Customer Satisfaction - LG
Customer Satisfaction - LG
Customer satisfaction is still one of the single strongest predictors of customer retention.
It’s considerably more expensive to attract new customers than it is to keep old ones happy. In a
climate of decreasing brand loyalties, understanding customer service and measuring customer
satisfaction are very crucial.
There is obviously a strong link between customer satisfaction and customer retention.
Customer's perception of Service and Quality of product will determine the success of the
product or service in the market.
With better understanding of customers' perceptions, companies can determine the actions
required to meet the customers' needs. They can identify their own strengths and weaknesses,
where they stand in comparison to their competitors, chart out path future progress and
improvement. Customer satisfaction measurement helps to promote an increased focus on
customer outcomes and stimulate improvements in the work practices and processes used within
the company.
Customer expectations are the customer-defined attributes of your product or service you
must meet or exceed to achieve customer satisfaction .There are many reasons why customer
expectations are likely to change over time. Process improvements, advent of new technology,
changes in customer's priorities, improved quality of service provided by competitors are just a
few examples. Importance given to customer satisfaction of brand name, features, price, quality,
look and mileage while purchasing.
Following are the main objective to study about the customer satisfaction on LG Electronic
It gives detailed analysis of the urban Electronic Products in terms of total sales, marketing mix
Each section sufficiently explains the current and future market trends, and developments in the
Indian Electronic Products.
NEED AND IMPORTANCE OF THE STUDY:
From the days of industrial revolution when goods & services were produced to the
present day, the emphasis has shifted from the Producers to the consumer and his needs, and with
the consumer becoming more involved, in the marketing process there is greater need for
information regarding the consumer needs, preferences and making them satisfied of the
products & services, which has led to a constant but increasing need to conduct marketing
research.
This research is an insight into the mind of the consumer, with the help of which the
organizations will become aware of their pitfalls and in turn can also make improvements in the
product regarding the level of satisfaction of the consumers. The Electronic industry is the most
competitive one and is dominated by money bitter rivals. There exists a oligopoly competition.
However the present study tries to find out the different variables of customers satisfaction
towards LG Electronic Products which is resulting in gaining market share.
Research Methodology:
Research is the search for knowledge through objective and systematic method of finding
solution to a problem is research. Research is defined as human activity based on intellectual
application in the investigation of matter. The primary purpose for applied research is
discovering, interpreting, and the development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the universe. Research
can use the scientific method, but need not do so.
Research Methodology
Research methodology refers to the method the researcher uses in performing research
operations.
Research Approach
Type of research:
2. Descriptive Research Design: The Descriptive Research Design Study is typically concerned
with determining the frequency with which something occurs or the relationship between two
variables.
3. Casual Research Design: A Casual Research Design is concerned with determining cause
and effect relationship.
The data are collected directly from the universe by conducting interviews, etc. these are
the original sources from which the researcher directly gathers data which are not previously
referred.
Secondary sources:
The data are collected from the secondary sources such as magazines, journals, etc.
These sources consist of already variable data in the form of statements, and reports, which may
include sensory reports, financial statements of the company, reports of governments
departments, etc.
To carry out this research, primary data and secondary are collected.
Secondary data
The first step in data collection approach is to look for secondary data. Usually it is the
data developed for some purpose other than for helping to solve the problem at hand. Secondary
data are collected through various magazines, internal experts, and website.
2. Scales (Likert Scale) : An extremely popular means for measuring attitudes. Respondents
indicate their own attitudes by checking how strongly they agree or disagree with statements.
Response alternatives: “strongly agree”, “agree”, “uncertain”, “disagree”, and “strongly
disagree”.
Sampling Population
Sampling Frame
Sampling unit:
Sample Size:
100
Sampling Method:
SPSS Package
LIMITATIONS OF THE STUDY:
1. Since the Questionnaire involves the view customer satisfaction of customers, brand
messages & suggestions regarding promotional activities, they were not prepared to disclose the
actual view.
2. Only Hyderabad was selected for the study. Thus the sample may not be considered as the true
study of the whole market.
5. Some respondents were not interested to give the accurate information of products.
6. The recommendations at the end of the report are made based on the information obtained
through the survey.
COMPANY PROFILE:
History:
Electronics, South Korea. In India for a decade now, LG is the market leader in consumer
durables and recognized as a leading technology innovator in the information technology and
mobile communications business. LG is the acknowledged trendsetter for the consumer durable
industry in India with the fastest ever nation wide reach, latest global technology and product
innovation.
One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics,
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was
established in January, 1997 after clearance from the Foreign Investment Promotion Board
(FIPB).
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a
period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a
state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment
of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-
Conditioners and Microwave Ovens. During the year 2002, LG also commenced the home
production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors
at its Greater Noida manufacturing unit. The beginning of 2004 saw the roll out of the first
locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.
In 2005, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that
commences operations in October 2005. Covering over 50 acres, the facility manufactures LCD
TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color
Monitors.
Both the Indian manufacturing units has been designed with the latest technologies at par with
international standards at South Korea and are one of the most Eco-friendly units amongst all LG
LG has been able to craft out in ten years, a premium brand positioning in the Indian market and
The projects deal with the consumer satisfaction. The survey is conducted to know the
satisfaction of the consumer’s who is having a Television of LG and other competitive brands
LG Electronics India Pvt. Ltd. manufactures and sells consumer electronics, home appliances,
computer products, and mobile phones in India. The company's consumer electronics include
LCD TVs, plasma displays, display panels, color televisions, home theatre systems, music
systems, DVD recorders/players, and MP3 and MP4 players; and home appliances comprise
room air conditioners, commercial air conditioners, refrigerators, refrigerator compressors,
washing machines, dishwashers, microwaves, and vacuum cleaners. The company also offers
computer products, such as laptops, notebook and desktop personal computers, LCD monitors,
CRT monitors, optical storage devices, and projectors; and mobile phone...
