Acknowledgement

It is indeed of great moment to pleasure to express our senses of

profound gratitude & indebtedness to all the people who have
been instrumental in making it a rich experience. We found it to
be a challenging project that gave us a real practical exposure to
the corporate world and it is almost impossible to do the same
without the guidance of peoples around us. It gives us immense
pleasure to acknowledge LG ELECTRONICS INDIA Ltd. dealers,
who have been nice enough to give us a chance to do our project
and providing us wonderful support throughout our project.
Executive summary
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Indian Consumer durables market used to be dominated by few
domestic players like Godrej Voltas Allwyn and Kelvinator. But post
liberalization many foreign companies have entered into Indian market
dethroning the Indian players and dominating Indian market the major
categories being CTV, REFRIGRATOR, AIR CONDTIONERS and
WASHING MACHINES. India being the second largest growing
economy with huge consumer class has resulted in consumer durables
as the fastest growing industries in India. LG, SAMSUNG the two
Korean companies have been maintaining the lead in the market with LG
being leader in almost all the categories. The rural market is growing
faster than the urban market, although the penetration level is much
lower .The CTV segment is expected to the largest contributing segment
to the overall growth of the industry. The rising income levels double-
income families and consumer awareness are the main growth drivers of
the industries. Consumer durables major LG Electronics India Pvt Ltd
(LGEIL) will invest nearly Rs 500 crore in India this year in research and
development, brand-building and other marketing initiatives. The
company, having a turnover of Rs 9,500 crore and market share of 26
percent, is investing Rs 360 crore on brand-building and other marketing
initiatives and around Rs 140 crore on research and development,
besides launching new platforms in information technology and related
areas, LG’s innovative ‘211 campaign’ to provide quality after-sales
service, will also be expanded from the existing 22 to 40 cities by next
month, the campaign, for which IT infrastructure has been set up,
includes the company’s response to customer complaint within two
hours. The fixing time for complaints varies from one hour to a maximum
of 24 hours.
Scope of project
This project gives us great exposure to the consumer durable market
because it includes product knowledge and field survey job in which we
visited the LG stores in Delhi. Incidentally Diwali time was nearing during
our survey period which exposed us to another aspect of product
promotion. LG always insist the 50% display share of LG product
because LG believes that“JO
DIKHTA HAI WO BIKTA HAI”.
While visiting the shops we
1. Calculated the display share of the LG product in every
shop.
2. Collected the data of actual monthly sale of the LG
products in
few shops.
3. Checked the availability of LG catalogue and the POPs
in the
store.
4. We also came to know while visiting the shops that
there was
big problem of after sales service.
5. Many dealers were facing the problem of after sale
service
because there is no follow up calls from LG.
6. Demo calls also not done properly
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies
like Kelvinator, Godrej, Alwyn, 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
4thlargest 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$4,400-US$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
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other
Asian countries.
Brands in consumer electronics sector
MNCs NATIONAL REGIONAL LG ) ONIDA
BUSH
SAMSUNG

) KOREA VIDEOCON
CROWN
HYUNDAI

) BPL SALORA TCL ) CHINA GODREJ T-

SERIES
HAIER

) VOLTAS WESTON IFB BELTAK PHILIPS ) HOLLAND OSKAR

PANASONIC ) SHARP ) HITACHI ) SANSUI ) JAPAN