Introduction

The domestic consumer electronics and durables sector has witnessed a substantial growth over
the last few years. This sector plays an important part in the economy of the country and
provides employment to millions of people, more importantly to a large number of women in the
country. The Indian TV and consumer durables market has been growing big, primarily driven
by imports. However, with the given macroeconomic factors and government impetus with
“Make In India”, India is well positioned to increase its manufacturing base in the consumer
durables. Even the manufacturers on their part are willing to invest in India and increase their
manufacturing base in the country to serve domestic markets and also to export in order to gain
scale and make Indian operations viable. The report highlights the opportunities and challenges
in this sector and presents some of the policy recommendations to provide boost to this sector.
Currently, there is low level of component manufacturing activity in our country which
discourages domestic manufacturing of end products; therefore there is a need to create a
component industry to cater to the demand of manufacturers. Further, we need to ensure that all
necessary government policies and incentives are implemented in letter and spirit. Hence, we
would like to work closely with the government and industry.

Objectives

1. To find out the awareness level of LG products among the customers.

2. To find the key factor for the acceptance of LG products.

3. To find which factor of LG is most popular among consumer.

4. To find the satisfaction level of person who are already using LG brand.

5. Is that our product is a successful product which satisfied people’s need and would be a great
choice for making a marketing plan.

6. To find out the pricing the goods of LG?

7. In order to reduce the price and its costs and introduction of new products into the market.
Limitations of the study

1. This research is geographically restricted to Guntur city only. Hence the result cannot
extrapolated to other places.
2. The study is restricted only to the organized sector of electronic industry.
3. Sample size was confined to 100 respondents keeping view of time and cost constraints.
4. Findings are based on sample survey. The information executed by respondents may or
may not be true because some respondents may not be serious. However all possible has
been made to collect the information as authentically as possible.
5. All interview questions are undisguised or direct. Hence there is a scope for the
respondents to be biased or pretentious.
6. This project has been taken up at the college level and professionals and experience of
the students is limited and hence the data collected from adults may be professional
enough.

Scope of the Study

This study includes customer’s response and awareness towards the brand, product, services, and
customer satisfaction of LG Electronics .The results are limited by the sample size 100 numbers
and therefore the opinion of only selected customers is taken into consideration. Mainly the
study is conducted in Guntur and the scope is limited.
Research Methodology

The research will be carried out in various places that constitute an approach of working form
whole to part. It includes subsequent phases trying to go deeper into the user's psyche and
develop a thorough understanding of what a user looks for while buying LG electronics.

The first phase is completely internal where it is stormed over the most effective route of action,
considering that LG electronics users in Guntur are more in number.

The second phase is with some of the LG consumers who have been using LG electronics for
some time now and are generally known and respected among the LG electronics community.

The third phase is with some respondents who will be interviewed with the help of questionnaire
keeping in mind the time and cost constraints.

Tools Of Data Collection

The information relevant for study was drawn from primary data collected through survey
method, which alone sufficient. Hence secondary data was collected to study successfully.

Primary data

In order to find out customer's satisfaction regarding products of LG primary data was collected
by personally visiting the dealership and showrooms. With the help of well laid questionnaire, I
took the feedback from the customers who were coming for the services of their products at the
dealership. As well as I contacted some of the customs through by taking the data about the
customers from the customer data register of the dealership. I interviewed them and discussed
with the showroom staff as well as with the employees at LG which helped me to prepare the
research report.
Secondary Data

The secondary data collection involved internet search, browsing magazines, newspapers and
articles and papers related to the electronic industry in India. Numerous journals and books
related to the topic were also browsed to understand the dynamics of the industry.

Sample design

The research was carried out in various phases that constituted an approach of working from
whole to part. It included subsequent phases trying to go deeper into the user’s psyche and
develop a thorough understanding of what the user looks for while buying LG products. In order
to get a perspective from non LG consumers as to what are the reasons for not choosing LG
products, I administered the same questionnaire to consumers who used other electronic goods
keeping in mind the time and cost constraints. For the customer satisfaction study a sample of
100 persons was chosen from the Guntur city. The sample was judgemental methodology was
convenient random sampling.

Size of Sample 100

Sampling technique Convenient random sampling method

Location from which samples were Guntur

taken
Plan of analysis

Raw primary data has been collected with help of questionnaire. The raw data has been tabulated
with the help of table. From the tables, concepts, analysis and inferences are drawn which in turn
was used for interpretation. Based on, these charts were prepared to better pictorial
understanding of the study.

From the set of inferences and interpretation, conclusion have been drawn which is followed by
suggestions,keeping the objectives in mind throughout the study.
Introduction of marketing

Marketing is the process of performing market research, selling products and/or services to
customers and promotion them via advertising to further enhance sales. It generates the strategy
that underlies sales techniques, business communication and business developments. It is an
integrated processthrough which companies build strong customer relationships and create value
for their customers and for themselves.

Marketing is used to identify the customers, to satisfy the customer, and to keep the customer.
With the customer as the focus of its activities, it can conclude that marketing management is
one of the major components of business management. Marketing evolved to meet the status in
developing new markets caused by matured markets and over capacities in the last 2-3 centuries.
The adoption of marketing strategies requires business to shift their focus from production to the
perceived needs and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organisation goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions. It proposes that in
order to satisfy its organisational objectives, an organization should anticipate the needs and
wants of the customers and satisfy these more effectively those competitors.

An orientation, in the marketing context, related to perception or attitude a firm holds towards its
product or service, essentially concerning consumers and end-users. Through history, marketing
has changed considerably in time with consumer tastes recent approaches in marketing include
relationship marketing with focus on the customer, business marketing or industrial marketing
with focus on an organisation or institution andsocial marketing with focus on benefits to
society. New forms of marketing also use the internet and are therefore called internet marketing
or more generally e-marketing, online marketing, such engine marketing, desktop advertising or
affiliate marketing. It attempts to perfect the segmentation strategy used in traditional marketing.
Customer orientation

A firm in the market economy survives by produce goods that persons are willing and able to
buy. Consequently, ascertaining consumer demand is vital for a firm’s future viability and even
existence as a going concern. Many companies today have a customer focus [or marketing
orientation].This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this the customer-driven approach, the
market change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drives of all strategic marketing
decisions. No strategy is pursed until it passes the test of consumer research. Every aspect of a
market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting points always the consumer. The rationale for this approach is that there
is no reason to spend R&D funds developing products that people will not buy. History attests to
many products that were commercial failures in spite of being technological break thoughts.

