CUSTOMER RESEARCH REPORT Submitted to the SMU in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS

ADMINISTRATION ( Marketing ) By HARPREET KAUR LEGHA Roll No. 520313461

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR MASTER OF BUSINESS ADMINISTRATION OF SIKKIM MANIPAL UNIVERSITY, INDIA SIKKIM MANIPAL UNIVERSITY OF HEALTH, MEDICAL AND TECHNOLOGICAL SCIENCES DISTANCE EDUCATION WING SYNDICATE HOUSE MANIPAL 576119

EXAMINERS CERTIFICATION This is to certify that this project entitled. "Customer Research submitted in partial requirement for the degree of Masters in Business Administration (MBA) is a bonafide research work carried out by Harpreet Kaur Legha (520313461) {student of ICAI Campus, #2265A, Phase 7, Mohali}. The assistance and help received during the course of investigation have been fully acknowledged. SANTOSH Asst. Prof. (Project Advisor) ICAI Campus, #2265A, Phase 7, Mohali

DECLARATION

I hereby declare that the project report entitled Customer Research Submitted in partial fulfillment of the requirements for the Degree of Masters in Business Administration

To Sikkim Manipal University, India is my original work and Not submitted for award of any other degree, diploma Fellowship or any other similar Title or prizes.

Place: Mohali

Harpreet Kaur Legha Roll No.: 520313461

ACKNOWLEDGEMENT
First of all, I bow my head in gratitude to omnipresent, omniscient, and omnipotent god, who has given me the courage, patience and efficiency to complete this research investigation. I would like to thank express the sense of gratitude to Mr. Vipul Shah (Regional Manager), Mr. S.S. Sachdeva (Branch Head) and Mr. Abhishek Vohra (Mktg. Manager) under whose assistant I am doing this research project. I owe my vote of thanks to my Project Advisor Ms. Santosh I would like to express my feelings of indebt ness and cordial thanks to my family members for their valuable suggestions. And I owe my vote of thanks to all my friends who stood by me during this research investigation. At least I would like to thank all the respondents who were surveyed to collect the information for the present study. I wish to record my gratitude for all those persons who are not mentioned here but without whose support this task would not have been possible.

Title of Thesis Name of Student Roll No. Field of specialization: Name and designation : Year Name of the University :

: "Customer Research : Harpreet Kaur Legha : 520313461 Marketing Mrs. Santosh of Major Advisor : 2004 Sikkim Manipal University

CONTENTS CHAPTER 1 2 3 4 5 TOPIC INTRODUCTION REVIEW OF LITERATURE RESEARCH METHODOLOGY FINDINGS AND ANALYSIS SUMMARY AND CONCLUSION PAGE NO. 1-28 29-33 34-36 37-52 53-57

APPENDIX (questionnaire)

Chapter-1 About Company

INTRODUCTION

LG Electronics, Inc. was established in 1958 as the pioneer in the Korean consumer electronics market. The company is a major global force in electronics and information and communications products with more than 64,000 employees working in 76 overseas subsidiaries and marketing units around the world. With annual total revenues of more than US $16.9 billion (non-consolidated). LG Electronics' goal is to enable the intelligent networking of digital products that will make consumers' lives better than ever. The name LG has become synonymous with innovation. LG (Lucky Goldstar) Electronics was established in l958 as Gold star company but its corporate name was changed to LG Electronics in 1995, as apart of an effort to make the company a major player in world market. LG Electronics is the original consumer electronics, communications & household appliance company of South Korea. Founded in 1958, it is a 50,000 strong global organization, active in 180 countries, forging digital solutions for the home, office and mobile environments. LG Electronics is a major global player in electronics & telecommunications, operating 72 subsidiaries around the world with over 55,000 employees worldwide. LG Electronics focuses on Digital TV, CD-RW, DVD, CD-ROM, DVD-ROM Drives, PCs, Monitors, Mobile Handsets, CRTs and PDPs. 1.1 Corporate identity 1.1(1) LG Slogan / Signature "Life's Good" signature is an expression which reflects belief that life is enriched and enhanced by products that are ingeniously designed and expertly built. "Life's Good" expresses the heart or 'attitude' of LG world-wide. "Life's Good" also expresses companies will to provide solution for an

enriched, good life by continuously developing innovative and delightfully smart products. "Life's Good" is a brand promise that delivers on our conviction in making your life good. The LG Electronics Life's Good signature consists of the LG logo and the LG letters and the slogan Life's Good, set in the Charlotte Sans typeface, curved around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature helps to clearly identify and connect every division and product form LG Electronics across the globe. 1.1(2) Corporate Name LG Electronics Inc. Established Corporate Office gu Seoul, Korea 150-721 Tel: 82-2-3777-1114 URL: http://www.LGE.com Chairman & CEO Mr. S.S.Kim Digital TV, PDP, Monitor, CD-ROM Drives, DVD- Main Product DVD Media, Automatic ROM DrWes CD Rewritable Recorder, VCR, Player, Audio, Security System, Recording Video Phone, PC Camera, Banking System , PCB Digital Appliance Company Air Conditioner, Refrigerator, Microwave Oven, Washing Refrigerator Machine, Vaccume Cleaner, Compressor for Air Conditioner, Compressor for Business Area and Digital Display & Media Company October 1, 1958 (As a private Company) LG Twin Towers 20,Yoido-dong, Youngdungpo-

Telecommunication Equipment & Handset Company TDX, System), STAREX, System optical Integration switching (SI) systems, etc. Implementation of advanced IBS (Information Building service, Implementation of advanced IBS (Information Building System), System Integration (SI) service, Handsets for satellite, mobile multimedia and IMT-2000 services, etc. Number Employees 1.1(3) History of LG Electronics The 1950's 1958 GoldStar (today's LG Electronics) established 1959 Korea's first radio produced The 1960's 1962 Radio exported to the US and Hong Kong as Korea's first 1965 Korea's first refrigerator produced 1966 Korea's first black & white TV produced 1968 Korea's first air conditioner produced 1969 Korea's first washing machine produced The 1970's 1974 GoldStar Communication went public 1977 Color TV produced 1978 Exports surpassed US$100 million as Korea's first in the electronics industry The 1980's 1980 First EU sales subsidiary in Germany (LGEWG) established 1982 Color TV plant in Huntsville in the US established 1984 Sales surpassed 1 trillion Won 1986 European-standard VCR plant in Germany established 1989 Sales subsidiary and a joint production subsidiary in Thailand established of 64,082(27,814 in Korea/ 36,268 overseas)

The 1990's 1990 Ireland-based design technology center established 1993 With the establishment of Huizhou subsidiary, China, marketing in China begun full swing 1995 Company name changed to LG Electronics and the US-based Zenith acquired 1997 40-inch PDP TV and the world's first IC set for DTVs developed; India production subsidiary (LGEIL) established 1998 World's first 60-inch PDP TV Developed