The LG Electronic Products Philosophy expressed in this illustration shows the Company
Principle, Management Policies and the ‘LG Way’ based upon the fundamental beliefs of
‘Respect for the Individual’ and ‘The Three Joys’
FUNDAMENTAL BELIEFS
Ownership Pattern:
LG Electronics India Pvt. Ltd. has replaced its heads of marketing and sales as part of a top-level
reshuffle seen as a reaction to its failure to keep pace with revenue target. LK Gupta, chief
marketing officer, has put in his papers after leading the role for five years and will be replaced
by Sanjay Chitkara, who was earlier heading sales administration. Amitabh Tiwari, who was
heading sales, will switch roles with Sanjeev Agarwal, who was the head of business excellence.
They will report directly to company MD Soon Kwon, a senior company executive. The
company has also made some changes in its product group heads and split the role of the head
for refrigerators. Manish Gupta, the product group head for televisions, will head microwave
oven. Vijay Babu, who was heading microwave ovens, will look after frostfree refrigerators
while Praveen Gosain-presently regional manager for East zone two that includes markets like
Orissa, Jharkhand and Bihar-will head direct-cool refrigerators. Vishal Karan, who was the
regional manager for Bengaluru, has been made the chief of modern trade.
Manufacturing Capacity:
LG brand items are manufactured in South Korea. The company has eight manufacturing
plants in Gumi and Paju, South Korea. It also has a module assembly plant in Nanjing and
Guangzhou in China and Wroclaw in Poland.
LG SPONSHERSHIPS:
LG Electronics sponsored the English football club Weyside Rovers (Guildford) from 2000 until
2002 and the English football club Fulham F.C until July 2010. LG sponsored the Brazilian
football club Sao Paulo FC from 2001 to 2009, during which time the club were the winners of
the 2005 FIFA Club World Championship. LG currently sponsor the Australian Football League
team Fremantle Football Club, the Costa Rican football club Liga Deportiva Alajuelense, the
Australian National Rugby League team Cronulla Sharks, and the Argentinian club Boca Juniors.
In August 2013, it was announced that LG Electronics would sponsor German Bundesliga club
Bayer 04 Leverkusen for the next three years with an option to extend for one more year.
LG sponsors the International Cricket Council, the world governing body for cricket. It also
sponsors ICC Awards.[17] During the period 2001–2003 LG sponsored the snooker Grand Prix.
During these years the tournament was known as the LG Cup.
Product Range:
We are a first class compressor manufacturer for air conditioners marked by a capacity for
worldwide production, high quality, and product leadership.
We manufacture rotary compressors and scroll compressors for air conditioning systems.
These cover a full range of air conditioning products, such as room air conditioners,
dehumidifiers, water coolers and unitary systems.
Moreover, we are producing environment-friendly products by using alternative refrigerants to
protect the ozone layer. We also use inverter models to save on energy.
PRODUCT PROFILE:
1. LCD Monitors:
A monitor or a display is an electronic visual display for computers. The monitor comprises the
display device, circuitry and an enclosure. The display device in modern monitors is typically a
thin film transistor liquid crystal display (TFT-LCD) thin panel, while older monitors used a
cathode ray tube (CRT) about as deep as the screen size.
Originally, computer monitors were used for data processing while television receivers were
used for entertainment. From the 1980s onwards, computers (and their monitors) have been used
for both data processing and entertainment, while televisions have implemented some computer
functionality. The common aspect ratio of televisions, and then computer monitors, has also
changed from 4:3 to 16:9 (and 16:10).
2. LG FLASH MEMORY:
Flash memory is an electronic non-volatile computer storage medium that can be electrically
erased and reprogrammed.
Flash memory was developed from EEPROM (electrically erasable programmable read-only
memory). There are two main types of flash memory, which are named after the NAND and
NOR logic gates. The internal characteristics of the individual flash memory cells exhibit
characteristics similar to those of the corresponding gates.
Whereas EPROMs had to be completely erased before being rewritten, NAND type flash
memory may be written and read in blocks (or pages) which are generally much smaller than the
entire device. NOR type flash allows a single machine word (byte) to be written—to an erased
location—or read independently.
The NAND type is primarily used in main memory, memory cards, USB flash drives, solid-state
drives, and similar products, for general storage and transfer of data. The NOR type, which
allows true random access and therefore direct code execution, is used as a replacement for the
older EPROM and as an alternative to certain kinds of ROM applications, whereas NOR flash
memory may emulate ROM primarily at the machine code level; many digital designs need
ROM (or PLA) structures for other uses, often at significantly higher speeds than (economical)
flash memory may achieve.[citation needed] NAND or NOR flash memory is also often used to store
configuration data in numerous digital products, a task previously made possible by EEPROMs
or battery-powered static RAM.
3. LG TELEVISION:
Television, or TV for short, (from French télévision, meaning "television"; from Ancient Greek
τῆλε (tèle), meaning "far", and Latin visio, meaning "sight") is a telecommunication medium for
transmitting and receiving moving images that can be monochrome (black-and-white) or colored,
with or without accompanying sound. "Television" may also refer specifically to a television set,
television program, or television transmission.
