Comparative Analysis of Consumer Attitude in White

Goods Products of LG and SAMSUNG

DISSERTATION

2009

Submitted for the partial fulfillment of the requirement for the

award Of

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY:
AMARDEEP KR. KESHRI

ROLL No.:7123

UNDER THE GUIDANCE OF:

Internal Guide: Dr. Taruna Gautam

Department of Management

Institute Of Management Education, Sahibabad

 ABSTRACT

This Dissertation project is a study of consumer satisfaction in white goods products of LG and
Samsung will be based on the comparison between LG and Samsung consumer satisfaction.
♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer satisfaction?

Korean brands, LG and Samsung, have cornered nearly half of the Rs 10,000 crore (Rs 100
billion) Indian home appliances market for the first time in the later half of this year. While the
LG leads the market with around 35 per cent of the overall market, Samsung improved its
position from around 13 to around 16 per cent now.

In fact, except in the refrigerator segment, the two now have combined turnovers greater than
the rest of the brands in all the major segments of the market. In the refrigerator market, which
accounts for the biggest chunk of the market at around Rs 4,000 crore (Rs 40 billion) this year,
Samsung emerged as the biggest gainer since the close of last financial year. Since April, it has
not only overtaken Godrej to become the number three after LG and Whirlpool, but has also
seen a steady increase in its market share since then from around 12.5 percent of the total value
to around 17 per cent now.

In the washing machine segment too, estimated to be worth around Rs 1,500 crore (Rs 15
billion) this year, the company was able to increase its presence from 13.3 per cent share to 19.2
per cent share while its share in the microwave market too improved from 18.5 to 24.6 per cent.
The company, which had a 15 per cent share in the retail-consumer AC market, was also able to
improved its position by around 1.5 per cent over the last seven months.
"We have introduced 50 new products in the home appliances segment, including washing
machines, refrigerators, microwaves and ACs. Besides this, the company has also been making
special efforts to expand our distribution channels. Since the beginning of the year, it has
expanded by 20 per cent," said Ravinder Zutshi, Deputy MD, Samsung India.

However LG continued to be the dominant player in the market. Leading in all the four product
segments, it has around 50 per cent more market share than its closest competitor in each
segment. By value, the company has around 30 per cent of the refrigerator market, 34 per cent
of the washing machine segment, 40 per cent in the home AC segment and 38.7 per cent of the
microwave market.

.
 ACKNOWLEDGEMENT
I would like to take this opportunity to thank all the people who have directly or indirectly
helped me in this dissertation project. My spell with this great and coveted organization was an
experience that will go a long way in molding my corporate behavior.

I would first like to extend my sincere thanks to Dr. Taruna Gautam, my Dissertation guide
for providing me an opportunity of working on this dissertation project which has helped me a
lot in gaining some real (live) industry exposure.

I would like to thank Mr. Kumud Vivek (Coordinator PGDM 2nd Year.) Institute of
Management Education Sahibabad, Ghaziabad for giving me his expert guidance and
encouragement at various stages of this project.

Last but not the least; I would like to thank Mr. Raveesh Aggarwal for providing me various
insights and guidance both in dissertation project and through out my PGDM course, which
certainly have helped me evolve as a more matured individual with a more holistic perspective
to life.

On a special note, I would like to thanks all the faculty staff members of the Institute of
Management Education Sahibabad, Ghaziabad for all their support extended to the students at
all point of time.
 CONTENTS

Page No.

Chapter I : Introduction
• Need of the study
• Background

Chapter II : Research Methodology

• Objective of the study
• Research Methodology
• Scope of the study
• Limitations
Chapter III : Descriptive work of study

Chapter IV : Data Analysis & Data Interpretation

• Weekly

Chapter V : Suggestion & Conclusion

• Suggestion
• Conclusion
Bibliography
Annexure
Checklist
 Chapter I

Introduction
 Need of the Study
Till the early nineties in the area of marketing whole effort was focused on fine – tuning the
four ‘P’s: product, price, place and promotion. It was only in the early nineties that a few
marketers began realizing that companies basically existed to serve consumers - and that the
consumer did not exist merely to buy a company's products.

LG and Samsung both are the big name in the white goods product manufacturing company
from South Korea. Both are equally strong, global company, and more or less with equal
presence in Indian market. So it will be quite rational to compare these two brands.
Issue to be address:

♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer satisfaction?

Research project aims:

♦ The overall purpose of this work is to analyze the level of satisfaction of consumer of
LG and Samsung.
♦ To develop insight about the factors involved in consumer satisfaction
related to white goods product in the transition phase of globalization.
 Background
With Indian economy increasingly witnessing structural transformation from a rural,
agricultural one to more urban industrialized one, consumer durable goods sector is fast
emerging as an important segment of the economy. Consumption of manufactured consumer
goods is recognized as one of most widely accepted measures of standard of living and quality
of life. Consumer goods manufacturing industry provides the driving force for stimulating rapid
economic growth. The growth rate of manufacturing and consumer goods industry normally
surpasses that of agriculture and service sectors. It is for this reason that the manufacturing and
consumer goods durable industry is considered the backbone of economy.

Prior to liberalization, the Consumer Durables sector in India was restricted to a handful
of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they
controlled nearly 90% of the market. They were first superceded by players like BPL
and Videocon in the early 1990s, who invested in brand-building and in enhancing
distribution and service channels. Then, with liberalization came a spate of foreign
players from LG Electronics to Sony to Aiwa.

Rs 23,000-crore consumer durables industry can be divided into two types: consumer
electronics and consumer utilities. Consumer electronics is basically entertainment
systems like television, VCRs, audio systems and home theater systems. Consumer
utilities are other household appliances like refrigerators, washing machines, air
conditioners, food processors, and vacuum cleaners.
On most third world countries, consumer durables like the refrigerator and television are
most popular. Out of these, the television segment is undoubtedly the largest segment.
Products in the white goods segment come next to the CTVs in the purchasing hierarchy
of the Indian consumer.

Over the years, demand for consumer durables has increased with rising income levels,
double-income families, changing lifestyles, availability of credit, increasing consumer
awareness and introduction of new models. Products like air conditioners are no longer
perceived as luxury products. According to Indian Readership Surveys (1999-2004) the
following durable categories have registered a healthy double-digit growth.