1999 LG-Philips LCD, a joint venture with Philips, established The 2000's 2000 LG Information & Communications merged, the word's first Internet-enabled refrigerator launched; global sales of refrigerators reached the number one position 2001 Asynchronous 1MT-2000 equipment commercialized; the world's first Internetenabled washing machine, air conditioner, and microwave oven launched; LG-Philips CRT, a joint venture with Philips established 2002 Under the LG Holding Company system, the Company spun off to LG Electronics (LGE) and LG Electronics Investment (LGEI); the first home networking system commercialized in the global market
2003

World's first synchronous-asynchronous IMT-2000 mobile phone developed; the

world's largest 76-inch PDP TV developed; CDMA mobile handsets took the largest share in the US CDMA market 1.2 Vision Global Top 3 By 2010 LG Electronics sets its mid-term and long-term vision anew to rank among the top 3 electronics, information, and telecommunication firms in the world by 2010. As such, they embrace the philosophy of "Great Company, Great People," whereby only great people can create a great company, and purpose to growth strategies involving "fast innovation" and "fast growth." Likewise, they seek to secure three core capabilities: product leadership, market leadership, and people-centered leadership. 1.2(1) Growth Strategy Fast Growth Fast growth is the result of strategies designed to expand the market size and earnings quickly, in the process improving the growth rate in terms of monetary value rather than quantity. Fast Innovation Fast innovation involves setting extremely high innovation goals and securing a

competitive edge, aiming for a target of 30% more than what our competitors can do. Fast innovation also means 30% more sales and

improvement in our market share, new product development and unveiling these 30% faster, technology development and establishment of corporate value three years ahead of competitors. 1.2(2) Core Capabilities Product Leadership Product Leadership refers to the ability to develop creative, premium products through specialized new technologies. Market Leadership Market Leadership refers to the ability to achieve the "LG brand is No. 1" goal backed by its formidable market presence worldwide. People Leadership People Leadership refers to talented people who perform excellently by internalizing and practicing innovations. 1.3 Corporate Culture Though a company implements perfect management strategies and boasts of outstanding and talented people, it should have an appropriate corporate culture to unleash the power of these capabilities. No 'No'- Challenge: Company foster a corporate culture whereby they suggest an alternative before saying "no" and aggressively work towards fulfilling their goal. 'We' not 'I': Company pursues a corporate culture whereby we embrace a strong teamwork. Fun to work: Company creates a workplace where individuals' creativity and freedom are respected and working is made fun. 1.4 Brand Identity : Delightfully Smart 'Delightfully Smart' brand identity stems from the spirit that is captured by LG. LG is delightful (consumer-oriented) because those who encounter LG products

found LG with delight. For people who are inspired by the latest digital technologies, advanced designs and styling, and innovative yet practical functions, choosing LG is a form of self-expression, and self-satisfaction, an amazing comfort in knowing you made the perfect decision. LG is smart (product-oriented) because its products are smart and developed fundamentally to provide smart solutions for your everyday problems. 'Smart' is the expression of the means and the way that their products are innovated. LG products enhance consumers life with their intelligent features, intuitive functionality, and exceptional performance. 1.5 Brand Personality To LG signature and the graphic elements that support it also radiate the innovative spirit is truly responsible for the development of its superior products. The final result is an expression of premium quality that is friendly, easy-to-use, and guaranteed to make life more livable. LG is dedicated to making life Delightfully Smart.

1.6 Financial Highlights Financial Highlights (in billion won) 1997 9,239.7 Domestic Export Ordinary Profit Ordinary Profit Table 1.1 Sales Revenues(in billion won) Domestic 2003 2002 2001 1,946 2,083 2,210 Overseas 3,702 3,193 2,753 Table 1.2 Total 5,648 5,193 4,963 3,503.2 5,736.5 115.9 1998 1999 2000 2001 2002 9,852.8 10,546.1 14,835.7 16,601.0 18,602.9 2,569.8 2,704.0 7,283.0 7,842.1 167.1 2,587.9 4,881.2 9,954.5 728.5 6,084.1 573.7 6,654.9 675.2 10,516.9 11,948.0

SALES

1.7 Labor-Management Relation LG Electronics chooses to promote harmony and build constructively on a labormanagement relationship rather than an employee-employer relationship. This shows that the company encourages horizontal type of hierarchical relationship between management and workers. Where each party on equal footing and working together based on mutual trust and respect. 1.8 Digital Appliance Company The LG Digital Appliance Company is fast becoming the leader of the global home appliances industry, ranking No.l in sales of air conditioners, microwave ovens, and canister vacuum cleaners. LG Electronics was the first company to commercialize a full line of Web-

enabled home network appliances including refrigerators, washing machines, microwave ovens, and air conditioners, and is increasingly seen as a leader in premium appliances. 1.9 Management by Principle (Fair and Transparent Management) LG Electronics management seeks to employ fair and transparent methods in all its transactions to compete fairly and to elicit customer acceptance and loyalty. LG Electronics aims to become a superior and highly competitive company based on customer-oriented services. A fair and transparent management is one of LG Electronics' corporate ethical criteria. LG Electronics strongly believes that this is the way towards achieving the status of a superior, world-class corporation. The company will continue to pursue its goals together with its partners in an environment of mutual trust and cooperation 1.10 Pioneering Spirit LG Electronics takes the initiative in leading the development of Korea's electronics industry through a pioneering spirit of transforming vision into reality. In 1959, the company manufactured the radio, the first undertaking of its kind in Korea. Furthermore, the company achieved other firsts in the country by developing telephones, refrigerators, and black & white television sets. LG Electronics is one of the country's pioneers, spearheading Korea's electronics industry since its inception 40 years ago. This success was made possible because of LG Electronics' boldness in product innovations and its fearlessness in accepting many challenges. LG Electronics espouses and believes in the dictum "No Success without Challenge" as it proudly exercises its global leadership in the field of digital TV, PDP TV, and other state-of-the-art products.

1.11 Strategic Alliance As a response to the rapidly changing digital era, LG Electronics is aggressively pursuing global partnership in selected business and technology areas by establishing wide-ranging strategic alliances with world leading companies. In particular, with focus of digital management moving turning toward becoming first mover in the market and leading the industry standard, LG Electronics is concentrating on strengthening strategic alliances in the digital TV industry 1.12 Core Values Changing your way of thinking can change the world. Hatching new ideas is how LG elec. give the customer greater value. A corporation's core values are mirrored in its business performance. Innovation: Creating new and unique values Openness: Open-minded response to changing environment Partnership: Establishing cooperative relationships to ensure the best performance 1.13 Core Competences LG's digitalists are building up marketing experience and technical expertise for greater competence. Intriguing designs for an intricate network. Their core competences are indispensable for growth into a global digital leader. The ability to develop unique product concepts with new proprietary Technology: technology ahead of others and then commercialize them Design: The ability to plan projects and business effectively to maximize results

