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1 INTRODUCTION
The present day Indian economy is viewed a highly competitive and market oriented. At this state the success of any organization is totally depends on customer and his satisfaction only. So, every business organization should see that the customer as sovereign of the market who decides the fete of it. Hence, it is the responsibility of any concern to meet the requirements of customers from time-to-time with greater dynamism. Customer satisfaction is totally intangible and its management is very crucial aspect on the part of the business entrepreneurs. Making such an intangible property in to tangible is great challenge among the various organizations. This depends on customer orientation, customer dynamism, tapping new avenues by the business unit, quality of the product, price of the product, proper supply of materials, timely ness in supply, effective channel of distribution, customer treatment, after sale service, product chiqueness professionalism in marketing strong grand image, effective packing system, and continuous improvement in business and so on.

1.2 NEED FOR THE STUDY :

Consumer satisfaction is the most important objective for any manufacturing concern to successfully market its products. Penna has from gradually and would want to take a stock of the satisfaction level of consumers and define areas where possible improvement may be made. The research work has been therefore selected in this area. The company which produces products doesnt give life to sustain in competition without sales of products. So sales are important function of the manufacturing company to get profits. Through sales only wealth maximization if possible. Distributions are also one of the important functions in marketing. Through distribution only one company can sell its products. Here the distribution channels contain the dealers. Who are very near to the customers and act as middlemen between the organizations. So there is a need to study sales and distribute on strategies. Distribution system includes distribution channels. Which are sets of independent organizations involves in the process of making a product (or) a service available for the consumption. Distribution network is necessary for smooth flow of goods.

1.3 SCOPE OF THE STUDY : The study aims to measure satisfaction level of the dealers regarding LG Electronics Limited. The area within which the study was conducted regarding the information the primary data is collected in the form of questionnaire collected from the dealers in Twin Cities. To sum up the project had with in the scope of the study in the area of PEREFORMANCE of SALES and DISTRIBUTION CHANNEL of LG Electronics Limited in Twin Cities for a particular time.

1.4 OBJECTIVES OF THE STUDY :

1. To assess the role of dealers in LG Electronics Limited. 2. To assess the channel performance in LG Electronics Limited. 3. To find dealers opinion on various issues of the present market situation and furthering (strengthening) channel effectiveness. 4. To offer suggestion in building effective channel strategy to LG Electronics Limited To know different brands which are preferred by customer in LG

1.5 METHODOLOGY OF STUDY : In view of the objectives of the study, an exploratory design has been adopted. Further the researcher also touched the descriptive researcher design and causal analysis to relate between different variables. Exploratory research is one which largely interprets the available information on the study and it lays emphasis on the analysis and interpretation of the exiting and available information. This research is generally useful when we use the information collected from three sources, viz., study of secondary sources, discussion with individuals and analyzing the some specific case. Sources of Data: To perform the Research study by Researcher, the sources of data obtained are: This data is obtained by interacting and interviewing the dealers in Twin Cities. This data is obtained directly from the company in the form of broachers, charts, diagrams, document and other forms.

Data Collection Tool:

Questionnaire: This is one of the data collection tools. It is quite popular particularly in case big enquires. It is being adopted by private individuals, research worker, private and public organization and even government. In this method, a questionnaire is issued to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consists of number of questions printed or typed in a definite order or a form or set of forms. The researcher used the structured questionnaire in which the questions were:

 Open-ended questions Close-ended questions Dichotomous questions Multiple choice questions Sampling Design The researcher has done his research study on the dealers of LG Electronics Limited to know their present satisfaction and expectation from this brand. The researcher selected the dealers of LG Electronics Limited at HYDERABAD& SECUNDERABAD for this research study. Sampling Plan Sample size: Sample size consists of 100 dealers. Sampling unit: The Sampling unit includes all the dealers of LG Electronics Limited products present in HYDERABAD & SECUNDERABAD. Sampling method: For collecting information from dealers, nonprobabilistic simple random sampling method is used. Tools of analysis: The data collected trough survey has been carefully and meaningfully analyzed by using well established statistical tool and techniques. Important statistical technique is percentage method.

1.6 LIMITATIONS OF THE STUDY :

The selected sample members are conspicuous and inconspicuous in nature. So, there is chance to arise some errors in the courts of survey. The errors may be as follows: 1. Respondents may not disclose the right information, because the researcher is very stranger to them. 2. Respondents may give pleasing answers to the researchers even though it is not correct from the prospective. 3. The perceptional values like status, not-disclosure of the correct information and difficulty in expressing their personal feeling to an unknown researcher can bring wrong opinion poll ton filling the questionnaire. 4. Since, the sample size is small; a perfect mix of the respondents may not be available for the researcher to conduct the opinion survey.

1.7 CHAPTERIZATION : 1.Chapter-1 It includes Need for the study, Scope and objectives of the study, the methodology of the study, Limitations and chapterization. 2.Chapter-II Present frame work regarding research design of study. 3.Chapter-III gives the brief account of industry profile and company profile and background of the company. 4.Chapter-IV Data analysis and interpretation, this method is used to analyze and interpretate the effectiveness of the data. 5.Chapter-V is devoted to compare the findings and suggesting on the implementation of coca cola company. Bibliography Annexure the

