INTRODUCTION

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India. Classification of consumer durables sector 1. Consumer electronic include vcd/dvd, home theatre, music player, color television (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc 2. White goods include dishwashers, air conditioners, heaters, washing machines,

refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, Tumble dryer, personal care product etc. 3. Moulded luggage include plastics 4. Clocks and watches 5. Mobile phones Scope 1. In term of purchasing power parity (ppp), India is the 4th largest economy in the world and overtake Japan in the near future become the 3rd largest. 2. Indian consumer durable market is expected to reach $400 billion by on 2010 3. India has the youngest population amongst the major countries. There are lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 50% is below 25. 4. There are 56 million people in middle class, who are earning us$4,400US$21,800 a year. And there are 6 million rich household in India. 5. The upper-middle and high-income household in urban areas are expected to grew to 38.2 million in 2007 as against 14.6 million in 2000.

Opportunity 1. In India the penetration level of white goods is lower as compared to other developing countries. 2. Unexploited rural market. 3. Rapid urbanization. 4. Increase in income level, i.e.increase in purchasing power of consumers.

5. Easy availability of finance. Threats Higher import duties on row materials. Cheap imports from Singapore, China and from other Asian countries.

Brands in consumer electronic sector MNCs LG SAMSUNG HYUNDAI TCL HAIER PHILIPS NATIONAL ) ) ) ) ) ) KOREA CHINA HOLLAND ONIDA VIDEOCON BPL GODREJ VOLTAS IFB REGIONAL BUSH CROWN SALORA T-SERIES WESTON BELTAK OSKAR

History of company 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.

VISION

Global Top 3 by 2010

Global Top 3 Electronic/Telecommunication company

GROWTH STRATEGY

Fast innovation, Fast growth

CORE COMPETENCY

Product leadership, Market leadership, People leadership

CORPORATE CULTURE

No excuse, we not I, Fun workplace SLOGAN "Life's Good" represents LG's determination to provide delightfully smart products that will make your life good.

Airconditioners market is hot

As the emergence of upper middle class in the indian economy, the life standard of the people also grew accordingly.

Keeping consumers cool in what is turning out to be one of the hottest summers in recent times But air-conditioner companies are confident that the hot weather will lead to some cool profits. Traditionally, air-conditioners have been considered to be luxury appliances, and therefore, the demand for air-conditioners have either come from the institutional segment or from affluent homes in the top metropolitan cities of India. Thats no longer the case. While easy finance options have made air-conditioners more affordable, companies are also going that extra mile to make air-conditioners a musthaveappliance in more and more middle class India homes. Price cuts as a strategy to increase sales volumes is definitely in the cards of appliance companies. Voltas India Ltd. became the first player in the air-conditioner market to offer consumers an air-conditioner in the Rs 10,000 (approx. U.S. $220) price range. Keen on roping in the first-time airconditioner buyer, Voltas has launched two modelsa 0.6-ton air-conditioner priced at Rs 9,990 (approx. $218) and a 0.8-ton model at Rs 11,000 (approx. $242). For a 0.8-ton air-conditioner with a remote control, a buyer would have to shell out an additional Rs 1,000 (approx. $22). These models are ideal for families who live in the chawls (tenements) and small-size flats of Mumbai, where the average room size can be 70 to 100 sq ft. Since the peak temperature in the cities of western and southern India hovers around 35C, the sub 1-ton air-conditioners would be more than adequate in terms of

cooling power. Clearly the company is not hoping to garner huge margins from the sales of these air-conditioners but is looking at growing sales volumes. Growing sales volume is crucial for air-conditioner companies. During the last 4 years, the cost of inputsincluding steel and plasticshave been rising steadily while competition too has become intense. This has led to a squeeze on margins. On the positive side, a reduction in excise duties has helped the air-conditioner market to grow rapidly. Last year, the air-conditioner market grew by 15 percent, and this year companies are confident that market growth will register an increase of nearly 25 to 30 percent from last year. While the key players in the popular segment of the airconditioner market are LG, Voltas, Carrier, and Samsung, the premium segment is dominated by Japanese brands such as Hitachi, Daikin, and National. One Japanese brand that is still trying to make its mark is Mitsubishi, which entered into an exclusive arrangement with the Mumbai-based Nova Industries to sell its products in India. However, Mitsubishi is now reinforcing its marketing and distribution strategies and is introducing new models in the 300,000 split air-conditioners segment. Though this segment is small, it is currently growing at almost 30 percent per year compared to the 15-percent growth rate in the window air-conditioners segment. Mitsubishi is also planning to aggressively sell its window air-conditioner models, which are priced between Rs 32,000 and Rs 70,000 (approx. $704 and $1,541). The spurt in sales of air-conditioners has led to a rush of launches in the premium segment as well. Not surprising, as the high-end air-conditioner segment comprises nearly 12 percent of the total market. Companies feel product differentiation and innovative features will be key to selling premium air-conditioner brands. LG has launched a premium brand of window air-conditioners, Whisen, for Rs 45,000 (approx. $991). To set the air-conditioner to any temperature, you can place a phone call to the