The ability to create win-win relationship opportunities based on one's Networking: strengths in specific sectors and make them into assets 1.14 HR Values of LG Electronics In LG Electronics HR Values are based on an individual's creativity and autonomy. From this four sub-values are derived - emphasis on competency, performance based rewards, equal opportunities, and a long-term perspective. Total five values are the basis of LG's main HR System Organization Recruitment Development Appraisal Compensation The end result of this is the establishment of Human Resource systems that directly realize company's management philosophy and business strategy. 1.15 Production Plants LG setup its first factory in Noida in 1998 with an investment of over Rs500 crore. Spread over 47 Acres, the plant is one of the most modern and automated installations of its kind in India. The facility which had an initial capacity to turn out 5,00,000 CTVs, 1,00,000 Semi-Automatic washing machines, and 1,00,000 Air conditioners, has been ramping up as well as adding new products like refrigerators, microwave Ovens, monitors, and PCs. LG also setup a compressor plant at Noida in 2003. From 1997 till 2003 LG pumped Rs530 crore, with another Rs 1000 crore to come in next three years to 2007. So the cumulative investment in India till 2007 will be close to Rs 600 crore. On the expansion front, to start with, a second unit is coming up at Ranjangaon near Pune. This new facility, scheduled to commence operations by August 2004,

will initially manufacture CTs and refrigerators, and scale up to finally produce the entire range. LG will invest Rs500 crore in Pune over the nest five years. With the opening of this new plant the company foresees the increase in the contribution of the Indian subsidiary from 5 percent to 10 percent by 2010. 1.15.1 Coverage LG covers India with 72 regional offices, 61 central area offices, and 43 branches. Additionally it has over 112 area offices at the district level. Below these area offices there are 80 remote area offices currently, which LG plans to scale upto 200 by next year, so that it can reach out to the rural market in a better way and feel the pulse of the consumers and the dealers there. In addition, its association with the health platform and cricket helped it in the wrest a strong position in the mindspace of consumers in rural India. 1.16 Main Products Refrigerator Air Conditioner 1.17 AWARDS 2003 LG Electronics DI wins Digital Management Grand Prize in Korea Digital March 2003 Super-thin interior wall-hung air-conditioner (Low-noise and Cdma2000 lx color mobile phone wins 'IF Design Award 2003' gold award. Competitiveness Improvement Exhibit. highly efficient super-thin wall-hung) wins IR52 Jang Yeong-sil Prize. GSM Mobiles CTVs Washing Machine Microwave Oven Vacuum Cleaner

2002 Cyon 65,000-color Handset Wins Grand Prize at Ergonomic Design Awards. DIOS Refrigerator and PDP TV Obtain Environmental Declaration of Products Cdma2000 IX EV-DO Handset Wins Good Design Presidential Award (with LG Electronics Digital Storage Division Selected as One of Top 50 Companies

Certificate LG Electronics. digital camera). in Quality Excellence, etc. 2001

DVD of the Year, U.K. (LG Electronics DVD player) Best Monitor Brand in Brazil (LG Electronics monitor) TP Grand Prize, Management Association of Japan For two consecutive years Presidential Commendation, Korea Management Productivity Awards, etc.

LG Electronics was the only Korean company to receive the award

2000 Top 50 Products for the Teenagers (MP3 player and microwave). Diamond Award, World Best Award given by Korea Management Association. LG Electronics' Flatron monitor and CD-RW won the award in Product Strength Grand Prize, Korea Marketing Awards for FLATRON, WHISEN. "Energy Winner," Dios inverter refrigerator Best Product Design (Japan) New Media Grand Prize (DVD player and iris recognition security system And so on.

area; 64 inch digital TV won the award in Development Strength.

1999

LG Electronics becomes the first in the world to obtain KITE mark (safety According to a survey conducted by Business Today, a leading English daily

standard mark) from the British Standard Institution for digital TV. of India, LG's initial recognition rate of 31% is the best brand among consumer durable brands in India. LG beat out such locally well- known brands like BPL and Onida. 1998

LG Electronics was selected as the Company of the Year for the Marketing Business World, an English economic daily, selected LG Electronics as No. Etc.

Best part by A&M, a leading Indian business magazine. 1 in Ethical Conduct among 100 most respected companies in India.

VCR selected as the Best Product by Choice magazine in Australia Monitor selected as the best product by Info PC magazine of France Air conditioner selected as one of Best consumer buy product in U.S PC Camera selected as the best product by the PC Magazine of the U.S. LG Electronics wins the Grand Prize for Labor-Management Partnership. Etc.

1997

Best in Labor-Management Harmony, Kangwon region in Seoul Industrial Technology Innovation Award Grand Prize, Excellent Designs (for best product design, 5th time since 1993) Presidential Award, Multimedia Technology Awards. And so on.

1.18 LG ELECTRONICS INDIA PVT. LTD. (LGEIL) LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 in India. It is one of the youngest consumer durable brands in the country today, encompassing an impressive portfolio of Colour Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators (Direct Cool and Frost Free), PCs, Vacuum Cleaners and optical storage devices and GSM mobile phones. During the six years of its existence in India, LG has earned a premium brand positioning due to its superior quality, high product performance, revolutionary technological delivery and warm service Infact, today LG is recognized as a leader in setting industry norms starting with the fastest ever-nationwide reach, latest global technology and product innovation. The company aims to achieve a turnover of Rs 7000 cr in 2004 and an enviable position in the GSM mobile phone market which they have entered late 2003. 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 over 50 lakh households in India. 1.19 Company's plan The company envisages a total investment of US$289 million over the next 9 years to facilitate the production of its international range of electronics and appliances. In the first phase of investment, from 1998 to 2001, the company plans to invest US $100 million to establish manufacturing facilities in Greater Noida. The facility has started production since April 1998. In the second phase (2001 to 2005), the company will see an additional investment of $100 million, to extend the manufacturing capacities to include the manufacture of compressors, fly back transformers, motors and deflection yokes.

LGEIL will become one of the largest industrial house in India in few years. LG promotion is focused and transparent. Born of the desire to communicate clear product benefits in the clearest possible manner, it wins friends and influences people through ethics, not schemes! In fact, Business world declared LG as India's Most Ethical MNC. In a recent survey conducted in conjunction with India Research, to rank MNCs in India on different parameters, LG was voted as "The Most Ethical Consumer Durables Company" among India's top 100 MNCs. While LG devised a special strategy for the Indian consumer, the basic parameters of quality remained a constant. While other MNCs have entered markets with second or third generation products, LG has always entered with its most recent range of products. The Indian market is no exception to the rule. Aside from health, Indians are also close to sports, be it cricket or soccer. Both LG and sports promote good health & a better quality of life. LG sponsored the World Cup Soccer, France in 1998, with Coke as the co-sponsor and World Cup Cricket '99 in England along with Pepsi and so on. LG Electronics has launched in India on Maylst, 1997 & is today poised to reach a mammoth 4,500cr. In just 6yrs. LG has made great sales in consumer goods and home appliances in India. It boasts the wide range of products and has largest network of offices and service centers. 1.20 Latest press releases of LG Electronics 1.20(1) LG Electronics Clocks a Turnover of Rs. 4,500 cr in 2003 Records a turnover growth of 37% in CE, 32% in HA, 43% in IT over last year Targets to touch Rs7000 cr in 2004 New Delhi, January 22, 2004: LG Electronics India Pvt. Ltd. announced their consolidated financial results for 2003 clocking a turnover of Rs. 4,500 cr.. LG Electronics currently has 65 Regional Area Offices, 60 Central Area Offices with 40 branches. 1.20(2) Commenting on the results, Mr. Kwang-Ro Kim, Managing Director, LG Electronics India Pvt. Ltd. said "We are very pleased to announce our performance