Commercially available since the late 1920s, the television set has become commonplace in
homes, businesses and institutions, particularly as a vehicle for advertising, a source of
entertainment, and news. Since the 1950s, television has been the main medium for molding
public opinion. Since the 1970s, the availability of video cassettes, laserdiscs, DVDs and now
Blu-ray Discs have resulted in the television set frequently being used for viewing recorded as
well as broadcast material. In recent years, Internet television has seen the rise of television
available via the Internet through services such as iPlayer and Hulu.
In 2009, 78% of the world's households owned at least one television set, an increase of 5% over
2003.
4. LG SMART PHONE:
A smart phone, or smart phone, is a mobile phone with more advanced computing capability
and connectivity than basic feature phones.
Early smartphones typically combined the features of a mobile phone with those of another
popular consumer device, such as a personal digital assistant (PDA), a media player, a digital
camera, or a GPS navigation unit. Modern smartphones include all of those features plus the
features of a touchscreen computer, including web browsing, Wi-Fi, and 3rd-party apps and
accessories.
The most popular smartphones today are powered by Google's Android and Apple's iOS mobile
operating systems
4. LG TABLET:
A tablet computer, or simply tablet, is a mobile computer with display, circuitry and battery in
a single unit. Tablets are equipped with sensors, including cameras, microphone, accelerometer
and touchscreen, with finger or stylus gestures replacing computer mouse and keyboard. Tablets
may include physical buttons, e.g., to control basic features such as speaker volume and power
and ports for network communications and to charge the battery. An on-screen, pop-up virtual
keyboard is usually used for typing. Tablets are typically larger than smart phones or personal
digital assistants at 7 inches (18 cm) or larger, measured diagonally.
Hybrids that include detachable keyboards have been sold since the mid-1990s. Convertible
touchscreen notebook computers have an integrated keyboard that can be hidden by a swivel or
slide joint. Booklet tablets have dual-touchscreens and can be used as a notebook by displaying a
virtual keyboard on one of the displays.
4. LG MOBILE PHONES:
A mobile phone (also known as a cellular phone, cell phone, and a hand phone) is a
phone that can make and receive telephone calls over a radio link while moving around a
wide geographic area. It does so by connecting to a cellular network provided by a mobile
phone operator, allowing access to the public telephone network. By contrast, a cordless
telephone is used only within the short range of a single, private base station.
In addition to telephony, modern mobile phones also support a wide variety of other services
such as text messaging, MMS, email, Internet access, short-range wireless communications
(infrared, Bluetooth), business applications, gaming and photography. Mobile phones that
offer these and more general computing capabilities are referred to as smartphones.
The first hand-held cell phone was demonstrated by John F. Mitchell and Dr Martin Cooper
of Motorola in 1973, using a handset weighing around 2.2 pounds (1 kg). In 1983, the
DynaTAC 8000x was the first to be commercially available. From 1990 to 2011, worldwide
mobile phone subscriptions grew from 12.4 million to over 6 billion, penetrating about 87%
of the global population and reaching the bottom of the economic pyramid
5. LG DVD PLAYER:
A DVD player is a device that plays discs produced under both the DVD-Video and DVD-
Audio technical standards, two different and incompatible standards.
The first DVD player ever made was created by Tatung Company in Taiwan in collaboration
with Pacific Digital Company from the United States in 1994. Some manufacturers originally
announced that DVD players would be available as early as the middle of 1996. These
predictions were woefully optimistic. Delivery was initially held up for "political" reasons of
copy protection demanded by movie studios, but was later delayed by lack of titles. The first
players appeared in Japan in November, 1996, followed by U.S. players in March, 1997, with
distribution limited to only 7 major cities for the first 6 months. Players slowly trickled into other
regions around the world. Prices for the first players in 1997 were $1000 and up. By the end of
2000, players were available for under $100 at discount retailers. In 2003 players became
available for under $50. Six years after the initial launch, close to one thousand models of DVD
players were available from over a hundred consumer electronics manufacturers.
6. LG LAP TOP:
A laptop is a portable personal computer with a clamshell form factor, suitable for mobile use.[1]
They are also sometimes called notebook computers or notebooks. Laptops are commonly used
in a variety of settings, including work, education, and personal multimedia.
A laptop combines the components and inputs as a desktop computer; including display,
speakers keyboard, and pointing device (such as a touchpad), into a single device. Most modern-
day laptop computers also have a webcam and a mic (microphone) pre-installed. [citation needed] A
laptop can be powered either from a rechargeable battery, or by mains electricity via an AC
adapter. Laptops are a diverse category of devices, and other more specific terms, such as
ultrabooks or netbooks, refer to specialist types of laptop which have been optimised for certain
uses. Hardware specifications change vastly between these classifications, forgoing greater and
greater degrees of processing power to reduce heat emissions.
Portable computers, originally monochrome CRT-based and developed into the modern laptops,
were originally considered to be a small niche market, mostly for specialized field applications
such as the military, accountants and sales representatives. As portable computers became
smaller, lighter, cheaper, and more powerful and as screens became smaller and of better quality,
laptops became very widely used for a variety of purposes
7. LG REFRIGERATOR:
A refrigerator (colloquially fridge) is a common household appliance that consists of a
thermally insulated compartment and a heat pump (mechanical, electronic, or chemical) that
transfers heat from the inside of the fridge to its external environment so that the inside of the
fridge is cooled to a temperature below the ambient temperature of the room. Refrigeration is an
essential food storage technique in developed countries. Lower temperatures in a confined
volume lowers the reproduction rate of bacteria, so the refrigerator reduces the rate of spoilage.
