A MINI PROJECT

ON

ADVERTISING STRATERGY OF INDIAN

CORPORATE WORLD L.G. ELECTRONICS

“ SUBMITTED FOR PARTIAL FULLFILLMENT OF

REQUIREMENT OF THE AWARD
OF
MASTER OF BUSINESS ADMINISTRATION"

SESSION-2021-2022

Raj School of Management & Sciences

SUBMITTED TO: SUBMITTED BY:

Mr.Alok Kumar Singh Mahima Singh
Assistant Professor MBA 2nd Semester
Department of
Management Studies
R.J.M.S, Varanasi
 DECLARATION

I Mahima Singh declare that the project work entitled as "

ADVERTISING STRATERGY OF INDIAN CORPORATE

WORLD L.G. ELECTRONICS ” is an authentic record of my own

carried out at “Raj School of Management & Sciences Varanasi” as

required for the project semester for the award of degree of MBA

(Master of Business Administration).

 ACKNOWLEDGEMENT

It is indeed a moment of immense gratefulness for me to

express my deepest gratitude to the faculty of Raj SMS for
providing me with any opportunity to carry out this mini project
and help me mini project report on " ADVERTISING
STRATERGY OF INDIAN CORPORATE WORLD L.G.
ELECTRONICS”.
I am immensely grateful to Mr.Alok Kumar Singh ( Assistant
Professor) for providing me opportunity to prove my skills and
shoulder the responsibilities through this mini project report for
her valuable guidance and suggestions while pursuing the project
and for taking pains to give his valuable inputs to structure the
report. Without her help and valuable inputs and guidelines, the
completion of this project would not have been possible.
I am highly indebted and thankful to each and every person who
devoted valuable time out of their busy schedule to fill-up the
questionnaire in the time. I am also thankful to our faculty and
classmates for their suggestion and support to undertake this
work and also during the courseof study.
 TABLE OF CONTENTS

Chapter Number Topic

EXECUTIVE SUMMARY

Chapter 1: Objective of Study

Introduction

Chapter 2: Scope of Study

History of L.G

Chapter 3: Research
Methodology

Chapter 4: Advertising Strategy

Chapter 5: Data Analysis and

Findings

Chapter 6: Conclusions

Chapter 7: Recommendations

Limitations of
Research

Literature Review

Annexure

Bibliography
 EXECUTIVE SUMMARY

LG is a Multinational Company having its presence all over the world.

Then studies were made about LG‘s corporate history, its origin, developments, expansions,

strategies etc. The chosen area i.e. Advertising is discussed in the subsequent sections.

After studying about the company, a rough idea can be obtained of how multinational or

corporate life is all about & how it works.

These MNC‘s have got a very different way of handling the man power in the organizations.

They give such environment where an employ can think about his growth and how to achieve

it.

The aim of the project was to shed some light on the Advertising Strategies of LG Electronics

and to know about the stand of LG Electronics in the market.

The company profile, giving details about the sub-divisions of the company i.e. Multimedia

Division, Home Electronics Division and Display Division is given; along with a brief history

of the company starting from 1958 to 2010 in the form of timeline is also given. The History

helps to understand the achievements or the accolades, the company has achieved till date.

For the research, a questionnaire was designed and given to people so that choices could be

given to the people so that in return they could give their own personal opinion.

Data sources included both types viz. Primary Sources like Interviews, Questionnaire, etc and

Secondary Sources like Internet, Reference Books, etc.

A detailed research on the main topic – Advertising Strategies of LG has been done next,

highlighting along with it topics like effective advertising and consumer preferences.

Data Analysis was performed next on the basis of the interviews and replies of the people

through the prepared questionnaire. It was found that LG had a respectable stand in the

market and that many people found LG‘s Advertising Strategies to be attractive.

The basic conclusions that could be drawn out of the whole project were that LG had more

than survived during the past three years in the market. It could also be easily made out that

there was a lot of strict competition in the market and that the buyers had a lot of options to

choose from. With the coming in of the foreign brands, the industry and the market are likely

to grow but this might be at the expense of our own Indian companies.

If LG is to grow successfully in the future, honest schemes must be launched by them along

with special focus on rural areas. Various customer oriented schemes like – after sale

services, customer care centers must be launched. Value for money must be provided.

Lack of time allotted for the project, Convincing customer to spend some time for

questionnaire, Lack of reliability of secondary data, not enough time to share the views with

the management – were some of the limitations that were faced while making the project.
Chapter 1 :
OBJECTIVE OF STUDY
 OJECTIVES OF THE PROJECT

The main objectives of conducting the project ―Advertising Strategy of LG

Electronics‖ are as following:

 To know impact or the effect of advertisement on consumer attitude.

 To know the perception of the consumer towards LG‘s advertising.

 To know brand recall of LG.

 To analyze the effectiveness of present advertising strategies of LG.