A formal approach to this customer-focused marketing is known as SIVA (solution, Information,

Value and, Access). This system is basically the 4ps renamed and reworded to provide a
customer focus.

Product Solution

Price Value

Place Access

Promotion Information
If any of the 4ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease.

Organizational orientation

In this sense, a firms marketing department is often seen as of prime importance within the
functional level of an organization. Information from an organization marketing department
would be used to guide the actions of other departments within the firm. As an example, a
marketing department could ascertain (Via marketing research) that consumers desired a new
type of product, or a new usage for an existing product, or a new usage for an existing product.
With this in mind, the marketing department would inform the R&D department to create a
prototype a product/service based on consumers new desires.

The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product. Additional, a
firm’s finance department would be consulted, with respect to securing appropriate funding for
the development, production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may be needed to
manufacture a new product. Finance may oppose the required capital expenditure, since it could
undermine a healthy cash flow for the organization.

Marketing research

Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firms marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, chi-squared tests, linear regression, correlations,
frequency distributions, poison distributions, binomial distributions, etc. To interpret their
findings and convert data into information. The marketing research process spans a number of
stages, including the definition of a problem, development of a research plan, collection and
interpretation of data and disseminating information formally in the form of a report. The task of
marketing research is to provide management with relevant, accurate, reliable, valid, and current
information. A distinction should be made between marketing research and market research.
Market research pertains to research in a given market. As an example, a firm may conduct
research in a target market, after selection a suitable market segment. In contrast, marketing
research is a subset of marketing research.

Market segmentation

Market segmentation pertains to the division of a consumers into persons with similar needs and
wants. For instance, Kellogg’s cereals, sites are marketed to children. Crunchy nut cornflakes
are marketed to adults. Both goods denote two products which are marketed to two distinct
groups of persons, both with similar needs, traits, and wants. Market segmentation allows for a
better allocation of a firms finites resources. A firm only possesses a certain amount of resources.
Accordingly, it must make choices ( and incur the related costs) in servicing specific groups of
consumers. In this way, the diversified tastes of contemporary western consumers can be served
better.

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided into the following
parts:

1. Primary research (also known as field research) which involves the conduction and
compilation of research for a specific purpose.
2. Secondary research (also referred to as desk research) initially conducted for one purpose,
but often used to support another purpose or end goal.
By theses definitions an example of primary research would be market research conducted
into health foods, which is used solely to ascertain the needs/wants of the research pertaining
to health foods. Secondary research in this case would be research pertaining to health foods,
but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information.
Nevertheless, while secondary research is relatively inexpensive, it often can become
outdated and outmoded, given that it is used for a purpose other than the one for which it was
intended. Primary research can also be broken down into quantitative research and qualitative
research, which, as the terms suggest, pertain to numerical and non-numerical research
methods and techniques, respectively. The appropriateness of each mode of research depends
on whether data can be quantified (quantitative research), or whether subjective, non-numeric
or abstract concepts are required to be studied (qualitative research).
There also exist additional modes of marketing research, which are:
Exploratory research, pertaining to research that investigates an assumption.
Descriptive research, which, as the term suggests, describes “ what is “.
Predictive research, meaning research conducted to predict a future occurrence.
Conclusive research, for the pure of deriving a conclusion via a research process.
Promotion (marketing)
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyers purchasing decision. Fundamentally,
however there are three basic objectives of promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a
given product. A given firm may hold numerous products in the market place, spanning
numerous and sometimes wholly unrelated industries. For example, start-up car
manufacturing firm would face little success should it attempt to rival Toyota, Ford,
Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be
reaching the end of its life-cycle thus, the issue of divest, or ceasing of production, may be
made.
 Customer satisfaction
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as “ the number of customers, or percentage of total customers, whose reported
experience with a firm, its products or services (ratings) exceeds specified satisfaction
goals”. It is seen as a key performance indicator within business and is part of the four of a
balanced scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy. Within organizations, customer satisfaction
ratings can have powerful effects. They focus employees on the importance of fulfilling
customer’s expectations. Furthermore, when these ratings dip, they warn of problems that
can affect sales and profitability. These metrics quantify an important dynamic. When a
brand has loyal customers, it gains positive word-of-mouth marketing, which is both free
and highly effective. In researching satisfaction, firms generally ask customers whether
their product or services has met or exceeded expectations. Thus expectations are a key
factor behind satisfaction. When customers have high expectations and the reality falls
short, they will be disappointed and 2willl likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction
rating than a budget motel even though its facilities and service would be deemed superior
in “absolute” terms.
Customer satisfaction in 7 steps
1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a customer. If you’re
not used to this sort of thing it can be a pretty nerve wracking experience. Rest assured,
though, it does get easier over time. It’s important to meet your customers face to face at
least once or even twice during the course of a project.
2. Respond to messages promptly and keep your clients informed
This goes without saying really. We all know how annoying it is to wait days for a response
to an email or phone call. It might not always be practical to deal with all customer’s queries
 within the space of a few hours, but at least email or call them back and let them know
you’ve received their message and you’ll contact them about it as soon as possible. Even if
you’re not be able to solve a problem right away, let the customer know you’re working on
it.
3. Be friendly an approachable
A fellow sites pointer once told me that you can hear a smile through the phone. This very
true. It’s very important to be friendly, courteous and to make our clients feel like you’re
their friend and you’re there to help them out. There will be times when you want to beat
your clients over the head repeatedly with a blunt object it happens to all of us. It’s vital that
you keep a clear head, respond to you client’s wishes as best you can , and at all times remain
polite and courteous.
4. Have a clearly-defined customer service police
This may not be too important when you are just starting out, but a clearly defined customer
services policy is going to save you a lot of time and effort in the long run. If a customer has
a problem, what should they do?
If the first potion doesn’t work then what? Should they contact different people for billing
and technical enquiries? If they’re not satisfied with any aspect of your customer service,
who should they tell? There’s nothing more annoying for a client than being passed from
person to person, or not knowing who to turn to. So make sure your customer service policy.
5. Attention to detail
Have you ever received happy birthday email or card from a company you were a client of?
Have you ever had a personalized sign-up confirmation email for a services that you could
tell was typed from scratch? These little niceties can be time consuming and aren’t always
cost effective, but remember to do them.
6. Anticipate your client’s needs and go out of your way to help them out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your client’s will of wonders for our working relationship.
7. Honor your promises

It’s possible this is the most important point in this article. The simple messages: when you
promise something, deliver. Clients don’t like to be disappointed. Sometimes, something may
not get done, or you might miss a deadline through; no fault of our own. Projects can be late,
technology can fail and sub-contractors don’t always deliver on time. In this case a quick
apology and assurance it’ll be ready ASAP wouldn’t go a miss.