Market:A market, in general, may be described as a place or geographical area where buyers and sellers meet and function, goods of services are offered for sale, and transfers of title of ownership occur. From the point of view of economics, a market is defined as an aggregate of the potential buyers for a product or service. But, in practice, the term market is used to denote any body of persons who are in intimate business relation and carry on any extensive transaction in any commodity. Marketing:Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. The present generation of producers is intelligent in regard to the application of procedures. They first want to find out what the consumers want. Then they produce goods according to the needs of the consumers. They realized that only such products could be sold to the best satisfaction of the users and at a profit to the maker. For this arrangement, however, the whole organization has to be rearranged in a most complex manner. Marketing starts and ends with the consumer:Marketing activity is concerned only with the flow of goods, from the producer to the consumer. In other words, to achieve maximum efficiency in marketing, there must also be a flow of information vis--vis the flow of goods. This information, for practical purpose, has to be collected even before a product is planned. Subsequent information would also enable the manufacturer to assess periodical changes that are required. That is why it is very often remarked that marketing starts and ends with the

consumer, with information flowing form the consumer to the producer and goods flowing back to the consumer from the producer. Today they have a full-fledged function added to marketing, viz. Market information and Marketing Research. Under consumer oriented marketing, it is highly essential to know what the consumer really wants. This is possible only when proper information is collected from the consumers A push strategy means a channel member directs its promotion primarily at the middle men that are the meant links forward in distribution channel. The product is Pushed through the channel the producer will promote heavily to wholesalers which then also use a push strategy to retailers in turn the retailers promote to consumers. As market conditions change over time a company they shift product growth strategies. A company tries to sell more of its present products to its present markets. Supporting tactics might include grater spending on advertising of personal selling. A firm continues to sell its present products, but to a new market This strategy sells for a company to develop new products to sell to its existing markets. A company develops new products to sell to new markets.

Determining Intensity of distribution: Distribution intensity ordinarily is thought to be a single decision. However if the channel was more than one level of middlemen the appropriate intensity must be selected for each level.

Intensive

Selective

Exclusive

Distribution Distribution through every through multiple whole selling Reasonable But not all reasonable Out let in a market Out lets in market

Distribution through a single Middlemen and/ or retaileinmarket

Product sells its product through every available outlet in a market where consumer might reasonable look for it. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer purchases to find a particular brand. This intensive distribution is often used by manufactures of this category of product. A product sells its product through multiple but not all possible, wholesalers and retailers in a market where a consumer might reasonable look for it. Selective distribution if appropriate for consumer shopping goods. The supplier agrees to sell its product only to a single wholesaling middlemen and retailer in a given market producer it is essential that the retailer carry a large inventers. Sales and Distribution strategy: Sales and distribution management constitutes one of the most important parts of marketing management. Exchange is the core, aspect of marketing, and it is the sales and distribution management which facilities it. Sales management has been defined as the management of a firm personal selling function. The importance of the sales and distribution function varies across organizations depending upon its nature and verity of products, target market. Consumer density and dispersion and the competitive practices among the other things. Sales and distribution function is organized internally, externally or jointly.

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Finding and communication with prospective buyer. Bringing together the markets offering and the prospective buyer. Reaching an agreement on price and other terms of the offer so that ownership and possession can be transferred. Of the markets offerings, and his satisfaction generating potential. Actual transfer of possession i.e. timely and safe delivery. Of relevant consumers information and revenue in exchange of goods of services.

Selling The basic task of marketing is to bring the buyers and the sellers together. Regardless of the desire one has to sell and the other to buy, no exchange can take place until each one knows the desire of the other. The function of marketing is to ensure that the right product is made available at the place, in the right time and under the right impression to the consumer. Distribution of Consumer Market: Five channels are widely used in marketing tangible products to ultimate consumers: Producer consumer: The shortest, simplest distribution channel for consumer goods involves no middlemen. The producer may sell from door to door of by mail. For instance, south-western company uses college students to market its books on a house-to-house basis. Producer retailer consumer: Many large retailers buy directly from manufactures and agricultural products. To the chagrin of various wholesaling middlemen. Walmart has increased its direct dealings with products. Producer wholesaler retailer consumer: If there is a traditional channel for consumer goods, this is it, small retailers and manufactures buy the thousands find this channel the only economically feasible choice. 11

Producer

agent

retailer

consumer: Instead of using

wholesalers, many producers prefer to use agent middlemen to reach the retail market, especially large scale retailers. For example. Clorox uses agent middlemen such as Eisenhart & wholesaler that distribute a wide range of products to retailers. In turn, Dierbergs offers its assortment of products to final consumers. Distribution of Business Goods: A variety of channels are available to reach organizations that in corporate the products into their manufacturing process of use them in their operations. In the distribution of business goods, the terms industrial distributor and merchant wholesaler are synonymous. The four common channels for business goods: Producer user: This direct channel accounts for a greater dollar volume of business products than any other distribution structure. Manufactured of large installations, such as airplanes, generators, and heating plants, usually sell directly to users. Producer operating industrial supplies and small distributor accessory user: producers of frequently use equipment

industrial distributors to reach their markets. Manufactures of building materials and air conditioning equipment are two examples of firms that make heavy use of industrial distributors. Producer agent user: Firm without their own sales departments fid this desirable channel. Also, a company that wants to introduce a new market may prefer to use agents rather than its own sales force. Producer agent industrial distributors user: This channel is similar to the preceding one. It is used when, for some reason, it is not feasible to sell through agents directly to the business user. The unit sale may be too small for direct selling. Of decentralized inventory may be needed to supply rapidly, in which case the storage services of an industrial distributor are required.

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Indian Distribution System: It is also important to assess how the distribution task is being performed in India. This task can be undertaken by measuring the number of functionaries in each class, their organizational structure and their capital structure. The margins charged by them would be a function of the quantum if goods moved and the population served by them and services rendered by them and would also assist in the task if measuring their performance. Dividing the members involved in each type of trade we can briefly get an idea about the average productive capital required in each class of trade. Having assessed the inputs, structure and size their distribution all over India we are now in la position to assess how the task is being performed in terms of output. Distribution logistics: Logistics was a military term referring to complete system of moving, supplying and quartering troops. Businessmen broadened logistics to include any type of transportation and storage. Marketers applied the term to mean the physical handing of products. They also began employing the term physical distribution in place of logistics. The area of physical distribution has received considerable attention. The attention was quite justified for a country such as ours because of its traditional short supply markets of for the gaps often witnessed between the demand and available of products. Prices of essential commodities of daily consumptions are particularly amenable to any dislocation in physical distribution. If any evidence is required, we need the concerns and anxieties associated with news of strike in Rail and road transport.