Durable Categories Growth Rate (1999-2004)

Television Sets 16%
Washing Machine 17%
Refrigerators 14%

Source: Indian Readership Surveys (1999-2004)

While TV draws its share from both urban and rural refrigerators and washing machines
are still inclined towards urban.
Current Scenario

Most of the segments in this sector are characterized by intense competition, emergence
of new companies (especially MNCs), introduction of state-of-the-art models, price
discounts and exchange schemes. MNCs continue to dominate the Indian consumer
durable segment, which is apparent from the fact that these companies command more
than 65% market share in the colour television (CTV) segment.

· Steady growth of CE at 13-15% (’03–23%)

· HA falling behind CE on account of growth

· Steady growth of CE+HA - yet low penetration

INDUSTRY SIZE

Rs 23,000-crore consumer durables industry can be divided into two types:

consumer electronics and consumer utilities. Consumer Electronic industry has a size of
around Rs. 102 billion. The Indian television industry has a size of around Rs 96
billion, comprising colour television (CTV) of Rs 91 bn and B&W TV market of Rs 5
bn and other markets (primarily video equipment) of Rs. 4-6 billion. In terms of
volumes, the CTV market was estimated at 9.05 million units and the B&W TV market
at 2 million units during calendar year 2004.
 Refrigerators constitute the second largest product segment within the Indian
consumer durables sector in India, with an estimated annual turnover of Rs 39 bn during
FY2005 with an estimated sale of 4.1m units. The size of the room Air-conditioners
industry is estimated at 1.1 m in volume terms, and Rs 24 bn in value terms. Washing
machines sales in India aggregated an estimated 1.37m during FY2004 or around Rs 11
bn in value terms.

MAJOR PLAYERS

The major players in the consumer durables industry, operating in different sectors such
as air conditioners, washing machines, refrigerators & television: Blue Star Ltd., Mirc
Electronics Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony
Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International
Ltd., Thomson Ltd. & Daewoo Ltd.

B
Brands in Home Appliance Sector rands in Consumer Electronic Sector
DEMAND/SUPPLY

Supply growth is high across all the segments. But the organized sector has gained
substantial market share from the unorganized segment in recent years. However, there
are fewer players in segments like dishwashers and vacuum cleaners.

Cyclical and seasonal. Demand is high during festive season and is generally dependent on
good monsoons. There are certain factors in the consumer durables industry, which are
considered as demand drivers. They are:

1. The degree of distribution network in the market.

2. The advertising and marketing strategy adopted by the players in the industry.

3. The brand image of the product as perceived by the consumer.

4. The technology used by the company viz. state-of-art technology or an older

version.

5. The ability of the company to introduce newer products and newer product
features

6. The capability of the company to service its products 'The discount schemes
and consumer finance facility available

7. The market positioning of the product

8. The cost competitiveness and pricing strategy of the company

9. The financial strength of the players

CONSUMER DURABLE: URBAN & RURAL INDIA

1. In the top 5 million households, in affluence terms, 96 percent of households

have color televisions, 82 percent own refrigerators, and 44 percent own
washing machines.

2. In the next 7 million households, penetration of color TVs is 69 percent, 58

percent for refrigerators, and 19 percent for washing machines.

3. In the next tier of affluent households - numbering approximately 12 million -

50 percent own color TVs, 35 percent own refrigerators, and 8 percent own
washing machines.

Rural India too is set to see an increase in the number of high-income households. An
additional 4.6 million high-income households and 13 million middle-income
households by 2006 to 2007 will take the number of rural households from 122.8 million
to 139 million. This constitutes a huge opportunity for marketers - 60 million households
or 300 million consumers with the capacity to buy consumer appliances and other
products is an attractive market for any global player. And it seems that global appliance
players who have established brands in the Indian market are likely to benefit from this
great big push towards consumerism

SUCCESS FACTOR FOR CONSUMER DURABLE INDUSTRY

Indian consumer durables industry is going through a consolidation phase with MNC
companies going in for strategies to increase market share. Certain success factors for
this industry are identified as follows:
1. Technology: Rising competition has resulted in major competitors introducing
technologically superior products at competitive prices. This means the
technology input is gaining more and more importance. In this regard, the large
MNC players score over their Indian counterparts as they can always source
technology from their parents. On the other hand, Indian companies rely on the
outside sources for their technology requirements.

2. Knowledge of the local market: Indian consumer durables market is different

from other markets. Hence understanding these peculiarities is important for the
long-term survival. For example, Samsung launched the 'Super Horn" brand after
it discovered that Indian consumers prefer loud noise. Indian companies are better
placed in this regard as they know the market pretty well.

3. Strong distribution network: Tough competition means that a proper

mindshare of the consumer has to be maintained and the product has to be made
visible. Volumes in this business are narrow and profitability comes from
volumes. To achieve volumes, deep penetration of the market is necessary. Indian
companies score a point here as being in the market for a longer time; they have
developed strong distribution channels.

4. Good brand image: Perception of a particular brand plays an important role in

purchase decision. A typical Indian consumer looks for value for money when he
makes purchase of white goods, as the price involved is significant and unlike
developed markets, Indians do not have the buy, use and throw mindset. Hence,
consumer also looks for reliability of the product. All this is conveyed through
strong brand awareness.
Consumer Outlook: The Change in Consumer

India is a country in a hurry – changing continuously and also trying hard to keep pace
with these changes. The ‘me too’ syndrome is no longer valid as consumers seek
customized products. “The Indian consumer consumer’s evolution in the last decade has
thrown up some interesting trends:

1. Consumer base becoming younger. Nearly a third of the country’s

population is under the age of 14years.

2. Kids graduating from pester power to decision makers.

3. People with buying power living longer and developing distinct health
needs.

4. Multi-tasking consumers fighting paucity of time and new consumer

trends.

5. Huge increase in High Income Groups and spend now-save later

mentality leading to high disposable income.

6. Consume wants to be treated as an individual not as part of a large

physical mass and the consumer looks for a ‘post buy’ relationship to
enhance the value of her brand decision making.
NCAER’s The Great Indian Middle Class Survey: A few interesting finding:

1. Total number of urban households will increase from 49 million to 60

million by 2006 to 2007. The number of urban households in the high-
income group will increase by 8.6 million by the year 2006 to 2007, and
by 7.3 million in the upper-middle-income group.

2. By 2005-2006, the number of these rich households would increase by

250per cent to 1, 40,000 by 2010. They are expected to grow from 0.2% in
1995-96 to 1.7% in 2010.