Customer Loyalty

Obtaining a thorough understanding of customer loyalty is a pre requisite for the execution of
the research at hand. For that the development of customer loyalty research within the
framework of relationship marketing will be presented first, before different customer loyalty
concepts will be introduced. From these concepts, a definition of customer loyalty for use in this
study will be derived, before both consequence and antecedents of customer loyalty will be
portrayed. Since the beginning of the 1990s, customer loyalty has gained importance both in
relationship marketing research and in business. In business, this can be attributed to changing
market and competition environments. Due to a shift from a seller to a buyers’ market and
because of an increasing degree of globalization, most industries find themselves confronted
with new challenges. In a first phase, firms tried to face these challenges by focusing on their
internal processes and organizational structures, trying to achieve cost reductions by
concentrating on internal improvements. A second phase of external focus followed, where firms
directed attention to their customers, trying to retain existing ones and to win over new ones
(churning). Since “acquiring new customers in much more expensive than keeping them”. And
loyal customers are the bedrock and of any business”. A loyal customer base
represents a barrier to entry, a basis for a prices premium, time to respond to competitor
innovations, and a bulwark against deleterious price competition. Loyalty is critical to brand
volume is highly correlated to market share, and can be used as the basis of predicting future
market share consequently, understanding loyalty appears critical to any meaningful analysis of
marketing strategy.
In marketing research, two trends mark the development of customer loyalty. While individual
transactions initially were in the center of marketing research, the focus shifted towards
analyzing relationships states that the ‘traditional’ marketing concept of the marketing mix with
its “4ps” developed in the middle of the last century, had been the established approach until the
1990s.

Before determining which stream the present study; can be associated with, however, it is
important to create a clear understanding of different customer loyalty concepts prevalent in
research. This will be accomplished in the following section.

Objectives of Customer satisfaction programme

Our programs are research based, built on the three corner stone’s of customer satisfaction
product quality, process and procedural quality, and relationship quality. Our typical program
assesses specific issues under each component, for example:

Product quality

Meets or exceeds expectations

State-of-the-art technology

Validated, tested, and simulated to client specifications

Competitive pricing

Enhance customer value

Procedural quality

Case of ordering

Accurate fulfillment

Inventory meets needs

On time delivery

Environmentally friendly packing

Relationship Quality

Product knowledgeable contacts

Knowledgeable about client needs

Communicates at client knowledge level

One-stop problem resolution

Problems solved at the root cause

Legendary customer services benchmarks competition

The tailored programs provide direct, statistically valid, comparison data of you to your
competition on the following actionable areas:

Responsiveness

Competitiveness

Innovativeness

Quality

Customer service

Long term partnering

In accurately quantifies your competitive strengths and weaknesses from your customer’s
perspective. Using the data, it will help you focus strategic efforts to retain and increase market
share.
Company Function Quality factors
Sales Product
Knowledge
Marketing Brochure detail
Mailing frequently
Distribution Order delivery time
Order completeness
After sales Problem response time
Time to resolve
Accounts Accuracy
Problem response

Industry profile
Introduction

Consumer durables’ is one of the fastest growing industry segments in India. This sector
attracted significant investments even during global recession. During FY03-FY13, the industry
expanded at a healthy CAGR of 13 per cent. Urban markets account for

 The major share (65 per cent) of total revenues in the consumer durables sector in India.
Rural markets are expected to grow at a compound annual growth rate (CAGR) of 25 per
cent. Also, increasing electrification of rural areas would augment the demand. 100% FDI is
allowed in the electronics hardware manufacturing sector under the automatic route. Since,
India has been trailing behind ASEAN countries in terms of production, quality and export of
consumer appliances, performance levels of most of factors of production such as quality
manpower, capital investment, infrastructure, technology etc., need to be enhanced through
conscious policy interventions and managerial action to boost competitiveness of the sector.
In this context, an attempt has been made to understand the productivity and competitiveness
of consumer appliances eco-system in India and recommend policy solutions to make the
sector internationally competitive. The study also attempts to identify the factors hindering
the progress of the sector and suggest measures for enhancing the competitiveness of the
sector.
Consumer Electronics market in India

Indian Consumer Electronics market has been witnessing sustained double digit growth rate in
the past few years. Increasing product awareness, affordable pricing, innovative products and the
high disposable incomes have aided in the strong growth in the consumer electronics market in
India. Rapidly shrinking replacement cycle for consumer durables is observed as sustaining
demand in urban India. The existing low penetration rates and the increasing usage of consumer
durables have catapulted rural India to the high demand generating segment. The consumer
electronics market in India is characterized by technological advancements, innovative product
introductions, price fluctuations and intense competition.

Penetration levels
 CTV’s (Color televisions)

Indian television market is highly under penetrated with 179 points where as world average is
538 compared to China, developed countries and world average.

Television market in India is expected to grow at a robust rate of 19% CAGR till 2016.

Manufacturing of consumer electronics in India

Electronics production in India was valued at USD 34.8 billion in FY13. Production expanded at
a CAGR of 16.6 percent since FY06.

SWOT analysis of the Consumer electronics sector in India

Strengths Weaknesses Opportunities Threats

Presence of In India, penetration High import duties
established level of white goods on raw materials.
distribution networks is lower as compared
in both urban and to other developing
rural areas. countries.
Presence of well Demand is dependent monsoons. Cheap imports from
known brands. on good monsoons. Unexploited rural ASEAN at 0% or
market. concessional import
Duty & imports from
China

Home appliances
Demand in urban markets is likely to increase for products such as LED TVs, laptops, split ACs
and, beauty and wellness products. In rural markets, durables like refrigerators as well as other
home appliances are likely to witness growing demand in the coming years. The rural market has
recently experienced around 30 per cent growth rate in demand for electronics and home
appliances. Urban growth is likely to be driven by new technology/innovative products, lifestyle
products and replacement demand.

Penetration levels

Refrigerator has the highest penetration in India of 31%.

Air Conditioners

The Indian AC market accounted for sales of 3.6 million units in 2013. AC’s are perceived as
high-end products; current penetration stands at 6.8 per cent including Window and Split AC.
The segment had a 13.0 per cent share (2013) in the consumer appliances market. High income
growth and rising demand for split ACs are the key growth drivers. The room air-conditioning
market represents approximately 50% of the total market, with the other 50% comprised of
central and specialist air-conditioning systems. The room AC market can again be divided into
two sub-segments. On the one hand the residential segment which now constitutes a majority
60% market share and on the other hand the commercial segment which represents a smaller
40%.

