A

PROJECT REPORT
ON

“MARKET ANALYSIS AND RESEARCH OF LG

CONSUMER DURABLES IN JABALPUR”
Submitted in partial fulfillment of Degree of

MASTER OF BUSINESS ADMINISTRATION

RANI DURGAVATI VISHWAVIDYALAYA,

JABALPUR
Under the Supervision of

PROF. AMIT SHARMA

GLOBAL NATURE CARE SANGATHAN’S GROUP OF
INSTITUTIONS, JABALPUR

Submitted by
MUSKAN LALWANI

MBA 4th SEMESTER

ROLLNO- 20118236 ENROLL. NO- R17006P3590640

SESSION: 2020-22
GLOBAL NATURE CARE SANGATHAN’S GROUP OF
INSTITUTIONS, JABALPUR

DEPARTMENT OF MANAGEMENT

STUDENT DECLARATION

I Muskan Lalwani (MBA 4th semester) hereby declare that

the Project Report entitled “Market Analysis and Research of LG
Consumer Durables in Jabalpur” submitted in partial fulfillment of
the requirement for the degree of Masters of Business Administration
to Rani Durgavati Vishwavidyalaya, Jabalpur.
This is my Original work and that no part of this report has
been submitted for the award of any other Degree, Diploma, Fellowship
or other similar titles or prizes and that the work has not been published
in any journals or magazines.

Signature:

Name: Muskan Lalwani

ROLL NO: 20118236
EN. NO: R17006P3590640
Date:
 ACKNOWLEDGEMENT
It was a great privilege for me to performing project in the topic
“Market Analysis and Research of LG Consumer Durables in
Jabalpur”.
The completion of this report would have been dream without the
help and co-operation of the respondent who gave me their precious
time and attention to me for the collection of information needed for
the report.
I am immensely grateful and deeply indebted to H.O.D. of the
Department of Business Administration of “Global Nature Care
Sangathan Group of Institution, Jabalpur” for this moral support
and encouragement throughout the project work.
I would also like to thanks all the staff members of the college for
their kind co-operation and facilities throughout this project.

Muskan Lalwani
MBA 4th SEM
GLOBAL NATURE CARE SANGATHAN’S GROUP OF
INSTITUTIONS, JABALPUR

DEPARTMENT OF MANAGEMENT

CERTIFICATE OF GUIDE

This is to certify that the project report entitled “Market Analysis and
Research of LG Consumer Durables in Jabalpur” submitted by
Muskan Lalwani (MBA 4th semester Roll No 20118236) Enrollment
No. R17006P3590640) in partial fulfillment of the requirement for the
degree of MASTER OF BUSINESS ADMINISTRATION of RDVV
has worked under my supervisionand guidance.
The candidate is regular student of our Institution. This
report is up to the standard both in respect of its contents and literacy
presentation for being referred to all examiners.
Date: ……….. Signature:

Guide Name: Amit Sharma

GLOBAL NATURE CARE

SANGATHAN’S GROUP OF
INSTITUTIONS, JABALPUR
GLOBAL NATURE CARE SANGATHAN’S GROUP OF
INSTITUTIONS, JABALPUR

DEPARTMENT OF MANAGEMENT

CERTIFICATE OF HOD
This is to certify that project report titled “Market
Analysis and Research of LG Consumer Durables in Jabalpur”
submitted by Muskan Lalwani of MBA IV semester may be accepted
towards partial fulfillment of Masters of Business Administration with
specialization in Marketing.

Date:
HOD
Faculty of Management
GNCSGI, Jabalpur
 MARKET ANALYSIS AND
RESEARCH OF LG CONSUMER DURABLES IN
JABALPUR

1
 INDEX

SR. NO. PARTICULARS PAGE NO.