3. Middle class will rise to 12.8%, from the current 2.8%.

This is the first time that NCAER has defined the middle class as having an annual
household income of Rs 200,000 to Rs 1 million. Many of these rich and middle class
households are located in rural areas and small towns too.
 SWOT ANALYSIS: CONSUMER DURABLE INDUSTRY

STRENGTH WEAKNESS

o “Accessory to Necessary” Air- o Supply continues to outstrip Demand. Demand

conditioners are no longer perceived to Cyclical and seasonal.
be a item of luxury.
o Volatile performance of the agricultural sector
o Advancement of technology which have a negative impact on demand. The sector's
gives the companies ability to introduce performance is highly dependent on monsoon
new products and new product features. and reforms, which has failed often.

o High Growth. Key drivers being Urban

and Rural.

o Government Policies in favour of

Industry includes infrastructure
development, reduction in excise duty
and so on.
OPPORTUNITY THREAT

o Diversification. Developing new o Dozen companies operating in the white goods

products for new markets. segment. Prices would continue to remain
depressed and margins will be under pressure.

o Easy availability of finance has

stimulated consumers to buy durables. o Threats of cheaper imports from China and
other South East Asian countries

o Changes in Consumer Outlook from

spend now-save later mentality leading
to high disposable income.
Consumer Satisfaction
Marketing is about identifying and satisfying consumer wants and needs. What we need to think
about more carefully is, once we have produced a satisfied consumer, will it do us any good?
Will that make the consumer more loyal, will it complete the hoped-for progression from
prospect through consumer to advocate for our products or services?
These are questions to which the answer is - probably not. In spite of the huge amounts of
money spent on measuring consumer satisfaction by companies, market research is failing to
predict consumer loyalty.
Many consumer satisfaction surveys are transaction-focused but fail to examine commitment to
the brand and bonding. Satisfied consumers will still shop around, for all sorts of reasons most
of which have little to do with the products or services that they have been provided with
elsewhere. Some of these may be to do with convenience, some to do with availability, others to
do with policy. We have come across instances where a consumer has almost begged a
company to lower its prices to match those of its competitor. The consumer was extremely
satisfied with the service that the company had provided over the past year, in this case in
financial services. The consumer was told that their preferred company could not compete on
price, as to do so was outside policy limits. It would seem that not every company is even
interested in retaining its satisfied customers!

A White goods, major appliance or domestic appliance is usually defined as a large machine
which accomplishes some routine housekeeping task, which includes purposes such as cooking,
food preservation, or cleaning, whether in a household, institutional, commercial or industrial
setting. An appliance is differentiated from a plumbing fixture because it uses an energy input
for its operation other than water, generally using electricity or natural gas/propane. An object
run by a watermill would also be considered an appliance.
The term white goods are also used for these items, primarily where British English is spoken,
although definitions for the term "white goods" can differ. In the United States, the term white
goods more commonly refer to linens rather than appliances.

Major appliances are differentiated from small appliances because they are large, difficult to
move, and generally fixed in place to some extent. They are often considered fixtures and part
of real estate and as such they are often supplied to tenants as part of otherwise unfurnished
rental properties. Another frequent characteristic of major appliances is that they may have
substantial electricity requirements that necessitate special electrical wiring to supply higher
current than standard electrical outlets can deliver. This limits where they can be placed in a
home.

Major appliances have become more technically complex from the control side recently with the
introduction of the various Energy Labeling rules across the world. This has meant that the
appliances have been forced to become more and more efficient leading to more accurate
controllers in order to meet the regulations.

Types of appliances

Appliances are divided into white goods and brown goods.

• Brown goods are typically household electrical entertainment appliances such as:
o CD and DVD players,
o televisions,
o camcorders
o HiFi and Home cinema
 • White goods comprise major household electrical appliances including:
o Air conditioner
o Bread maker
o Dishwasher
o Dryer
o Freezer and refrigerator
o Furnace, also known as a central heating boiler
o Stove, also known as range, oven, cooking plate, or cook top
o Vacuum cleaner.
o Water heater
o Washing machine

Brown goods were traditionally finished with wood, or looked like wood, or bakelite; at least
televisions and music systems were. This is now rather rare, but the name has stuck, even for
goods that are unlikely ever to have been provided in a wooden case (e.g. camcorders). White
goods were typically painted or enameled white, and many of them still are. The addition of
new items to these categories shows that the categories still serve a purpose in marketing
(consumers rarely use the terms), perhaps because they divide into traditional gender roles in the
house suggesting "gadget/novelty/power" marketing for brown goods and
"practicality/reliability" marketing for white goods.

This division is also noticeable in the service area of this kind of products. Brown goods usually
require high technical knowledge and skills (which get more complex with time, such as going
from a soldering iron to a hot-air soldering station), while white goods need more practical
skills and "brute force" to manipulate the devices and heavy tools required to repair them.
Brown goods are almost always serviceable down to "component-level" (integrated circuits,
transistors, etc), whereas in white goods, usually whole modules (motor, thermostat, controller
board) are changed and not repaired. There is usually a problem with microwave ovens, which
are considered white goods, because these sell alongside refrigerators and dishwashers, but
microwave ovens contain complex electronic boards (the clock and controller) which white-
good servicemen refuse to repair (as they don't have the training or tools required to do so).
Some brands consider microwave ovens white goods, and send whole boards for replacement,
and some consider microwaves to be like brown goods, and have them repaired by such
technicians. Personal care products (electric shavers and depilators), are considered a separate
line, and usually are not serviced, but completely exchanged.
 REFRIGERATOR

BACKGROUND

Refrigerators have been manufactured in India since 1950s. Till the 1980s, players like
Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Earlier, the
white goods sector was categorized as a luxury goods industry and was subject to
oppressive taxation and licensing. The situation changed after the liberalization of the
Indian economy in the early 1990s. The government removed all restrictions, and now
there is no restriction on foreign investment, and licenses are no longer required. Post-
liberalization, a number of foreign companies entered the market and many domestic
players also diversified into refrigerators. BPL and Videocon who already had a
presence in the consumer electronics market, leveraged their strengths to enter the
durables sector.