Washing machines

Washing machines are the second largest contributor to the consumer appliances market (after
refrigerators); in FY 2013 total sales was around 7.5 million units. Fully automatic washing
machines are garnering an increasing share of the market due to reduction in prices and higher
disposable incomes. LG Electronics continued to be the leading player in home laundry
appliances in India with a share of 25% in 2013, followed closely by Samsung Electronics
(23.2%). The major chunk of this growth is expected to be driven by newer households
purchasing washing machines, as well as a greater number of households replacing their semi-
automatic washing machines with fully automatic washing machines. 6-9.9 Kg is the most
popular category in India with 72.2% share in the total sales.

Refrigerators

Refrigerator sales stood at ~14.0 million units in 2013. This segment makes up 18.0 per cent of
the consumer appliances market. The market share of direct cool and frost free segment is 76.3
per cent and 23.7 per cent respectively. Key growth drivers are lower prices and rising demand
for frost-free refrigerators. Fridges with a capacity range of 142-340 litres dominated fridge sales
over the review period, representing 74% of total volume sales. In fact, the 165-litre fridge was
the standard in almost all households until the arrival of competition and the need to
differentiate, coupled with economic development, which led to the development of higher
capacities. Over the review period, fridges with 341-540-litre capacities continued to gain
momentum to account for 20% of total fridge volume sales in 2013. Market share of LG is
24.50% and Samsung is 20.60% in 2013.

Impact of WTO and FTA’s

Electronic components which form the basis of any electronic products is low volume, low
weight, cheap and easy to transport across the globe. Moreover, under the Information
Technology agreement-1 (ITA-1) of the world trade organization, which came into force in
1997, a large number of electronic components and products are bound with zero tariffs making
trade unrestricted across international borders. Also, electronics manufacturing is characterized
by high volume and low margins. All these factors have resulted in the electronics hardware
industry being globally integrated with few large global players catering to a large part of the
world demand.

In the current WTO regime, India is a party to the “Trade Related Aspects of the Intellectual
Properties (TRIPs) Agreement” and has accordingly, amended most of its IPR Acts and Rules to
conform to the said Agreement. The Indian Copyright Act 1957 was amended in 1999; the patent
Act 1970 was amended in 1999 & 2003 and Trademarks and Merchandise Marks Act 1959 was
overtaken by a new Trademark Act 1999. The Industrial Design Act 1911 was effectively
replaced by The Design Act 2000, and the Layout Design of Semiconductor integrated Circuit
Act 2000 was enacted.

WTO regime resulted in zero customs duty on imports of all telecom and electronic equipments.
217 IT/electronic items were covered under the Information Technology Agreement (ITA) of the
WTO for complete customs tariff elimination by 2005. Out of these 217 items, several items
were already at NIL customs duty. In fact, IT/electronics was the first sector in India to face
complete customs tariff elimination. The ITA-1 has resulted in intensifying competition as more
imported products are easily available at lower prices.

Free Trade Agreements (FTAs) with the ASEAN Countries

According to statistics by the Asian Development Bank, currently India tops the list of ASEAN
countries with 30 FTAs, followed by Singapore with 26, China and Korea with 22 each, and
Japan (19). The total number of FTAs that Asian countries have entered into is 134. Out of
India’s 30 FTAs, eight are with the integrating Asian region, while 22 are outside of Asia.

Problems with the current structure

Domestic demand of electronics in India is expected to reach USD 400 Billion by 2020. At the
current rate of growth domestic production can cater to a demand of USD 100 Billion in 2020 as
against a demand of 400 Billion USD and the rest would need to be met by imports. This
aggregates to a demand supply gap of USD 300 Billion by 2020. Unless the situation is
corrected, it is likely that by 2020, the electronics import may far exceed oil imports. There is a
need to transform India into a global hub for electronic system design and manufacturing
(ESDM) so as to meet the growing domestic and global demand. There are many challenges to
advance the same - infrastructure gap, tax structure, supply chain and logistics, inflexible labor
laws, limited R&D focus, in adequate funding and limited value addition.

Heavy taxation in the country is one of the challenges for the players. At its present structure the
total tax incidence in India even now stands at around 25-30 per cent, whereas the corresponding
tariffs in other Asian countries are between 7 and 17 per cent.
Impact of 2013 Budget:

The Budget had no specific proposal pertaining to the household appliance industry. A tax credit
of Rs 2,000 for a person with income up to Rs 5 lakh per annum, introduced in the Union Budget
2013-14, will result in higher disposable income in the hands of people coming in the lowest tax
bracket. But, this is unlikely to translate into any meaningful impact on the demand.

Customs duty on set top boxes in 2013 budget was increased from 5% to 10% to encourage
local manufacturing. Given the deadline for full digitalization by 2014, this move also has not
benefited the industry much and resulted only in increase in cost of the STB for end user.

Possible solutions

1. There is a need to have a relook at FTAs with Thailand/ASEAN as far as Consumer

Electronics & Home Appliances sector is concerned. As an immediate measure Product Specific
Rules should be made applicable for consumer appliances sector products. Critical inputs such as
Open Cell for LED TVs should be made in the country of Origin.

2. Due to implementation of FTAs, CE&HA sector is facing inverted duty structure, where the
final product is being imported at 0/concessional import duty, whereas inputs attract 10/7.5%
duty. We recommend that import duty on inputs, which are not made in the country, be brought
down to 0%. It will boost indigenous manufacturing.

3. Since there is very high degree of Electronics involved in Home Appliances and also since the
imports of these products is resulting in 17 heavy outflow of foreign exchange and as it is an
employment intensive sector, Home Appliances should be treated as Electronic Products &
extended benefits of MSIPS, EMCs etc.

4. Treat Set Top Box in the same category as telecommunication network equipment and
thereby allow MSOs/DTH Operators to issue form ‘C’ even without reselling the product. With
this step at least half of the demand of 100 million Set Top Boxes will be met through domestic
manufacturers in next 2 years, potentially generating employment to more than 5000 people.
Alternatively the import duty on Set Top Boxes is raised to 15% to provide level playing field to
indigenous manufacturers.

5. Presently the Inputs for the Consumer Electronics & Home Appliances sector are not available
through indigenous sources and have to be imported. This is a big handicap and adds to the cost
of manufacturing final product. Greater emphasis should be laid by Govt. to encourage
component Industry. If the inputs are available, at competitive price indigenously, it will help in
growth of CE&HA industry. It will also result in greater value addition within the country,
building the right eco system for the country and creating huge employment opportunities.