A refrigerator maintains a temperature a few degrees above the freezing point of water. Optimum
temperature range for perishable food storage is 3 to 5 °C (37 to 41 °F).[1] A similar device that
maintains a temperature below the freezing point of water is called a freezer. The refrigerator
replaced the icebox, which was a common household appliance for almost a century and a half
prior. For this reason, a refrigerator is sometimes referred to as an icebox in American usage.
8. LG WASHING MACHINE:
A washing machine (laundry machine, clothes washer, or washer) is a machine to wash
laundry, such as clothing and sheets. The term is mostly applied only to machines that use water
as opposed to dry cleaning (which uses alternative cleaning fluids, and is performed by specialist
businesses) or ultrasonic cleaners. Washing entails immersing, dipping, rubbing, or scrubbing in
water usually accompanied by detergent, or bleach. The simplest machines may simply agitate
clothes in water; automatic machines may fill, empty, wash, spin, and heat in a cycle. Most
washing machines remove substantial amounts of water from the laundry at the end of a wash
cycle, but do not completely dry it.
9. LG AIR CONDITIONER:
Air conditioning (often referred to as aircon, AC or A/C) is the process of altering the
properties of air (primarily temperature and humidity) to more favourable conditions. More
generally, air conditioning can refer to any form of technological cooling, heating, ventilation, or
disinfection that modifies the condition of air.
An air conditioner is a major or home appliance, system, or mechanism designed to change the
air temperature and humidity within an area (used for cooling and sometimes heating depending
on the air properties at a given time). The cooling is typically done using a simple refrigeration
cycle, but sometimes evaporation is used, commonly for comfort cooling in buildings and motor
vehicles. In construction, a complete system of heating, ventilation and air conditioning is
referred to as "HVAC".
Air conditioning can also be provided by a simple process called free cooling which uses pumps
to circulate a coolant (typically water or a glycol mix) from a cold source, which in turn acts as a
heat sink for the energy that is removed from the cooled space. Free cooling systems can have
very high efficiencies, and are sometimes combined with seasonal thermal energy storage
(STES) so the cold of winter can be used for summer air conditioning. Common storage media
are deep aquifers or a natural underground rock mass accessed via a cluster of small-diameter,
heat exchanger equipped boreholes. Some systems with small storage are hybrids, using free
cooling early in the cooling season, and later employing a heat pump to chill the circulation
coming from the storage. The heat pump is added-in because the temperature of the storage
gradually increase during the cooling season, thereby declining in effectiveness. Free cooling and
hybrid systems are mature technology
LG Electronics will realize Global Top Company in the EESH area through corporate level
EESH management system operation, energy efficiency optimization, eco-friendly process &
product development, business site safety & health, and employee health improvement
activities. Also, by providing differentiated customer value, LG Electronics will pursue earth
environment preservation, sustainable social advancement, and improve the quality of life for
stakeholders.
LG Electronics constantly researches and introduces a full range of innovative, greener
products and services, and continue to be a leader in developing green innovations. We are
always looking for innovative ideas and technologies which will support our efforts as, a
leading company in practicing environmental management. Since it first announced its
environmental vision in 1994, LG Electronics has been practicing environmental management
throughout the life-cycle from development and purchasing through production and use to
disposal, and reducing the environmental impacts that occur during business activities.
Furthermore, LG Electronics make every effort to provide better quality to consumers and to
contribute to more sustainable communities.
Awards:
From home appliances to mobile phones, LG Electronics' great designs, technologies &
compatibility are renowned throughout the world.
In 2009
LG wins 14 design & Technology honored at CES 2009 including the CES 'Best of Innovations'
in the Wireless Communications Category for LG Dare(VX9700) and Home Appliances
Category for Steam Laundry Pair:SteamWasher with Allergiene Cycle and
SteamDryer(WM3001H). LG products were honored in multiple highly competitive categories,
including Video Displays, Audio/Video Components, Home Theater Speakers, Computer
Accessories, Home Appliance and Wireless Communications.
A total of 7 products received a reddot Design Award. These included Bluetooth Speaker (MSB-
200) ,Stylish DVD Player (DVS 40) , Secret Phone (KF750) , Watch Phone (GD910) , Universe
Washer & Dryer , Microwave Oven (UD A2) and RAC (AS-W126BMS0) . In particular, the
Bluetooth Speaker (MSB-200) was selected as "Best of Best"
In 2008
The decision of the judging-committee to award LG HomNet was based on its energy & water
saving features which is one of the key requirements of Green Projects. Big 5 Gaia Awards are
organized in partnership with Ecospecifier International, For Most Innovative & Green Products.
A panel of eminent judges from the construction industry review all entries and awarded one of
four green classification medals: Green Medal - Finalists, Bronze Medal - Commended Products,
Silver Medal - Highly Commended, Gold Medal - Most Valued product.