In India, refrigerators have the highest aspirational value of all consumer durables, with
the exception of televisions. This accounts for the high growth rate of the refrigerator
market. Refrigerators are presently being manufactured in two basic designs which are
referred to as Direct Cool (DC) and Frost Free (FF) refrigerator. The direct cool segment
continues to dominate Indian refrigerator market compared to more expensive frost-free
models. The growth in this segment though marginal, has been driven by factors like
availability of low priced models as due to competitive pricing and a growing middle
class. Manufacturers of refrigerators claim to have improved the quality of the product
particularly the reliability of the Compressor. In so far as new technology is concerned,
the concept of Frost Free refrigerator has been gaining popularity. Capacity-wise also,
there is a shift in Refrigerator Market.
Till about two years back, 165 Liters had a larger share and now units of capacity 185-
300 Liters are having increasing market share. Manufacturers are encouraged to adopt
environment friendly technology like usage of non-CFC (non- Chloro-Fluro-Carbons)
refrigerant based air conditioners, Non-CFC refrigerators are manufactured in the
country but because of their high initial cost, the demand is somewhat sluggish.

INDIA V/S GLOBAL

The penetration of household refrigerators in India, the fifth largest consumer durable in terms
of penetration, is 13% compared to well over 90% in Malaysia, Australia, Singapore, Hong
Kong and Korea; around 80% in Thailand; close to 40% in Philippines and China and 20% in
Vietnam and Indonesia. When you compare the annual commercial sales of HVAC and
refrigeration equipment in the US at US $ 200 per capita and in China at US $ 3 per
capita with a dismal US $ 0.25 per capita in India.

PLAYERS AND MARKET SHARE

The refrigerator industry has become highly competitive as a number of brands have entered
the market and the consumer has a wide choice.

Company Brands
BPL Limited BPL
Videocon International Limited Videocon, Akai
LG Electronics India Limited LG
Samsung India Electronics Limited Samsung
Whirlpool of India Ltd Whirlpool
Godrej & Boyce Mfg. Co. Ltd. Godrej
Voltas Limited Voltas
Electrolux Kelvinator Electrolux Kelvinator, Electrolux and Allwyn
Refrigerators constitute the second largest product segment within the Indian consumer
durables sector in India, with an estimated annual turnover of Rs 39 bn during FY2005
with an estimated sale of 4.1m units. According to FICCI Survey April-March 2003-
2004 Whirlpool and Godrej are the top two players with market shares of 27 per cent
and 20 per cent respectively. Electrolux Kelvinator and LG compete for third and fourth
position with market shares of 16 per cent and 14.5 per cent respectively. Videocon (11
per cent), Samsung (6), BPL (4), Voltas and Akai are other significant players.
 AIR-CONDITIONER

BACKGROUND

In 1902, Dr. Willis Havilland Carrier invented and secured the patent for a weather
control concept - air conditioning. Ever since, life hasn't been the same. The air-
conditioner market is hitting up as more and more people appear to be convinced about
the comfort of an air-conditioner (AC). The extremely hot summers have stirred the
demand for ACs and the industry is experiencing a significant change.

Types of Air-conditioner

Air conditioning products are divided into Non Ducted products & Ducted systems .The
Non Ducted products are divided into two parts: window ACs & the mini splits. The
ducted systems are divided into central plants, packaged ACs, ducted ACs. Window
ACs account for about 54% of the total market for ACs with an estimated market size of
about Rs20bn.

Room air conditioners operate on electricity or gas and are enclosed in a single cabinet.
They blow the conditioned air directly into the room and do not have air ducts leading to
and from them. The three chief types are window air conditioners, consoles and self-
contained air conditioners.

Window air conditioners fit into the lower part of a window and can be moved from
window to window and thus the name, Window ACs. Self-contained air conditioners are
the large room air conditioners.
Central air conditioners also use electricity or gas. They can supply conditioned air to a
number of rooms or to an entire building from one central source. Fans blow the
conditioned air through air ducts from the air conditioner to the rooms. Central
conditioners have a number of advantages over other kinds. For example, all the
equipment for air conditioning a large area is located in one place. This reduces the cost
of cleaning and repairing. Central conditioners can also be zoned i.e. they can supply air
of different temperature to different parts of a building.

INDIA V/S GLOBAL

According to Refrigeration and Air-conditioning Manufacturing Association (RAMA) the

penetration of household Air-Conditioners is abysmally low in India at around 2%
compared to 20% in Indonesia, 24% in China, 40% in Thailand, 45% in Malaysia.

PLAYERS AND MARKET SHARE

The size of the room Air-conditioners industry is estimated at 1.1 m in volume terms,
and Rs 24 bn in value terms. According to FICCI Air Conditioners (AC) it reveals that
Indian AC industry, which has mainly dominated by players like Carrier and Voltas, has
been taken over by the new MNCs in the last few years. AC market is dominated by four
major players—LG, Voltas, Carrier and Samsung.
 Company Brands
Mirc Electronics Limited Onida
Videocon International Limited Videocon
LG Electronics India Limited LG
Samsung India Electronics Limited Samsung
Whirlpool of India Ltd Whirlpool
Godrej & Boyce Mfg. Co. Ltd. Godrej
Voltas Limited Voltas
Electrolux Kelvinator Electrolux
Blue Star India Ltd Blue Star
Daikin industries, ltd. Daikin

LG is the market leader with a market share of 29 per cent followed by Voltas (11) and
by Carrier and Samsung (9.2 each) in addition to other players like Hitachi and
Videocon.
 WASHING MACHINE
Washing machines as a consumer durable product has been in existence in India for the
last 10 years. During the last few years, in the Consumer Durable Sector the market for
Washing Machines has grown quite fast. The washing machine market consists of two
broad segments - semi-automatic and fully automatic. The first accounts for a chunk of
the market. In terms of loading type, top loading machines sell in greater numbers than
front-loading ones. In this industry, it is the fully automatic segment, which in recent
times has been getting the attention of the users as more and more households have both
partners working. Consequently manufacturers have started paying more attention to this
segment and have started introducing more features in their products. The customers
now have a wide range of world class brands to choose from.

Major growth is projected to take place in fully automatic segment, which accounts for
above 23 per cent of the total market to about 30 per cent.
There is also a trend for purchasing smaller machines in the range of 3 to 4 kg. capacity
as compared to larger machines as there are more and more nuclear families rather than
joint families. In regard to emerging new technologies in the washing machines sector
mention may be made of aero power, triple cascade tornado wash, digital intelligence,
unique optical sensor and other such innovations and adaptations which are gradually
being introduced by the indigenous manufacturers. Fully automatic machines are gaining
popularity with the change in lifestyle of consumers, increase in income, increase in
number of working couples, and due to price competitiveness.
INDIA V/S GLOBAL

The penetration level of Washing Machine is relatively low in India as compared to

global due to many reasons. Many housewives in less affluent households prefer to wash
clothes themselves rather than invest in washing machines. Water scarcity in many
Indian cities and timely availability is another major issue. However, it foresees that
penetration of washing machine will rise by more than 6 per cent in the next two years.

