LG Internship Report

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Summer Internship Report On

Market Sensing & Shop MOT


Under the supervision of :-
Mr. Ketan Mahendra Dave(RMM)

BY:-
FARAN NAFIS
SAAD AHMED
Market Mix
Marketing Mix
• Product
• Price
• Place
• Promotion
Product
Flat Panel Display
 OLED
 Nanocell
 Ultra HD
 Smart TV
 Normal TV

Home Appliances
 Refrigerator
 Washing Machine
 Water Purifier
 Air Conditioners
 Vacuum Cleaners
 Microwave Ovens
 Ceiling Fan
 Home Entertainment
 X Boom
 Blu Ray Player
 Music System
 Home Theatre

Smart Device and Mobile Phones


 PCs and Laptop
 Smartphones like G series and W series
 Smart Watch
PRICE
India is a price sensitive market.

The Pricing Policy of LG consists of “ Cost plus fixed markup”.

A special team has been appointed to research the market in a detailed


manner. Here the prices of its competitor are collected along with the
consumer thought through extensive research.

LG electronics has decided to follow a policy of price competitiveness for


the rural area by increasing market share by lowering its price.
Price

Mobile Phones WashingMachine


Rs 2600- Rs57000* Rs 10,000- Rs 3,15,000*

Air Conditioners Price Microwave Oven


Rs 22,000 – Rs 70,000* Rs 7000- Rs 40,000*

Home Entertainment
Refrigerator
Rs10,000- Rs 10,00000*
Rs 10,000 – Rs 6,50,000
Place
LG electronics serves a worldwide market with five business units in nearly a hundred
and ten locations.
LG products are easily available at all the malls and super market
In order to sale its products LG has tied up with a number of distributors Like
In Delhi Region:-
Total Outlets- 400
Branch Shop- 34 (Jeewanjee, Apollo, etc.)
Direct Dealer- 88( Sargam Electronics, Electronic Paradise, etc.)
Distributers- 10 (Vardhman, Kumar, etc.)
Modern Trade-40 ( Vijay Sales, Croma & Reliance Digital)
LG has excellent market share in rural areas as compared to its competitors.
Promotion

LG OLED 360 degree Display at Ambience mall, Vasant Kunj.


These 360 OLED Display are used to connect to the interested customers and buyers. Their pictures are
displayed on these large display in the Mall .
Objectives
 Primary Objective
Market sensing on Consumer Durables Products in Delhi
region.
 Secondary Objective
 To observe the proper implementation of Cricket World Cup offers.
 To analyses the impact of offers on the Sale of Consumer Durables Product
in Delhi region.
 To examine the Shop MOT.
Research Methodology
The essential part of any report is research methodology. The field study
was conducted to analyze the market strategy of different consumer
durable brands.

Sample Size
Sample size was 100 Stores.

Field Work and Data Collection


In the data collection phase, we try to cover maximum stores in New
Delhi.

Collection of Data
Data used of this report is mainly primary data, which are collected first
hand by surveying the stores and outlets.
Observations done during the Visit:-
 Shop MOT
 Appearance & Hygiene of SSEs
 Welcoming & Offering
 Need Identification.
 Product Consultation
 Closing
 Home Demo
 SSE’s knowledge about products & offers
 Ambience of the Outlets.
 Product Display Planogram.
 Wall of Brands
 Features of different Product.
 Newly Launched Product in the market.
 Generic and Tactical Offers.
 Marketing Mix
 Activities
 Financial Offers analysis
 POSM analysis of different product.
 POP analysis of different product.
 Offer’s Impact
 Customer Preference
 Product Availability
 Brand Visibility
 Retail Visibility
 SWOT Analysis
 Findings & Conclusion.
Shop MOT
Appearance & Hygiene of SSE
• Most Of the SSE’s were very well
dressed.
• Most of them were clean shaved or had
well managed facial hair.
• All the SSEs were in their Uniform.
• Most of the SSEs were aged 20 to 35.
Welcoming
 Welcoming is the 1st step of Shop MOT
 SSE’s 1st responsibility is to welcome the Customer with Pleasant
smile & Namaste.

