A

PROJECT REPORT
ON

COMPRATIVE ANALYSIS
BETWEEN

&

IN PARTIAL FULFILMENT OF REQUIREMENT OF

“MASTER IN MARKETING MANAGEMENT”
2009-2011

SUBMITTED BY
SANJAY AGARWAL

NEVILLE WADIA INSTITUTE OF MANAGEMENT

SCIENCE & MANAGEMENT
PUNE

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 ACKNOWLEDGEMENT

I take this opportunity to extend my gratitude to my internal

guide M

r Vikash Dole for his kind help & guidance without I would
not have been able to execute this project successfully.

I extend my hearty thanks for his guidance and cooperation.

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 DECLARATION

I, SANJAY AGARWAL, study in Master in Marketing

Management – I of Neville Wadia Institute of Management
Science & Research, Pune, hereby declare that, I have
completed the project on “Comparative analysis between
AIRTEL & RELIANCE COMMUNICATION in the academic
year 2009-2011.

The information collected from secondary sources and

submitted by me is true and original to the best of my
knowledge.

Date

Place SANJAY AGARWAL

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 Objective of the project

Primary objective
 The main objective of filed survey during the project
was to find out the market share of the LG and also
calculate the display share.

 Find out the positional dealer who can sale the LG

product in large volume.

 The main objective of research was to identify potential

dealer and development these dealer. So LG can make
them their direct dealer.

 This will ease the dependence on the some big dealer

like Maharashtra and Mahaveer electronics.

 Find out the problem faced by the dealer in sales and

the distribution.

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Secondary objective

 The Objective was to find out that how far the

exhibitions are helpful in branding,

 While purchasing the consumer durables which

parameter is most important for the Consumer.

 Do the consumers prefer the financial facility for buying

consumer durable?

 How frequently consumers change the consumer

durable?

 To enhances the knowledge of consumer durable

market.

 To increases the knowledge consumer durable product

of LG

 To enhances the knowledge about the marketing and

branding activity.

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Scope of project

This project gives me great exposure to the consumer

durable market because it includes product knowledge and
the filed job in which I have visited the store comes under
there region of Pune. During this project I also took part in
the exhibition of LG which held for the purpose branding and
awareness of LG product. This project helps me to know the
market practically. My job was during this project to see the
market share and also the display share of the LG product in
the store. LG always insist the 50% display share of LG
product because LG believes that “JO DIKHTA HAI WO
BIKTA HAI”.

Key findings:-
1. By calculating the display share we found that in most of
store LG has 50% display share almost all categories.

2. By the actual monthly sale of particular store we came to

know the capacity of the store and how much product can
they sale.

3. It helps us to know that weather dealer is capable of being

a direct dealer of LG or not and it also helps to find out the
new dealer who are capable of being the dealer of LG.
4. We also came to know while visiting the shops that there
was big problem of after sale service.

5.Many dealers were facing the problem of after sale service

because there is no follow up calls from LG.

6. Demo calls also not done properly.

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INDEX

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INTRODUCTION

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, Allwyn, and Voltas were
the major players in the consumr durables market,
accounting for no less than 90% of the market. Then after
the liberalization foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo, and Aiwa came into the picture. Today,
these players control the major share of the consumer
durables market .Consumer durables market is expected to
grow at 10-15% in 2007-2008. It is growing very fast
because of rise in living standards, easy access to consumer
finance and wide range of choice, as many foreign players
are entering in the market with the increase in income
levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for
consumer durables has increased significantly. Products like
washing machines, air conditioners, microwave ovens, color
televisions (CTVs) are no longer considered luxury items.
However, there are still very few players in categories like
vacuum cleaners, and dishwashers Consumer durables
sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share
of MNCs in consumer durables sector is 65%. MNC's major
target is the growing middle class of India. MNCs offer
superior technology to the Consumers whereas the Indian
companies compete on the basis of firm grasp of the local
market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration level of the
consumer durables is still low in India

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History of company
The company was originally established in 1958 as Gold
Star, producing radios, TVs, refrigerators, washing machines,
and air conditioners. The LG Group was a merger of two
Korean companies, Lucky and Gold Star, from which the
abbreviation of LG was derived. The current "Life's good"
slogan is a backronym. Before the corporate Name change
to LG, household products were sold under the Brand name
of Lucky, while electronic products were sold under the
brand name of Gold Star. The Gold Star brand is still
perceived as a discount brand. In 1995, Gold Star was
renamed LG Electronics, and acquired Zenith Electronics of
the United States.