INTRODUCTION
Advertisement, which is a crux of an y market economy, plays a pivotal role

in the economic progress of a nation. Advertising is indeed the only direct

method, which helps to reach masses of potential buyers. Advertising, being

d yn amic, changes with changing methods of distribution and

consumption. Advertisements have become the part of life for ever yo ne as

a listener through some media or other. In the present era of information

explosion and media influence, these advertisemen ts play a major role in

changing the settled perception or thinking, which is otherwise called

attitude, of the consumer and also the consumption pattern of the society

in general. Thus, the imp act lead to cultural and social changes to a great

extent. Under this situation efficiency of the manufacturers, marketers and

advertisers is tested in churning out advertisemen ts, matching the

expectation of the consumers, which may gradually bring about desired

attitudin al changes in them.

Need for Advertisement

Advertisement plays a major role in ever y walk of life. The divergent

sections of the society may need advertisement t for a variety of reason from

information sharing to consumer persuasion to decision making.

The paramount reason which may necessitate the use of advertisement ts may be:

 Advertising is a way of commun icating infor mation to the consumer,

which enables him or her to comp are and choose from the products

and services available. Advertisemen t enables consumer to exercise

their right of free choice.

 Advertising is the most economical means b y which a manuf

acturer or an institution al bod y can commun icate to an audience

whether to sell a product or promo te a cause of social welfare such as

a civic drive or an immu nization programme.

 Advertising, being a necessar y means of communication is an

inseparable part of speech. An y restriction on the right to reco

mmended legitimate goods, services or ideas in public will diminish

the fundamen tal right of the freedom of speech.

 Advertising can help in improv ing the economies of developing

countries. Advertising stimu lates increases in production and

consequently generates more emplo yment.

 Advertising is an essential and integral to the marketing s ys tem.

It is sometimes main tained that the mark eting system is nothing but

the consequent of a country‘s social and economic growth. The fact

is that advertising is the main key tool used to a countr y‘s

growth.
The basic concept based on ‗Telling and Selling‘. One of the ‗5 M‘s of an

advertising program is Measuremen t. It denotes how the results should be

evaluated. Measurement can at best be done around an audience/ customer

‘s ability to recognize and recall the advertisement and the total impact

formed them b y the overall image of the compan y that finally influence

the purchase behavior of the customer.

The present scenario of the FMCG has witnessed man y a great

advertisemen ts in its field. The major player s hire top advertising agencies

to create memorable advertisements for their brands to enhance the sale.

Chapter 2 :
SCOPE OF STUDY
 SCOPE OF THE STUDY

The project was undertaken to study the advertising strategies of LG

Electronics. As per this study what could be analyzed was: Brand Recall of

LG, Effect of Advertising on Consumer Attitude, Consumer Perception

about LG, and Present Advertising Strategy of LG.

The study area was centered in West Delhi – Rajouri Garden, to be precise.

The study is helpful for many players in Home Appliances to make

following strategies related to advertising for any particular company: -

 Advertising strategy according to the age of final users.

 To analyze the brand recall of other products in the same segment.

 To analyze the perception of consumers related to ads of durables.

HISTORY OF L.G
 HISTORY OF LG ELECTRONICS

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.

1958

Founded as GoldStar

1960's

Produces Korea's first radios, TVs, refrigerators, washing machines, and air

conditioners

1995

Renamed LG Electronics

Acquires US-based Zenith

1997

World's first CDMA digital mobile handsets supplied to Ameritech and GTE

in U.S. Achieves UL certification in U.S.

Develops world's first IC set for DTV

1998

Develops world's first 60-inch plasma TV

1999

Establishes LG Philips LCD, a joint venture with Philips

2000

Launches world's first Internet refrigerator

Exports synchronous IMT-2000 to Marconi Wireless of Italy

Significant exports to Verizon Wireless in U.S.

2001

GSM mobile handset Exports to Russia, Italy, and Indonesia

Establishes market leadership in Australian CDMA market

Launches world's first Internet washing machine, air conditioner, and oven

2002

Under LG Holding Company system separates - LG Electronics and LG Corp.

Full-scale export of GPRS color mobile phones to Europe

Establishes CDMA handset production line and R&D center in China

2003

Enters Northern European and Middle East GSM handset market

Achieves monthly export volume above 2.5 million units (July)

Top global CDMA producer

2004

EVSB, the next-generation DTV transmission technology, chosen to be the

U.S./Canada

Industry standard by the US ATSC

Commercializes world's first 55" all-in-one LCD TV

Commercializes world's first 71" plasma TV

Develops world's first Satellite- and Terrestrial-DMB handsets

2005

Becomes fourth-largest supplier of the mobile handsets market worldwide

Develops world's first 3G UMTS DMB handset, 3G-based Hand Media FLO

DMB Phone with time-shift function and DMB notebook computer

Establishes LG-Nortel, a network solution joint venture with Nortel

2006

LG Chocolate, the first model in LG's Black Label series of premium

handsets, sells 7.5 million units worldwide

Develops the first single-scan 60" HD PDP module and 100-inch LCD TV

Establishes strategic partnership with UL

Acquires the world's first IPv6 Gold Ready logo

2007

Launches the industry's first dual-format, high-definition disc player and drive

Launches 120Hz Full HD LCD TV

Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE

Won contract for GSMA's 3G campaign

2008

Introduces new global brand identity: "Stylish design and smart technology, in

products that fit our consumer's lives."