Recommendations for sustainable growth

Infrastructure development

Lack of adequate physical infrastructure such as roads, ports, airports, electricity etc., are
adversely affecting the competitiveness and productivity of the domestic home appliances
industry in India. Uninterrupted power supply is a necessary condition for operation
manufacturing units as power fluctuations can lead to major losses to the manufacturing
processes. Moreover, the demand of home appliances such as Air Conditioners, Refrigerators,
Washing 18 Machines, Microwave Ovens and Vacuum Cleaners are driven by the electrification
of homes and uninterrupted supply of electricity in the already electrified areas. Indigenous
manufacturing in the entire value chain of ESDM is needed for economic development.
Attractive fiscal incentives across the value chain of the ESDM sector through a modified special
incentive package scheme (M-SIPS) provided by government to eliminate the disability costs in
manufacturing on account of infrastructure gaps relating to power, transportation etc. is a step in
right direction. Incentives provided for setting up of 200 Electronic manufacturing clusters
(EMC’s) with world class logistics and easy to do business facilities should help. The benefits of
National manufacturing policy and National investment and manufacturing zones (NIMZ) are
available to EMCs.

Raw Material, Components & Machinery

Weak supply chain network and lack of vendor support also affects the quality, productivity and
competitiveness of the sector. There should be hassle free import of raw material and
components by streamlining the import policy and and through the simplification of procedures.

Skill Development and Training of Manpower

In the context of achieving the necessary ‘scale’ and ‘speed’, the following solutions could be the
way ahead in providing a conducive environment for India to meet its skill development goals.
 Company profile

Introduction

LG Electronics Inc. LG is a South Korean multinational electronics company headquartered in

Yeouido-dong, Seoul, South Korea, and is part of the LG Group, employing 82,000 people
working in 119 local subsidiaries worldwide.With 2014 global sales of USD 55.91 billion (KRW
59.04 trillion), LG comprises four business units: Home Entertainment, Mobile
Communications, Home Appliance & Air Solution, and Vehicle Components,with Starion India
as its main production vendor for refrigeration and washing machines in the Indian sub-
continent. The CEO of LG Electronics is Koo Bon-joon, who assumed the role of vice chairman
of LG Electronics on 1 October 2010. Since 2008, LG Electronics remains the world's second-
largest television manufacturer.

History

1958–1960s

In 1958, LG Electronics was founded as GoldStar (Hangul). It was established in the aftermath
of the Korean War to provide the rebuilding nation with domestically-produced consumer
electronics and home appliances. LG Electronics produced South Korea's first radios, TVs,
refrigerators, washing machines, and air conditioners. GoldStar was one of the LG groups with a
brethren company, Lak-Hui (pronounced "Lucky") Chemical Industrial Corp. which is now LG
Chem and LG Households. GoldStar merged with Lucky Chemical and LG Cable on 28
February 1995, changing the corporate name to Lucky-Goldstar, and then finally to LG
Electronics.
1970s–1990s

In 1978, LG Electronics earned US$100 million in revenue from exports for the first time in its
history. Rapid growth by globalization saw the company establish its first overseas production,
based in the United States, in 1982. In 1994, GoldStar officially adopted the LG Electronics
brand and a new corporate logo. LG Electronics acquired the US-based TV manufacturer Zenith.
In 1995, LG Electronics made the world's first CDMA digital mobile handsets and supplied
Ameritech and GTE in the US. The company was also awarded UL certification in the US. In
1998, LG developed the world's first 60-inch plasma TV, and in 1999 established a joint venture
with Philips – LG.Philips LCD – which now goes by the name LG Display.

2000–present

In order to create a holding company, the former LG Electronics was split off in 2002, with the
"new" LG Electronics being spun off and the "old" LG Electronics changing its name to LG EI.
It was then merged with and into LG CI in 2003 (the legal successor of the former LG Chem), so
the company that started as Goldstar does not currently exist.

LG Electronics plays a large role in the global consumer electronics industry; it was the second-
largest LCD TV manufacturer worldwide as of 2013. By 2005, LG was a Top 100 global brand,
and in 2006 LG recorded a brand growth of 14%. Its display manufacturing affiliate, LG
Display, as of 2009 was the world's largest LCD panel manufacturer. In 2010, LG Electronics
entered the smartphone industry. Since, LG Electronics continued to develop various electronic
products, such as releasing the world's first 84-inch ultra-HD TV for retail sale.

On 5 December 2012, the antitrust regulators of the European Union fined LG Electronics and
five other major companies (Samsung, Thomson since 2010 known as Technicolor, Matsushita
which today is Panasonic Corp, Philips, and Toshiba) for fixing prices of TV cathode-ray tubes
in two cartels lasting nearly a decade.
On 11 June 2015, LG Electronics found itself in the midst of a human rights controversy when
The Guardian published an article by Rosa Moreno, a former employee of an LG television
assembly factory.

At the end of 2016, LG Electronics merged its German branch (situated in Ratingen) and
European headquarter (situated in London) together in Eschborn a suburb of Frankfurt am Main.

In March 2017, LG Electronics was sued for its handling of hardware failures with recent
smartphones such as the LG G4.

Operations

LG Electronics has four business units: Home Entertainment, Mobile Communications, Home
Appliances & Air Solutions, and Vehicle Components. The company has 128 operations
worldwide, employing 83,000 people. LG Electronics owns Zenith and controls 37.9 percent of
LG Display.

Products

LG Electronics' products include televisions, home theater systems, refrigerators, washing

machines, computer monitors, wearable devices, smart appliances and smart phones.

Televisions

The LG SL9000 was one of several new Borderless HDTV's advertised for release at IFA Berlin
in 2009 LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014.
LG Electronics introduced its first Internet TV in 2007, originally branded as "NetCast
Entertainment Access" devices. They later renamed the 2011 Internet televisions to "LG Smart
TV" when more interactive television features were added, that enable the audience to receive
information from the Internet while at the same time watching conventional TV programming.
In November 2013, a blogger discovered that some of LG's smart TVs silently collect filenames
from attached USB storage devices and program viewing data, and transmit the information to
LG's servers and LG-affiliated servers. Shortly after this blog entry went live, LG disabled
playback on its site of the video, explaining how its viewer analytics work, and closed the
Brightcove account the video was hosted on.

LG's remote uses Hillcrest Labs' Freespace technology to allow users to change channels using
gestures and Dragon NaturallySpeaking technology for voice recognition

As of 2014, LG is using webOS with a ribbon interface with some of its smart TVs. LG reported
that in the first eight months after release, it had sold over 5 million webOS TVs.