The Big 5 : The Big 5 has an enviable reputation as the Middle East's most successful trade
exhibition and is one of the world's major building and construction shows. Held annually, The
Big 5 is an immensely strong international brand that continues to grow year on year. In 2007
The Big 5 broke all previous attendance records and was officially the largest trade show ever in
the Middle East. The Big 5 (www.thebig5exhibition.com)
At the Eisa Awards, Europe’s most renowned technology awards, the Scarlet Home Theater
(HT953TV) and Touch Mobile TV (T80) were named best product for each sector respectively.
A total of 13 products received 2008 a CES Innovations Award at the world's largest home
appliance exhibition. These included: the 50-inch full HD Plasma TV(50PG60), LCD
FLATRON monitor(W2452T), 42-inch LCD HDTV(42LG60), the LX-570 handset and three
other handsets, two home appliances, an audio player, and a video player.
LG Electronics Received iF Design Awards in 11 Areas
A total of 11 products received an iF Product Design Award. These included: the KU990
handset, the VX-8800 handset, washing machines for the North American market, LCD
TVs(LG70), monitors(X2252, W2284), slim PCs(R10, R11), Bluetooth stereo headsets, stylish
micro audio players, and video MP3 players(V25).
A total of 11 products received a reddot Design Award. These included the KU990 handset, the
VX-8800 handset, the VX10000 handset, the SV300 handset, the steam dishwasher, the
HT762TZ home theater system, and video MP3 players. In particular, the HT762TZ was selected
as "Design Art Home Theater".
In 2007
A total of 29 products, including the PRADA phone, Shine phone, 50-inch PDP TV, 47-inch
LCD TV, Fantasy Monitor, Notebook, MP3 players, side-by-side refrigerators, etc. received
reddot Design Awards and the PRADA phone was awarded the honor of "Best of the Best."
LG Electronics Received iF Design Awards in 21 Areas
A total of 21 products, including the slim, clamshell phone, 50-inch and 60-inch PDP TV, and
the 3-door refrigerator received an iF Design Award. Various products were selected within the
general business areas; 5 mobile phones, 6 displays, 4 media products, 5 home appliances. In
addition to the 9 products in 2005 and 11 products in 2006, a further 21 products were selected in
2007, proving the global design compatibility of LG Electronics.
A total of 11 products, including the Chocolate phone, FUSIC phone, which supports wireless
output, 42-inch PDP TV, which is capable of two-way cable broadcasting, 3-door refrigerator,
and a washer-dryer combo cleaning system received a CES Innovation Award at the Consumer
Electronic Show - the world's largest home appliance exhibition.
In 2006
LG Electronics' Super Blu Player, which can play both Blu-ray Discs and HD DVDs, received
this year's "Best in Show" — the top CES honor. "Best in Show" is awarded to the product that
receives the best evaluations out of CES' best products in 10 fields, proving that SMB
technology has been recognized by the world.
During the EISA Awards, which is known as the Oscars of the European electronics industry,
three products, including the Time Machine PDP TV, the wall-mounted projector, and the Super
Multi DVD Recorder were selected as the best products in their area. The EISA Award is the
most sought after technology award in Europe, and the winners are selected by 50 magazines in
the fields of electronics and information communication across 19 European countries. This
award not only recognized LG Electronics' designs but also its technologies and their success in
the European market.
A total of 11 products, including the 50-inch PDP TV with built-in Time Machine technology,
the Chocolate phone, slim DMB phone, wall-mounted projector, LCD monitor, home theater
with Flat Panel Speaker, AV center, set-top box, and the HDD DVD recorder received an iF
Design Award.
LG Electronics Received CES Innovation Awards in 11 Areas
A total of 11 products, including LG Electronics' 50-inch wireless PDP TV, LCD TV and TV
refrigerator received an Innovation Award including one "Best of Innovation" Award from CES
2006, held in Las Vegas, Nevada, USA.
Learn about LG and our commitment to delivering products that allow you to experience life in
more meaningful ways, including how our impact the environment.
Discover LG’s history and advances in the use of technology. Browse articles, press releases,
photos and films. Experience the LG products in fun and creative ways. Learn about LG’s
commitment to living green and sustainability. And explore how you can start a career with one
of the world’s leading consumer electronics companies.
LG Electronics
STP
Positioning Technology that offers you more and sets you free
SWOT Analysis
Competition
1. Samsung
Competitors
2. Sony
3. Panasonic
4. Toshiba
5. Whirlpool
STRENGTHS:
LG is a multinational company and a recognized brand around the world. They are the largest
manufacturer of Electronic products in the world.
It has successful established not only in developed countries but also in developing countries.LG
products are reliable, easy to use, and have simple designs which satisfy customers that's why LG
have the advantage of having loyal
customers. In LG Corporation the research and development has given greater
LG Electronic Product has won many awards for initial quality and customer satisfaction.
Their research has afforded them competitiveness in innovative products.
They were a pioneer in engineering low emissions internal combustion and hybrid
technology.
LG is the only other manufacturer outside of Mitsubishi to branch out into many other areas
outside of electronic, like Monitors, Dvd, Washing Machines, Lap Tops,Air Conditioners,.
WEAKNESSES:
A career at LG will allow you to realize your dreams. We offer the "Right People" great
opportunities for growth and rewards for exceptional performance.
THREATS:
INDUSTRY PROFILE:
LG CNS established LG CNS India in October 2004. Prior to which, LG CNS India was
operating as a division (Enterprise Technology Division) of LG Soft India (a 100% subsidiary of
LG Electronics) since 1996.