landline that is connected to the appliance and set the temperature after using an access password. Innovative features such as these are being launched by other air-conditioner manufacturers as well. Samsungs Hurricane promises to reduce the presence of fungi and bacteria in the room within 5 min of operation, while LG is planning to introduce a model that will help clear the room of cigarette smoke. So even as the outside temperatures soar to 45C this summer, a wider choice of airconditionersboth in terms of product features and price rangewill help consumers keep their cool indoors.

LG AIRCONDITIONERS

LG's prime focuus is on providing a healthy and liveli experience of its products. Three main features of LG Acs are Neo Plasma Filter Virus safe Filter Anti Bacteria Filter

The major product in the LG electronics product stabel is the Airconditioner which has taken market by sweep by providing energy efficient and economical air conditioners. The segment of LG air conditioners have enabled the masses to afford the Acs at its best which otherwise was rich man's pride possesion. LG electronics offer wide range of airconditioners products and solutions across the retail as well as corporate customers requirements. The following are the broad catagories of the products offered but LG in air conditioner market.

Catagories of LG Airconditioners Residential Air Conditioners LG Electronics holds the record for the greatest sales in air conditioners in the world since 2000. What's more, the newly launched, energy-saving, stylish ARTCOOL Gallery series, which uses a new refrigerant, is set to boost LG Electronics' sales, helping it to retain its number one position in the air conditioning industry.

Commercial Air Conditioners LG provides a wide range of tailored commercial air conditioning products suited to buildings in a variety of types and sizes. Its Multi V Plus is one of the world's highest capacity units, essential for high-rise buildings. LG's Multi V Sync provides simultaneous heating and cooling with one outdoor unit, ensuring optimal temperature conditions. LG's Multi V Space is also well known for being economical, aesthetically pleasing, and is ideal for sophisticated, luxurious living spaces.

Many of us fret with the very idea of bearing the heat which is most often accompanied by high humidity. And irrespective of where we live, we are always bound to face the summer heat. With July setting in, the worst part of the summer season sets in. and this is a time when most of us hover around air conditioners in trying to beat the heat. Now when we talk of air conditioners, there are a number of makes and models available in the market. So as to say that there is a variety of sizes and types of ACs available for cooling rooms of different sizes. And in order to choose the perfect air conditioner for your room it is always advisable to have some extra knowledge about the types of AC and their purpose as to which one is best for what kind of room. With the variety of air conditioners available in the market, it is very difficult to choose the most suitable AC for our home or office. And if we dont have a clue about air conditioner then it adds to our own disadvantage. There are mainly five types of air conditioner:
1. Portable Air conditioner: This type of air conditioner has been one of the most

popular types for certain reasons. One major reason is that they can be easily moved from one room to the other and is often referred to as a mobile air conditioner. Being portable, it is easier to store when the summer season wears off. It is best suited for smaller rooms and for those people who moves their houses very frequently. The only minus point is that they are quite expensive and the exhaust tube needs to be fitted each time. It has a separate indoor and outdoor section. It is recommended for rooms whose area is up to 35 meter square .
2. Split Air conditioner: This type of air conditioner is best suited for rooms whose

area is up to 60 meter square. A split air conditioner consists of two parts: the indoor unit which is also called as the evaporator unit and the outdoor unit which is known as the external condenser box and is installed outside the room or the building. And this is one main reason why most people opt for split ACs, as during the operation, it doesnt make any noise which might distract your attention or annoy you. Split ACs are permanent systems which can either be installed at the floor level or on the walls or on the ceiling.
3. Window mounted: these are temporary air conditioners that are usually fixed

through the windows, which have been designed typically for double hung windows. And it is one of the most commonly used air conditioners as this is best for cooling a single room for the simple reason that these are easy to install, cheaper and works with almost all the wiring system of your home.
4. Wall mounted: wall mounted air conditioners of LG are permanently mounted

