094 1.548 5.232
Design
LG 3.90 .876 .087 2.195 5.605
Samsung 3.61 .325 .032 2.983 4.267
V/C 3.39 .932 .093 1.568 5.212

After Sales Services

LG 2.75 1.265 .126 2.504 2.99

Samsung 3.66 2.135 .213 3.243 4.077
V/C 2.83 1.255 .122 2.591 3.069

Quality
LG 4.07 2.115 .210 3.653 4.48
Samsung 3.89 .885 .098 1.97 5.81
Haier 3.24 .675 .067 1.93 4.35
Features
LG 4.07 2.101 .210 3.653 4.48
Samsung 2.87 1.987 .198 2.482 3.25
Haier 3.04 1.111 .111 2.823 3.257

After Sales Service

LG 4.13 2.101 .210 3.718 4.54
Samsung 3.89 .285 .018 3.855 3.92
Haier 3.04 1.111 .111 2.823 3.257

77
Design
LG 4.32 .125 .120 4.084 4.56
Samsung 3.54 .675 .067 2.2268 4.853
Haier 3.29 .852 .085 3.124 3.45

In order to compare the component like (Quality, Features, Desing, After Sales
Service ) of four brands LG, Samsung, Videocon and Haier t-test was used. Then the total
sample is devided into groups and mean standard deviation, standard error and t- value
was calculated.
The result from this analysis is divided into four categories.
Catagories1. <CTV>
The result from this category explain that, Samsung is far better than LG in
terms of quality, features and after sales services. It was found that LG is only ahead in
terms of design.

CTV Analysis OF LG With Samsung

Factors Brand Name Mean Std. Deviation Std. Error T-value

LG 3.78 .927 .093 -10

Quality Samsung 3.93 1.076 .108
LG 3.98 .838 .083
Features Samsung 4.06 .567 .057 -6.92
LG 4.16 .663 .066
Design Samsung 3.63 1.012 .101 15.14
LG 3.92 .762 .076
ASS Samsung 4.14 .613 .063 -16.92

78
CTV Analysis of LG With Videocon

Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 3.78 .927 .093 18.85

Quality Videocon 3.12 1.227 .128
LG 3.98 .838 .083
Features Videocon 2.96 1.141 .141 17.586
LG 4.16 .663 .066
Design Videocon 2.75 1.341 .134 20.73
LG 3.92 .762 .076
ASS Videocon 2.83 1.216 .121 24.22

Refrigerator Analysis
Differentiation LG With Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significanc

LG 6.38 2.391 .239

Quality Samsung 3.98 .633 .063 13.63
LG 3.81 .935 .094
Features Samsung 3.84 .663 .066 .071
LG 3.81 .926 .093
Design Samsung 3.70 .736 .074 5.71
LG 3.97 .956 .096
ASS Samsung 3.56 1.012 .087 12.23

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Refrigerator Analysis of LG with Videocon
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 6.38 2.391 .239

Quality Videocon 3.09 1.115 .111 25.70
LG 3.81 .935 .094
Features Videocon 2.97 1.414 .142 17.5
LG 3.81 .926 .093
Design Videocon 3.04 .635 .063 25.66
LG 3.97 .956 .096
ASS Videocon 3.02 .875 .078 32.77

Washing Machine
Analysis Between LG and Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 3.90 .678 .068

Quality Samsung 3.61 .935 .094 11.15
LG 3.90 .678 .078
Features Samsung 3.24 1.246 .123 10.15
LG 3.90 .876 .087
Design Samsung 3.61 .325 .032 3.22
LG 2.75 1.265 .126
ASS Samsung 3.66 2.135 .213 -10.70

80
Differentiation between LG and Videocon
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 3.90 .678 .068

Quality Videocon 3.00 1.232 .123 16.36
LG 3.90 .678 .078
Features Videocon 3.39 .935 .093 34
LG 3.90 .876 .087
Design Videocon 3.39 .932 0.93 7.28
LG 2.75 1.265 .126
ASS Videocon 2.83 1.225 .011 .072