Role of Distribution:

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The major role that distribution pays in any economy is that it constitutes the process by which goods and services become available for consumption. Manufacturers of goods and services specialize in generating structural of form utility for their products, in the sense that they create a unique set of demand satisfiers in the form of their offering. The actual mass scale delivery of these offerings to the consuming public requires a different kind of specialized effort. This generates time, place and possession utility. In other words, you cannot obtain and consume a finalized product unless the product is transported to a place where you can get access to it; stored till you are ready to buy it and ultimately exchange for money so that you can gain possession of it. Physical Distribution and Channels of Distribution: If distribution could be treated as a whole function of marketing, physical distribution and channels of distribution. It is found that these two terms are used, sometimes, interchangeably. Channels of distribution refer, primarily, to the middlemen of intermediary marketing instructions which perform certain marketing functions. More than performing the function, these institutions try to gain access to the target market. Physical distribution, on the other hand, concerns with material aspects of the flow of goods to the consumers. It includes transportation, storage, warehousing, packaging, etc. it is technical function in the sense that it ensures availability of products at the right time, at the right place and in the right form. The term is used often in aboard sense to include channels of distribution also. Service to the manufacturers: The wholesaler provides perpetual and definite customers to the manufacturers. He either purchases large quantities from the manufacturer and sells them to the retailers, of collects small orders from a number of retailers and places a bulk order with the manufacturer. The manufacturer is thus relived of the trouble and expense of collecting

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a large number of small orders. He collects and provides the information required for planning the production ahead. He maintains stock and thus assures equitable distribution. He places bulk orders with the manufacturer and thus enables him to concentrate on production and reap the benefits of large-scale operations. He shoulders all marketing functions\ Position of the Wholesalers in modern marketing: In spite of gloomy forebodings common nowadays, the wholesaler still manages to hold his position because of the very real services he renders. But the wholesaler today, as compared with that of a hundred years ago, is a much less important member of the business fraternity. The following are the important factors responsible for reducing his importance: i. ii. iii. iv. v. vi. vii. Growing displeasure of this system of channel in all quarters. Growth of large retail stores such as chain stores, Departmental stores, super markets, etc. Manufacturers customers. Development of transport and communication systems. Frequent and unexpected changes in style and fashion. Emergence of new and bigger markets. Growth of consumers co-operative in almost all fields. Transportation is necessary function of marketing because most of the markets are geographically separated from the areas of production. Majority of manufacturing plants are far away from their most important markets because of various factors. All goods are not utilized at the place of their origin. They require some kind of transportation to create place utility. Holtz Claw vividly puts the importance of transportation in the following liens: Minerals of other raw materials are to be transported from the place of extraction of production to the factory, desire to establish direct contracts with the

Transportation:

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crops are to be carried from the farm to the local market or primary market and from there to the places of consumption. Finished products are to be transported from the warehouse to the wholesalers warehouses, from warehouse to the retail dealer, and from the dealer to the ultimate consumer. The various modes of transport fall under the three categories: Road transport Rail transport Water transport Air transport Pipeline transport

3.1 INDUSTRY PROFILE

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Electronics is the study of the flow of charge through various materials and devices such as, semiconductors, resistors, inductors, capacitors, nano-structures, and vacuum tubes. All applications of electronics involve the transmission of either information or power. Although considered to be a theoretical branch of physics, the design and construction of electronic circuits to solve practical problems is an essential technique in the fields of electronics engineering and computer engineering. The study of new semiconductor devices and surrounding technology is sometimes considered a branch of physics. This article focuses on engineering aspects of electronics. Other important topics include electronic waste and occupational health impacts of semiconductor manufacturing. Consumer Durables (Data table headings are shown Year-wise in descending order) Air Conditioners Bicycles Crystal Glass Domestic Electrical Appliances Gems and Jewellery Glass Products Kitchen Equipment Liquefied Petroleum Gas Cylinders Microwave Ovens Refrigerators Sewing Machines Sunglasses
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 Toys and Games Washing Machines and Vacuum Cleaners Watches and Clocks White Goods

3.2 COMPANY PROFILE :

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About LG
Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in over 110 operations including 81 subsidiaries around the world. Comprising four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media with 2006 global sales of USD 38.5 billion - LG is the world's leading producer of CDMA/GSM handsets, air conditioners, front-loading washing machine, optical storage products, DVD players, flat panel TVs and home theater Corporate Name Established Corporate Office LG Electronics Inc.

October 1, 1958 (As a private Company) LG Twin Towers 20, Yeouido-dong, Youngdungpo-gu, Seoul, Korea 150-721 Tel: 82-2-3777-1114 URL: http://www.LGE.com Vice Chairman Yong Nam & CEO Business Area Mobile Communications Company and CDMA Handsets, GSM Handsets, 3G Handsets Main Product Monitor, PDP Module, OLED Panel, USB Memory Digital Media Company Home Theater System, DVD Recorder, Super Multi DVD Rewriter, CDRW, Notebook PC, Desktop PC, PDA, PDA Phone, MP3 Player, New Karaoke System, Car Infotainment Number Employees of 82,772 (29,948 in Korea/ 52,824 overseas) - as of 2006

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Financial Highlights (in billion won) 2004 2005 2006 2007 2008 2009 18,602 20,176 24,659 23,774 23,170 6,654 4,793 5,086 5,509 5,947 11,948 15,383 19,573 18,264 17,223 675 836 1,860 741 261