Global Operation
LG Electronics is playing an active role in the world market
with its assertive global
business policy. As a result, LG Electronics controls 110 local
subsidiaries in the world with around 82,000 executive and
employees.

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Business areas and main products
Mobile communications
(a) CDMA Handsets
(b)GSM Handsets
(c) 3G Handsets
(d) Cellular Phones
Digital appliance
a) Air Conditioners
b) Refrigerators
c) Microwave Ovens
d) Washing Machines
e) Vacuum Cleaners
f) Home Net
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs
b) LCD TVs
c) Micro Display Panel TVs
d) Monitors
e) PDP Modules
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f) OLED Panels
g) USB Memory
h) Flat Panel Computer Monitors
Digital media
a) Home Theater Systems
b) DVD Recorders
c) Super Multi DVD Rewriters
d) CD±RW

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e) Notebook PCs
f) Desktop PCs
g) PDAs
h) PDA Phones
i) MP3 Players
j) New Karaoke Systems
k) Car Infotainment

Scope
1.In term of purchasing power parity (ppp), India is the 4th
largest economy in the world and overtake Japan in the near
future become the 3rd largest.

2.Indian consumer durable market is expected to reach $400

billion by on 2011

3.India has the youngest population amongst the major

countries. There are lot of people in the different income
categories nearly the two third population is below the age
of 35 and nearly 50% is below 25.

4. There are 56 million people in middle class, who are

earning us$4,400-US$21,800 a year. And there are 6 million
rich household in India.

5.The upper-middle and high-income household in urban

areas are expected to grew to 38.2 million in 2007 as
against 14.6 million in 2000.
Opportunity
1. In India the penetration level of white goods is lower as
compared to other developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

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4. Increase in income level
i.e. increase in purchasing power of consumers.

5. Easy availability of finance.

Threats
Higher import duties on row materials.
Cheap imports from Singapore, China and from other Asian
countries

Distribution and Marketing strategy

The company has number of dealers and warehouses. They

have LG exclusive shopee. For the marketing of the products
a number of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.

3. Hoarding, Posters, banners are used so as to grab the

attention of the costumers.

4. Day to day advertisement in leading newspaper.

5. Discount at festival time.

6. For dealer relationship they arrange dealer meting at

several time in the year
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7. LG divide dealer in gold silver etc. category to know the

performance of the dealers.

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8. They have their sales persons at various sub dealer store
and at mordent trade store for particularly for the promotion
of the LG product.

9. LG also uses the radio FM for the promotion activities.

10. Also provide capon and scratch card for festive season.

Strategies adopted by the

organization:

LG follows 10 commandments which are as

follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success

3. Transparent and fast communication-open

communication

4. Update market -knowledge –Demographics

5. Win –Win relationship with the trade partners

6. Customer is the king

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7. Even Billing –Road to ach supplier A

8. Be in touch with the market (70% Market, 30%

Office).

9. Plan and Execute annual marketing Calendar-Time

to
market

10. Display share of 50% -to get 50% consumer

share.

LG BRAND IDENTITY
The brand of LG is delightfully smart. LG strives to enhance
the customer’s life and lifestyle with intelligent features,
institutive functionality and exceptional performance.

The brand platform

The LG brand is composed of four basic elements –

1. Value
2. Promise
3. Benefits
4. Personality

The Brands core Value that never

changes.

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a. Trust

b. Innovation

c. People

d. Passion

The benefits that are consistently delivered to the customer

includes
Reliable products
Simple design
Ease of use
Extraordinary Experience

Personality describes the human characteristic that are

expressed to the customer through
Trustworthy, Considerate
Practical, Friendly

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