In October 2004, this division was de-merged from LG Soft India and set up as the India
subsidiary of LG CNS. As one of the top 10 IT Services Company in Asia Pacific, LG CNS has
a strategic intent to leverage the India subsidiary (LG CNS India) to address the local geography
and western hemisphere (US & Europe).
History:
The history of LG Electronics has always been surrounded by the company's desire to create a
happier, better life. LG Electronics was established in 1958 and has since led the way into the
advanced digital era thanks to the technological expertise acquired by manufacturing many home
appliances such as radios and TVs. LG Electronics has unveiled many new products, applied
new technologies in the form of mobile devices and digital TVs in the 21st century and continues
to reinforce its status as a global company.
Present Scenario:
In 2008, rising input costs and lack of incentives had compelled durables manufacturers to take
two rounds of price hikes on an average. These firms rued that the depreciating rupee and global
financial crisis were adding to their woes. The Rs 32,000-crore consumer durables industry
imports inputs such as pre-coated sheets, plastics, chemicals used for foaming and custom-built
units such as LCD and plasma televisions which now cost more. Other factors such as delayed
summer and early rains, especially in North India, affected air-conditioners sales. Also, several
consumer finance companies have stopped lending for purchase of consumer durables.
In spite of a slow year for consumer electronics industry in 2008, LG Electronics India managed
to clock revenues of Rs 10,730 crore, a 15 per cent growth over 2007, in line with its 2006
growth rate. The net profit margin was at 4 per cent of sales despite severe pressure on raw
material costs. LG will increase ad and marketing budget by 10 per cent to Rs 400 crore in 2009.
In line with its strategy, LG grew by 20 per cent in January and February. The company hopes to
save $384 million through cost cutting and efficiency-improvement measures in 2009. It will
also continue to hire people in order to grow its GSM phones business this year.
Our research park has developed many high value-added petrochemical products, such as self-
dispersing ABS, environment-friendly plasticizers, and high-performance transparent ABS. LG
Chem Research Park came to the center of international attention after independently developing
and successfully commercializing acrylic manufacturing catalyst. We hope to leverage our
simulation program to develop next-generation core technologies in the near future.
The information & electronic materials R&D center succeeded in commercializing batteries in
1996, just two years after research began. In April of 2003, it developed and began producing the
world's first 2,400mAh cylindrical lithium ion battery.
In a buyer’s market where the customer is the king, business begins and ends with the
customer. The business growth, profitability, liquidity and image of an organization depend
upon the customer. It is therefore essential that a supplier meets the customer’s expectations
fully and ensures that he is satisfied. Hence it is necessary to place emphasis on building and
maintaining customer satisfaction by putting the customer first in all activities.
Customer satisfaction is the customer’s perception that a vendor has met his expectation
fully, efficiently and promptly.
It is generally seen that no single vendor would be able to provide the entire above
feature. There will always be some positive and negative features in the product and human
behaviour that will please or antagonize the customer. More the positive feeling, the more
satisfied a customer feels. The vendor must make an attempt to increase these positive feelings
and make determined attempt to strengthen them. At the same time he should also look for the
deficiency factors and try to remove them. This way he can enhance the satisfaction level of the
customer.
What will satisfy a customer or, for that matte, an individual is difficult to predict and
will vary from customer to customer. While some may place more emphasis on price others may
be more worried about quality or complaint management. It is thus necessary to target a
customer and then work out factors that he considers important and address them appropriately.
As seen from the above, basically, these factors can be classified in the following two broad
categories:
- vendor behavior
- vendor’s product and service performance
The vendor behaviour deals with the behaviour of management and employees of the
vendor. The vendor’s response, service and complaint handling are the factors largely dependent
on the attitude and skill of the human resources available with the vendor. The second aspect is
about the product itself. It is dependent on the capabilities of the vendor and the skill of its
employees. It exhibits the engineering and technology developed or acquired by the vendor.
The quality system being followed by the vendor and its effectiveness.
In the core sector the customer needs and focus will vary widely and unlike consumer
segment, it does not follow any pattern or regional or other type of classification. Hence it
becomes essential to understand each and every customer separately. In case of consumer sector
it is difficult to focus on each and every customer but it is possible to study and identify
behaviour and needs of group of consumers who show common buying characteristics. Having
identified the parameters of importance for the customer, the vendor must try to get opinion of
the customer about himself on these parameters to get feedback and take corrective action.
In today’s globalised economy and competitive environment, the customer has the
options and there are competitors waiting to spoil and exploit the situation. Interested parties can
leverage small amount of dissatisfaction by feeding exaggerated information about a vendor to
the prospective unsuspecting customer. Thus it is necessary that the supplier have proper
information and feedback on the image he enjoys with the customer.
To evaluation the image the supplier enjoys with the customer, he needs reliable
information. He needs to know what comes to the mind of customer on hearing the name of the
supplier. Does it sound as one efficient, innovator, modern, quality supplier, reliable or
untrustworthy? One who keeps commitment? Does the customer understand and appreciate
why the supplier’s company is different from others and how it provides better value to the
customer?
It is therefore necessary for the suppliers to measure customer satisfaction and take
appropriate action to improve it. Nay business requires quantitative measures to run it. It is
often said that what is not measurable is not authentic. Can a business be run without knowing
in quantitative actual turnover, profitability or cash position? Customers are the most important
assents of a business, without them there cannot be any business. Measurement provides specific
information needed by the supplier to steer the company through uncertain waters. It provides
ways to keep the organization running smoothly and meet its business goals.