air conditioners and is suitable for room size, which may vary from 38 meter square- 93 meter square. Wall mounted as well as window mounted comes in

cooling or cooling/heating varieties. The major advantage of a wall mounted AC is that it can be easily repaired and replace, fits more securely, however, the installation may be expensive. There is another type of air conditioner which can either be fitted temporarily or permanently. And this type of AC is best if you are buying it for a rental apartment considering it to fix it permanently when you move in to your home.
5. Central air conditioning system: This type of air conditioner of LG is

specifically meant for offices, buildings, hotels, gym, cinema hall, factory, etc. When a place needs to be air conditioned fully then installing individual units may be cost you dearly, and in such a situation central air conditioning system is the best system, as tons of air conditioning can be produced. Though this type of air conditioner functions like a normal air conditioner but it is more beneficial than the usual AC. Firstly, it offers low noise and secondly, since the air is pulled through a filter, airborne dust particles and microscopic pollutants is removed successfully. Other than this, there are multi-split air conditioning system and ducted system. Multi split systems are meant to cool bigger rooms and can also heat multiple rooms independently. Similarly ducted systems are also meant to heat and cool large number of rooms and are more expensive. Evaporative system is another system, which works like an air conditioner and serves the purpose of cooling the rooms. This system works best when fixed near a window or a door.

PRODUCT LINE OF LG AIR CONDITIONERS

The major selling product of LG airconditioner are the split ACs and Window ACs.

SPLIT AIRCONDITIONERS
INVERTER ACs LG inverter AC's are at the pinnacle of energy efficiency due to their innovative operation. Uses variable speed compressor instead of constant speed compressor, which means the cooling or heating capacity of the airconditioner can be varied to suit indoor conditions. This makes these AC's economical and efficient to operate while creating less noise too. ENERGIA ACs Cooling never looked so stunning. The Energia range of LG Air Conditioners designed to compliment evolving tastes and preferences and add a touch of class to interiors. Not just looks, with technologically advanced health filters like triple Filter and anti bacteria filter, the home environment would be healthy, KRUZE PLUS ACs LG Kruze plus Air conditioner comes with in-built stabilizer for better performance and more space saving. Add to it new age features like triple filter, allergy and virus safe filter, anti-bacteria filter, auto clean mode, jet cool and silent mode and you have a winner for life. LG's Split airconditioning unit is the largest selling AC unit in india in domestic as well as corporate space.

WINDOW AIRCONDITIONERS
LG window air conditioners are the energy saving product. It had been launched with 5 star energy saving certificate This first to be launched 5 star window AC by LG is a superior performing machine. Packed with health & comfort features this machine is a rare combination of performance and features. The new benchmark in window AC's has arrived. This LG Air Conditioner comes with the grill less front panel designed with an exclusive floral pattern.What makes it even more desirable is the aero comfort system that not only controls the ac but also the speed of rooms ceiling fan. LG L-Magna prevents corrosion to make the AC last a lifetime. It maintains a comfortable temperature during the night. It also restarts the AC with previous setting.

STANDING AIRCONDITIONERS
These type of AC is a new innovative invention in air conditioning market. It is a healthy, efficient and reliable solution for luxurious domestic and commercial applications, which provides flexibility in terms of installation depending on requirements. These type of Acs are used in lobbys or big halls of house or hotels, malls, etc.

The market share of the LG airconditioners have been considerably high all over india over its competitors samsung, voltas and godrej in the year 2010-2011. LG POSITION OF AC IN VARIOUS STATES OF INDIA

This analysis is based on the ORG survey conducted by LG which represent the LG position of ACS in various states in India. This analysis represents the LG market position during the period of March 2011. It shows that LG has captured maximum market share. LG and Samsung have the maximum market in airconditioner market but LG dominate the almost all the states

Distribution and Marketing The company has number of dealers and warehouses. They have LG exclusive shopee.

For the marketing of the products a number of activities are followed 1. Exhibitions are conducted from time to time. 2. Society and college activities are conducted. 3. Hoarding, Posters, banners are used so as to grab the attention of the costumers. 4. Day to day advertisement in leading newspaper. 5. Discount at festival time. 6. For dealer relationship they arrange dealer meting at several time in the year 7. LG divide dealer in gold silver etc. category to know the performance of the dealers. 8. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG airconditioners. 9. LG also uses the radio FM for the promotion activities. 10.Also provide coupon and scratch cards for festive season.