AC
In ACs, LG had a slight lead over Samsung . Videocon made
up the median on quality of product. Those who fell below the
median were National, Haier managed to stay just below the
median.
Differentiation between LG and Samsung
Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 4.07 2.105 .210

Quality Samsung 3.89 .885 .088 1.44
LG 4.07 2.101 .210
Features Samsung 2.87 1.987 .198 100
LG 4.32 .125 .012

81
Design Samsung 3.61 .325 .032 35.5
LG 4.31 1.265 .126 .087
ASS Samsung 3.66 2.135 .213 3.05

Differentiation between LG and Haier

Factors Brand Name Mean Std. Deviation Std. Error T-value Significance

LG 4.07 2.105 .210

Quality Haier 3.24 .675 .067 5.80
LG 4.07 2.101 .210
Features Haier 3.04 1.111 .111 10.40
LG 4.32 .125 .012
Design Haier 3.29 .852 .085 14.10
LG 4.31 1.265 .126

ASS Haier 3.04 .935 .093 38.48

 CTV Segment: In CTV segment 38 percent dealer recommend the Samsung

brand, 32 percent dealer recommend LG, 18 percent recommend Videocon and
12 percent recommend the Haier.
 In urban areas CTV-29” is the most acceptable size now a days and in other areas
CTV-21” is the most acceptable size.
 The colour television (CTV) segment of the consumer durables industry has been
hit by stagnant demand in recent times. CTV manufacturers like Haier and
Videocon have effected price cuts while others have lowered production levels in
the face of rising inventories. They have also initiated drives to clear old stocks .

82
 Washing Machine Segment: In washing machine segment LG got the highest
dealer recommendation 32 Percent , Samsung got 28 percent, Videocon got 26
percent and Haier got 14 percent dealer recommendation.

 The washing machine market consists of two broad segments - semi-automatic

and fully automatic. The first accounts for a chunk of the market. In terms of
loading type, top loading machines sell in greater numbers than front-loading ones

 Refrigerator Segment: In refrigerator segment LG got 36 percent dealer

recommendation , Samsung got 28 percent dealer recommendation , Videocon got
23 percent and Haier 13 percent respectively

 In the case of refrigerators, a chunk of the sales are still in the direct cool segment
as against the frost-free one, But replacement buyers tend to go for
technologically improved models. Hence, sales of frost-free refrigerators have
grown steadily over a period of time.
 AC segment: In AC segment LG also got the Highest recommendation 42
percent, Samsung got 26 percent, Haier got 22 percent and Videocon got the 10
percent recommendation .

 The important finding is that the difference between the best and the also-rans has
narrowed even more. The difference between the topper and the number four or
five in any category is mostly in single digit percentage points.

 Dealer disclosed the fact that approx 85 percent customer come with Prior
knowledge of product price, features, discount offer, exchange offer only 15
percent are unknown customer.

 Almost two-thirds of the customers rate the durable brands they own as excellent
or very good. This phenomenon is common across all categories.

83
 The survey also brings out how companies have excelled in one area of product or
service delivery, only to falter in another. There are brands which score extremely
high on product quality - but fall way behind in complaint management. And vice
versa.

 The Survey highlights the positive growth trends in consumer durable segments –
white goods and consumer electronics during April-March 2004-05 and points
tosustained growth during 2005-06 because of emerging opportunities and strong
fundamentals of the economy.

 Unlike automobiles, consumer durables do not require regular servicing. And

reliability is something that most customers take as a given these days. Despite
that, no company can afford to slip up on the after-sales service and complaint
management front. This is one factor that can make or break a brand

 The price difference between branded and unbranded goods has narrowed down
and with branded players providing good after sales services and support
consumer prefer to buy branded products.

 The consumer durables industry appears to have two clearly differentiated

segments. The MNCs have an edge over their Indian counterparts in terms of
technology combined with a steady flow of capital. The domestic companies
compete on the basis of their well-acknowledged brands, anextensive distribution
network and an insight into local market conditions.

 Competitive strategies revolve around strong brand differentiation and prices.