No customer will buy from, or recommend a supplier until he is fully satisfied with the
product and services offered by the supplier. Thus measurement of customer satisfaction
provides a supplier with quantitative feedback. If such measurement is done at regular intervals
as in the case of other business parameters like turnover ands profits, the supplier also gets
feedback whether his efforts have produced positive results or there is need for course correction.
In fact it is expected that in future, like targets for turnover, profits, similar targets would be set
for achievement of different parameters of customer satisfaction to drive the company towards it.
The objective of the supplier should not end at customer enrichment. The road to this begins
with sincerity and integrity followed by hard work and dedication.
METHODS:
If the measurement is being done as a follow-up to a similar exercise done earlier then the
process should also indicate the relative improvement of worsening of the situation against each
identified factor compared to earlier feedback. This helps in ascertaining the effectiveness of
corrective action taken after similar exercise in the past and the analyses of the need for
incorporating suitable corrective action in the remedial plan.
There are a number of direct and indirect methods to measure customer satisfaction.
They have their own advantage and disadvantages and are detailed below:
- Direct methods
- Customer feedback surveys
- Informal chat/interview with the customer
- Surprise visits to market-customer sectors
- Indirect methods
- Measurement using transient changes in complaints
- Measurement using transient changes in loyalty
TABLE #1
60
50
40
RESPONDENTS%
RESPONDENTS
30
PERCENTAGE
20
10
0
LG BPL SAMSUNG ONIDA OTHERS
PRODUCTS
1. when they were asked about do you like mostly like product in the LG company products in
the given table;
TABLE # 2
TV 03 50.00
REFRIGIRATER 25 41.66
OVEN 1 1.66
60 100.00
INTERPRETATION;
We can conclude from the above the table that out of 60 represents 50 percent of people likes TV;S
and followed by refrigerator is 41.66 percent, washing machines are 6.67 percent and oven’s are used
1.66 percent people.
GRAPH SHOWING VARIOUS BRAND PERFORMANCE BY THE
RESPONCENTS
TABLE #2
60
50
40
RESPONDENTS(%)
30
20
10
0
TV REFRIGIRATER WASHING MACHINE OVEN
PRODUCTS
RESPONDENTS PERCENTAGE
1. When they were asked about opinion on price of LG colour televisions. the respondents are
given in that opinion following table
TABLE # 3
High 10 16.00
No difference 27 45.00
Low 17 28.33
60 100.00
INTERPRETATION:
The above table shows the opinion on price in that way many of the respondents (45%) are told that
no difference to other company televisions. And next followed by low price (28.33) to compare to
other company colour televisions.
50
45
40
35
RESPONDENTS%
30
RESPONDENTS
25
PERCENTAGE
20
15
10
0
Very high High No difference low
PRODUCTS
2. Factors to the survey the purchase of LG colour television set below table
TABLE # 4
Model 14 23.33
Price 12 20.00
Publicity 7 11.66
features 27 45.00
60 100.00
INTERPRETATION;
According to the survey the main factor influencing to purchase of LG colour television. And followed
by model is 23.33 percentage, price is 20.00 percentage and after that follows publicity is 11.33% as
follows.
THE GRAPH SHOWING RESPONDENTS OPINION ON PRICE BASIS
TABLE #4
50
45
40
35
30
RESPONDENTS
25
PERCENTAGE
20
15
10
0
Model Price Publicity features
REASONS
5. When asked to opinion of the respondents to who is influenced to purchase this brand given
below table?
TABLE # 5
Dealers 12 20.00
Friends 7 11.66
Relationships 6 10.00
60 100.00
INTERPRETATION:
Those consumers who purchased LG CTV’s suggested that are self interest are 58.33 percent and then
those consumers who are known as suggested by dealers are 20.00 percent and followed by friends
and relations.
70
60
50
40
30
20
10
0
Dealers Friends relatiopnships self interst
RESPONDENTS PERCENTAGE
6.When they were asked about the purpose in this LG ctv going below
TABLE # 6
Entertainment 48 80.00
Education 3 5.00
Sports 9 15.00
Others 0 0.00
60 100.00
INTERPRETATION;
When they asked to the consumers to sell about opinions on the selecting only in this brand. That are
declared to many of the consumers are told that entertainment (80%) to use. and follows sports
(15%). Education (5%).
THE GRAPH SHOWING RESPONDENTS OPINION ON PRICE BASIS
TABLE #6
90
80
70
60
50
40
30
20
10
0
Entertainment Education Sports Others
RESPONDENTS PERCENTAGE
7.How is LG colour television clarity and sound system compared to other. The followed data is
declared;
TABLE #7
Good 36 60.00
60 100.00
INTERPRETATION:
After purchase to the LG CTV opinions on also sound system to asked that compare to other. The
consumer are said above table is displayed. And many of the consumers are good (60%). And
following 31.66% members are told that system is very good (60%). And following 31.66% members
are told that system is very good. Some members are not so good (8.33%)
FOLLOWING GRAPH SHOWING INFORMATION OF OPINION ON
CLARITY AND SOUND SYSTEM
TABLE #7
70
60
50
40
30
20
10
0
Very good Good Not so good
RESPONDENTS PERCENTAGE
8. What is the reason for choosing particularly of the brand? As follows
TABLE # 8
Quality 12 20.00
Price 12 20.00
Features 36 60.00
others 0 0.00
60 100.00
INTERPRETATION:
The above table displayed on particularly in this brand select as on many of the consumers are tell
about features is 60%. Quality. Price as 20% as on.