for 2003 , This years results has further established for us a more solid operational platform . Year 2003 has seen LG being recognized as an innovative and an exciting brand by introducing state of art product line up in the country. We are confident we can build on the success of 2003 and can further augment our growth with more consumer oriented and feature rich products." 1.20(3) Consumer Electronics LG Electronics has recorded a growth of 37 per cent in the consumer electronics division having achieved a cumulative figure of Rs2049 crores contributing to 46 per cent of the total turnover. The key focus areas in 2004 will be the hi-end products. The target for this division for 2004 is Rs2600 crore, which will be a growth of 27 per cent over 2003. 1.20(4) Home Appliances LG Electronics in Home Appliances (HA) has clocked a record turnover of Rs 1996 contributing to 44 per cent of the total turnover, an increase of 32 percent over last year. This is a phenomenal growth as compared to the industry growth and the trends. The Home Appliance division is expected to make major dents in the Indian market and is expected to grow by 67 per cent over 2003. This Division expects to touch Rs 3340 cr this contributing about 48 per cent to the total turnover in 2004 . 1.20(5) IT Division and GSM The IT Division of LG Electronics has recoded a growth of 43 per cent contributing to 10 per cent of the total turnover. The targets for 2004 will be a growth of 70 per cent at Rs 760 cr. The foray into GSM mobiles in the later half of 2003 has made a mark in the the market and the company hopes to be the number two player by end 2004. To achieve this ambitious target the company has set a target of Rs 350 cr turnover by 2004. LG Ranked World's No. 1 IT Company.

1.20(6) Other Achievements LG Electronics reiterates its commitment by announcing its new plant in Pune which will become functional from August 2004. 1.20(7) In a "Great Company" Dreams Come True We are committed to help create a world where people live with convenience and affluence. By simply pressing a few buttons it interlinks inside and outside a home enabled with digital, electronics, and infotech hybrids. A world in which every one gets information and communications easily and in real time via ubiquitous wired-wireless networks. That's what we are dreaming of now. Presently, we carry on restructuring with the all-out support of labor-management. Enhancement of excellence in every task is a critical ingredient for achieving the vision. Our talented workforce is expanding as we usher in anticipated future growth. Coordinating human and corporate resources, we make our way to become a "Great Company." We extend appreciation to our shareholders, customers, and employees whose unsparing support is a vital force for us in realizing our vision." Mr. K.R. Kim, Managing Director, LG Electronics India Ltd., said, "I am extremely pleased with our performance, as we have been able to sustain growth during a year of slowdown in the consumer electronics and home appliances industry." And "Our growth record has led us to expand manufacturing presence in India. We have accordingly reinforced our sales and distribution network through the concept of area offices to reach out more Indian consumers in semi urban and rural India." Mr. S.S Kim LG is India's youngest and fastest growing consumer durable brand, LG at the no. one slot has targeted to end the year with a turnover of Rs7,000 crore. By 2010 it is gearing up to join the Rs30,000 crore leagues. After China, LG plans to make India its second largest hub.

1.21(1) LG - Ludhiana Branch Stations coming under ludhiana branch: Ludhiana Patiala Khanna Jagraon Fatehgarh Sahib

1.21(2) Organisation Structure Organization-Structure of LG Electronics India (P) Ltd. Ludhiana.

1.21(3) Departments There are five departments at LG's Ludhiana Branch. 1. 2. 3. 4. 5. Marketing Sales Accounts Logistics Service

Marketing Marketing department mainly works on increasing the sales of various products. Marketing Dept. works in coordination with other departments. Here various schemes are developed for the customers. It looks after each and every advertisement requirements. Objective of marketing department Create Brand Visibility across available mediums which would help generate higher recall value, quick conversions on the floor, beat functional benefit over emotional benefit beyond pricing architecture. Specified route is through: 1. Signage: In-shop and shop front. 2. Outdoor: Banner, Hoarding, Social signage, Traffic signage, Window display etc. 3. POP 4. PR 5. Press Innovations 6. Road Shows 7. Event Signage 8. Exhibitions

Various activities/schemes undertaken by the Marketing Department are: Promotion Campaigns Exhibitions Road Shows Lucky Draws Gifts with every purchase 0% Interest Free Gifts with every purchase Holiday coupons Scratch cards Cookery class Cookery competition Major Offers launched current fiscal are: Sona Chandi Offer Triple scratch offer Gifting smiles Exhibition - at Baron Celebrate Monsoon with LG Road Show for GSM Uphaaron ki Barsaat 1.22 Advertising The term 'advertising' is derived from a Latin word 'advertere' which means 'to turn' the attention. Every piece of advertising turns the attention of the readers or the listeners or the viewers or the onlookers toward a product or a service or an idea. Therefore, it can be said that anything that turns the attention to an article or a service or an idea might be well called as advertising. It is a tantalizing technique of popularising a product. It is that magic force which turns an instinct in to acquisition, a desire into demand and a dream into reality by

influencing the consumption, directing the production, diverting the distribution and affecting the very course of exchange. 1.22.1 Advertising at LG LG takes advertising very seriously, to increase the visibility of their brand they are having huge budgets for Advertising and are really spending on that too. May it be the In-shop branding or Out door Advertising. 1.22.2 In-shop Branding In-shop branding refers to the branding at the dealer counter. 70 % of the buying decisions are made within the three feet of the retail shelf. 42 % of brand purchases made in-store are made when there is at least one piece of POP present for that brand". KSA Technopak. It includes various types of different advertisement products: Sol.Vinyl on Sunboard One way Vision Film

In-shop branding is done to give an impact on customers mind regarding the LG's image. 1.22.3 Outdoor Advertising Outdoor advertising stresses on placement of the various advertisements at prominent locations in the city, to increase brand visibility and brand recognition. Outdoor Advertising is mainly done to make the customers aware of the new Schemes, Offers, etc. Outdoor Advertising consists of: Banner Banners Dumps Flex Signs Nonlit Flex Bus Shelters a Hoarding Kiosks

Huge Nonlit Flex boards are installed at various Dealers in Ludhiana: Navrang Electronics. Batra Gallery. Info 2000 R.K. TV center 1.22.4 Major Advertising Vendors of LG (Ludhiana Branch): Gorgeous (Ludhiana) contact person: Mr. Prakash Omways (49, Harpal Nagar, LDH.) contact person: Mr. Sunil Mitra, Mr. Kuldeep Kamal Arts (Opp. Freeman's, Fzr. Road. Ludhiana) contact person: Mr. Kamal Gorgeous is serving LG in 8 cities. It provides:

Bus Shelters a Dumps Guide Maps Hoardings (Bus Stand/Railway Station) Kiosks

Various sites where Gorgeous is providing its services (July 2004): Ludhiana Dump(l) Bus Shelter (2) Guide Maps (10) Amritsar Bus Shelters (5) Rani Jhansi Road. Chandigarh Road & Model Town within city

Hoshiarpur Bus Shelter (1) Moga Bus Shelter (2) GT Road. Tanda Chaowk.