SALES

16,601

6,084 Domestic 10,516 Export 573 Ordinary Ordinary Profit Profit

History
1958 Founded as Gold Star 1960sProduces Koreas first radios, TVs, refrigerators, washing machines and air conditioners 1995 Renamed LG Electronics Acquires US-based Zenith 1997 Worlds first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S. Achieves UL certification in U.S. Develops worlds first IC set for DTV 1998 Develops worlds first 60-inch plasma TV 1999 Establishes LG. Philips LCD, a joint venture with Philips 2001 Launches worlds first internet refrigerator Exports synchronous IMT2000 to Marconi Wireless of Italy Significant exports to Verizon Wireless in U.S. 2002 GSM mobile handset exports to Russia, Italy and Indonesia Establishes market leadership in Australian CDMA market Launches worlds first internet washing machine, air conditioner, and microwave oven 2003 Under LG Holding Company system, spins off to become LG Electronics and LG Corporation Full-scale export of GPRS color mobile phones to Europe Establishes CDMA handset production line and R&D center in China 2005 Enters North-European and Middle East GSM handset market Achieves monthly export volume above 2.5 million units (July) Top global CDMA producer 2006 EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada Industry standard by the US ATSC Commercializes worlds first 55 all-in-one LCD TV
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2007

2008

2009 2010

Commercializes worlds first 71 plasma TV Develops worlds first Satellite- and Terrestrial-DMB handsets Becomes fourth-largest supplier of mobile handsets market worldwide Develops worlds first 3G UMTS DMB handset, 3G-based DVB-H and Media FLO phones, DMB Phone with time-shift function, and DMB notebook computer Establishes LG-Nortel, a network solution joint venture with Nortel LG Chocolate, the first model in LGs Black Label series of premium handsets, sells 7.5million units world wide Develops the first single-scan 60 HD PDP module Establishes the strategic partnership with UL Acquires the worlds first IPv6 Gold Ready logo Launches the industry-first dual-format high-definition disc player and drive Launches soundless washing machines Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."

CEO PROFILE

Biography Yong Nam was appointed Vice Chairman and CEO of LG Electronics effective January 1, 2007. His appointment signifies LG's desire to achieve the status of a highly profitable, technological leader with strong brand power. Mr. Nam honed his strong business insight during his 30 years of experience with LG Electronics, LG Corporate and LG Telecom. He is wellknown in the industry for his strategic outlook, in-depth IT experience and global perspective.

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Prior to his appointment, Mr. Nam served as Head of Strategic Business for LG Corporation and was responsible for overall strategic business initiatives. He directly supported the LG Group chairman on a variety of business issues, including telecommunications. Mr. Nam served as the President and CEO of LG Telecom from 1998 until 2006. Under his leadership, the company's revenue increased fivefold from $560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7 million; and profits grew to around $250 million in 2005. He was instrumental in introducing the world first mobile internet service, ez-i, and in commercializing mobile banking service Bank ON, now the number one convergence service in Korea. In 1997, he assumed additional responsibilities, overseeing the Executive Office for Strategic Projects, LG's corporate-level new business development arm. Later that year, he led the Multimedia Division of LG Electronics as Vice President and transformed the division into a profitable business within just one year. Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistant to the Group Chairman, he ran the in-house team that drove change management. He also led corporate-wide efforts to achieve operational excellence and redefine LG's strategic direction. Mr. Nam's career at LG began in 1976 when he joined LG Electronics in the overseas business planning division. As part of this role, he spent seven years in the U.S. in several management positions centered on marketing and sales, which helped him, develop a global perspective on LG's business. Mr. Nam is a graduate of Seoul National University, and is fluent in English and Japanese in addition to his native Korean. He and enjoys golf, reading and hiking during his leisure time. Yong Nam was appointed Vice Chairman and CEO of LG Electronics effective January 1, 2007. His appointment signifies LG's desire to achieve the status of a highly profitable, technological leader with strong brand power. Mr. Nam honed his strong business insight during his 30 years of experience with LG Electronics, LG Corporate and LG Telecom. He is wellknown in the industry for his strategic outlook, in-depth IT experience and
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global perspective. Prior to his appointment, Mr. Nam served as Head of Strategic Business for LG Corporation and was responsible for overall strategic business initiatives. He directly supported the LG Group chairman on a variety of business issues, including telecommunications. Mr. Nam served as the President and CEO of LG Telecom from 1998 until 2006. Under his leadership, the company's revenue increased fivefold from $560 million to $2.6 billion; subscribers tripled from 2.1 million to nearly 7 million; and profits grew to around $250 million in 2005. He was instrumental in introducing the world first mobile internet service, ez-i, and in commercializing mobile banking service Bank ON, now the number one convergence service in Korea. In 1997, he assumed additional responsibilities, overseeing the Executive Office for Strategic Projects, LG's corporate-level new business development arm. Later that year, he led the Multimedia Division of LG Electronics as Vice President and transformed the division into a profitable business within just one year. Mr. Nam joined the LG Chairman's Office in 1986. As a Special Assistant to the Group Chairman, he ran the in-house team that drove change management. He also led corporate-wide efforts to achieve operational excellence and redefine LG's strategic direction. Mr. Nam's career at LG began in 1976 when he joined LG Electronics in the overseas business planning division. As part of this role, he spent seven years in the U.S. in several management positions centered on marketing and sales, which helped him develop a global perspective on LG's business. Mr. Nam is a graduate of Seoul National University, and is fluent in English and Japanese in addition to his native Korean. He and enjoys golf, reading and hiking during his leisure time.