70
60
50
40
30
20
10
0
Quality Price Features others
RESPONDENTS PERCENTAGE
9.Which particular media do you think is effectively spreading the television market; as following
table is display?
TABLE #9
Electronics 26 43.33
dealers 4 6.66
60 100.00
INTERPRETATION;
The above table displays many of the consumers are said to use electronic media is 43.33%. And after
print media is 36.66, after that used sales person and dealers.
FOLLOWING GRAPH SHOWING INFORMATION OF OPINIONS
RESPONDENTS AND PERCENTAGE
TABLE #9
50
45
40
35
30
25
20
15
10
0
Electronics Print media Sales persons dealers
RESPONDENTS PERCENTAGE
10.They were asked to say that when face any problem with the product. Whom do they contact the
following results were drawn.
TABLE #10
Dealers 25 36.66
60 100.00
INTERPRETATION;
By seeing the above table we can conclude that 36.66 percent of the people have meet dealers when
they faced problems with the product and 63.33 percent of people have meet service centers when
they faced problems.
70
60
50
40
30
20
10
0
Dealers Service centers
RESPONDENTS PERCENTAGE
11.When collected the opinion to the consumers to ask how do you state in this LG colour television
set. As following below table
TABLE # 11
Reliable 8 13.33
Value of money
18 30.00
60 100.00
INTERPRETATION;
By absorving the data collected from the 60 consumers of LG colour televisions owners , we are
coming to know that 56.66 percent of the consumers said technically superior and remain consumers
are value of money of money is 30% and reliable is 13.33 percent consumers.
STATEMENT ON LG COLOUR TELEVISION
TABLE # 11
60
50
40
30
20
10
0
Technically superior Reliable Value of money
RESPONDENTS PERCENTAGE
TABLE # 12
YES 48 80.00
NO 12 20.00
60 100.00
INTERPRETATION;
Survey reports reveals that 80% of consumers are recommending motivating to buy LG CTV. In
addition 20% consumers are not recommending to others.
GRAPH
90
80
70
60
50
40
30
20
10
0
YES NO
RESPONDENTS PERCENTAGE
13.When they were asked that they are satisfied with the finance option provided by KG towards the
television the following drawn and tabulated below.
TABLE # 13
YES 21 35.00
NO 39 65.00
60 100.00
INTERPRETATION;
By the above table we can conclude that 35.00 percent of people have satisfied with financial options
provided for the colour television and 65 percent of people have not satisfied with financial options
70
60
50
40
30
20
10
0
YES NO
RESPONDENTS PERCENTAGE
14.When they were asked to the satisfaction on the warranty period of in this product in the
company. As follows
TABLE # 14
YES 20 33.33
NO 40 66.66
60 100.00
INTERPRETATION:
According to the survey reports, the satisfied consumers by warranty period are 33.33 percent and
UN satisfied consumers by the warranty period is 66.66 percent.
THE BELOW GRAPH SHOWING WARANTY PERIOD GIVEN BY THE
COMPANY
TABLE 3 14
70
60
50
40
30
20
10
0
YES NO
RESPONDENTS PERCENTAGE
15. When were asked to the opinions on the models on this company colour televisions. They results
as follows;
TABLE # 15
60 100.00
INTERPRETATION;
The above tables displayed on on the models on the LG colour televisions are most of the consumers
are told that is 85% of consumers are good models and another 15% consumers said average models.
GRAPH
90
80
70
60
50
40
30
20
10
0
Good models Average models
RESPONDENTS PERCENTAGE
16.When they were asked about the satisfaction about the satisfaction level by the product that they
owned. The results were given in below table;
TABLE # 16
60 100.00
INTERPRETATION;
From the above table we can inferred that 60.00 percent of respondents are very much satisfied with
the model they owed and 23.33 percent of the people are satisfied by the product and 16.66 percent
of people are not satisfied by the owned product
GRAPH SHOWING THE FEELING OF RESPONDENTS TOWARDS LG COLOUR
TELEVISOIN PERFORMANCE:
TABLE # 16
70
60
50
40
30
20
10
0
Very much satisfied satisfied Not satisfied
RESPONDENTS PERCENTAGE
FINDINGS:
A. Based on the data analysis, I have concluded that when consumer purchases a car, the
major factor that influences is brand names and other influencing factors are price quality
look.
CONCLUSIONS
televisions
4. Most of the respondents are said to develop the dealerships and media.
6. Most of the respondents are said that develop the print media and also
sales persons.
SUGGESTIONS
customers.
FINDINGS
LG electronics Pvt Ltd occupies the incomparable highest market share.
The distribution channel is effective in LG Electronics products
Majority of the retailers are satisfied with supply
Majority of the retailers are not satisfied with replacement policy and
promotion schemes of LG Electronics
Majority of the retailers preferring for offers.
We have identified and created 100 new outlets for LG Electronics
BIBLOGRAPHY
1). CONSUMER BEHAVIOUR
(Philip kotler)
Website: www.lgindia.com
www.lgelectronics.com
www.lgctvs.com
www.lgindiapvtltd.com
APPENDIX
QUESTIONNAIRE
Name :
Occupation :
Address :
Gender ;
1) When you think of colour television which brands come to your mind?
Others.
Televison market
a) Yes b) no
a) Yes b) no
13) Are you satisfied the warranty period provided by the company?
a) Yes b) no