1. Executive Summary 3

2. Objective of The Study 5

3. Introduction of Topic 10

4. Company Profile 14

5. Research Methodology

6. Data Analysis & Interpretation 16

7. Findings 19

8. Suggestions 30

9. Limitations 31

10. Conclusion 32

11. Bibliography and Webliography 33

2
ExECUTIVE SUMMARY

3
 EXECUTIVE SUMMARY

The activity of promoting the sale of goods at retail. Consumer durable activities may
include display techniques, free samples, on-the-spot demonstration,pricing, shelf talkers, special
offers, and other point-of-sale methods. According to American Marketing Association, consumer
durable encompasses "planning involved in marketing the right merchandise or service at the
right place, at theright time, in the right quantities, and at the right price. Good consumer durable
drives visitors to your store. An attractive exterior influences a customer's decision to come inside
and do business. Brightly colored sales signs, a well-kept structure and a clean, well-organized
parking lot are some factors that encourage customers to come into your store. Effective consumer
durable has a significant positive impact on sales. Pricing, proper product display, packaging,
promotional marketing and sales signs can shoot sales upwards and give the customers a
memorable shopping experience.

India is growing rapidly and changes are dynamic. People are changing, the preference and
the demand is changing. The market also has to change accordingly. The purpose of consumer
behavior is not only for retaining the customers but also attracting new customers and increasing
the sales also creating and maintenance of brand awareness.

In this competitive market the level of consumer satisfaction decides the success of any
product and any company. The night consumers have to be targeted and the right strategy should
be implemented at the right time. This will give the desired results.

4
 OBJECTIVES OF THE STUDY

 To find out and analyze the market share of the LG and also analyze the customer’s
preferences, what they want and how LG reached to the consumer and increase their market
share.

 To find out the factors which influence the consumption of the products while purchasing
LG Products.

 To know why people prefers LG Products over other brands for Electronics Goods.

 To study profit margin of major brands in consumer durables.

 To find most important parameter for selection of brand of LCD, Refrigerators, Washing
machines, etc.

5
 INTRODUCTION OF THE TOPIC

India has been the second largest growing economic with huge consumer class has resulted in
consumer goods because the fastest growing industries in India. LG company has been maintaining
the lead being leader in most categories. Then after the liberalization, foreign player like LG, Sony,
Samsung, and another company inherit the image. Today these players control the most important
share of the patron durables market. Nowadays people have lot of choices so goods should be in
step with demand of consumer keeping in mind the taste and preferences. The main objective of
this research is to find out and analyzing the market share of the LG and analyzing the customers
what they want, prefer and how LG reached to the consumer an increase their market share.

6
Companies use data to gain information that provides insight for future decisions. It can be an
arduous and lengthy process, sometimes confusing even the most seasoned research professional.
It’s even further complicated by the fact that there are several ways to go about getting data with
terms to describe each that are often used interchangeably. Case in point: market research vs.
market analysis. While both practices provide valuable data-derived insights, each is a separate
exercise in data collection. Choosing one over the other can have profound effects on the type of
data gleaned, as well as how and when that data can be used. Take a look at the key differences
between market research and market analysis:

MARKET ANALYSIS

Market analysis is the process of examining a particular sector, industry, market or niche. Through
it, historical and current facts are used to forecast potential outcomes. Raw data underscoring a
market’s size and potential (including its number of competitors; the social and political trends
affecting it; the availability of sales and distribution channels within it; and the prices of products
already in it) enable companies to plan strategically for the future. Thus, businesses use market
analyses to better understand how their products and practices might exist within a certain
environment.

MARKET RESEARCH

Market research, however, is the much more specialized process of examining a specific market,
along with the customers in it, with the intent of answering one or more distinct questions. While
some market research projects might include a market analysis, all of them include customer-
specific intelligence. In short, businesses use market research to better understand their customers
(or those they hope to make their customers).

7
 CONSUMER DURABLE GOODS

Retail Consumer durable refers to the various activities which contribute to the sale of products to
the consumers for their end use. Every retail store has its own line ofmerchandise to offer to the
customers. The display of the merchandise plays an important role in attracting the customers into
the store and prompting them to purchase as well. Consumer durable helps in the attractive display
of the products at the store in order to increase their sale and generate revenues for the retail store.
Consumer durable helps in the sensible presentation of the products available for sale to entice the
customers and make them a brand loyalist.

PROMOTIONAL CONSUMER DURABLE

 The ways the products are displayed and stocked on the shelves play animportant
role in influencing the buying behavior of the individuals.

ATTRACTIVE PACKAGING
The packaging of the merchandise goes a long way in improving the brand value of the product.
A product kept in a nice box would definitely catch the attention of the customers.

8
IMPRESSIVE PRESENTATION OF THE PRODUCT

The display of the products at the retail store must entice the customers. The merchandiser in
coordination with the store manager must ensure that the products are according to the season as
well as latest trends.