Apr. 19, 2010 LG ELECTRONICS REPORTS FIRST QUARTER 2010 EARNINGS RESULTS

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LG Electronics (LG), a leader in consumer electronics and mobile communications, announced un-audited earnings results of the three month period ended March 31, 2009. Amount in Korean Won (KRW) are translated into US dollars (USD) at the average rate of three month period in each quarter, which was KRW 939 per US dollar (2010 1Q), KRW 938 per US dollar (2009. 4Q, QoQ), KRW 977 per US dollar (2009. 1Q, YoY). To accommodate comprehension of LGs global business, the company released financial earnings in parent format plus additional consolidated earnings of each division and overseas subsidiaries. Sales and Profit For the quarter, the company posted a revenue of KRW 6.03 trillion (USD 6.43 billion) on a parent basis, increased by 4.0% from a year earlier thanks to robust sales of premium handsets and home appliances. On a consolidated basis which includes sales of LGs overseas subsidiaries, revenue reached KRW 9.59 trillion (USD 10.22 billion), increased by 8.3% from the previous year. Operating profit was KRW 173 billion (USD 184 million) on a parent basis with a margin of 2.9% compared to KRW 191 billion (USD 204 million) from a year earlier primarily due to a sluggish display and media business in spite of a remarkable turnover in mobile business and solid performance of appliance business. Situation on a consolidated basis was KRW 28 billion (USD 29.4 million) hurt by overseas subsidiaries operating loss of KRW 133 billion (USD 142 million). Net Profit was a loss of KRW 123 billion (USD 131 million) on a parent basis mainly due to loss in equity method of KRW 193 billion (USD 205 million) from LG. Philips LCD and overseas subsidiaries. Consolidated performances by business division are as follows;
Mobile Communication Company recorded sales of KRW 2.51 trillion (USD 2.67 billion), 14.7% higher than a year earlier. Revenue from the handset business rose 17.8% to KRW 2.35 trillion (USD 2.50 billion) from KRW 2.00 trillion (USD 2.05 billion). Consolidated sales based total shipments were 15.8 million units, compared to 14.1 million units YoY and 17.9 million units QoQ. Success of Shine phone and DMB line-ups in Korea pushed up shipments 46% QoQ, and continued high demand of premium Chocolate phone in GSM open-markets led a shift of 28% QoQ. Strong growth in WCDMA phones sales was realized in Korea and the United States.
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Operating margin was 4.7%, a bit less than 6.6% on a parent basis, but recovered from a loss of 2.6% from the first quarter of 2006. Digital Appliance Company sales rose 15.1% to KRW 2.94 trillion (USD 3.13 billion) from a year earlier, thanks to growth in premium product lines. Improvement of an operating profit was remarkable. KRW 169 billion (USD 17.9 million) was 43.6% higher than a year earlier and 37.1% from the previous quarter. Operating margin increased 1.1% point to 5.7% despite won appreciation and rise in material costs. On a parent basis the margin rose 1.8% point to 12.0%. Digital Display Company sales including plasma display panels and flat panel TVs and monitors rose 1.5% to KRW 2.75 trillion (USD 2.93 billion) from the previous year, but posted an operating loss of KRW 262 billion (USD 2.79 million). Sales from Digital Media Companys media and IT products posted KRW 1.38 trillion (USD 1.47 million), 4.7 % down from a year earlier. Slow in display and media business stems from seasonality plus intensified price erosion, but mainly due to lower efficiency in capacity of plasma display panels.

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now,

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LG is the market leader in consumer durables and recognised as a leading Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognised as a leading technology innovator in the information technology and mobile communications business . LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation. One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. 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 evernationwide 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 plant manufactured at Direct Cool Noida. Refrigerator from the Greater

In 2004, LGEIL also up its second Greenfield manufacturing unit in

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Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors. Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world. LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment. Vision: LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The companys 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.

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History& corp. milestones 1958 Gold Star (todays LG Electronics) established 1959 Koreas first radio produced 1962 Radio exported to the US and Hong Kong as Koreas first 1965 Koreas first refrigerator produced 2002 Under the LG Holding Company system, the 2001 Asynchronous IMT-2000 equipment commercialized The worlds first Internet enabled washing machine, air conditioner, and microwave oven launched LG. Philips Displays, a joint venture with Philips established 2000 LG Information & Communications merged The worlds first Internet-enabled refrigerator launched Global sales of refrigerators reached the number one position

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Company spun off to LG Electronics (LGE)& 1966 Koreas first black & white TV produced 1968 Koreas first air conditioner produced 1969 Koreas first washing machine produced 1974 Gold Star Communications went public 2004 1977 Color TV produced 1978 Exports surpassed US$100 million, a first for Koreas electronics industry 1980 First EU sales subsidiary in Germany (LGEWG) established 1982 Color TV plant established in the US in Huntsville, 2005 The worlds first DMB notebook commercialized The worlds slimmest TV commercialized The worlds largest 102-inch Plasma TV developed LG and EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55-inch LCD TV, the worlds first and largest among LCD TVs, commercialized The worlds largest and first 71-inch Plasma TV commercialized The worlds first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System LG Electronics Investment (LGEI) The first home network system commercialized in the global market 2003 Worlds first synchronous-asynchronous IMT-2000 mobile phone developed The worlds first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the worlds first Super Multi DVD Rewriter

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Alabama 1984 Sales surpassed 1 trillion Won 1986 European-standard VCR plant established in Germany 1989 Sales subsidiary and a joint production subsidiary established in Thailand 1990 Ireland-based design technology center established 1993 With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing

Nortel Networks agreed to establish a joint venture for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market 2006 Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world's first 100-inch LCD TV Launched the world's largest Full HD 102-inch Plasma TV (1080p) Developed the world's first dualformat high-definition Disc Player& Drive 2007 Launches the industry's first dual-format, high-definition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4GEnabled technologies with 3G LTE Won contract for GSMA's 3G campaign 2008

1995 Company name changed to LG Electronics and USbased Zenith acquired

Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."

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1997 40-inch Plasma TV and the worlds first IC set for DTVs developed India production subsidiary (LGEIL) established 1998 Worlds first 60-inch Plasma TV developed 1999 LG. Philips LCD established

Facts& figures: Business Areas & Main Products

Category Main Electronics Home Appliances LCD TV , Plasma Display , Display Panel, Color DVD Recorder/Player, MP3 & MP4 Player Room Air Conditioner, Commercial Air Conditioner , Refrigerator, Washing Machine, Dishwasher, Microwave, Vacuum Cleaner Laptop, Personal Computer, LCD monitor, CRT monitor, Optical Storage Devices Premium trend setter phone , Camera Phone , Music Phone , Color Screen GSM Handset ProductsConsumer Television, Home Theatre System, Music system,

Computer Products Mobile Phone

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Lg business domain: THE DIGITAL FUTURE OF LG Mobile communications, digital appliances, digital displays, and digital media - LG is paving the way for the future. Mobile Communications LG is a global leader in mobile in communications, specializing

UMTS, CDMA, and GSM handsets. Thanks to its wide range of wired and wireless on the options, the company market. trend setter is becoming a force to be reckoned with international in premium In India LG is targeting GSM handset business segment, Camera & music segment & color screen segment.