Offering the seat to the customer and making them Comfortable

• Most of the SSEs were good in welcoming.


• They started picking the customers the
moment customer enter the Store.
• Very few SSEs were found lazy and inactive.
Need Identification
 Need Identification is the 2nd step of Shop MOT.
 After welcoming the customer SSE tries to identify the need of the
customer.
 SSE starts making the note of the needs while listening to the
customer.
 SSEs follows WWTP technique
Why- why you need this product?
Who- who will use this product?
Time- When you need this product?
Place- where will you place this product?
SSEs were good in need Identification.
Those Customer who postponed to close the deal,
SSEs asked their contact no. to keep in touch and
to remind the customer on regular interval.
3. Product Consultation
• In consultation SSE
explains the benefits of
the product and give
demonstration.
• 50% of the SSE were Very
good in their Product
Consulting.
• 33% were good &
following the basic
principle of Shop MOT.
• And the rest 17% were
not so good and need
improvement.
Closing
 Closing is the 4th step of Shop MOT.
Closing in sports is the same as closing in business.You must be more interested than
interesting
 At this point, an atmosphere of trust has been created.
 Always be Closing.
 Closing should be quick and easy.
 Instead of offering to ring up their purchase, suggest Complimentary
items that can bring even more value to their purchase and to their
product.
HOME DEMO

Home Demo is last step of SHOP MOT . In Home Demo, LG install product like OLED TV,
Water Purifier, XBOOM speakers for a week in the house of the interested customers. So
that they can have real-time experience. Sales team visit these houses to help the
customer understanding the product more.
60
Shop MOT

50
Number of Shops

40

30

SHOP MOT

20

10

0
5-4.5 4.5- 4 4-3.5 3.5-3 below 3

SSE`s Rating
2. Knowledge of SSEs about the Product & Offers.
• 90% of the SSEs were well
versed with the technically of
the products.
• Rest 10% were either newly
joined or moved from
different domain.
• 88% of the SSEs were well
versed with the Cricket WC
Offers.
• Rest 12% were not well
informed about all the Offers.
• Training of SSEs conducted on
regular basis to keep the SSEs
updated with the Offers and
Technology.
• There is a Training hall named
GURUKUL where SSEs get
trained
SSE’s Customer Interaction and Information
70

60

50
Number of Stores

40

Information
30
Customer Interaction

20

10

0
5-4.5 4.5- 4 4-3.5 3.5-3 below 3
SSE`s Rating
4. Ambience of the Store
Parameters:-
Lightening- Almost all the stores
have good lightening system.
CROMA & BRAND SHOPPE were
very good.
Walking Space- Good
Cleanliness- 90% of the stores
were Clean.
Music- Only found in Jeewanjee
Shoppe Lajpat Nagar.
Placement of the Product:-
Good
Ambient Temperature- Very good
Ranking of the Stores :-
1- CROMA
2- Brand Shoppe
3- Reliance Digital
4-Vijay Sales
4- Sargam/ EP/ HariOM Electronics
5- Sub Dealers
Stores Ambience and Retail Visibility
50

45

40

35
Number of Stores

30

25
Ambience
20 Retail Visiblity

15

10

0
5-4.5 4.5- 4 4-3.5 3.5-3 below 3

Stores Rating
5. Product Display Planogram
• Most of the store following
the minimum 30% share of
the product in the display.
• There were some dealers &
sub dealers who had low
cost FPDs on the display
like TCL, VU MI, etc which
deceases the display share.
• 20% of the stores had
vaccant space of FPD on the
wall.
• 10% of the stores had no
proper placement of FPDs.
• Rest were all good.
Stores Planogram and Display Share
60

50

40
Number of Stores

30
Planogram
Display Share
20

10

0
5-4.5 4.5- 4 4-3.5 3.5-3 below 3

Stores Rating
6. Wall of the LG
Wall of Samsung

Sargam Electronics, Lajpat Nagar


• List below on data and mostly on perception based on our analysis of
different model available from different brands in Delhi Region

Parameters LG Samsung Sony


Market Share

Picture Quality LG uses IPS panel compared to Hyper real engine with VA X-Reality Pro picture engine
the VA panel panel are great in producing generates great output on VA
picture quality panels.
New Technologies Their OLED are exceptional Their QLED TVs take They have introduced
and compete well with QLED. television viewing to triluminous Display.
First to bring AI features in its completely new level.
TV. Only TVs that support
Dolby Vision.