Posted No.1 spot in US frontloading washers in 5 consecutive quarters

Unveiled the world's first Bluetooth headset combined mobile phone

Unveiled the world's first Blu-ray network storage

Developed the world's first LTE mobile modem chip

Recorded over 100 million units of LG air conditioners in accumulated sales

2009

Became second-largest LCD TV provider worldwide

Became third-largest supplier of mobile handsets market worldwide

Became Global Partner and Technology Partner of Formula One™

2010

Unveiled the world‘s 1st and fastest dual-core Smartphone, LG OPTIMUS 2X

Unveiled the world‘s first full LED 3D TV

Chapter 3 :
 RESEARCH
METHODOLOGY
MARKETING RESEARCH

 Marketing research is the function, which links the consumer, customer and

public to the marketer through information.

Information used to identified and define marketing opportunities and problems:

generate, refine and evaluate marketing action, monitor marketing performance, and

improve understanding of market as a process.

Marketing research specifies the information required to address these issues, design

the method for collecting information, manages and implements the data collection

process, analyses the results, and communication the finding and their implications.

The marketing research process involves a number of interrelated activities, which

overlap and do not rigidly follow a particular sequence—

Define the Research Objective

RESEARCH DESIGN

SAMPLE DESIGN

DATA COLLECTION

DATA ANALYSIS
SAMPLE DESIGN

To carry out the study-

Market Area – Rajouri Garden, West Delhi

Sample Size – 200 Respondents

This is done so as to receive a fair response to achieve our objectives and also so that

the research could be finished on time.

Type of Sample Design

The type of sampling that was carried out was probability (convenience) sampling due

to limited resources available.

In non probability sampling, Random Sampling was chosen. This was the best

sampling method to do market survey. On the other aspect, to cover all consumers in

West Delhi was a comparatively easy task.

DATA COLLECTION

The study was conducted by the means of personal interview with respondents and

the information given by them was directly recorded on questionnaires.

For the purpose of analysis, the data is necessary to collect the vital information.

There are two types of data, these are-

 Primary Data

 Secondary data

Primary Data:-

Primary data can be collected through questionnaire. The questionnaire can be

classified in to four main types---

(A) Structured non disguised questionnaire

(B) Structured disguised questionnaire

(C) Non-structured non disguised questionnaire

(D) Non-structured disguised questionnaire

For the market study, structured non disguised questionnaire was selected as the

questionnaire is well structured, listing of questions is in a prearranged order and the

object of enquiry is revealed to the respondents.

To making a well structured questionnaire, adoption of three types of questions has

taken place:

(a) Open ended questions

(b) Dichotomous questions

(c) Multiple choice questions

Secondary data:-

Secondary data means data that are already available i.e. they refer the data which have

already been collected and analyzed by someone else. When the researcher utilizes

secondary data, than he has to look into various sources from where he can obtain them,

in this case he is certainly not confronted with the problems that are usually associated

with the collection of original data. Secondary data may either be published data or

unpublished data. Usually published data are available in: (a) Various publications of

the central, state and local government; (b) Various publications of foreign government

or of international bodies and their subsidiary organization; (c) Technical and trade

journals; (d) books, magazines and newspapers;

(e) Reports and publications of various associations connected with business and

industry, stock exchanges, etc.; (f) Reports prepared by research scholars, universities,

economists etc.; (g) public records and statistics, historical documents and other source

of published information.

The source of unpublished data are many; they may be found in diaries, letters,

unpublished biographies and autobiographies and also may be available with scholars

and research workers, trade associations, labor bureaus and other public/private

individuals and organization.

MEASUREMENT TECHNIQUES

In the questionnaire most of the questions asked were based on attitude rating scale,

which consisted of rating scales and composite scales.

Tools of Analysis

The role of statistics in research is to function as tool in designing research analyzing

its date and drawing conclusions there from most research studies result in a large

volume of raw data. Which must be suitable reduced so that the same can be read easily

and can be used for further analysis.

Descriptive statistics concern the development of certain indices from the raw data

where as inferential statistics concern with the process of generalization

Chapter 4 :
ADVERTISING

STRATEGY
 EFFECTIVE ADVERTISEMENT AND CONSUMER

ATTITUDE

The following mod el exemplif ies the attitude or response of a consumer to

an advertisement and a glance through the following pictorial presentation

would simplif y our understanding of the advertisemen t‘s effects on

thinking response and it also magnif ies the peripheral and associative effect

of an advertisement.

A Model of the Feeling – Response to Advertisement

Decreases amount of total

thinking

Raises product Increases ratio of positive to

negative thoughts
attribute valuation

Increase positive product

Transform use experience attribute attitude

Advertising
-Evoked
Positive
Affective Increases Attitude towards the
Response Advertisement

Increase Evaluation

of Advertisement
characteristics
A rather simple explanation of how a feeling – response advertisement
works is that people like it or dislike it is an advertisemen t, and this attitud
e gets transformed to or associated with the product in the advertisemen t.
There is thus the potential for a direct casual link between the attitude
towards an advertisement and the attitude and behaviour towards a product.
As noted in the diagram, feelings engendered by an advertisemen t can
create or influence an attitude towards the advertisement directly, as well
as indirectly, through assessment of the quality of the advertisement‘s
exceptional character istics. In fact, some researchers believe that attitude
to the advertisemen t really has two different componen ts; an effective one,
reflecting the direct effect of the feelings evoked by the advertisemen t, and
a second mor e cognitive one, reflecting how well is the advertisemen t
mad e and how useful is the advertisement.