 Bargaining power of customers is high due to availability of many brands.

 Demand is Cyclical and seasonal. Demand is high during festive season and is
generally dependent on good monsoons. Purchase necessarily is done only

84
during the harvest, festive and wedding seasons — April to June and October to
November in North India and October to February in the South.

 Rural India, which accounts for nearly 70% of the total number of households,
offers plenty of scope and opportunities for the white goods industry. The urban
consumer durable market for products including TV is growing annually by 7 to
10 % whereas the rural market is zooming ahead at around 25 annually.

 Increasing consumer awareness and preference for new models have added the
demand. Products like air conditioners are no longer perceived as luxuryproducts
but are treated as necessities in the changed socio-economicenvironment with
changed life styles.

 Attractive consumer loan schemes with reduced interest rates over the years by
the financial institutions and commercial banks and the hire-purchase schemes
have added to the surge in demand. Besides, the consumer goods companies are
themselves coming out with attractive financing schemes to consumers through
their extensive dealer network.

 The phenomenal growth of media in India and the flurry of television channels
and the rising penetration of cinemas have spread awareness of products in the
remote markets.

 The Internet being now used by the market functionaries that will lead to
intelligence sales of the products. It will help to sustain the demand boom
witnessed recently in this sector.

85
Recommendations

Penetration of consumer durables would be deeper in rural India if banks and financial
institutions come out with liberal incentive schemes for the white goods industry
segment, growth in disposable income, improving lifestyles, power availability, low
running cost, and rise in temperatures.
While the consumer durables market is facing slowdown due to saturation in the urban
market, rural consumers should be provided with easily payable consumer finance
schemes and basic services, after sales services to suit the infrastructure and the existing
amenities like electricity, voltage etc.
Currently, rural consumers purchase their durables from the nearest towns, leading to
increased expenses due to transportation. Purchase necessarily done only during the
harvest, festive and wedding seasons — April to June and October to November in
North India and October to February in the South, believed to be months `good for
buying’, should be converted to routine regular feature from the seasonal character.
Rural India that accounts for nearly 70% of the total number of households, has a
2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of
scope and opportunities for the white goods industry. The urban consumer durable
market for products including TV is growing annually by 7 to 10 % whereas the rural
market is zooming ahead at around 25 % annually. According to survey made byindustry,
the rural market is growing faster than the urban India now. The urban market is a
replacement and up gradation market now.

e-business solutions integrate knowledge across the supply chain. Easy access to
information on customers, products and trends can be a competitive advantage by
offering better customer service, accurate product data and up to date forecasts.
e-Procurement solutions provide electronics companies with access to parts catalogs
and to place orders at anytime with contracted distributors. With the information

86
collected from these systems, companies can provide the value-added services of
manufacturer negotiation, rebate management, inventory planning and reporting.
Purchasing volume can be leveraged and more emphasis can be placed on product
negotiation and selection.
Warehouse Management Systems are software packages that help distributors optimize
their use of warehouse space and warehouse labor. In addition, warehouse systems
dramatically reduce mispicks.

From the above stated discussion, it is revealed that although LG is market leader in AC,
Washing Machine and Refrigerator Segment in NCR, yet LG is getting tough
competition from Samsung Due to excellent design , Display of Products at store and
after sales services. To stay ahead in competition LG should improve it’s after sales
service in rural areas and it should offer better display at store. In this present era it is not
an option to adopt few differentiations strategies but they should be in advance in every
area to stay ahead in competition.

87
REFERENCES

1. Dr. Yasho V, Verma (2007), “Passion The Untold Story of LG Electronics

India”
2. Naresh K. Malhotra (2006), “ Marketing Research- An Applied Oriented”
3. Hair/ Bush/ Ortinau (2006). “ Marketing Research”
4. Philip Kotler” Marketing Management”
5. www.lgindia.com
6. http://www2.uiah.fi/projects/metodi
7. http://creativecommons.org/licenses/by/2.0
8. http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html:
9. http://www.camden.rutgers.edu/RUCAM/info/Academic-Integrity-Policy.html
10. www.winebusiness,com
11. http://www.researchandmarkets.com/reports/53984
12. www.marketingpower.com
13. www.godrej.com
14. www.haier.com
15. www.videocon.com
16. www.samsung.com

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Apendix…………………………………………………………………..….1

Questionnaire for CTV

PURPOSE OF STUDY

I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.