PLAYERS AND MARKET SHARE

The refrigerator industry has become highly competitive as a number of brands have
entered the market and the consumer has a wide choice. Some of the company and their
brands are as follows:

Company Brands
Mirc Electronics Limited Onida
BPL Limited BPL
LG Electronics India Limited LG
Samsung India Electronics Limited Samsung
Whirlpool of India Ltd Whirlpool
Godrej & Boyce Mfg. Co. Ltd. Godrej
Electrolux Kelvinator Electrolux

LG Electronics has registered a remarkable growth of 36 % in the Washing Machine

Segment in H1 The Fully Automatic Washing Machines segment has recorded a
remarkable performance where volumes have grown by 22% and value by 25% .Here
again LGEIL happens to be the undisputed leader with a 30.7 % market share in Fully
Automatic Washing Machine and 33.7 % market share in Semi Automatic Washing
Machine . (Source: ORG-GFK, May 2004.
LG INDIA
PVT.LTD
LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was
established in January, 1997 after clearance from the Foreign Investment Promotion Board
(FIPB).
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a
period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a
state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment
of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-
Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home
production for its eco-friendly Refrigerators and established its assembly line for its PC
Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the
first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that
commences operations in October this year. Covering over 50 acres, the facility manufactures
Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens Color
Monitors and GSM phones.

The Greater Noida manufacturing unit line has been designed with the latest technologies at par
with international standards at Korea and is one of the most Eco-friendly units amongst all LG
manufacturing plants in the world. LG has been able to craft out in eight years, a premium
brand positioning in the Indian market and is today the most preferred brand in the segment.
Various studies have shown that the consumer is well informed on the health awareness front.
LG was one of the first companies who recognized the emerging change in consumer needs and
decided to differentiate their products on the basis of technology which appealed to the
consumer on the basis of health benefits.
Its vision was to become a 'Health Partner' for its consumers worldwide and therefore
formulated its corporate philosophy to make peoples' lives better, convenient and healthier. The
CTV range offered by LG has 'Golden Eye' technology, which senses the light levels in the
room and adjusts the picture to make it more comfortable for the eyes. The entire range of LG
air-conditioners have 'Health Air System', which not just cools, but keeps pollution out.
Similarly, microwave ovens have the 'Health Wave System', refrigerators have the 'PN System',
which preserve the nutrition in food and washing machines have 'Fabricare System', which
takes the health factor down to ones clothes. All the products offered by the company have
unique technologies, developed by its R&D departments that give consumers a healthier
environment to live-in.

The year 2001 witnessed LG becoming the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry. The company had till the
month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its
inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any company in the
Indian consumer electronics and home appliances industry. Having achieved this milestone, LG
achieved another benchmark with the first ever sales of One lakh ACs (Windows and Splits) in
a calendar year.

In Colour Televisions having set the sales target of one million units of Color Televisions for
2002, LG has already achieved the one million mark in the month ahead of its target. In 2003,
LG has emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air
Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In the year 2004, LGEIL
achieved unprecedented sales efficiency both in Direct Cool and Frost Free segment and sold
more than 1 million units of refrigerators outperforming industry expectations.
LG Electronics India is the fastest growing company in the consumer electronics, home
appliances and computer peripherals industry today. LG Electronics is continually providing
superior technology products & value for money to more than 50 lakh households in India.

The company has achieved a turnover of Rs 6500 crore in 2004 and aims to touch a turnover of
10 Billion US Dollars by 2010 and commands an enviable position in the GSM mobile phone
market. It has already started manufacturing of GSM phones in its plant at Pune.

LG India has also been taking on a slew of initiatives as a part of Corporate Social
Responsibility. LGEIL is proud to have adopted about 24 villages around our Greater Noida
facility. LG extends Free Medical Care, which comprises of free check ups and a free
distribution of medicines on a daily basis. LGEIL is also generating self-employment
opportunities for the people in the form of tailoring, knitting etc. in addition to all this, LG also
sends veterinary doctors regularly to these villages. Besides all this, LG India is one of the very
few companies in the country that has an internal Energy, Environment, Safety and Health
Department. This function caters to activities like Energy Conservation, Environmental Issues,
Work Place Fire and Safety as well as Occupational Health for the benefit of the employees.

VISION OF LG INDIA PVT.LTD.

LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and design. The company’s goal is to rank
among the top 3 consumer electronics and telecommunications companies in the world by 2010.
To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing
that only great people can create a great company.
Awards
New Delhi, October 24th October, 2007: LG Electronics India Pvt. Ltd. today achieved
another landmark by bagging the award for excellence in Exports of Electronic Hardware by the
Electronics and Computer Software Export promotion Council of India (ESC) .This
achievement is another feather in the cap for the company after achieving a milestone of USD
186 million in exports for calendar year 2006. This milestone has reiterated LG’s prime position
not only in the domestic but the international markets as well.

The award was received by Mr. Ajay Sapra, DGM, Corporate Exim, LGEIL and Mr.Jatin
Madan, AGM, Exports, LGEIL, on behalf of LG on 24th October, 2007 at a function held at
Hall Kamal Mahal, Hotel Maurya Sheraton, Sardar Patel Marg, New Delhi. Shri A. Raja, Union
Minister for IT and Communications presented the Awards.

LG has emerged as top player in Consumer Electronics Exports and is exporting a range of
products primarily to the highly competitive markets of Middle East, Asia and Africa. The
award was given to LG for its excellent exports performance in Consumer Electronics(CTV,
Monitors, GSM, Personal Computers and ODD) during the financial year 2005-2006. During
this period, LG achieved exports worth USD 133 Million defined product categories.
 Products
 Air conditioner

 Microwave Oven

 Vacuum cleaner

 Washing Machines

 Refrigerator

Air conditioner
INVERTER:-Technology that
delivers, precise cooling or
heating power as per your choice.
It works faster and saves energy
while ensuring uniform
temperature.
MULTI SPLIT :-
Time to move on to cooling two
rooms with a single outdoor
unit.
SPLIT AC :-True masterpieces
Colour with aesthetics is your new
cooling solution. With the
revolutionary Intelloeye technology
now get automated air management
at the touch of a button.
Washing Machines
FLOOR STANDING :- Air
Throw that reaches every corner.
Get the advantage of mobility and
the purest of air. Ideal for homes
and small offices and most effective
in saving power.
HOT AND COLD AC :-
Optimum indoor weather
management 365 days a year.
WINDOW AC:-Technologically
superior, Featuring the Aero DNA
technology to get pure
and pristine air management.
Available now in an array of
colours and designs
DISH WASHER WASHER DRYER