In 2016, exclusively to India, Indian arm of South Korea's LG Electronics Inc started selling a
TV that would reject mosquitoes.[25] It uses ultrasonic waves that are silent to humans but cause
mosquitoes to fly away.[25] It was released on 16 June 2016. The technology was also used in air
conditioners and washing machines.[25] The TV is aimed for lower-income consumers living in
conditions that would make them susceptible to mosquitoes.

Mobile devices

Mobile phones

LG G4 range

LG Electronics manufactures a wide range of smartphones and tablet devices. Other than the G3,
LG officially unveiled the curved smartphone, G Flex, on 27 October 2013. LG has released it in
South Korea in November 2013, and later announced releases in Europe, the rest of Asia, and
North America. At Consumer Electronics Show in January 2014, LG announced a U.S. release
for the G2 across several major carriers. In 2015, LG has released LG G4 globally in late May
through early June On 7 September 2016, LG unveiled the V20 and the V30 was announced on
31 August 2017. LG G6 was officially announced during MWC 2017 on 26 February 2017 The
introduction of the G7 ThinQ model was scheduled for a 2 May 2018 media briefing

Tablet computers

In 2014, LG revealed three new additions to the G series of tablets, which each include LG's
Knock Code feature, allowing users to unlock devices with a series of taps. The tablets also
feature Q Pair which allows tablets to sync up with a smartphone, and for phone calls and text
messages passed on to the tablet in real time.

Smart watches

LG Watch Urbane LTE LG G Watch R

LG and Google announced the Android Wear-based smartwatch, the LG G Watch, that was in
June 2014. In August 2014, the LG G Watch R that has a circular face (similar to the Moto 360)
was released. The LG Watch Urbane that LG's third Android Wear-based smart watch has
released in April 2015. This was the first device to support newer smartwatch features such as
Wi-Fi, and new parts of Android Wear's software interface, like the ability to draw emoji to
friends.,

Rolly keyboard

In 2015, LG announced the first Bluetooth keyboard that folds up along the four rows of keys
that can be tossed in a purse or pocket. The Rolly keyboard is made of solid plastic. Two tiny
plastic arms fold out from the end of the keyboard to support a tablet or smartphone, and it can
toggle between two different Bluetooth-connected devices at a time. Battery life is an expected
three months on a single AAA battery.

Home appliances

LG Signature LSA 50 A air purifier

LG manufactures and sells home appliances such as refrigerators, washing machines and tumble
dryers, vacuum cleaners, kitchen appliances, and air conditioners and even microwave ovens. In
June 2014, LG Electronics also announced the launch of its smart appliances with HomeChat
messaging service in South Korea. HomeChat employs LINE, the mobile messenger app from
Korean company 'Naver', to let homeowners communicate, control, monitor and share content
with LG's smart appliances. Users can send simple messages, such as "start washing cycle," in
order to control their washing machines.
Marketing and public relations

Sponsorships

In August 2013, LG Electronics announced that it would sponsor German Bundesliga club Bayer
04 Leverkusen for the next three years with an option to extend for one more year. In the U.S.,
LG Electronics' brand and product advertisements can be seen in Dodger Stadium of the Los
Angeles Dodgers and Great American Ball Park of the Cincinnati Reds. LG sponsors the
International Cricket Council, the world governing body for cricket, and also sponsors ICC
Awards.

From 2009 to 2013, LG Electronics sponsored Formula One for 5 years as a Global Partner and
Technology Partner of Formula One. until 2013. LG was also an official supplier to Virgin
Racing and Lotus Racing team, plus engine manufacturer Cosworth from 2010 to 2012. LG also
sponsors London Fashion Week and the LG Arena in Birmingham.

During the period 2001–2003, LG sponsored the snooker Grand Prix. During these years the
tournament was known as the LG Cup. In 2008 LG became sponsors of the Extreme Sport 'FSO4
Freeze' festival.

The LG Electronics company in Australia have dissolved the sponsorship with the former
Australian vice-captain, David Warner on 27 March 2018 and dropped him as the brand
ambassador of the company over the controversial ball tampering scandal which shook the
Australian cricket on the 3rd Test during their 2017–18 tempestuous Test series against South
Africa. David Warner had an agreement with LG Electronics company in 2014 and was earlier
planned to renew his contract just before being caught for ball tampering row.
Environmental record

Choice magazine, in independent tests of popular LG fridge models in 2010, found the energy
consumption in two models was higher than claimed by LG. LG was aware of the problem and
had offered compensation to affected customers. In 2004, LG made 4A-rated water efficiency
claims for numerous washing machines before they were certified. LG gave undertakings to the
Australian Competition and Consumer Commission (ACCC) to provide appropriate corrective
notices and upgrade and maintain its trade practices compliance program. In 2006, LG overstated
energy efficiency on five of its air conditioner models and was again required to offer consumers
rebates to cover the extra energy costs.

In March 2018, it was announced that one of LG steam clothing care system earned the Asthma
and Allergy Friendly Certification.

Slogans

 "We put people first" (1997–1999)

 "Digitally Yours" (1999–2004)
 "Life's Good" (2004–present)
SWOT Analysis of LG
Data analysis & Interpretation

the data was taken from the 100 respondents around the Guntur town. these data reports are
collected with the help of questionnaires. we analyzed the collected the data and it was
interpreted into tables and graphs to convey the information easily to others.
Table -1

The table showing the data regarding to the Educational Qualification of the respondents.

Educational
Qualification No. of Persons Opinion Percentage
School level 6 6%
College level 25 25%
professionals 54 54%
Others 15 15%
Total 100 100%
The graph showing the data regarding to the Educational Qualification of the respondents.

No. of Persons Opinion

60 54
50
40
No. of Persons Opinion
30 25
20 15
10 6
0
School level College level proffesionals others

Analysis:

According to above bar diagram out of 100 respondents 6% of the customers are school level,
25% are college level and 54% of the customers belong to the category professionals and 15% of
the customers are related to others.

Interpretation:

In these total respondents we analyze that most of the customers are professionals. Few of them
belong to school level and college level and a few belong to others respectively.

Table -2
The table showing the data regarding to the area of residence of the respondents.

Area of Residence No. of Persons Opinion Percentage

Rural 12 12%
Urban 80 80%
Semi Urban 6 6%
semi Rural 2 2%
Total 100 100%
The graph showing the data regarding to the area of the residence of the respondents.

No. of Persons Opinion

90
80
80
70
60
50 No. of Persons Opinion

40
30
20
12
10 6
2
0
Rural Urban Semi Urban semi Rural

Analysis:
According to the above bar-diagram out of 100 respondents, 12% of the customers buy LG
products from rural, 80% of the customers buy from urban, 6% customers from semi urban and
2% from semi rural.