Information in the questionnaire will be:

 Used for academic purposes only
 Kept strictly confidential
Q1. Which of the following brands of CTV, you are dealing in? (Please Tick)
a) LG  b) Samsung 
c) Videocon  c) Haier  d) Any
Other (Please Specify) ________
Q2 How many models do you display for each brand?

Samsung LG Haier Videocon

15
21
29
LCD
PLASMA

Q3 which are the two highest selling models of each company in CTV & their
prices?
Samsung -…………………………………………………………
LG…… -…………………………………………………………
Haier… -…………………………………………………………
Videocon-…………………………………………………………
Any other-…………………………………………………………

Q4. To what extents, following brands of CTV are preferred by customers?

(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low Nil

LG
Samsung
Hiear
Videocon
Sony

89
Q5 What is the price band for which the customer looks for while making purchase
decision?
Segment Brand Price
15 ………… …………
21 ………… …………
29 ………… …………
LCD ………... …………
Plasma ………… …………

Q6 Is customer ready to pay premium for additional features?

…………………………………………………………………………..
Q7 What is the expected percentage of customers who are willing to pay?
Premium ……………. Low-end …………..
Q8. What are the parameters on which consumer makes his purchase decision?

Parameters Rank

o Price ……..
o Packaging .…….
o Product Features …….
o Brand Name …….
o Product Quality …….
o Product Design . ……
Q9 What is the annual estimated sales of CTV?
Brand Amount
o Samsung …………..
o L.G …………..
o Videocon .………….
o Sony .………….
o Haier …………..

Q10. Does customer come with prior knowledge/information about particulars

brands of CTV?
h) Yes  b) No 
If yes, what types of information/knowledge, they have?
a) About Discount Offer. 
b) About Exchange Offer. 
c) About New Features. 
d) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying CTV?

e) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

90
Q12. What is the most acceptable size in CTV now days?
b) 14inch  b) 21inch  29 inch 
LCD 26  PLASMA 42 
32  50 
40 
46 
52 
d) Any Other (Please Specify) ___________________________

Q13. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)

q) Television e) Radio

r) Newspapers ________ f) Magazines ________
s) Pamphlets ________ g) Internet ________
t) Trade Shows ________
Q14. What different complaints are faced by you from your customer?
(Mark √ to appropriate one)
Brand LG Samsung Haier Videocon Sony
Complaints
Bad Picture
quality
Problem with
Picture tube
High Electricity
Consumption
Fading of Colour

Q15. Which Brand you Recommend and why?

………………………………………………………………………………………………

PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ____________________________
_____________________________
_____________________________
_____________________________
Ph. No.:- ____________________________
Date: Sign/ Stamp

91
Apendix……………………………………………………………………2
Questionnaire for AC

PURPOSE OF STUDY

I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.

Information in the questionnaire will be:

 Used for academic purposes only
 Kept strictly confidential

Q1.Which of the following brands of AC, you are dealing in? (Please Tick)
b) LG  b) Samsung 
c) Videocon  d) Haier 
f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand?

Capacity Samsung LG Haier Videocon

W/S W/S W/S W/S
0.75 Ton
1 Ton
1.5 Ton
1.6 Ton
2 Ton

Q3 Which are the two highest selling models of each company in AC & their
prices?
Samsung -…………………………………………………………
LG…… -…………………………………………………………
Haier… -…………………………………………………………
Videocon-…………………………………………………………
Any other-…………………………………………………………

Q4.To what extents, following brands of AC are preferred by customers?