STEAM WASHER FRONT LOAD

DRYER WASHING MACHINE

TOP LOAD WASHING SEMI AUTOMATIC

MACHINE
 Microwave Oven
SOLAR DOM: - The center
piece of your kitchen that uses
the revolutionary light wave
technology. It has a round cavity
for larger dishes and cooks up to
4 times faster.
GRILL: - Now grill or brown
your dishes in addition to your
regular cooking. With a
concealed heater now make your
favourite Tikkas, Kebabs and
low favouritre recipes at home.
CONVECTION: - Superior
technology that lets you bake,
brown or grill while cooking your
food. The fan at the back regulates
hot air efficiently to bring out the
best in your dishes.
SOLO: - Perfect for every day
cooking as it agitates the water,
fats and sugar to cook food. Food
cooks uniformly and makes finger
lickin recipes in seconds.
 Refrigerator

SIDE BY SIDE FROST FREE

REFRIGERATOR:-
The ultimate Affluence
Statement Share the good
life with our side by side
range of refrigerators with
state of the art technologies
and international styling
REFRIGERATOR: -
Usher in the Health in your life
with LG's new range of frost free
refrigerators. With the
revolutionary Green Ion Door
Cooling Technology, enjoy the
assurance of healthy living.

DIRECT COOL
REFRIGERATOR: -
The all new range of direct cool
refrigerators is as talented as you
are, with superb looks; faster ice
making, colors and many more
features. Now welcome another
perfectionist in your life.
SAMSUNG
INDIA
Samsung India is the hub for Samsung’s South West Asia Regional operations. The South West
Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka, Bangladesh,
Maldives and Bhutan besides India. Samsung India which commenced its operations in India in
December 1995, today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in
the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located all
over the country. The Samsung manufacturing complex housing manufacturing facilities for
Colour Televisions, Colour Monitors, Refrigerators and Washing Machines is located at Noida,
near Delhi. Samsung ‘Made in India’ products like Colour Televisions, Colour Monitors and
Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida
manufacturing complex. Samsung India currently employs over 1600 employees, with around
18% of its employees working in Research & Development.

GROWING TO BE THE BEST:- Samsung India aims to be the ‘Best Company’ in India by
the Year 2006. ‘Best Company’ in terms of both the internal workplace environment as well as
the external context in which the Company operates. Samsung aims to grow in India by
contributing to the Indian economy and making the lives of its consumers simpler, easier and
richer through its superior quality products.
“Our aim is to gain technological leadership in the Indian marketplace even as our goal is to
earn the love and respect of more and more of our Indian consumers.”
Mr. S.H. Oh, President & CEO
Samsung South-West Asia Regional Headquarters
Manufacturing:
Samsung’s state of the art highly automated manufacturing facilities are located at the
Company’s sprawling Noida Complex. Enjoying the Number 1 position amongst all Samsung
subsidiaries in terms of productivity and having been ranked as the subsidiary with the ‘Best
Quality System’, Samsung India prides itself for its Manufacturing Value Innovation.

The manufacturing capacities of the Samsung products manufactured in India (as of Year 2004)
are:

PRODUCT CAPACITY DETAILS

CTV 1.5 million Curved & Flat TVs
Colour Monitor 1.5 million CRT & TFT LCD Monitor
Refrigerator 0.6 million Frost-free and Conventional Refrigerators
Washing Machine 0.5 million Fully Automatic and Semi Automatic
AC 0.4 million Window and Split ACs

Samsung India is working with and contributing to the development of the domestic component
industry in the country. The Company is working with its partners to improve their product
quality and processes. Thus, Samsung vendors are sent to different Samsung subsidiaries to
meet the Samsung overseas vendors in order to benchmark their own processes. Samsung is
also training its vendors on eco-partnership so that the components manufactured by them are
‘eco friendly’ as per ROHS norms.

Vision OF Samsung India Pvt.Ltd.

The vision of SAMSUNG Electronics is "Leading the Digital Convergence Revolution" and our
mission to carry out this vision is "Digital-ε Company.

There are two requirements for being "Digital-ε Company", and the first is clearly about being
"Digital" producing not just digital products, but products that inspire digital integration across
our entire company. The second part of being a "ε" is to use ε- Processes connecting R&D,
production, and marketing to customers, partners, and the market-disciplined approach is the
way we bring value to every part of our supply chain, including products data and customer
relationship through Enterprise Resource Planning (ERP).

SAMSUNG Electronics will network core components such as memory chips, system-LSI and
LCDs as well as A/V, computers, telecommunication devices, home appliances and other stand-
alone products into a total solution of digital convergence era.

Awards
  Manufacturing Value Innovation – Gold Award for Productivity, Cost,

Speed at the Visual Display Plant – November 2004.

 Management Innovation Award – December 2004

 Samsung Quality Award – November 2004 for Colour Television & Colour

Monitor Plants

 Samsung Innovation Award – November 2004 for Refrigerator Plant.

BRAND POWER

From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an
awareness of over 95% and a positive opinion of around 80% in the country today (source: BAS
2004). Sports Marketing and Entertainment Marketing have been the key elements of the
Company’s Brand Marketing Strategy. Samsung has very successfully leveraged its association
with Cricket and Cinema in the form of ‘Team Samsung’ and ‘Samsung IIFA Award’. Samsung
India sponsored the high profile ‘Samsung Cup’ Indo-Pak Cricket Series in the Year 2004.
‘Team Samsung’ or Samsung’s team of celebrity cricketers endorsing Samsung products has
been successfully used to create more awareness for Samsung products.

To further reinforce its lifestyle positioning, Samsung has been associated with the Lakme India
Fashion Week (LIFW) for its Mobile Phones. The Company used the LIFW-2005 as a platform
to launch its D-500, World’s Best Mobile Phone in the Indian market.

Retaining Customers
Samsung considers 'After Sales Service' as a key differentiator for Samsung products. In order
to deliver prompt and easily accessible service, Samsung India has set up a widespread network
of company owned as well as Authorized Service Centers to service its consumers. The
Samsung Service Plazas, as the Company owned Service Centers are called, are a first in the
industry.