Interpretation:

In these total respondents we analyze that the most of the customers are from the urban people.
Few of them bur from the rural and Semi Urban and some people buy from semi rural area.

Table -3
The table shows the data regarding to the which parameter influences the respondents while
purchasing the goods

option No. of Persons Opinion Percentage

Price 11 11%
Product Feature 25 25%
Brand 54 54%
Service 10 10%
Total 100 100%
The graph shows the data regarding to the which parameter influences the respondents while
purchasing the goods

60%

50%

40%

30% 54%

20%
25%
10% 11% 10%
0%
price product feature brand service

Analysis:

According to the above bar-diagram out of 100 respondents 11% of the customers buy products
based on price, 25% based on product feature 54% customers due to Brand name and 10% based
on service.

Interpretation:
most of the respondents are buying LG products for only brand image. a few persons are
buying for features. a very few people are buying for prices & service.
Table -4

The table showing the data regarding to the how the respondents come to know about LG

Option No. of Persons opinion Percentage

Friends and Relatives 43 43%
News papers 15 15%
Television 36 36%
Internet 6 6%
Total 100 100%
The table showing the data regarding to the how the respondents come to know about LG

Column1
15%
newspaper
T.V. ADS
43%
internet
friends andrelatives
36%

6%

Analysis:
According to the above bar-diagram out of 100 respondents 43% of the customers come to know
about LG by their friends and relatives, 15% of the customers come to know by newspapers and
magazines, 36% of the customers are aware by television media and 6% of customers by
Internet.
Interpretation:
In these total respondents we analyze that the most of the customers are aware about the LG
products by their friends and relatives and some are aware through newspapers and magazines
and few of them are aware through television and others by the Internet.
Table -5

The table shows the data regarding to which factor made the respondents to buy LG products

Option No. of Persons opinion Percentage

Quality 70 70%
Price 10 10%
Advertisements 12 12%
Brand Image 8 8%
Total 100 100%
The table shows the data regarding to which factor made the respondents to buy LG products

No. of Persons opinion

80
70
70
60
50
40
30
20 12
10 8
10
0
Quality Price Advertisements Brand Image

Analysis:

According to the above bar-diagram out of 100 respondents 70% of the Customers buy LG
products based on quality, 10% of the customers buy due to price and 12% customers based on
advertisements and 8% based on Brand image.

Interpretation:

The respondents are mostly effecting to buy LG products because of its quality. The
advertisements, price, brand came for next respectively.

Table-6
The table shows the data regarding to the respondents where they are purchasing LG products
 Option No. of persons Opinion Percentage
Retailers 4 4%
Wholesalers 12 12%
Showroom 75 75%
Online 9 9%
Total 100 100%
The graph shows the data regarding to the respondents where
they are purchasing LG products.

5
4.5
4
3.5
3
2.5
4.3 4.5
2
3.5
1.5
2.5
1
0.5
0
retailores holesalers showroom online

Analysis:

According to the above bar-diagram out of 100 respondents 4% of the customers buy LG
products based on Retailers, 12% of the customers buy from Wholesalers and 75% customers
from the showroom and 9% from online.

Interpretation:

In these total respondents we analyze that the most of the customers are likely buy LG products
from showroom. Few of them buy from wholesalers and Online and some buy from retailers.
Table -7

The table shows the data regarding to the respondents that how many LG products they own.

Option No. of persons Opinion Percentage

1 26 26%
2 44 44%
3 24 24%
4 and more 6 6%
Total 100 100%
The graph shows the data regarding to the respondents that how many LG products they own.

45%
40%
35%
30%
25% 44%
20%
15% 26% 24%
10%
5% 6%
0%
1 2 3 4 amd above

Analysis:

According to the above pie chart out of 100 respondents 26% of the customers own 1 LG
product in their homes. 44% of the customers own 2 LG products in their homes and 24% of the
customers own 3 LG products and 6% of the customers own 4 and more LG products.

Interpretation:

In these total respondents we analyze that the most of the customers use minimum 2 LG products
and some members use 1 product of LG and some of the customers use 3 LG goods and the
others use 4 and more of the LG products respectively.
Table -8

The table show the data regarding to the respondents that the LG products they use.

Option No of persons Percentage

Mobile 7 7%
TV 27 27%
HomeAppliances 36 36%
Refrigerator 30 30%
Total 100 100%
The graph show the data regarding to the respondents that the LG products they use.

products use
7%
mobile Analysis:
30%
TV
27% According to the above
home appliances
refrigirator Doughnut chart out of 100
respondents 7% of the
customers consume Mobile
36%
and 27%of the customers
consume Television and
36% of the customers consume Home appliances and 30% of the customers consume
Refrigerator.
Interpretation:

In these total respondents we analyze that the most of the customers are likely to consume home
appliances and some of them consume Refrigerator and a few consume Television and other
consume mobile.

Table -9

The table showing the data regarding to how long respondents have been using LG products
 Option No. of persons Opinion Percentage
Less than 1 Year 12 12%
6-12 Months 13 13%
1-2 Years 22 22%
More than 2 Years 53 53%
Total 100 100%
The graph showing the data regarding to how long respondents have been using LG products

60%
50%
40%
30%
20%
10%
0%
less then 1
year 6-12 months
1-2 years
more than 2
years

Analysis:

According to the above bar-diagram out of 100 respondents 12% of the customers are using
LG products from less than 1 year, 13% customers are using from 6-12 months, 22% customers
are using from 1-2 years, 53% customers from more than 2 years.

Interpretation:

In these total respondents we analyze that the most of the customers are using LG products from
more than 2 years. Few of them are using from 1-2 years and 6-12 years and some are using from
less than 1 year.

Table -10

The table show the data regarding to the respondents that they will be ready to buy LG products
just because of its brand name

Option No. of Persons Opinion Percentage

 Yes 73 73%
No 27 27%
Total 100 100%
The graph showing the data regarding to how long respondents have been using LG products

No. of Persons Opinion

Yes
27
No

73

Analysis:

According to the pie chart out of 100 respondents 73% of the customers are likely to purchase
LG products just because of its brand name and 27% of the customers are not ready to buy based
on the brand name they also need different varieties of products.

Interpretation:

In these total respondents we analyze the maximum number of customers buy LG products just
because of its brand name and a few of them are not likely to buy products just because of its
brand name.