It is importan t, in understanding how an advertisemen t ultimately affects

consumer attitud e; to see what kind of attitude people develop toward the
advertisemen t itself. If the feeling that the advertisement creates are
positive, and if the way the advertisement is mad e is evaluated favourably,
then the advertisemen t should elicit a favourable attitud e towards itself
and vice- versa.

In respect of the viewers of the advertisement, the matter of concern is that,

how far does it influence them and how should it influence them in the
right direction. Viewers of advertisement, who are the mass, have got their
own outlook and their own way of understanding. The customers are to
depend on the advertisements, only till he gets the product. After bu ying
and using the product for the first time, comes the response to the
advertisement. This can be in three different levels viz.
At the first level, when the consumers are fully satisfied, they will respond
favorably to use the product continuously, subject to the price and the
availability of the product. Continuous advertisement in various media
further influence the listeners to build up a positive attitud e towards the
product. This leads to the change in the consumption behaviour of the
society, which leads to a great level of social and cultural change among the
people in general.

The next level is the stage of getting dis-satisfaction by the consumers on

the use of the product, on persuasion b y the advertisement. This will lead to
consumer resistance to the product. The dissatisfaction at this state means
that the quality or the contents of the utility value of the product might not
have reached the height expectations created by the advertisemen t. If the
product or service at this stage is able to satisfy at least a section of the
people, then it can service higher and thus will serve as forbidding factor.
As far as the attitude formation is concerned, this stage can be considered
as a formative stage. But if the product fails to reach, not even a section of
the society in total, it will lead to the product withering away from the
market in course of time.

The third situation leads to a stage, when the viewers understanding that

the advertisement misguides them or giving a wrong information

deliberately. Under this situation the viewer loses confidence on the

advertiser, producer and the seller. This leads to a negative attitude on the

mark eting of the products of the comp an y in general. The defects are to

be brought to the knowledge of the producer to give a chance for him to

correct the mistak es, if it is so. When there is no proper response for

this complaint, then it leads to earning discredit from the customers.

 ESSENTIALS OF EFFECTIVE ADVERTISING

The measure of an y advertisement is its effectiveness in reaching out to the

consumers; there are a few agreed principles, which govern the effectiven

ess of an advertisement. Some of the principles, which are the ingredients

of an effective advertisement, have been dealt here:

Importance of claim:

The most impor tant factor determining the effectiveness of an advertisemen

t is the importance of claim made in it. Man y advertisemen ts make

important claims. But these claims should be impor tant for the consumer

too. If a buyer gives impor tance for quality, there is no point in speaking

about cheap price, similarly if cheap price is important the advertisement

should highlight only that. Nowadays advertisemen t agencies concentrate

on USP, i.e., unique selling proposition. Each advertisement must make a

strong factual claim to pull the consumer into the store to buy.

Believab le:

An advertisement must be believable. This can be incorporated in man y

ways. One way is to quote facts and figures about tests proving yo ur claim.

However, negatively speaking, the advertisemen t should not men tion

anyth ing unbelievab le. Sometimes advertisement given in prestigious

magazines is believed by the readers.

Uniqueness:

The advertisemen t itself must have something unique about it. Uniqueness

draws attention. According to the four-fold principle of AIDA (Attention,

Interest, Desire and Action- buying), an y effective advertisemen t should

draw the attention of the customer. It is a mistak e to depend entirely on

uniqueness. It should be followed by proper claims, and believability.

Typ ically advertisements whose major objective is to gain brand

recognition and acceptance rather than gaining conviction or buyin g

action rely on uniqueness.

Repetition:

Repetition is one of the key concept of advertising. It is better to have a

long series of small advertisement than one extremely long advertisemen

t. Repetition is a basic principle of memo r y. Naturally, the more times an

advertisement is run, the more likely it is that an y person has seen one

of the most advertisements recently. Repetition and regency are usually

closely related. In fact, an advertisement is better read upon repeating,

certainly repetition lowers advertisement cost.

 ADVERTISING STRATEGY OF LG

The strateg y of the comp an y can be understood to be need based which

recognized the need of maintaining ‗Good Health‘ while using the various

consumer electronic goods.

This health factor was until then not given any air b y an y of the FMCG &

Durable based comp an y although they knew the customers want to

safeguard their health in the way of utilizing other benefits, but was not

provided the desired hope and flavour.

On a large scale, the advertisemen ts for LG‘s products promote the

consciousness of ‗Health Factor ‘ for various mach ines including Acs which

were until then considered as cooling devices only. And perhaps this is the

probable reason that exactly within 2 years of its launch, LG displaced

carrier as India‘s No. 1 seller for CTVs and Acs. Rarely has a new corner

unseated the No. 1 so quickly.

(LG‘s ―Switzerland toh hai right here‖ commercial effectively conveyed

the compan y‘s claim to purity the air, a clear-cut benefit in pollution

tormented cities).