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Digital Appliances LG changing homes in many ways, offering customers exceptional value and convenience. Innovative digital appliances from 100% washer dryer with direct drive technology, built-in LCD TV refrigerator, Lightwave cooking oven (solardom) to artcool split air conditioner illustrate LG's commitment to digital convergence. Digital Display LG offers a wide range of digital display products, equipped designs with and customer-oriented

technologies. With its LCD TVs, Full HD Plasma TVs, Ultra-slim Color TVs, LCD monitors LG is pulling out all the stops to remain Digital Media LG has a great interest in digital media and is continually developing and producing digital convergence products that promise to enrich the lives of its customers. producing Its main focus is on high-definition, quality the frontrunner in today's digital display industry.

products in a variety of areas.

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THE LG BRAND COMPRISES FOUR BASIC ELEMENTS: VALUES, INNOVATION, PEOPLE, AND PASSION. Positioning Statement LG strives to enhance the customers life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and self-satisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed decision.

Brand Platform The LG brand comprises four basic elements: Values, Innovation, People, and Passion.

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" LIFE'S GOOD" REPRESENTS LG'S DETERMINATION TO PROVIDE DELIGHTFULLY SMART PRODUCTS THAT WILL MAKE YOUR LIFE GOOD. Our slogan, 'Life's Good' best expresses our brand's values, promises, benefits and personality. It is an ultimate expression for what our brand stands for and what we strive to deliver continuously. LG's delightfully smart products will make your life good.

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resolution resolution

image image /

eps,51.8KB jpg,410KB

The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, "Life's Good" set in 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 clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe. " THE FACE OF THE FUTURE. FIND OUT ABOUT THE MEANING AND INSPIRATION BEHIND LG'S LOGO DESIGN. The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and technology. Our philosophy is based on Humanity. Also, it

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represents LG's efforts to keep close relationships with our customers around the world . The symbol consists of two elements: the LG logo in LG Grey and the stylized image of a human face in the unique LG Red color. Red, the main color, represents our friendliness, and also gives a strong impression of LG's commitment to deliver the best. Therefore, the shape or the color of this symbol must never be changed.

High resolution image Low resolution image Design

/ ai,87.6KB / jpg,40.0KB

The circle symbolizes the globe. The stylized image of a smiling face in the symbol conveys friendliness and approachability. Overall, LGs symbol represents the world, future, youth, humanity, and technology. One eye Goal-oriented, focused, confident. Upper- right hand space Intentionally left blank and asymmetric, which represents LG's creativity and adaptability to changes. Colors

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LG Red, the main color, symbolizes friendliness, and also gives a strong impression of LG's commitment to be the best. LG Grey represents technology and reliability. Brand Identity Learn about the meaning behind the LG brand.

Product Recycling: Take Back Policy Though some and telecommunication supermarket their chains for service offer reuse the or

providers, mobile phone retail shops and possibility of returning used mobile phones accessories recycling, it is not a common practice in today's society. LG Electronics plans to make it much easier for consumers to return their end-of-life or used phones. In India, been the draft rules by for the E-waste Central

(Management and Handling) Rules 2008 have notified Government. Though the said rules have not been finalized as yet, but since 5th June 2009, we have voluntarily and pro-actively made available 50 mobile phone drop-off points and are expanding the Country level accessibility of take-back channels to all of our customers. To maximize resource efficiency through mobile phone recycling, LG Electronics works closely with all mobile phone supply chains including telecommunication

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service providers, distributors, merchandisers customers, and the recycling industry. Guidance for the disposal of End of Life Products: Consumers could contribute to resource conservation and prevent potential environmental problems by a simple action the proper depositing of their old Mobiles. Electronic waste is to be collected separately from the general waste stream via designated collection facilities appointed by the government or the local authorities as per the said draft rules. Mobile Phone Voluntary Take Back: As you are no doubt already aware, the responsibility of end-of-life of the product environment take-back protection has accelerated the expansion regulations throughout the country. At present, many company in various regions are trying to finalize their own take-back policy. LG Electronics India has been involved in the process of establishing such policy much ahead of the draft rules being finalized and has appreciated the introduction of take-back systems by the Central Government. Recycling Mobile Phones: Many customers might think that end-of-life mobile phones are worthless, but they still contain many reusable or recyclable materials. This means that leaving old phones in your desk drawer is a huge waste of valuable resources. Let's see how all parts of mobile phone could be recycled*. 1)Valuable metals are used as component materials for the circuit board, LCD module, and camera module. 38

1)Plastic

materials

are

used

for

structural

components such as the case and cover. 2)The plastic materials that have been collected are recycled as energy resources after going through a heat recovery process. Alternatively ,they can be used as a form of recycled plastic once they have been broken down and processed. 3)Recycled plastic can be used to produce products such as traffic cones, plastic fencing, and car bumpers. 1)It is important to collect batteries separately, given the variety of batteries that are used. Li-Ion batteries are frequently used in mobile phones. 2)Cobalt can be collected once the batteries have been pretreated to avoid the risk of explosion during the recycling process. 3)It is possible to sell the cobalt that is collected or use it as a raw material for products such as padlocks and speakers. 1) Paper is the main component used in packaging. 2) Paper can be recycled. 3) It is then used as recycled paper or in products made of paper *the above usages are only suggestive and may not necessaril y mean about the current usage This initiative is a voluntary effort by us towards the first step towards a cleaner and greener earth. This move is one of the ways to show that we are concerned and thus we request all our customers to join this movement to make it successful by way of contributing their used handsets.