THE MERCHANDISER MUST:

 Source something which is unique and not available at any other retail store.
 Never compromise on quality of the merchandise. Compromising on qualitycosts later.
 Source merchandise as per the season and climate.

By mid of August and early September, the summer merchandise is generally on a close out and
stores begin stocking merchandise for the winter season. Warm clothing, full sleeves apparels,
jackets, pullovers start replacing cut sleeves, capris, ankle length dresses, shorts and so on.
Colourful clothes dominate the shelves as compared to the subtle colours in summers.

The type of product sourced also depends on the climatic conditions

of the place.
A Reebok store in Central India or Southern India would stock summer merchandise between
April to September whereas a retail store under the same brand somewhere in a cold area
would source woolen merchandise along withsummer clothing as per the demand of the season.

UNIQUE PRICING (DISCOUNTS)

Attractive prices, discounts, rebates also bring customers to the store.

PROMOTIONAL SCHEMES, GIFTS

Coupons and attractive gifts make shopping a pleasurable experience for thecustomers.

9
10
CONSUMER DURABLE

 The merchandiser must source products according to the latest trends andseason.
 The merchandise should be as per the age, sex and taste of the target market.
 Merchandise for children should be in line with cartoon characters (likeBarbie,
Pokemon etc.) to excite them.

Creative Portico Pvt Ltd sources bed sheets, curtains specially inspired from characters (Disney,
Harry Porter, Hannah Montana) - a hit amongst kids. Youngsters prefer funky clothes (colourful
T Shirts, faded denims) as compared to professionals who would go for subtle colours. The target
market of Zodiac Clothing Company Limited mainly comprises of office goers and professionals.
The merchandise (shirts, trousers, neck ties, belts) is as per the taste of the professionals. Beach
house shirts would have no takers in such a store.

 The merchandiser ideally works on the “invariant right” principle.

Since most of us are right handed, it is a common tendency that customers entering into
retail store would first go towards the right side of the store. The merchandiser should
display the unique and expensive collections onthe right side of the store to entice the
customers. The setup of the store should be such that once a customer enters into a store,
he has to walk through each and every department. The shelves should be stocked with the
latest trends. The merchandise should be well organized on the racks according to their
size and pattern.

11
COMPANY PROFILE

12
 COMPANY PROFILE
The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators,
washing machines, and air conditioners.

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the
abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the
corporate Name change to LG, household products were sold under the Brand name of Lucky,
while electronic products were sold under the brand name of Gold Star. The Gold Star brand is
still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United
States.

Global Operation

LG Electronics is playing an active role in the world market with its assertive global business
policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000
executive and employees.
LG Group
1. LG.Philips LCD

13
 2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom

BUSINESS AREAS AND MAIN PRODUCTS

DIGITAL APPLIANCE
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators

DIGITAL DISPLAY
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors

DIGITAL MEDIA
i) Home Theater Systems,
j) DVD Recorders,
k) Super Multi DVD Rewriters,
l) CD±RW,
m) Notebook PCs,
14
LG BRAND IDENTITY: -
The brand of LG is delightfully smart. LG strives to enhance the customer’s life and lifestyle
with intelligent features, institutive functionality and exceptional performance.

THE BRAND PLATFORM: -

The LG brand is composed of four basic elements –

1. Value
2. Promise
3. Benefits
4. Personality
THE BRANDS CORE VALUE THAT NEVER CHANGES.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes
Reliable products
Simple design
Ease of use
Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer through
Trustworthy, Considerate
Practical, Friendly
THE INTERNAL CULTURE OF LG:
LG practices four cultures

1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth

15
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. The scope of research methodology is wider
than that of research methods. When we talk of research methodology we do not only talk of research
methods but also consider the logic behind the methods we use in the context of our research study and
explain why we are using a particular method or technique.

RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure”.

Research design is the conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data.

The type of research design used in the project was Descriptive research, because it helps to describe a
particular situation prevailing within a company. Careful design of the descriptive studies was
necessary to ensure the complete interpretation of the situation and to ensure minimum bias in the
collection of data.

16
DATA COLLECTION METHOD

SECONDARY DATA:

Secondary data collection method is used in the project. Data which has already gone through the
process of analysis or were used by someone else earlier is referred to secondary data. This type of data
was collected from the books, journals, company records etc.