Advertising for LG‘s refrigerators with concepts like ‗Frost Free‘, ‗PN

s ystem‘ and ‗Multiplus‘ etc. And for CTV with concept of ‗Protection

of eyes‘ from contrast of TV screens.

 ADVERTISING WORLD OF LG

From the beginning the Advertising Agency made responsible for

advertising campaign of LG is LOWE-LINTAS, which is among the top
three advertising agencies of the countr y.

The amoun t spent on advertising in the first year i.e. 1997 was 14 crores
which was subsequently raised in the year 1998, 2000 and 2001 to 32, 70
& 85 crores (approx) respectively.

In the year 2000, about 3.5% to 4% of the total turnover was invested upon
advertising campaign (i.e. 70-75 crores approx). In the current year about
80 to 100 crores will be spent upon advertising with a share of over 4% of
the total projected turnover.

Out of the total share for advertising about 70% is spent on pure advertising and about
30% on various events, exhibitions, etc.

As far as various media for advertisemen ts are concerned, about 60% are
spent on Print and about 40% on broadcasting med ia.

The compan y involvemed itself with mass mark eting by sponsoring various
sports events. LG sponsored cricket world cup and also started its own LG
cup in sept. 1999 and had been sponsoring cricket events since then for
publicity & promotion. During the Indo-Pak series it has announced new
scheme „Khelega Ky a‟ through different media.
 PRINT ADVERTISING OF LG

Advertising for ‗Door Cooling Refrigerators‘ was a direct hit because of

its unique concepts & effective portrayal. The punch line aired various

models of electronics also cast a good repo for the products.

Some of them are like-

o ― The purest way to breath‖.

o ― For cool health y air‖.

o ― Enjo y a wrinkle free view of the new millenn ium‖.

o ― Keeps you r family health y, day after day, after day‖.

The advertisemen ts are also products based which, instead of showcasing

other features, highlights the unique features of the products like: Golden

eye, Flateron, Door cooling sys tem for refrigerators, Fabricare punch wash

for washing machines, etc.

The slogan changed time to time correctly reflects the actual positioning

of the strategies for technological innovations, like…

o C yb er LG – expand you r life.

o Digitelez LG – technolog y that understand yo u.

 o Now - Life‘s Good.

One of the most mandator y elements of an y compan y‘s efforts is to cast an

everlasting and permanent image in the minds of the people through which

they seem to recall the compan y‘s name and philosophy. In fact the creation

of an attractive logo is one of the great responsibilities upon the

advertising head of the compan y.

No matter, the logo of LG was created suitably attractiv e enough to fulfill

its primar y objective as well as doing mu ch more.

LG LOGO (The Face of the Future)

This s ymbo l mark – the visual representation of LG is composed of the letter

―L‖ and ―G‖ in a circle s ymbo lizes the world Future, Youth, Humanity and

Technolog y. This philosoph y is based on humanity and represents LG‘s

efforts to keep close relationship with their customer in the world.

Red, the main color, represents friendliness, gives a strong impression

of LG‘s commitmen t to the best.

Its ADVERTISING budget till 2010 is as follows:

Year Budget Objective

2008 15 crore To inform about LG‘s products

2009 30 crore To promote additional product launches

2010 30 crore To promote the brand

Chapter 5 :
DATA ANALYSIS

AND

FINDINGS
Table 1 : Gender Classification of Respondents

GENDER RESPONDENTS PERCENTAGE

Male 136 68%
Female 64 32%
TOTAL 200 100%
Gender Classification

140

120

100

80

60

40

20

0
Male Female

sex

ANALYSIS:

□ Out of 200 respondents, 64 are male and 136 are femal

Table 2 : Users /Non user Of LG‟ Products

CATEGORY RESPONDENTS PERCENTAGE

User 44 22%

Non User 156 78%

TOTAL 200 100%

Users of LG'S Hom e Products

160

140

120

100

80

60

40

20

0
Users Non-Users

C at egory

ANALYSIS:

 22% (44 respondents) are user of LG‘s products.

 Rest 78% (156 respondents) are non user of LG‘s products.

Table 3 : Source of Information

SOURCES RESPONDENTS PERCENTAGE

Advertisement 158 79%

Family member 14 7%

Friend/relative/neighbor 28 14%

Other source 0
100%
TOTAL 200
Sources of Inform ation

160

140

120

100

80

60

40

20

0
Advertisements Friends/Relatives/ Neighbours

S ourc es

ANALYSIS:

□ Most of the respondents(79%) come to know about LG by the Advertisement.

□ Second largest source of information are relatives/friends/ neighbors.

□ Third information souce are family members.

Table 4 : Most Influencing Features of Ads

FEATURE RESPONDENTS PERCENTAGE

Message/concept 12 6%

Logo/slogan 36 18%

Picturisation 28 14%
Overall 124 62%
TOTAL 200 100%

ANALYSIS:

□ 124 respondents thinks overall Ad is influencing them.

□ 36 respondents thinks, Logo/Slogan is the second largest influencing feature in

the Ad.