(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low Nil

LG
Samsung
Hiear
Videocon
BlueStar

92
Q5. What is the price band for which the customer looks for while making
purchase decision?
Segment Brand Price
0.75Ton ……………… …………
1.0Ton ………………. ………….
1.5Ton ……………….. …………
1.6Ton ……………….. ..…………
2.0Ton ……………….. …………
Q6. Is customer ready to pay premium for additional features?
…………………………………………………………………………..

Q7. What is the expected percentage of customers who are willing to pay?

Premium ……………. Low-end …………..

Q8. What is the annual estimated sales of AC?
Brand Amount
o L.G …………..
o Samsung …………..
o Videocon .………….
o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their
importance to customers.
Rank 1= the most importance feature
Rank 5=the least important feature

Feature Rank Order

f) Price _________
g) Design _________
h) Features _________
i) Dealers Communication _________
f) Brand Name _________

Q10. Does customer come with prior knowledge/information about particulars

brands of AC?
i) Yes  b) No 

If yes, what types of information/knowledge, they have?

e) About Discount Offer. 
f) About Exchange Offer. 
g) About New Features. 

93
h) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying AC?

f) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

Q12. What is the most acceptable size in AC now days?

c) 1Ton  b) 1.5Ton  c) 2 Ton
d) Any Other (Please Specify) ___________________________

Q13. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)

u) Television e) Radio

v) Newspapers ________ f) Magazines ________
w) Pamphlets ________ g) Internet ________
x) Trade Shows ________
Q14. What different complaints are faced by you from your customer?
(Mark √ to appropriate one)

Brand LG Samsung Haier Videocon Blue Star

Complaints
Bad cooling quality

Problem with Noise

High Electricity
Consumption
Cost of Maintenance

Q15. Which Brand you Recommend and why?

………………………………………………………………………………………………

PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ____________________________
_____________________________
_____________________________
_____________________________
Ph. No.:- __________________________

94
Apendix……………………………………………………………………3
Questionnaire for Washing Machine

PURPOSE OF STUDY

I am an MBA-IB student of AIBS, presently pursuing my Management Research

Project.

Information in the questionnaire will be:

 Used for academic purposes only
 Kept strictly confidential

Q1.Which of the following brands of Washing Machine you are dealing in? (Please
Tick)
c) LG  b) Samsung 
c) Videocon  d) Haier 
f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand?

Capacity Samsung LG Haier Videocon

Semi
automatic
Top Loading
Front Loading

Q3 Which are the two highest selling models of each company in Washing Machine
& their prices ?

LG -…………………………………………………………
Samsung -…………………………………………………………
Haier… -…………………………………………………………
Videocon-…………………………………………………………
Any other-…………………………………………………………

Q4.To what extents, following brands of Washing Machine are preferred by

customers?
(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low Nil

LG
Samsung
Hiear
Videocon
BlueStar

95
Q5. What is the price band for which the customer looks for while making purchase
decision?
Segment Brand Price
Semi Automatic ……………… …………
Top Loading ……………….. …………
Front Loading ……………….. …

Q6. Is customer ready to pay premium for additional features?

…………………………………………………………………………..

Q7 What is the expected percentage of customers who are willing to pay?

Premium ……………. Low-end …………..

Q8 What is the annual estimated sales of Washing Machine?
Brand Amount
o L.G …………..
o Samsung …………..
o Videocon .………….
o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their
importance to customers.
Rank 1= the most importance feature
Rank 5=the least important feature
Feature Rank Order

j) Space _________
k) Colour(s) _________
l) Brand Name _________
m) Features
Q10. Does customer come with prior knowledge/information about particulars
brands of Washing Machine?
j) Yes  b) No 

If yes, what types of information/knowledge, they have?

i) About Discount Offer. 
j) About Exchange Offer. 
k) About New Features. 
l) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying Washing Machine?
g) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________

96
Q12. What is the most acceptable size in Washing Machine now days?
Catagorys Model
d) Semi Automatic …………….. 
k) Top Loading …………… 
l) Front Loading ………………. 
Any Other (Please Specify) ___________________________

Q13. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)

y) Television e) Radio

z) Newspapers ________ f) Magazines ________
aa) Pamphlets ________ g) Internet ________
bb) Trade Shows ________
Q14. What different complaints are faced by you from your customer?
(Mark √ to appropriate one)
Brand LG Samsung Godrej Videocon Electrolux
Complaints Kelvinator
Spinning Problem

Problem with
Compressor
High Electricity
Consumption
Noise
Fading of Colour

Time consuming

Q15. Which Brand you Recommend and why?