The secondary data has been collected from the following modes:

• Magazines
• Books
• Newspaper
• Data through internet sources

SOURCE OF DATA
The research report is based on Online Customers feedback forms, Blogs, etc.

17
DATA ANALYSIS & INTERPRETATION

18
 DATA ANALYSIS AND INTERPRETATION

1. How often do customers of LG buy their products?

S.NO RESPONSE NO.OF PERCENTAGE

RESPONDENT
1. QUARTERLY/MONTHLY 15 15 %
2. OCCASIONALLY 65 65%
3. OFFERS 20 20%
Total 100 100%

Column3

65%

70%

60%

50%

40%
20%
30% 15%

20%

10%

0%
QUARTERLY/MONTHLY OCCASIONALLY OFFERS

DATA INTERPRETATION

According to analysis, 65% customers buy Occasionally and 20% wait for offers for buying
it and rest 15 % buy quarterly or monthly.

19
2. Customer’s preference of Brands in existing market for buying electronic products.

S.NO RESPONSE NO.OF PERCENTAGE

RESPONDENT
1. LG 68 68 %
2. SAMSUNG 22 22%
3. OTHERS 10 10%
Total 100 100%

68%
70%

60%

50%

40%

30% 22%

20%
10%
10%

0%
LG SAMSUNG OTHERS

DATA INTERPRETATION

According to analysis, 68% people use LG home appliance, 22% Samsung and remaining
10% people use other brands.

20
3. Types of Advertising Sources that LG uses for advertising their products.
S.NO. RESPONSE NO.OF RESPONDENTS PERCENTAGE
1. NEWSPAPER 30 30%

2. MAGAZINE 10 10%

3. RADIO 20 20%

4. TELEVISION 20 20%

5. DIRECTORIES 5 5%
6. DIRECT MAIL, CATALOGUES AND 7 7%
LEAFLETS
7. SOCIAL MEDIA 8 8%
Total 100 100%

30%
30%

25%
20% 20%
20%

15%
10%
10% 8%
7%
5%
5%

0%
NEWSPAPER MAGAZINE RADIO TELEVISION DIRECTORIES DIRECT MAIL SOCIAL MEDIA

DATA INTERPRETATION

LG uses newspapers for about 30% to advertise their products, about 10% from magazines,
20% from radio, 20% from television, 5% from directories, 7% from mails and rest 8% from
social media.
21
4. What are the basis for selection of LG products by their customers?

S.NO. RESPONSE NO.OF RESPONDENTS PERCENTAGE

1. QUALITY 26 26%
2. PRODUCT FEATURES 15 15%
3. PRICE/DISCOUNT 22 22%
4. DURABILITY 18 18%
5. AFTER SALE SERVICES 19 19%
Total 100 100%

30% 26%

25% 22%
18% 19%
20%
15%
15%

10%

5%

0%

DATA INTERPRETATION

26% customers of LG like the Quality, 15% likes features of product of LG, 22% customers like Prices
and discounts of LG, 18% likes Durability of LG , and rest 19% like after Sale Services of LG.

22
5. Which types of Electronics Products customers generally prefer in LG brand.

S.NO PRODUCTS NO.OF PERCENTAGE

RESPONDENTS
1. REFRIGERATORS 38 38%
2. WASHING MACHINES 22 22%
3. STYLER 10 10%
4. AIR CONDITIONERS 16 16%
5. MICROWAVE OVENS 14 14%
Total 100 100%

38%
40%

35%

30%

25% 22%

20% 16%
14%
15%
10%
10%

5%

0%
REFRIGERATORS WASHING STYLER AIR MICROWAVE
MACHINES CONDITIONERS OVENS

DATA INTERPRETATION

According to the analysis 38% people like LG Electronics Refrigerators, 22% people washing
machine, 10% people prefer Styler, 16% prefers AC and rest 14% prefers Microwave oven.

23
6. While purchasing consumer durable which parameter influences you?