□ 28 respondents are influenced by Picturisation of the Ad and

□ 12 respondents are influenced by the message of the Ad.

Table 5 : Awareness of LG‟ Ads

CATEGORY RESPONDENTS PERCENTAGE

Aware 184 92%

Non aware 16 8%

TOTAL 200 100%

Aw areness of LG's Ads

200

180

160

140

120

100

80

60

40

20

0
Aware Non-Aware

C at egory

ANALYSIS:

 184 respondents have seen the LG‘s ad.

□ While rest of the respondents have never seen/ not remembered at the time of

survey.
Table 6 : Recall of LG

RECALL FACTORE RESPONDENTS PERCENTAGE

Logo/slogan 44 22%

Message 74 37%

Presentation of ad 70 35%

Model/celebrity 12 6%
TOTAL 200 100%

ANALYSIS:

□ 44 respondents have respond that It is easy to remember LG logo/Slogan.

□ On the part of Message there are 74 respondents in favoring.

□ The presentation of ad suits more to 70 respondents.

□ While rest of the respondents remembered the Model/Celebr

Table 7 : Impact of LG‟s Ad

CATEGORY RESPONDENTS PERCENTAGE

Impressive 36 18%

Satisfaction 112 56%

Unsatisfactory 52 26%
TOTAL 200 100%
Im pacts of LG's Ad

120

100

80

60

40

20

0
Impressive Satisfactory Unsatisfactory

C at egory

ANALYSIS:

 36 respondents think that the LG‘s ads are impressive.

□ 112 respondents favor it as satisfactory.

□ While rest of respondents(52) are unsatisfied with LG ad strategy.

Table 8 : Effective Media to Giving an Ad

SOURCE OF MEDIA RESPONDENTS PERCENTAGE

Television 134 67%

Radio 30 15%

Newspaper 16 8%

magazine 18 9%
Banner/hoarding 2 1%
TOTAL 200 100%

ANALYSIS:

□ 134 respondents seek that TV is the best medium to go through Ad.

□ While in against of it 30 are favoring Radio.

□ Newspaper also has 16 respondents in their favor.

□ Rest of the respondents favor to Magazine(18) and Banner/Hoarding(2).

Table 9 : Perception about LG

CATEGORY RESPONDENTS PERCENTAGE

Economical 0 -
Costly 64 32%
Neither economical nor costly 136 68%

TOTAL 200 100%

Percerption about LG

140

120

100

80

60

40

20

0
Economical Costly Neither Economical nor Costly

C at egory

ANALYSIS:

□ 64 of the respondents seek that the LG Product is Costly.

□ While 136 of the respondents seek it as Mid ranged product.

□ Most surprisingly, none of the respondents seek it as Economical product.

Table 10 : Reflection of Product Profile by The Ads

DEGREE OF REFLECTION RESPONDENTS PERCENTAGE

Yes 148 74%

No 52 26%

TOTAL 200 100%

Reflection of Product Profile by the ads

160

140

120

100

80

60

40

20

0
Yes No

Degree of Refl ec ti on

ANALYSIS:

 52 respondents are in favoring that the ad doesn‘t reflect the true value or

information.

□ Rest of the 148 respondents deny the above respondents view

Table 11 : Perception about LG‟s Ad Strategy

CATEGORY RESPONDENTS PERCENTAGE

Very good & promising 16 8%

Good & promising 46 23%

Good but need alteration 84 42%

Need complete alteration 54 27%

TOTAL 200 100%

Perception about LG's ad strategy

90

80

70

60

50

40

30

20

10

0
VeryGood&Promising Good&Promising Good But needAlteration NeedCompleteAlteration

C at egory

ANALYSIS:

 84 respondents think there is some need to change LG‘s ad strategy.

□ 54 seeks for a complete change in that.

□ While 62(16 + 46) respondents says it as very good / good and promisin
FINDINGS

 On the basis of primary data, it can be said that 22% products of

LG are being used in the houses.

 Most of the household are using the LG‘s color televisions.

 Television is the most striking media for Advertising.

  Logo/slogan is the main part, which makes an effective

advertisement. The slogan of LG is not so remind able by the

consumers.

 If we measure the awareness of LG‘ ad, it is 92% (according to

survey).

 The advertisement of LG needs some modification in it.

 According to report 32% respondents think that LG‘s brands are

costly.

 Samsung and Videocon are the best competitors in the same

segment.

SWOT ANALYSIS

STRENGTH

 LG‘s strategies are more interested in expanding the market than

wresting share away from other players.

□ LG decided to be a value driver, selling novel product benefits.

 LG applied unique insight across product markets, including

consumer electronics, where people hadn‘t imagined that health had

any relevance ( like offering AC‘c with Health Air System with anti

fungs, electrostatic and deodorizing and and anti bacteria filters, so

that AC which was previously just a cooling machine is now wanted

by people to improve health).

□ And this due to the accurate presentation by effective advertisements

the Indian consumers is beginning to judge all sort of machines by

what they mean for a healthful life style.

 LG is technological brand as compared to others which launched a

whole range of household products simultaneously and because of

the strategy the customers had been benefited with the consciousness

of concept of health who receive it in the from of quality ― Healthful‖

products also are new conscious enough to judge their machines vide

this parameter.