Phagwara Bus Shelter (2) Khanna Bus Shelter (1) Bathinda Bus Stand Hoarding 40'x20' Railway Station Hoarding 40'x20' Omways provides various kinds of signage to LG (inshop and outdoor both). Sol.Vinyl on Sunboard One way Vision Film Mirror Acrylic Nonlit Flex Backlit flex Front lit flex Solvent printed flex GT Road.

All the Dealer signage is provided them. They serve various branches of LG, across the Punjab and Jammu. Kamal Arts supplies banners to LG for various branches of LG.] Cloth banners, with 3-4-color printing are provided at reasonable cost. They also make arrangements for the installation of banners at various locations in Punjab. Banners are considered to be the cheapest and effective mode of advertising. These are installed at prominent locations, which provide maximum exposure to the general public.

Objectives To study the effect of advertisement on purchase behavior of consumer. To study how the Brand image/recognition of company is affected by advertisement. To measure the advertisement effectiveness of LG advertisements.

CHAPTER - 2

REVIEW OF LITERATURE

STARCH devised a method for measuring readership of advertising. Numerous studies conducted by him, these studies also found that the proportion of issue readers who purchase, was influenced by the level of readership of the advertisement and by the persuasive, activating powers of advertising. He believed that informativeness, helpfulness and believability of advertisement impressed, persuaded and activated people to buy. His findings revealed that coloured advertising attracted about 50% more readers than black and white ones. Findings also revealed that repetition of the same advertisement after the interval of a month up to 6 or 7 insertions, apparently did not cause decline in readership. STARCH (1931) while analyzing over 3000000 inquiries received by 98 firms from 2339 advertisements found that coloured advertisement brought 57% more replies that the black and white of the same size and character; advertisement inserted on right hand side of the page of the magazine/ newspaper, etc. brought 14% more replies than similar on the left side; advertisement in women magazine brought more than twice as many replies circulation; double page advertisement brought nearly twice as many replies as single page advertisement, number of enquiries was almost exactly proportional to the size of the advertisement; the advertisement in the monthly magazine brought 46% of their total replies during the I" month after the insertion of the advertisement. SCITOVSKY (1951) is of the opinion that advertising depends upon the ignorance of people to whom it is addressed. The more ignorant the buyer, the more he relies on advertisement.

HILL(1960) explored that public concept of advertising was partially inherent in the nature of advertising but reflects the personality of the viewer, COFFIN(1963) conducted a pioneer experience to asses advertising effectiveness and disclosed that the total Effectiveness of advertisement could be measured in terms of product based on the size of Audience multiplied by Impact/number of audience. E =A * I GOLDMAN(1963) said that advertising is a source of information, as a time saving device and as a assurance of a quality. While consumer is examining and weighing various advertising messages, his/her mental attitude towards the advertised brand in undergoing a number of changes. ENGSTRON (1965) concluded that advertisement helped to find the commodity MCDONALD(1970) found that consumers exposed, two or more times to an where it was sold. advertisement are 5% more likely to switch to the advertising brand.

BOGURT ET AL (1970) specified that advertisements pay in the long run, even those messages which leave virtually no discernible memory, trace at all may through the force of repetition ,turn out to have a residual effect. KOTTMAN(1970) reported that the truthfulness of advertising was not a serious weakness, but incredibility of beliefs and trust in some advertising lessened the effectiveness of all advertisements. VALIENTE(1973) informed that the recognition of print advertisement was JOLLY(i974) conducted the study to find out the effect of advertising on the dependant more on their size, colour, and number of illustration than on their content. consumer decision. She reported that there was some effect of retail advertising while making the decision by the consumers. The respondents expressed that retail advertising was an important source of information in order to know about newbrands and services. MICHAEL AND ARNON (1976) found that the recall of advertisement is widely used as a measure of advertising effectiveness. The rationality of using it is the belief that recall of an advertisement is a necessary condition for change in attitude and behaviour.

Advertisers hypothesizes that if the purpose of advertising is to sell, it must communicate. Best and good advertisements are those that will produce the greater memory impression. RAJ (1982) found that-the different advertising effects on purchasing behaviour of consumers of varying brand loyalty. In a frequently purchase product class, consumers of high loyalty increase brand and product purchase. While advertising for that brand increase, at low loyalties there is little impact. Effect of increased advertising carries over a few months after advertising is lowered back to normal. INTZ ET AL(1983)&GARDENER(1985)maintain that attitude towards the advertisement acts as a mediator of brand attitude evaluation and high product knowledge. BRUKE AND SRULL (1988) suggested that advertising for competitive brands can have detrimental effect not just on consumers memory for brands past advertising but also on the consumers ability to learn and remember distinctive brand information presented in the future in advertising. From the review of various research studies it can be that the effectiveness of advertising has been measured by research investigators using varied number of criterion but attempts had been made to know the exact nature of processes place in customers mind for moving toward mt. advertising is very important because of increasing.

The advertising has great impact on consumers; it helps the consumers to know about the right place (the specific retail store) for the specific product. These days, due to more competition the consumer can get the same thing from many persons. So, because of this, the company's, through advertisement attracts the customers to come and make purchases from their stores.

CHAPTER - 3 3.1 Scope of study

Research methodology

The scope of the present study was extended to limited area: Ludhiana only. This study was prepared to investigate into the important advertising factors, which affects the sales of the company's product; to know the factors, which make advertisement more effective. 3.2 Methodology 3.2.(l)Research plan To meet the objectives of the study undertaken, the descriptive respondents type was adopted. Data source 1. 2. Primary data In this study the primary data has been collected with the help of questionnaire and personal interview. Secondary data The secondary data for the present study has been collected from Internet, which includes site of LG Electronics India pvt.ltd. and others sites were also reviewed to collect the information about advertising, consumer behaviour and also about how advertising affect the consumer behaviour. Various factors pertaining to objectives of research were enlisted after discussing with the advisor. Later on they were given the shape of questionnaire; every Primary data Secondary data

attempt is made to make it as precise as possible so that the consumer can provide the information without spending lots of time and effort. The questionnaire was administered to the assistant manager of the branch of the company. The questionnaire has been given in appendix. 3.2(2) Research approach Survey research was adopted. 3.2(3) Research instrument Information was collected with the help of questionnaire. And questionnaire includes both open-ended as well as close-ended questions. 3.2(4) Sampling plan 3.2(4).l Universe of Study All the customers of the Electronic Companies. 3.2(4).2 Population All the customers of Electronic companies in Ludhiana 3.2(4).3 Sampling Unit Any customer of Electronic companies who walks into any LG showroom in Ludhiana. 3.2(4).4 Sample Size For collecting the data total sample size was 50 customers. 3.2(4).5 Sampling Technique For collecting the data Non Probability Convenience Sampling Technique was used to collect data. Various LG showrooms were visited and customers walking into the showroom premises were selected and were given questionnaire to fill.