S.NO PRODUCTS NO.OF PERCENTAGE

RESPONDENTS
1. Price 39 39%
2. Product feature 21 21%
3. Brand 10 10%
4. Services 17 17%
5. Durables 13 13%
Total 100 100%

39%
40%
35%
30%
25% 21%
17%
20%
13%
15% 10%
10%
5%
0%
Price Product feature Brand Services Durables

DATA INTERPRETATION

39 % of the customer gives importance to price. So it shows that Indian consumers are very
price sensitive. They give more importance to price over the brand. 10% of the customers give
importance to brand.
21% give importance to product feature, Service 17% and durability 13%. Service is also
a big factor for the customers.

24
FINDINGS, SUGGESTIONS AND
CONCLUSION

25
 FINDINGS

 Customers nowadays are very choosy in buying the product and it is important for the
company to make loyal customer of their brand.

 Secondary supports play an important role in the customer’s mind and create awareness
among the customers. The secondary support includes Demonstration, Exhibition & Even
Sponsors.

 From the survey it was found out that the majority of customers don’t buy consumer
durables from exhibitions. They just visit the exhibitions to see the company’slatest model.

 They want to buy from the showrooms. For them service is important. Beside convenience
and other factors service is key factor.

 Also majority of customers do not want any financing scheme for purchasing the durables.

 Majority of the customer’s decision is influenced by the price factor. It shows that the
Indian customers are very price sensitive.

 There was heavy rush on weekends so large numbers of ISD’s were appointed that day.
Also the live demo calls helps in selling. Exchange offers also generate sale.




26
 SUGGESTIONS

1. LG as a brand needs improvement in qualities of its products, its style and looks and the
services provided by them to their customers.

2. Also it is helps in advertising for the new products. Like in this exhibition new LCD scarlet
was advertised. Company should always focus on service.

3. Display share should be increased as LG also believes that “Jo Dikhta Hai Wo Bikta
Hai”.

4. Company should try to improve service. No doubt the company products have technically
edge over competitors but in long run it may hamper the company’s profit.

5. Company should concentrate more on its major drivers LCD, IT, and GSM. Branding and
promotions should be done effectively as it creates a long lasting image in the mind of
customers.

6. Company should also cater to the needs of sub dealers as some of the sub dealers have
potential of high sales.

27
 LIMITATIONS

1. Some sources of data charge money in order to give access to their information, so an
organization needs to evaluate this cost with the cost of collecting data by themselves
2. Information collected from books, historical surveys are usually not sync with the times
and might have changed drastically. Thus making such information a foundation of
research may be highly risky for the businessor project.
3. Some of the secondary sources might have copyrighted their information and using
them without permission can lead to various legal complications.

28
 CONCLUSION

Electronic products are vital part of our daily lives today. We need an electronic device in almost every
job we do. Televisions, refrigerators, washing machine, mobile phones and many other products. We
need the best quality products for ourselves, which makes the buying decisions of these products very
difficult.

According to the study, LG started off as a topmost company dealing in electronic products, with the
entry of new companies with better technologies, LG lagged behind due to outdated technology. LG
has a good reputation in the market. LG may try to improve the qualities and after sales services
provided by them. In current market scenario, the competition in the electronics sector is highest, so as
to remain in competition all companies have to develop in terms of customer satisfaction and others
features. LG is good at what it provides to its customers but it needs improvements in some areas.

With respect to the above study and the findings thereby, the company has definitely entrenched into
the urban market. With few more concerned efforts, the said organization needs to enter the rural
market in order to completely establish itself all over. Company should make advertisement of LG
products aggressively in the way of hoardings which increase the more visualizes customer. The sample
size is also very small which represent my research on consumer behavior.

LG has a great internal structure with a long term serving mission and code of conduct. LG being a
Japanese company follows Japanese methods of management although LG India has a different policy
and code of conduct.

29
BIBLIOGRAPHY AND WEBLIOGRAPHY

30
 BIBLIOGRAPHY

Books:
1. Marketing Management, Philip Kotler, Kevin Keller (2017),
(Thirteenth Edition)

2. Marketing Management, The McGraw-Hill

Company Rajan Saxena (Third Edition)

3. Retail Management: A strategic approach,

Berman, Berry and Joel r Evans (Oct- 2018)

4. “Research Methodology Methods and Techniques”, C.R. Kothari,

Second Edition, New Age International Publishers, 2016.

WEBLIOGRAPHY

Internet:
 http://www.homeappliance.gov.in
 http://www.lgelectronics.com










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








 

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