WEAKNESS

□ LG has less numbers of retailers.

□ Less force- It has less numbers of marketing personnels.

 □ It has not planned for setting up of any new plants where their

competitor has planned to set up several new plants.

□ It has no extra features in the brand that differentiate its from

other competitors.

□ In LG advertising there is no any famous personality as Brand

Ambassadors.

OPPORTUNITIES

□ It can take the market very well with the new investment of $ 143

millions.

□ It can give a big jerk to its major competitor SAMSUNG it can

increase its number of products in consumer goods.

□ Increasing trend of LG of different brand.

THREATS

□ It has continuous threat from SAMSUNG as well as various other

competitors.
□ LG has a major market than SAMSUNG between the families due

to advertisement of world cup cricket.

□ A large amount of expenses on the advertisement.

Chapter 6 :
□ .
CONCLUSIONS
□ Competition is increasing day by day due to increase in new players in this

field

□ LG electronics today has more than survived in the market within these three

years with its marketing strategy and technologically superior range of

products.

□ Substitute products are available in the market.

□ Bargaining power of buyers: The consumer enjoys little buying power.

Although the consumer is the most important entity for the organization the

bargaining power by them is looked down upon since prices etc are fixed

the companies which are not negotiable.

□ Bargaining power of suppliers: At times these suppliers make profit

through delaying the consignment or by increasing the rate of goods.

□ Market shares have increase through lowering the profit & increasing the

volume.
Chapter 7 :
RECOMMENDATIONS
 Advertisements are made intended to accomplish the task of communicating effectively

and properly, by communicating to the right person, by communicating the right

message; put across through appearing and persuasive language, to positively

after the purchase behavior of the target audience. The role of advertisement is to

provide the maximum economic returns to the company and fulfilling other social and

informational objectives as well.

When seen in the light of above, the advertising campaign of the company broadly

seems to achieve the objectives.

When examined more closely, here and there some points need to be considered with

more attention.

□ Focus to be shifted towards major fraction of Indian

society

As reflected from the analysis, a major population is in the impression of the

advertisements catering to the lives and needs of the richer society which themselves

from only a fraction of the entire population of the country. Now at this point of time

when the company has established itself as a major brand in the country the company

should strive to engross itself deeper into the lives of the major fraction of the Indian

society i.e. the rural and the semi-urban population.

□ Use of better, catchy slogans

 The successful advertisements of today have the element of effective slogans or

punchlines as well. The slogans should be such that they are 'short and sweet' to be

humble at the same time contributing cleverly to the overall objective of the

advertisements.

The recommendation of effective and catchy punchlines or slogans to be made a part

of the advertisements of the company will definitely improve the present Impact. such

slogans it incorporating regional sayings or slang might make them more easily

understood and quick to repeat and sing.

□ Showcasing of popular Stars/Models

Another point that emerged from the analysis is regarding the showcasing of the

favorite Models and stars in the advertisements of the company.

□ Launching of Nationwide promotional schemes

As the analysis reflected that it is the need of the hour to launch more attractive schemes

country wide on the major festivals, seasonal events, etc. The company can go for some

incentives schemes for its existing customers to create loyalty among them. It can be

something like - Lucky Draw prizes, sending festival wishes, etc. It would help the

company to create brand loyalty as well enhance the existing market share.

□ Number of Hoardings/Banners to be increased

 The detailed probing from the dealers and the customers revealed the fact that they have

come across very few banners and hoarding of the company. The like in their number

at the public places will enhance the brand awareness.

□ Colored advertisements in print

It is found out through the analysis that there appear advertisements of the company in

print media but mostly in black and white. It is believed that the customers attach value

to any brand through these small points, so in such cases brightly colored

advertisements will enhance their attraction and will make them catchier.

□ Comprehensive advertisement for the whole product

line

It would be a better idea to design more of comprehensive advertisements that showcase

the whole product line under the umbrella brand of LG as the customers might not be

aware of the whole range of the products and such a strategy will enhance the brand

awareness and interest. Such advertisements can be promotional informational as well

as increase the existing market share in a balanced way. The customers would not only

buy routine products like CTV but also like to try products like MWO.
Chapter 8:
LIMITATIONS OF

RESEARCH
 Due to time limitation, it was not possible to cover all areas of West Delhi.


 Scope of the study is limited, so it can not be said that it is true representation

of whole nation.

 On the basis of this data analysis, we can not assume the final situation of the

market.

 Sample size of 200 respondents is not enough to collect accurate information.

 Lack of time allotted for the project

 Convincing customer to spend some time for questionnaire

 Lack of reliability of secondary data

 There was not enough time to share the views with the management.

 Due to limited time period and constrained working hours for most of the

respondents, the answers at times were vague enough to be ignored.

 As a lot of data was through secondary sources, chances of it being absolute

accurate are comparatively less.