3.3 Limitations of the study Sincere efforts were made to collect authentic & reliable information from the respondent, however the report may subject to following limitations: The study was conducted by a student pursuing his academic studies. Due to time constraints, a more meaningful and statistically relevant sampling Due to resource constraints, the study was restricted to Ludhiana city only. Biased-ness may have crept in, as some respondents were reluctant to give

technique could not be used.

information.

Chapter - 4

Findings and Analysis

4.1. Influence of advertisement on consumer through Outdoor Advertisements as well as Inshop Branding. 4.1.1 OUTDOOR ADVERTISEMENTS Types of Outdoor Ads. Hoarding Kiosks Dumps Banners Display vans Flex Signs Nonlit Flex Bus Shelters Mean 5.06 5.22 5.28 2.84 3.76 4.06 4.88 4.68 Rank 6 7 8 1 2 3 5 4

Table 4.1 Outdoor ads which influence the purchase decision Outdoor Ads. Fig. 4.1

Analysis In Outdoor Advertising Banners are considered to be the most effective. After banners, Display vans are ranked as the effective means of advertisement. After these, Flex Signs, Bus Shelters, Nonlit flex are considered as the Medias having less effect on consumer. Hoardings, Kiosks and Dumps are considered to be indifferent. Conclusion Banners ad is considered to be highly effective due to its placement at prominent locations and repetition of the message coz the banner containing same message is seen by the sane individual in lot many locations, which helps in retaining the message. Display Vans are considered the second most effective mode of outdoor advertisement as these provide access to the real product itself. Customer can see the product at their convenience; customer doesn't have to go to any showroom. Hoardings, Kiosks and Dumps are considered to be the least effective as there is lack of repetition and they are fixed at the same location for a long period of time, and exposure to a limited no. of people. As a Dump is on Rani Jhansi Road, Ludhiana it is exposed only to the commuters of that specific road. Same is the case with Hoardings. 4.1.2 INSHOP BRANDING Types of Inshop Branding Mean Sol.Vinyl on Sunboard One way Vision Film Mirror Acrylic Nonlit Flex Backlit flex Front lit flex Glass Sheet 3.4 3.74 5.18 4.02 4 3.82 3.92 Table 4.2 Rank 1 2 7 6 5 3 4

Effect of Inshop Branding on Purchase decision Inshop Branding medias Fig. 4.2 Analysis In Inshop advertisment, Solvent Vinyl on Sunboard is ranked as the highest effective media . One-way Vision, Frontlit Flex and Glass Sheet are ranked after Sol. Vinyl on sunboard, respectively. Mirror Acrylic and Nonlit flex are ranked lowest for effectiveness in Inshop advertisements. Conclusions Solvent Vinyl on sunboard is considered to be the highly effective media as the prints are really very clear and attractive. One way Vision film, frontlit flex and Glass sheet are also considered to be the good as they are very attractive and different. Nonlit Flex should not be used as an inshop branding media as it looks dull without any luminance.

4.2. People who had recently seen advertisements of LG Electronics. Yes People seen an advertisement of LG Table 4.3 People who had seen the advertisements of LG Fig.4.3 Analysis: According to survey, 92% of respondents had seen the company's advertisement recently. And advertisements are of different products viz. LG Flatron, LG GSM, Refrigerator, Microwave, PC, Air Conditioner, DVD and also the collective advertisements of all the products offered by the company for the convenience of the consumers; these advertisements are exhibited through different medias, for example: Television, Banners, Hoardings, Flex, Newspapers, Magazines, Roadside Dumps, and so on. Only, 8% of respondents respond that they had not seen any advertisement of any product of LG recently. 92% No 8%

Conclusion Majority of respondents i.e. 92%, had seen the advertisements recently of one or the other product of the company exhibited through different medias. So, they are aware of recent discounts or promotional tactics of the company. Its good that a large chunk of viewers had gone through recent advertisements as the more the person will awareness the more will be the consumption. And moreover, the main motive of the company to invest in any advertisement is to enlighten the general public about the presence of the product in the market. But the remaining 8% should also be considered, as the awareness of the product increases the product consumption. They should also be made aware of the products of the company, because the advertisement follows the AIDA model according to which through any advertisement the attention of the public can be gathered, then interest and desire should be generated with the help of which the person will decide for the final step i.e. action, whether to buy or not to buy the particular product of a particular brand. 4.3 Advertisement factors which attract towards a particular product. (In this the respondent has the choice to mark one or more) 4.3.1 OUTDOOR Factors Message Model Media Color Location Table 4.4 Percentage 18% 48% 78% 26% 38% Rank 5 2 1 4 3

Factors which affect advertisement effectiveness (outdoor) Fig. 4.4 Analysis According to the respondents in Outdoor Advertisement media is the most important factor that affect the advertisement effectiveness. 78% of respondents respond that Media is very important factor, 48% of respondents responds that model is also an important attribute which affect the effectiveness of an advertisement. 38% respondents considered that location where the advertisement is done is also important. Here, in this like the advertisements exhibited roadside, etc., basically the area where the advertisement is exhibited. 18% of respondents responds that message of an advertisement is important. Many people got influenced with the model which enacted in advertisement, which can have a great effect on effectiveness of an advertisement. The media to be chosen depends on its reach, frequency, etc. Before deciding upon any media for any type of advertisement the person (advertiser) must take into consideration the reach, frequency and impact of advertisement through that particular media on masses.