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Mobile Phone India Network: You can find details of your nearest mobile phone collection point, courtesy of LG Electronics, and get valuable information about the collection of end-of-life electronic products in your region, including mobile phones. The participation in this movement is without any obligation or consideration. Mobile Collection Center Details LG National Take Back Recycling Program: Vendor : Attero Recycling To protect the environment LG Electronics India has partnered with Attero Recycling. Attero is an authorized e-waste recycler recognized by MoEF. Let us save the environment for a better tomorrow. We urge you to join us and convert your e-waste to egoods.

4.1DATA ANALYSIS & INTERPRETATION :

1) How long have you been dealing with LG Electronics Limited? a) <1year b) below 3 years c) 3 to 6 years d) above 6 years Business experience <1 year Below 3years 3-6 years Above 6 years Total Number of respondents 10 22 60 8 100 Percentage 10 22 60 8 100

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Interpretation: From the above table and graph the number of responding are 6-years 8%(8),<1year 10%(10),below 3years 22%(22),3-6years 60%(60).

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Inference: Maximum number of respondents have 60% of the dealers with 3-6 years experience.

2) How do you feel the companies image? a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

Dealers Opinion Highly satisfied Satisfied Neutral Dissatisfied Total

Number of respondents 30 60 10 0 100

Percentage 30 60 10 0 100

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Interpretation:

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From the above table and graph the number of responding are highly satisfied 30%(30),satisfied 60%(60),neutral10%(10),dissatisfied 0%(0). Inference:Maximum number of the respondents feel satisfied

3)How to customer more satisfaction in this field? a) Brand name b) Price c) Quality d) Usages Dealers opinion Brand name Price Quality Usages Total Number of respondents 12 4 76 8 100 Percentage 12 4 76 8 100

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Interpretation: From the above table and graph the number of responding are brand name 12%(12),price 4%(4),quality 76%(76),usages8%(8). 45

Inference: Maximum number of respondents are satisfied with the quality.

4) How customers came to your shop? a) By your influence b) By friends c) By advertising d) By brand name Dealers opinion By your influence By friends By advertising By Brand Name Total Number of respondents 16 16 16 52 100 Percentage 16 16 16 52 100

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Interpretation:

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From the above table and graph the number of responding are by you influence 16%(16),by friends 16%(16),by advertising 16%(16),by brand name 52%(52). Inference: Maximum number of respondents were come to shop By Brand Name.

5) Do you face any difficulty in dealing with the customers? a) Yes b) No If yes please specify----------

Dealers opinion Yes No

120 100 80 60 40 20 0 yes no total No. Of. Respondents Percentage

No. O

total

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Interpretation: From the above table and graph the number of responding are yes 30%(30),no 70%(70). Inference: Maximum number of respondents are not facing problem while dealing with customer.

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6) Do you face stock out problems for LG Electronics Limited? a) Frequently b) Rarely c) No d) yes Dealers opinion Frequently Rarely No yes Total Number of respondents 0 10 90 0 100 Percentage 0 10 90 0 100

120 100 80 60 Num of respondents ber 40 20 0 Percentage

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Interpretation: From the above table and graph the number of responding are frequently 0%(0),rarely 10%(10),no 90%(90),yes 0%(0). Inference: Maximum number of respondents are Not facing stock out problems for LG Electronics Limited.

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7) Are you satisfied with the supply from the company? a) Highly satisfied b) moderately satisfied c) Satisfied d) Dissatisfied

Dealers Opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Total

No. of. Respondents 24 24 48 4 100

Percentage 24 24 48 4 100

120 100 80 60 40 20 0 No. of. Respondents Percentage

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Interpretation: From the above table and graph the number of responding are highly satisfied 24%(24),moderately satisfied 24%(24),satisfied 48%(48),dissatisfied 4%(4). Inference: Maximum number of respondents are satisfied with the supply.

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8) How much floor space you have provide for ----------? a) Goods storing purpose------b) Office purpose-----Number of respondents 80 20 100

Business experience Goods storing purpose Office purpose Total

Percentage 80 20 100

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Interpretation: From the above table and graph the number of responding are goods storing purpose 80%(80),office purpose 20%(20). Inference: Maximum of the dealers are space providing for a goods storage purpose

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9) In time delivery is very important for better serving the market. In this connection are you satisfied with the mode o dispatch by the company? a) Highly satisfied b) moderately satisfied c) Satisfied d) Dissatisfied Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Total No. Of. Respondents 4 32 64 0 100 Percentage 4 32 64 0 100

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Interpretation: From the above table and graph the number of responding are highly satisfied 4%(4),moderately satisfied 32%(32),satisfied 64%(64),dissatisfied 0%(0). Inference:The majority of the dealers are satisfied with the mode of dispatch by the company

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10) According to you most of the customers are aware of LG Electronics Limited through a) Advertisement b) Campaign c) Dealer d) Others

Dealers opinion Advertisement Campaign Dealer Others Total

No. Of. Respondents 38 8 54 0 100

Percentage 38 8 54 0 100

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Interpretation: From the above table and graph the number of responding are advertisement 38%(38),campaign 8%(8),dealer 54%(54),others 0%(0). Inference:Maximum number of respondents are saying dealers play majors in customers awareness about the product

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11) Do you satisfy with the sales of LG Electronics Limited? a) Highly satisfied b) moderately satisfied c) Satisfied d) Dissatisfied

Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Total

No. of. Respondents 18 22 60 0 100

Percentage 8 22 60 0 100

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Interpretation: From the above table and graph the number of responding are highly satisfied 18%(18),moderately satisfied 22%(22),satisfied 60%(60),dissatisfied 0%(0). Inference: 18% of the dealers were highly satisfying the sale of LG Electronics Limited

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12) How do estimate the demand for various products? a) Past sales b) Seasonal c) Orders d) Others

Dealers opinion Past sales Seasonal Orders Others Total

No. of. Respondents 18 26 56 0 100

Percentage 18 26 56 0 100

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Interpretation : From the above table and graph the number of responding are past sales 18%(18),seasonal 26%(26),orders 56%(56),others 0%(0). Inference:Maximum number of respondents are estimate the sales by order

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13) Do you face any difficult in dealing with the company? a) Yes b) No If yes please specify____________________________________

Dealers opinion yes no total

No. Of. Respondents 10 90 100

Percentage 10 90 100

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Interpretation: From the above table and graph the number of responding are yes 10%(10),no 90%(90). Inference: Maximum number of respondents are not fell difficulty.