………………………………………………………………………………………………
PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ____________________________
_____________________________
_____________________________

97
Apendix……………………………………………………………………4
Questionnaire for Refrigerators

PURPOSE OF STUDY

I am an MBA-IB student of AIBS, presently pursuing my Management Research Project.

Information in the questionnaire will be:

 Used for academic purposes only
 Kept strictly confidential

Q1.Which of the following brands of Refrigerators, you are dealing in? (Please Tick)
d) LG  b) Samsung 
c) Videocon  d) Haier 
f) Any Other (Please Specify) ________
Q2 How many models do you display for each brand?
e) 165 L  e) 365 L 
m) 210 L  f) 410 L 
n) 310 L  g) 600 L 

Q3 Which are the two highest selling models of each company in Refrigerators &
their prices?
LG -…………………………………………………………
Samsung -…………………………………………………………
Haier… -…………………………………………………………
Videocon-…………………………………………………………
Any other-…………………………………………………………
Q4.To what extents, following brands of Refrigerators are preferred by customers?
(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low Nil

LG
Samsung
Hiear
Videocon
Q5. What is the price band for which the customer looks for while making purchase
decision?
Segment Brand Price
(a) 165L ……….. …………
(b) 210L ……….. …………
(c) 310L ………… ………….
(d) 410L ……….. ..………
Q6. Is customer ready to pay premium for additional features?
…………………………………………………………………………..

98
Q7 What is the expected percentage of customers who are willing to pay ?

Premium ……………. Low-end …………..

Q8 What is the annual estimated sales of Refrigerators?
Brand Amount
o L.G …………..
o Samsung …………..
o Videocon .………….
o Haier …………..
Q9. Please rank each of the following features from 1 to 5 on the basis of their
importance to customers.
Rank 1= the most importance feature
Rank 5=the least important feature
Feature Rank Order

n) Space _________
o) Front Door Design _________
p) Cooling Effect _________
q) Colour(s) _________
r) Brand Name _________
s) Features _________
Q10. Does customer come with prior knowledge/information about particulars
brands of Refrigerators?
o) Yes  b) No 

If yes, what types of information/knowledge, they have?

m) About Discount Offer. 
n) About Exchange Offer. 
o) About New Features. 
p) Any Other (Please Specify) ___________________________

Q11. When customers mostly visit showroom for buying Refrigerator?

h) During Exchange Offer  c) During discount Offer 
b) During Gift Option Offer  d) Any Other (Please Specify )_________
Q12. What is the most acceptable size in Refrigerator now days?
f) 165 L  e) 365 L 
p) 210 L  f) 410 L 
q) 310 L  g) 600 L 
Any Other (Please Specify) ___________________________
Q13. Below are different modes of promotion. Please rank following modes from 1
to 7, on the basis of their influence on customer.
(Rank1 = high, Rank 7 = low)

99
cc) Television ________ e) Radio ________
dd) Newspapers ________ f) Magazines ________
ee) Pamphlets ________ g) Internet ________
ff) Trade Shows ________
Q14. What different complaints are faced by you from your customer?
(Mark √ to appropriate one)
Brand LG Samsung Godrej Videocon Electrolux
Complaints Kelvinator
Low Cooling Effect

Problem with
Compressor
High Electricity
Consumption
Inadequate Storage
Space
Fading of Colour

Q15. Which Brand you Recommend and why?

………………………………………………………………………………………………

PERSONAL PROFILE

Dealer’s Name: ____________________________

Address: ____________________________
_____________________________
_____________________________
_____________________________
Ph. No.:- ____________________________

Date: Sign/ Stamp

100

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