CUSTOMER SERVICE
The best and the biggest international brands are here in India but the irony if it all: where is the after-sales-service? So integral to a brand, so critical for its success and so taken for granted in developed markets! In India, after sales service is, for want of a better description, the pits. So whats stopping the best companies from pulling out all the stops when it comes to providing the best service? Do customers expect for too much? Or is it that in India they dont really care. Brand Equity fanned out to MNC as well as Indian consumer durable companies, stockiest and dealers, analysts and market researchers to get a feel of whats really keeping after sales from being used as a cutting edge marketing tool in pushing products across categories. Customers support following the purchase of a product or service. In some cases, aftersales service can be almost as important as the initial purchase. The manufacturer,

retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree of willingness with which a supplier deals with a question or complaint, speed of response, and action taken.

LG also had a big problem of after sale service for airconditioners in India. Customers as well as dealer were facing the problem of after sale service. Because of this problem many dealer were not able to sell the Acs So it became a big issue. But LG has taken some solid steps towards improving customers perception and experience of after sales service. Because it very important in competitive market to provide the best service.

L G Electronics has signed a memorandum of understanding with 23 Industrial Training Institutes to strengthen its after sales service in India.

The company aims to recruit 10,000 people by the end of this year as a part of its branding strategy to focus on service and move away from discounting.

L G Electronics has identified eight states with high after sales service call rates to ink

the deals with the ITI. Y V Verma, director HR and management system, LG Electronics said, "The Company was trying to find a solution for effective after sales service since last two years. There is a huge need of trained manpower for the after sales service to align with the company's expansion and focus on the AIRconditioner segment.

In the initial phase the company has entered into agreements with ITIs in the states like Maharashtra, Gujarat, Delhi, Punjab, Assam, and Karnataka and is in the last leg of signing with Uttar Pradesh. 1. L G Electronics, with 1200 service centers, has already recruited 300 students and plans to beef up the number to 10,000 by the year-end. 2. "The company has offered a scholarship to the selected students for the last six months of their training programme," 3. The company will invest Rs 8 crore (Rs 80 million) in employee development programme this year with an aim to attain a 8 per cent attrition rate. 4. The company moved away from the discounting strategy since last year and is putting thrust on the quality and service in its brand communication to position LG as a premium consumer electronics brand. 5. LG has the widest service network across the country; some estimates put it at a significant multiple of service-infrastructure from our nearest competitor. While the sale size may also be a nice multiple from nearest, it shows the company is ready to put our money where our mouth is.

6. The company has introduced a 211 service - once you register your complaint, we will call you back in 2 hours (hence 2), set up an appointment for the next convenient day for you (hence the first 1), and show up in the promised 1-hour

slot (hence the second 1). If the next convenient day for you is the next day, thats great too. Its a disruptive action in an industry (including LG) having traditionally shied away from its service responsibilities, and thus not leveraging any mileage from it. 7. The company is promoting 211 through ATL, probably the first time after-sales service is being communicated in this fashion by any product company. You may have seen the TV commercial or heard the radio advert or seen the newspaper ad or in-shop posters, both of which revolve around prompt response. 8. The first LG-owned service centre opened in Gurgaon. (Service in India generally works through authorized service centers, in LGs case they work exclusively for LG.) A company-owned service centre tries that much harder, knows things better, and can even contribute as a revenue center. Objective of the project Primary objective The main objective of filed survey during the project was to find out the market share of the LG airconditioners Find out the positional dealer who can sale the LG product in large volume.Find out the problem faced by the dealer in sales and the distribution. Secondary objective The Objective was to find out that how far the exhibitions are helpful in branding, While purchasing the airconditioners which parameter is most important for the consumer? Do the consumers prefer the financial facility for buying consumer durable? To enhances the knowledge of consumer durable market. To increases the knowledge consumer durable product of LG. To enhances the knowledge about the marketing and branding activity.

Research Methodology: The project was based on the secondary survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Types of research is: Descriptive Research The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive

study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research.

OBJECTIVE OF THE STUDY The objective was to find out the market share of LG products, advantages, and disadvantages of LG products from dealers and to find out what problems they are facing with the LG products so that problems can be resolved to increase the sale. Data collection methods: After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data.

 Data analysis and interpretation 1. Bar chart Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent. Preparation of report: The report was based on the analysis and presented with the findings and suggestions.

BIBLIOGRAPHY

 www.lgindia.com
www.google.com www.wikipedia.com

Business world Business today LG magazine Economics times News paper Times of India