Table -11

The table shows the data regarding to respondents they think LG always brings out its best

Option No. of Persons Opinion Percentage

Yes 86 86%
 No 14 14%
Total 100 100%
The graph shows the data regarding to respondents they think LG always brings out its best

No. of Persons Opinion

80
60 No. of Persons Opinion
86
40
20 14
0
Yes No

Analysis:

According to the bar diagram out of 100 respondents 86% of the customers feel that LG always
brings out its best 27% of the customers feel that it should make some improvements in order to
become a global leader.

Interpretation:

In these total respondents most of the customers feel that LG always brings out its best, some of
them feel that it should also make some of the improvements.

Table -12

The table shows data regarding to the price levels of LG products

Option No. of persons Opinion Percentage

Very Expensive 10 10%
 Expensive 45 45%
Reasonable 43 43%
Low 2 2%
Total 100 100%
The table shows data regarding to the price levels of LG products

No.of persons Opinion

50 45 43
40
30
20 10
10 2 No.of persons Opinion
0
Very Expensive Reasonable Low
Expensive

Analysis:

According to the pie chart out of 100 respondents 10% of the customers feel that the price of LG
is very expensive, 45% feel that the price of the LG goods is expensive, 43% feel that the price
of the LG goods is reasonable and 2% feel that the price of LG products is low.

Interpretation:

In these total respondents most of the customers feel that the price of the LG products is
expensive and some of them feel that the price of LG products is reasonable and few of them feel
that the price is very expensive and others feel that the price is low.

Table -13

The table show data regarding to the respondents assumption about LG meaning.

No. of Persons
Opinion Opinion Percentage
Life's good 83 83%
Global leader 8 8%
Lucky goods 1 1%
Lifetime goods 8 8%
Total 100 100%
The table show data regarding to the respondents assumption about LG meaning.

No. of Persons Opinion

55
60
50
35
40 No. of Persons
Opinion
30
20 8
10 2
0
Excellent Very Good Average
good
:
Analysis:
According to the bar diagram out of 100 respondents 83% of the customers feel that the LG
means Life’s good and 8% feel that LG denotes global leader and 1% feel that LG means Lucky
goods and 8% feel that LG denotes lifetime goods.
Interpretation:
In these total respondents most of the customers feel that the LG mean Life’s good and some of
them feel that LG mean global leader and a few of them feel LG mean Lucky goods and others

Table -14

The table shows that data regarding to the satisfactionary levels of customer care services.

Opinion No. of Persons Opinion Percentage

Excellent 8 8%
 Very good 35 35%
Good 55 55%
Average 2 2%
Total 100 100%
The graph shows that data regarding to the satisfactionary levels of customer care services.

No. of Persons Opinion

2 8
Excellent
Very good
Good
35 Average
55

Analysis:

According to the bar diagram out of 100 respondents 8% of the customers feel that the service
rendered by LG is excellent. 35% feel that service is very good 55% feel that service rendered
by LG is good 2% feel that service of LG is average.

Interpretation:

In these total respondents most of the customers feel that the service rendered by LG is good
and some feel that it is very good and a few of them feel that the service is average.

Table -15

The table showing the data regarding to respondents idea of switching from LG Products to
other brands.

Option No. of Persons Opinion Percentage

 Yes 23 23%
No 77 77%
Total 100 100%
The graph showing the data regarding to respondents idea of switching from LG Products to
other brands.

No. of Persons Opinion

80
70
60 No. of Persons Opinion
50 77
40
30
20 23
10
0
Yes No

Analysis:

According to the bar diagram out of 100 respondents 23% of the people have idea from
switching from LG products to other brands.77% of the customers are not ready to switch from
LG to other brands.

Interpretation:

In these total respondents most of the customers are not ready to switch from LG brand to other
brands remaining customers are ready to switch to other brands.

Findings

1. Most of the users are professionals in our survey because it has as good brand image.

2. Its cleared that most of the users of LG electronics are adults because they have experienced
the LG goods.
3. Customers are not attracted by these old goods they need innovative products in LG.

4. Its cleared that most of the respondents are attracted by the quality and the durability of the
product.

5. Customers are attracted to LG products because there are variety of products such as TV,
Refrigerator, Mobile, Home Appliances.

6. it is clearly stated that most of our customers are from Urban area and they purchase the
electronics from showrooms.

7. Most of the customers are satisfied by the service rendered by LG.

8. Majority of the customers are using LG from a period of more than 2 years.

9. Majority of the customers are not likely to switch from LG to other brands.

10. Most of the customers come to know about LG through their friends and relatives.

11. Majority of the customers feel that LG always brings out its best.

12. Majority of the customers feel that the price of LG products is expensive.

13. Majority of the customers use LG products 2 and more.

Suggestions

1. Some customers feel that the brand image is good but it should reduce the price of the
products.

2. Improve the advertisements.

3. Some feel that the sales service of the LG is low it should improve its service centres.

4. Through the advertisement for LG product, mobile phone had reached a lot of customers but
the advertisement for various other products like the Television, VCD players and refrigerators
etc should attract and persuade to buy its product.

5. In order to make the advertisement more effective, the message should be conveyed in simple
and brief manner so as to enable it to reach all level of the consumers.

6. In the exhibitions the attractive demonstration about the products are necessary in order to get
the trust of customers.

7. Based on accordance of publicity in the promotional mix of LG product it helps to be the day
to day competition

8. It can enhance its business to other industries such as automobile industry

9. In case of the sales promotion the various offers, gifts, discounts are thus given for the
promotion for the products should be effective enough, it must be given on the basis of seasonal
basis.

10. In personal selling the salesmen play a vital role. So he must be very talented in every aspect
for the promotions of LG products

11. Improve your strategy in order to retain the customers.

Conclusion:

The study has helped the LG electronics to understand whether the customers are satisfied or
not .If not what are the main reasons for dissatisfaction of customer towards the LG and what are
the ways of improving the satisfaction level of customer towards LG.

We can concluded that professionals and adults are interested in LG products, the buyer
behaviour is governed predominately by the need for power and respect for the iconic brand and
uses are mostly all these professionals including some adults. Most of the customers are
attracted to new innovations with the features of quality, durability, brand images, also customers
are easily affording the price of LG electronics and customers are very loyal towards the brand
and they are not ready to switch to other brands.

LG should concentrate on its advertising campaign to reach the customers, LG products are
economical and most of them prefer to buy LG due to brand name and quality and it is available
in these markets easily. Its accessibility and the name and fame of LG is very high.

LG has an excellent satisfaction level with in the customer for its brand name, quality, safety,
durability and with after best sales services.

It is clear that the LG electronics checks at the complaints registered by their customers on
regular basis to main its brand value and entire LG owners are passionate LG fans.