The message should be properly framed, clear, and concise for an effective advertisement. In printed advertisement the advertisement copy should be appropriately displayed to catch the attention of the reader Conclusion More than half of the respondents i.e. 78% considered that media is the most important attribute, which affect advertisement effectiveness. The media to be chosen depends on its reach, frequency, etc. For example: an electronic company wants to give an advertisement related to festive offer say: Diwali offer then at that time the media to be chosen should reach the maximum number of people like: Television, Newspaper, etc. and like for any exhibition in a particular area, the effective media for its advertisement can be the local cable channels, local newspapers (Ludhiana Newsline, Hindustan Times, etc.), Leaflets, Glow signs, Banners, etc.. Less than half i.e. 48% of respondents respond that model is also an important attribute, which affect the effectiveness of an advertisement. Many people got influenced with the model that enacted in advertisement For Eg. As Yuvraj Singh is featuring in the ads of LG GSM, so the people who are influenced by Yuvraj's performance in Indian cricket will be attracted toward LG GSM mobile phones. A small number of respondents considered that location as well as message is considered to be less effective. 4.3.2 INSHOP Factors Message Model Media Colour Location Percentage 20% 26% 24% 38% 54% Table 4.5 Rank 5 3 4 2 1

Factors which affects inshop branding Fig. 4.5 Analysis According to survey, location is the most important attribute for affecting effectiveness of an advertisement. 54% of respondents respond that location, where the advertisement is exhibited is the most important attribute that affects advertisement effectiveness in inshop advertisement. After location, it's the color of the advertisement which is responded as second most important factor. Message and model along with media also plays a significant role in making an advertisement effective. Conclusion As all these attributes are equally important to make an advertisement more effective but different persons react differently for these attributes. Here, a little more than half i.e. 54% of the respondents who were surveyed consider that location is one of the main attributes, which affect the effectiveness of an advertisement. Location is the area where the advertisement is displayed viz. in front of door, near window, walls, roof, etc. location should be appropriate and proper i.e. the person can view the advertisement from any side in the shop or so. The advertisement should be displayed in such a way at proper place that the viewer or the reader could retain it. After location and color, respondents respond that message, and model along with media also plays a significant role in making

an advertisement effective. Here message is basically what the advertiser wants to convey to the other person through a particular advertisement displayed through different Medias; model is the person used in the advertisement any superstar, cricketer or any other famous celebrity, etc. (Yuvraj Singh, Neha Dhupia, etc.) And media is the channel, the way through which an advertisement is being displayed by the advertiser. 4.4.1 Extent to which the Outdoor advertisement affect the purchase decision. Findings Affect Very High High Low Very Low Indifferent Percentage 52 38 8 2 Table 4.6 Outdoor advertisement affect the purchase decision Rank 1 2 3 4 5

Analysis 52% of respondents are said that outdoor advertisement affects the purchase decision to great extent. Less than half 38% of respondents surveyed consider that outdoor advertisement has high effect on the buying decision of the consumer. According to the survey a very few, i.e. 10% of the respondents consider that outdoor advertisement did not effect the purchase behavior of any person. Conclusion Generally the advertisement is done to increase the sales of the product by making people more aware of the product and affecting the purchase behavior of the masses. According to the survey, 52% of respondents are responds that outdoor advertisements affect the purchase decision to great extent. Less than half 38% of respondents surveyed consider that outdoor advertisement has effect on the buying decision of the consumer. A very few, i.e. 10% of the respondents consider that outdoor advertisement did not effect the purchase behaviour of any person. 4.4.2 Inshop advertisements affect the purchase decision. Findings Affect Very High High Low Very Low Indifferent Table 4.7 Ins hop advertisement affect the purchase decision Fig. 4.7 Percentage 44% 36% 18% 2% Rank 1 2 3 5 4

Analysis According to the respondents inshop advertisement also affect the purchase decision of the person. 44% considered that inshop advertisement affect the buying decision to great extent, i.e. inshop advertisement has very high effect on buying behaviour of the person. And 36% responds that advertisement has an effect on purchase decisions. 20% of respondents consider that inshop advertisement has a low and indifferent effect on purchase decisions. Conclusion According to the respondents inshop advertisement also affect the purchase decision of the person. 44% considered that inshop advertisement affect the buying decision to great extent, i.e. inshop advertisement has very high effect on buying behaviour of the person. And 36% responds that advertisement has an effect on purchase decisions. 20% of respondents consider that inshop advertisement has a low and indifferent effect on purchase decisions

4.5 Advertisement affects the brand image. Findings Important Yes No Table 4.8 Advertisements affects the brand image Fig. 4.8 Analysis Majority i.e.95% of respondents responds that the advertisement has an effect on brand image. And 5% are of the opinion that they don't know whether brand image is affected by the advertisement or not. Conclusion All most all the respondents included in the study believes that brand image is affected by the advertisements by the company. Percentage 95% 5%

4.6.1 Inshop branding important. Findings Important Yes No Percentage 98% 2% Table 4.9 Fig. 4.9 Analysis 98% of respondents surveyed said that inshop branding is important. Just 2% of respondents consider that inshop branding is not important. Conclusion Majority, all most all, 98% of respondents consider that inshop branding is very important.

4.6.2 Ambience of showroom is important. Findings

Important Yes No Table 4.10 Ambience of showroom is important Fig. 4.10 Analysis

Percentage 66% 34%

64% of respondents responds that ambience of the showroom is very important. 34% of respondents consider that ambience of showroom is not important. Conclusion More than half of the respondents respond that the ambience of the showroom is very important. Ambience plays an important role in the purchase decision of the customer.

4.7 Person got influenced by advertisement. Findings Influenced Yes No Percentage 80% 20% Table 4.11 Person get influenced by adMatisensrts Fig. 4.11 Analysis 80% of respondents consider that they had purchased the product after watching its advertisement. And remaining 20% responds that advertisement has no effect on their purchases. Conclusion Majority of the respondents are of the belief that advertisements influenced their purchase decisions

4.8 Rank the following accordingly; whether advertisements given by LG shows the following: Findings Attributes Mean Honesty 3 Reliability 3.8 Readability 5.2 Convincing Ability 2.5 Attention Getting 3.4 Selling Ability 4.9 Table no. 4.12 Rank 2 4 6 1 3 5

Respondents consideration about advertisements Fig. No. 4.12 Analysis Here, respondents marked the convincing ability in advertisement as no. one. After convincing ability, honesty, attention and reliability are ranked. The least ranked attributes are considered to be he readability. Conclusion Majority of respondents believes that the convincing ability of advertisements of LG is very powerful and is ranked as no. 1.

Chapter 5

Summary And Conclusion

LG (Lucky Goldstar) Electronics was established inl958 as Gold star company but its corporate name was changed to LG Electronics in 1995, as apart of an effort to make the company a major player in world market. 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 4years 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. Marketing department mainly works on increasing the sales of various products. Marketing Dept. works in coordination with other departments. Here various schemes are developed for the customers. It also looks after each and every advertisement requirement. It does activities like: Promotion Campaigns, Exhibitions, Road Shows, Lucky Draws, Gifts with every purchase, 0% Interest, Free Gifts with every purchase, Holiday coupons, Scratch cards, Cookery class, Cookery competition and so on.

