Market analysis of LG consumer durables & dealer development
Executive summary
Indian Consumer durables market used to be dominated by few domestic players like godrej Voltas allwyn and kalvinater. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market CTV, REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE
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 has been maintaining the lead in the industries 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 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 per cent, 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 me great exposure to the consumer durable market because it includes product knowledge and the filed job in which I have visited the store comes under the region of Pune. During this project I also took part in the exhibition of LG which held for the purpose branding and awareness of LG product. This project helps me to know the market practically. My job was during this project to see the market share and also the display share of the LG product in the store. LG always insist the 50% display share of LG product because LG believes that “JO DIKHTA HAI WO BIKTA HAI”.
My job include while visiting the shops
1. Calculate the display share of the LG product in every shop which comes under Pune region.
2. Collect the data of actual monthly sale of the LG product in every shop.
3. Check the availability of LG catalogue and the POPs in the store.
4. Find out the problems that the dealer are facing while sailing the LG product.
5. Find out the costumer response for the LG product by asking the owner of the shop.
6. Find out the distributer name from whom they purchasing their product and also weather they have direct dealership and which brand.
7. Check that demo calls are attended or not
Key findings:-
1. By calculating the display share we found that in most of store LG has 50% display share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of LG or not and it also helps to find out the new dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there was big problem of after sale 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.
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