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14) What percentage of fright if incurs you to received goods from company to your store point? a) 2% b) 3% c) 4% d) 5%

Dealers opinion 2% 3% 4% 5% Total

No. Of. Respondents 60 20 16 4 100

Percentage 60 20 16 4 100

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Interpretation: From the above table and graph the number of responding are 2% 60%(60), 3% 20%(20),4% 16%(16),5% 4% (4). Inference: The dealers are incurs very less fright charges representing 2%, to receive goods from company to your stock point.

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15) Do you feel like to suggest any thing which improves distribution effectiveness? a) yes b) no

Dealers opinion Yes No Total

No. of. Respondents 60 40 100

Percentage 60 40 100

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No. of. Respondents

yes no total

Interpretation: From the above table and graph the number of responding are yes 60% (60),no 40%(40). Inference: Maximum number of respondents are like to suggest.

16) Which brands is most asked by customers? a) LG b) Sony c) Samsung 69

d) Videocon

Dealers opinion LG SONY SAMSANG VIDEOCON total

No. Of. Respondents 30 40 16 14 100

Percentage 30 40 16 14 100

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Interpretation: From the above table and graph the number of responding are lg 30%(30),Sony 40% (40),Samsung 16% (16),Videocon 14%(14). Inference: Maximum number of respondents like to ask Sony.

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17) Do you get any credit period from the company? a) yes b) no If yes, what is the credit period you get.

Dealers opinion yes no total

No. Of. Respondents 99 1 100

Percentage 99 1 100

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Interpretation: From the above table and graph the number of responding are yes 99%(99),no 1%(1). Inference: Maximum number of dealers get credit period from the company

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18) What is the average order cycle time taken by the company? a) <5 days b) 5-10 days c) 10-15 days d) >15 days

Dealers opinion <5 days 5-10 days 10-15 days >15 days total

No. Of. Respondents 50 20 20 10 100

Percentage 50 20 20 10 100

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Interpretation: From the above table and graph the number of responding are <5days 50%(50),5-10days 20%(20),10-15days 20%(20),>15days 10%(10). Inference: Maximum number of respondents are clear that time taken by the company is less than 5days.

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19) How will you rate the efficiency of your sales persons?
a) very good

b) good c) satisfactory d) poor

Dealers opinion very good good satisfactory poor total

No. Of. Respondents 40 30 30 0 100

Percentage 40 30 30 10 100

120 100 80 60 40 20 0 very good good satisfactiory poor total

No. Of. Respondents Percentage

No. Of. Respondents

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Interpretation: From the above table and graph the number of responding are very good 40%(40),good 30%(30),satisfactiory 30%(30),poor 0%(0). Inference: Maximum number of respondents rate of efficiency is very good.

20) Do you provide appraisals to your sales persons? a) Yes b) no

Dealers opinion yes no total

No. Of. Respondents 80 20 100

Percentage 80 20 100

120 100 80 60 40 20 0 yes no total No. Of. Respondents Percentage

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Interpretation: From the above table and graph the number of responding are yes 80%(80),no 20%(20). Inference: Maximum number of respondents provide the sales persons

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FINDINGS
1. Majority of the dealers having 3 to 6 years experience, and less number of dealers having above 6 years experience. 2. Majority of dealers just satisfied about the companys image, remaining are neutral, Highly satisfied. 3. Majority of the customers satisfying about the quality of the product next preference given brand name followed by usages, price. 4. Most of the dealers expresses customers visit to shop by brand name only. And followed dealers influence, by friends, by advertising. 5. The entire dealers were saying they do not face any difficulties to deal with the customers to selling the product. 6. Majority of the dealers saying they do no come across stock out problems. 7. Majority of the dealers satisfying with the supply from the company and very few members satisfied, dissatisfied. 8. All the dealers were saying the entire floor space were providing only for goods storing purpose. 9. Majority of the dealers satisfied with the mode of dispatch by the company. And few members were moderately satisfied, highly satisfied. 10. sales. 11. All the dealers were saying they do not face any difficult in dealing with the company. Majority of the dealers were saying about the fright it incurs 2% to receive goods from company to your stock point. Majority of the dealers they estimate the demand for various products by the orders and followed by seasonal base and past

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SUGGESTIONS
1. Provide opportunity for new entrants in the business. 2. To create awareness about the company, using of various ways of promotional activities such as advertisement, to maintain the better relation with dealers. 3. If possible increase the quality of the product and reduce the price. 4. Company and dealers should try to maintain customer good relationship as much as the possible. 5. Try to maintain better supply chain in order to improve the services. Supply the products with in time to the dealers. 6. Try to provide discounts to dealers and credit facilities. 7. Customers, who purchase the huge amount of products, provide free home delivery to customers place.

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CONCLUSION
In the present competitive world the success of the company depends on satisfying the customers as well as channel members. This is the area of retail business and to win the race and be on the top companies are out performing by spending more on trade promotions. The channel members play a key role in increasing the sales of FMCG products. The company has to pay more attention on distribution, promotion and availability of brand to win sales in the market. The study concludes that the to strengthen its product line It also has to increase the brands through motivating schemes and incentives . L.G ELECTRONICS PRODUCTS L.T.D has by introducing new styles and new sizes. stock holding and availability of various channel members by offering attractive

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