Findings Objective -1 To know the effect of advertisement on buying decision of the consumer. Majority of respondents had seen the LG advertisements recently of one or the other product of the company exhibited through different medias. All attributes of an advertisement are equally important to make an advertisement more effective but different persons react differently for these attributes. In inshop and outdoor different attributes are ranked different and even affect the buying behaviour of different consumers in different ways. Majority of respondents consider that inshop branding as well as ambience of showroom is very important and plays an important role in affecting the consumers buying decision to some or great extent. In Outdoor Advertising Banners as well as display vans are considered to be the most effective the means of advertisement which influence the consumer buying behaviour. In Inshop advertisement, Solvent Vinyl on Sunboard along with One-way Vision, Frontlit Flex and Glass Sheet are ranked as effective means of advertisement. Objective - 2 To know how brand image as well as brand recognition of company can be affected by advertisements. Companies spend millions building a corporate branding identity. It's no wonder, then, that once they've established a brand their next obsession is protecting it. A large chunk, 95% of respondents agreed with that the advertisement has an effect on brand image. And 5% are of the belief that they don't know whether brand recognition is affected by the advertisement or not. LG is on people's mind when they go in for purchase of any electronic product. Objective -3 To measure the effectiveness of LG advertisements. Effectiveness of an advertisement is related with the access of real values of advertisement performance by measuring the positive results of advertisements, which

always should lead to increase in the sales of the product of the company. 80% of respondents consider that they had purchased the product after watching its advertisement because through this they come to know about the product, about its quality, and many more features, and moreover about the various offers and schemes, etc. by the company. Pre-testing is done prior launching of the full advertisement campaign & also before incurring major expense on advertising efforts. This pre-testing is done through check-list test in which the good qualities of an advertisement are ranked according to the characteristics. Here in pre-testing the convincing ability of the advertisements of the company is ranked no.l, followed with honesty of advertisements, attention and reliability. With the pre-testing post testing through recall test is also done, in which the person is asked about the advertisement without allowing them to look at or listen the advertisement, while they are answering. In this lasting impression of ad can be measured and also shows that results are true. Here, the respondents are given the clue about like which brand has the slogan 'expand your life' or 'life's good' and here he answer is LG. 92% of the total respondents were also able to recall the advertisements of LG.

Conclusion Its good that a large chunk of viewers had gone through recent advertisements as the more the person will awareness the more will be the consumption. But the remaining small number of respondents should also be considered, as the awareness of the product increases the product consumption. They should also be made aware of the different products of the company. Many respondents considered that in advertising media and model is the most important attribute, which affect advertisement effectiveness. The media to be chosen depends on its reach, frequency, etc. More than half of the respondents who were surveyed consider that inshop branding is one of the main attributes, which affect the effectiveness of an advertisement. Location is the area where the advertisement is displayed viz. in front of door, near window, on doors, etc. The advertisement should be displayed in such a way at proper place that the viewer or the reader must retain it. Then the colors used in the advertisements may it be a printed advertisement or be displayed through any other media; like colours used in the background in the audio-visual i.e. basically Television advertisement, is said to be important feature as responded by the persons who were surveyed. After location and colour, respondents respond that message, and model along with media also plays a

significant role in making an advertisement effective. Here message is basically what the advertiser wants to convey to the other person through a particular advertisement displayed through different Medias. To make an advertisement more effective, it is necessary that the media through which the advertisement is exhibited should be proper. Media should have proper reach, impact and Frequency A high-quality advertisement displayed through an appropriate media with proper reach to target audience, right impact on target consumers and most vital, the number of times the advertisement, shown to the audience affect the brand image and recognition of the company to great extent. Most of the respondents believe that they had purchased the product after watching its advertisement because through this they come to know about the product, about its quality, and many more features, and moreover the coming offers, etc. by the company. When the audience are fascinated by advertisement they normally go and have a look on the product, there seller tries to create interest in the person to purchase, try to convince the person through which the persons desire aroused to purchase the product and his final action will be the purchase of that particular product; where as others responds that advertisement has no effect on their purchases. Companies spend millions building a corporate branding identity. Majority of respondents agreed with that the advertisement has an effect on brand image. And others a very small number are of the belief that they don't know whether brand recognition is affected by the advertisement or not. The most effective part in advertisement of LG is that they have a great convincing ability, they use to create user and also convince the non-potential buyers to buy the product. It basically shows only the real features of the product in its advertisements. Advertisements are attractive enough, due to which people normally easily recall their advertisements

Recommendations More Flex Signs, Display Vans and Banners are to be installed as they are considered to be the important medium for outdoor advertisement, which has more effect on the buying behaviour of local masses. And through these one can get easily aware of the product of the company. These are to be installed at the places where it can have the full reach, and also great impact on the masses and also these should be installed frequently, so that every person may get aware of the present promotional as well as the present products of the company. Dumps to be minimized as they have the least effect on decision making of any person. These dumps have less reach and impact on the masses as compared to the other media. In Inshop advertisements Sol.Vinyl on Sunboard , One way Vision Film , Front Lit Flex are to be stressed upon for advertisements as they are considered to be the most effective in decision making by masses. And moreover, More importance to be given to inshop branding as well as ambience of the showroom to get more and more customers, to increase the sales of the product. Advertisements, through Mirror Acrylic and Backlit Flex can be reduced as they according to the survey have the least effect on the decision of the person. As according to respondents Brand Image get affected by the advertisements of the company and moreover, brand image of the company affects its sales and profit earnings also. Advertisements should be displayed in such a way that potential buyer must be fetch from the market; he/she must be convinced through an advertisement to buy the company's product.

Bibliography 18, 2004

Pandey, Bhanu, BrandEquity (28 July,2004) a Business India, July 5 to Schuman, Micheal Time, June 23, 2003 Sontakki, C.N. (2003) Advertising and sales management www.lgezbuy.com www.lge.com www.researchindia.com

Appendix Name: Address: Ph. No. No Monthly family expenditure: Members in your family Are you employed? Yes

Questionnaire

please mention your profession

If married. Please mention profession of your spouse 1. According to you which advertisements have more effect on consumers? (Rank 1 to 8, ranking 1 High & 8 as Low.) OUTDOOR Hoarding Kiosks Dumps Banners Display vans Flex Signs Nonlit Flex Bus Shelters RANK INSHOP RANK Sol.Vinyl on Sunboard One way Vision Film Mirror Acrylic Nonlit Flex Backlit flex Front lit flex Glass Sheet

2. Have you recently seen any LG advertisement? Yes___________ No________ If yes, which advertisement and where? And do these advertisements have any effect on your buying behaviour? If yes, how? 3. What all factors in an advertisement attract you toward a particular ad?

FACTOR Message Model (Personality) Media Color Location

OUTDOOR INSHOP

4. Please give the extent to which the following have effect on your purchase decision? Outdoor Advertisement Very high High Low Very low Indiffe renl Inshop Branding Very high High Low Very low Indiffer enl

5. According to you, does advertisement affects the brand recognition of any brand. Yes No

6. Please answer the following questions in Yes (Y) or No (N) Y/N a) b) Is Inshop Branding important? Is ambience of showroom important?

7. Had you ever got influenced by any advertisement (outdoor or inshop) for the purchase of the product? YesNo 8. Rank the following accordingly; whether advertisements given by LG shows the following: Attributes Honesty Reliability Readability Convincing Ability Attention Getting Selling Ability Rank