To satisfy the needs of its Home Appliance consumers, Samsung has set up state-of-the-art
Home Appliance Service Centers in 19 cities that are equipped with latest testing and measuring
equipments for servicing only Home Appliance products.

Speed, Smile, Sure’ is the motto for Samsung Service, as the Company seeks to satisfy more
and more of its consumers with prompt and accurate service. The company adheres to a
turnaround time of 24 hours within the city where the Samsung Service Centre is located. A
Service Helpline number 30308282 gives access to Samsung Service throughout the country.
Samsung India organizes a Free Service Camp on an All India basis, every year, for proactively
reaching out to consumers and servicing their Samsung products.

10 second to loose a consumer, 10 years to gain them back’ forms the guiding principle for
Samsung Service Team as it strives to satisfy the growing expectations of Indian consumers.
 Products

 Microwave Oven

 Refrigerator

 Air Conditioner

 Washing Machine
Microwave Oven
Refrigerator
Air Conditioner
Washing Machine
 OBJECTIVE OF STUDY
The research will provide an invaluable opportunity to conduct a research and practicing the
theoretical knowledge while perusing PGDM and examining them against the ground realities.
For me, being ‘Marketing’ specialization student it will provide me a golden opportunity to
gain first hand information in depth knowledge about consumer behavior and issues related to
consumer satisfaction.
For this research I am concentrating on developing questionnaire and retrieving information.
Apart from it I also collect secondary data, mainly taken from journals, newspapers and Internet
will also be taken into account.

Professional Objectives

This Dissertation project is a study of consumer satisfaction in white goods products of LG and
Samsung will be based on the comparison between LG and Samsung consumer satisfaction.

♦ What are the factors that affect the consumer satisfaction?

♦ Determining the factors affecting the consumer satisfaction.

♦ What is the magnitude of those factors regarding the consumer satisfaction?

Personal Objective

Personal objectives in this project are to gain experience of working in the market and
interacting with people and knowing their views as consumer. Enhancing the indirect learning
about the market and consumer behaviour is another objective which will be helpful further in
future in the field of marketing.
 RESEARCH METHODOLOGY

HYPOTHESIS:
There is no significance difference between consumer satisfaction of LG and Samsung’s white
goods products.
This project has been structured in the following manner. This is followed by scope of research
and sample design, which encompasses the following:

1. Scope of Research
The scope of research can be classified across two aspects:
(a) Target Market:
The Study is restricted to the Sahibabad and Ghaziabad region. Target region is one of the
industrialized locations and densely populated with middle class family.
(b) Target Respondents:
The Study is focused to the owner’s of the white goods products of LG and Samsung.

2. Sample Design
 Universe: Sahibabad, Ghaziabad.

 Population: consumer of white goods movers across Sahibabad and Ghaziabad in Uttar
Pradesh.
 Sample Size: A sample size of 40 has been taken for this study. 20 consumers for LG
and 20 consumers for Samsung.
The key determinants of the sampling universe are:
o Consumers feedback
o Self Generated responses
o Existing and well informed Universe
3. Method of hypothesis testing
My sample size was small (n < 30), independent and equally populated mean. For the
hypothesis testing t-test was used as statistical tool. A t-test can be used for comparison of two
population means in order to establish whether there is any significant difference between two
population means, provided the following conditions are met:

4. Survey and Data Collection:

Primary data was collected through formal structured questionnaires, which were administered
personally. The structured format ensured greater control over responses and facilitated easy
tabulation, editing and analysis.
In last a projection was also maid with the help of bar diagram of MS office

SCOPE OF RESEARCH AND SAMPLE DESIGN

1. Scope of Research
The scope of research can be classified across two aspects:
(a) Target Market:
The Study is restricted to the Sahibabad and Ghaziabad region. Target region is one of the
industrialized locations and densely populated with middle class family.
(b) Target Respondents:
The Study is focused to the owner’s of the white goods products of LG and Samsung.
2. Sample Design
 Universe: Sahibabad, Ghaziabad.
 Population: consumer of white goods movers across Sahibabad and Ghaziabad in Uttar
Pradesh.
 Sample Size: A sample size of 30 has been taken for this study. 15 consumers for LG
and 15 consumers for Samsung.
The key determinants of the sampling universe are:
o Consumers feedback
o Self Generated responses
o Existing and well informed Universe
o
Potential problems:

♦ Reluctant ness of prospective subject to give time for filling questionnaire.

♦ Financial and time constraints are making me to compromise to some extent.

Descriptive Work of Subtopic

Sampling procedure

Single stage Non-random convenience sampling was undertaken to obtain information promptly
and inexpensively. The sample size of 30 was taken. The respondents were contacted
mainly at their home and the questionnaire was administered by me in person and the
doubts regarding questions were cleared.

Method of Analysis and Interpretation

Microsoft Office was used during project for analyzing the results and preparing graphs, which
were prepared especially for the survey, Microsoft Word was used for designing the
Questionnaire and Microsoft Excel was used for analysis of data gathered. Data was recorded
on regular basis and the results were obtained at the end from which inferences were drawn. In
order to minimize the error in result and obtaining result in tabular and systematic manner, I had
used computer.
Method of hypothesis testing
My sample size was small (n < 30), independent and equally populated mean. For the
hypothesis testing t-test was used as statistical tool. A t-test can be used for comparison of two
population means in order to establish whether there is any significant difference between two
population means, provided the following conditions are met:
♦ Each population is approximately normally distributed.

♦ Sample size taken from each population is small (n < 30), but sample do not have to be
equal in size.
Survey and Data Collection:
Primary data was collected through formal structured questionnaires, which were administered
personally. The structured format ensured greater control over responses and facilitated easy
tabulation, editing and analysis.
Steps involved in this process are as follows:

♦ First step was the literature review about the research topic and then the
preliminary proposal was prepared. For all this internet, news paper was
explored.

♦ The next step involved was selecting research topic and assessing the feasibility
of topic regarding research and developing hypothesis for which I contacted my
mentor.

♦ Then, questionnaire for the interview was prepared. It was the most critical and
important phase. The whole research and it relevance was based on the right
questionnaire.

♦ Then, all data gathered was sorted, compiled and arranged for analysis.