LETERATURE
REVIEW
 LETERATURE REVIEW

Historically, marketing strategy formulation is viewed as an antecedent to performance

outcomes (Lages 2000). It is the modus operandi that allows an organization to concentrate its
limited resources on the best available opportunities to increase sales and achieve a sustainable
competitive advantage (Michael Baker 2008).
Marketing strategy has been a salient focus of academic inquiry since the 1980s, according to
(Mavondo 2000). There are numerous definitions of marketing strategy in the literature and
such definitions reflect different perspectives (Li et al 2000). A traditional definition of
marketing strategy is a plan for pursuing the firm‘s objectives or how the company is going to
obtain its marketing goals with a specific market segment (Orville and Walker 2008;
Theodosio, Leonidus, 2003; Kotler, Armstrong, 2009)
Brodrechtova (2008) explains that marketing strategy is a roadmap of how a firm assigns its
resource and relates to its environment and achieves corporate objective in order to generate
economic value and keep the firm ahead of its competitors. In laymen terms it is to determine
the nature, strength, direction, and interaction between the marketing mix-elements and the
environmental factors in a particular situation.
Levie (2006), the aim of the development of an organization‘s marketing strategy development
is to establish, build, defend and maintain its competitive advantage. A thorough analysis of the
newest scientific articles on strategic management and organisational behaviour indicates
that 71% of them analyse company performance as a dependent variable, 12% of them
analyse it as an independent variable while 11% of the studies analyse performance as a
dependent as well as an independent variable (March and Sutton 1997).
Firm’s performance, on the other hand, is a well established measure in marketing literature.
We measure it through sales volume, profitability and market share for the current period
(current firm performance), and perceived satisfaction with these measures when considering
the previous year. (Past firm performance)
Four papers that are discussed in this review, discuss different strategies and their effect on a
firms performance.

E-marketing Strategy and firm’s performance:-

As of 31 December 2011, 2.267 billion people worldwide had access to the internet according to
http://www.internetworldstats.com/stats.htm. It has assumed an important channel for marketing
and distribution of products and services. That is, primarily, due to the cost effectiveness of the
internet as well as convenience for customers when it comes to ordering and browsing. A
company can also reach out to a broader customer base at a relatively low cost. The first paper,
The Relationship between E-marketing Strategy and Performance: A Conceptual
Framework in a Web Context proposes a conceptual framework that links the five factors;
internal forces, the external forces, past web and firm performances, current web (including firm
performance) and the 4W‘s E-marketing strategy (Web-Design, Web-Promotion, Web-Price,
and Web-CRM).

It basically explains that the best strategy across situations does not exist. Performance levels
result from the co-alignment among strategy and the firm‘s context i.e. the internal and external
forces. The identifications of current market position in the web are an essential issue. Although
many e-commerce companies collect cost and usage data about their websites, few of them
understand in any detail how well such information measures their sites performance. Since the
year 2000, investors have been insisting, if not on profits, at least on objective measures of a
sites success in attracting, converting and retaining customers. McKinsey‘s study (Kemmler et
al., 2001) shows that while the performance of internet retailers is improving, most media and
content sites are going down.
ANNEXURE
QUESTIONNAIRE

Q. 1 Are you user of LG‘s Home Product?

Yes [ ], No [ ]

Q. 2 If yes, Which Product are you Using?

TV [ ], Refrigerator [ ]
AC [ ], Washing Machine [ ]
DVD/VCD [ ], Microwave Oven [ ]
Vacuum Cleaner [ ]

Q. 3 By which Medium you come to know about LG?

Advertisement [ ]
Family Member [ ]
Friends/Relative/Neighbor [ ]
Other Source [ ]

Q. 4 Which advertisement feature influenced you most in a particular Ad?

Concept/Message [ ]
Logo/Slogan [ ]
Picturisation [ ]

Q. 5 Have you seen any LG‘s ad?

Yes [ ], No [ ]

Q. 6 What makes you recall LG?

Logo/Slogan [ ]
Message [ ]
Presentation of Ad [ ]
Model/Celebrity [ ]
Q. 7 What do you like of the advertisement of LG?
Impressive [ ], Satisfactory [ ]
Unsatisfactory [ ]

Q. 8 What do you think about the most striking media to advertise LG?
Television [ ], Radio [ ]
Internet [ ], Newspaper [ ]
Banner/Hoardings [ ], Magazine [ ]

Q. 9 Based on the price range what impression do you carry of LG‘s product?
Economical [ ], Costly [ ]
Neither Economical nor Costly [ ]

Q. 10 Does the advertisement reflect actual product profile?

Yes [ ], No [ ]

Q. 11 The advertising strategy of LG is

Very good & Promising [ ]
Good & Promising [ ]
Good but Need Alteration [ ]
Need complete Alteration [ ]
BIBLIOGRAPHY
BOOKS:

 Kotler, Philip

Marketing Management, Eleventh Edition

JOURNALS/ MAGAZINES:

 Indian Journal of Management – Volume xxxv (March 2008)

 Survey of Indian Industries – The Hindu (2007)

 Business Today

NEWSPAPER:

 Economic Times

 Financial Express

 Times of India

WEB SITES:

 www.lge.com

 www.google.com

INDUSTRY REPORTS

 Investors Guide to Indian Industry 2010

COMPANY LITERATURE

 ―LG Parivar‖ the LG in-house magazine.

 ―Global News‖ LG weekly news bulletin