♦ The next step was testing the hypothesis. Since sample size was small
independent so I chose the t-test for testing the hypothesis.
Consumer Electronics
Overview
The consumer electronics market is valued at $25 billion in 2006 and is growing at a rate of
20% per annum.
Products Covered
The consumer electronic sector can be segmented into VCD/DVD, home theatre, music players,
and color televisions (CTVs), MP3, digital cameras, laptop etc. and white goods, such as, dish
washers, air conditioners, water heaters, washing machines, refrigerators, etc.

Major Players
Before economic liberalization, there were only a few players like Kelvinator, Godrej, Allwyn,
and Voltas in the consumer durable market. 90% of the market was captured by these
companies alone.
Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo and
Aiwa came into the picture. And today, these players control major share of the consumer
durable market.

Consumer electronics market is projected as shown in the graph

Growth in 2005-06
 Consumer Durable/ White Goods Growth
Air Conditioner 20-25%
Refrigerator 5-10%
Microwave Ovens 25%
Washing Machines 5-10%
Consumer Electronics (Overall) 9%

Growth Drivers
Electronic market is growing very fast because rising living standards of individuals, easy
access to consumer finance, growing consumerism, increase in disposable income, and large
variety of choice as many foreign players are entering in the market. But, sometimes due to the
presence of large number of players in the consumer electronics market, over-supply situation
arises.

LG LEADERSHIP
Source : ORG-GFK ( Value market share : Jan - Aug. 2008)
Samsung Profile 2008
Wherever you are... in the hustle of the streets or the comfort of the home...Samsung is part of the fabric of
your life. As a global leader we are at the forefront of change, anticipating today what our customers
around the world will want tomorrow.
 Data Analysis & Interpretation

1. Complaint handling of the brand.

18
16
14
12 Excellent
very good
10
Good
8
Fair
6
Poor
4
2
0
LG SAMSUNG

Inferences drawn:
By the above bar diagram it is clear that the complaint handling of both the brand
is quite satisfactory. Most of the consumers using Samsung consider that the
brand’s complaint handling is excellent & very good. On the other hand LG
consumers are also quite satisfied with the service provided.
2. Did the consumers find in product what they were looking for?

12

10

8
LG
6
SAMSUNG
4

0
1 2 3 4 5 NOT AT
EXECTLY ALL

Inferences drawn:
Most of the consumers of both the brand have responded positively but consumers
of Samsung are more satisfied with the features of their white goods product they
are using.
Few consumers of LG are not satisfied with features of the product they are using.
3. Consumers using the brand since.

9
8
7
6
5 LG
4 SAMSUNG
3
2
1
0
5 Yr.or 3 Yr. or 2 yr. or 1 Yr. or 6 months
above above above above or above
4. Number of white goods product consumers are using.

SAMSUNG

One
Two
3 or more

LG

0 5 10 15 20

From the above graph we can say that most of the respondents were using on one
to two products of Samsung but these is still LG which is used by the consumer
and they are two to three white goods product of LG.

So on an average most of the consumers are having LG products.

5. Consumers’ buying intention in next six month regarding the brands.

14

12

10
Definotely will buy
8 Probably will buy
Undecided
6
Probably will not buy
4 Definetly will not buy

0
LG SAMSUNG

Inferences drawn:
If we see the bar diagram it is clear that there is very less consumer loyalty in the
white goods product and the consumers are supposed to analyze every possible
option and they are indecisive about their further buying. A bunch of consumer is
definitely not going to buy the Samsung and LG products. On the other hand a
substantial bunch of consumer is definitely going to purchase the LG product.
6. Perception of consumers regarding ‘white goods products of this brand as value for
money’.

12

10

8
LG
6
SAMSUNG
4

0
1 Exactly 2 3 4 5 Not at
all

From the above graph, we can say that most of the LG white goods , consumers
are of the perception that the product is worth of the money. But it is not in the
case of Samsung.
So LG is having the more positive response then the Samsung.
7. Consumers’ experience with the brand.

12

10

6 SAMSUNG
LG
4

0
Excellent Very Good Fair Poor
good

Inferences drawn:
If we see the Bar diagram it is evident that the overall experience of LG and
Samsung’s consumers satisfaction is average or more than average but Samsungs
consumers experience with the product is excellent while the none LG consumer
has responded as excellence experience.
 Conclusion & Suggestion

Before I conclude I would like to share the key learning I derived from this project. This has
been enumerated below as follows: -

 The learning specific to this project has been that it provided us with a real exposure to
the market of white goods and its consumers level of satisfaction.

 People have different personalities and different attitudes and therefore good
communication is required to approach the consumers.

 Gaining in-depth knowledge about the consumers behaviour and white goods business
in India as-well-as consumer loyalty.
Limitations
 The sample size chosen for interview was small in size (30). If the sample size would have
been large, the study will be more accurate and near to reality as the confidence limit will be
more.

 Another limitation was the scope of research is limited to Shahibabad and Ghaziabad only,
as personal interview couldn’t be conducted in more areas due to inconvenience.

 The questionnaire prepared for interviews has limitations also; the questionnaire can’t cover
the whole complexity of the topic. The questionnaire covers some important points only.
 BIBLIOGRAPHY

The majority of the project has been primarily our own research, findings and endeavor.
Wherever the support of the Internet and books has been taken, the name of sites and books
used are as mentioned below: -

C.R. Kothari - Business Research methodology

Naresh K. Malhotra - Marketing research an applied orientation (4th edition)

Philip Kotlar - Marketing Management (11th edition)

Economic Times Newspaper
Business Line Newspaper

www.lgindia.com

www.samsung.com

www.google.co.in
 ANNEXURE
QUESTIONNAIRE FOR THE STUDY OF CONSUMER SATISFACTION IN WHITE GOODS
Name of the respondent: ___________________________
Brand using: Samsung / LG
Location: -------------------------------------------------------------

1. How do you see the compliant handling of the brand?

Excellent Very Good Good Fair Poor

1 2 3 4 5
2. Did you find what you were looking for?

Exactly Not at all

1 2 3 4 5

3. Since when have you been using this brand?

Last 5 years Last 3 years Last 2 years Last 1 year Last 6 months
or above or above or above or above or above
1 2 3 4 5

4. How many white goods product of this brand you are using?

Three or more Two One

1 2 3
5. Do you intend to buy a new white goods product of this brand with in next six months?

Definitely Probably Undecided Probably will Definitely will

will buy will buy not buy not buy
1 2 3 4 5

6. Do you think the products of this brand are value for money?

Exactly Not at all

1 2 3 4 5

7. How is your experience with this brand?

Excellent Very good Good Fair Poor

1 2 3 4 5