Smart OS LG has best OS out there in Samsung uses Tizen OS, with OS is the weakest point for
market with wide variety of good user experience. They SONY. Most of their budget
content in its apps store and have good app store with most TVs has basic linux OS which
intutive design . This OS beat Indian apps. is just OK in term of use.
all other OS in market.
Unique Selling Their webOS, AI interface are It has the best Color Best Picture quality out there
Proposition just fantastic. Less expensive as technology in the market. in the market.
compared to Sony & Samsung.
They provide true bang for
your buck.
Newly Lunched Product or Technology by
different Brands
1. LG The new Oled are
coming with new
generation alpha-9
generation 2 processors
which will support
120fps.
Model C9, B9, W9.

2.Samsung Features of New model of


Oled Include- Ambient
Mode, Bixby on Tv, Smart
Hub and some changes
in Design as well.

Refrigerator New model


include space max
design
MI 3D TV, Smart TV, Curved
TV
4K Pixels Display, Smart
Mirroring, Double USB
Sharing, Screen Casting,
Smart Remote

ONEPLUS Expected to launch in few


months
TV will act as smart home
hub apart from regular TV.
It will challenge the Xiaomi
MI TV 4 models in India.

Panasonic Panasonic launches 14 new 4k


Ultra HD TVs in India
With IPS Panel, 4K dimming,
Dolby Atmos Sound, Google
Assistant/Alexa Support
TCL TCL 55-inch 4K AI
Smart Anroid 9 Pie
based LED TV
launched in India,
Priced at Rs 40,990.

LIEBHERR Engineered in Germany


designed especially for
India
European Hardline Design
Central Power Cooling
Generic Offers
BRAND NAME OFFERS

LG 12.5% CASHBACK OFFER on OLED and Nanocell


7.5% Cashback offer on all product above INR 20,000

SAMSUNG Upto 15% Cashback offer on different products above INR


15,000

SONY None

PANASONIC Upto 10% cashback for Acs

LLOYD None
Tactical Offers
BRAND NAME OFFERS

Samsung Unbox Magic with every Hit


Free Amazon Echo plus & Amazon echo dot on selected FPDs
Upto 15% cashback
Zero Downpayment
10-year No screen BURN IN warranty on QLED
1+1 year warranty

Sony • Additional 5% cashback offer


• Pay as per screen size
• Catch the offer with party speakers
• Rs 1 Downpayment
Philips Mauke pr chauka offer on Air purifier
• Free filter pack
Philips • Mobikwik cashback
• Extended Warranty 2+3 year
• 0% interest EMI
Hit the Hattrick offer on Philips Audio product
• Win one Ambilight TV every week
Tactical Offers
BRAND NAME OFFERS

LG Buy and Fly offer


Wish n Win lucky draw
Upgrade to smarter life Paytm
Consumer gift
Warranty 1+1 on 32”& above FPD models
Get upto 22% OFF on MRP
FIXED EMI starting from Rs 2999

Cricket Dil se
PANASONIC Scratch & win cashback upto INR 50,000
Extended warranty
Exciting Cashback Offers
Special EMI Schemes(3/0, 6/0, 9/0) across all product.
50%OFF on Dish TV
4 years warranty offer
LLOYD

SHARP Portable Party Speaker worth 22990/-


3 years Warranty
Amazon Fire Stick
POSM & POP Analysis
LG Samsung
POSM & POP Analysis
LG Sony
POSM & POP Analysis
LG Panasonic

Panasonic
CRICKET
DIL SE
POSM & POP Analysis
LG PHILIPS
Air Purifiers-
Philips Mauke
Pe Chauka offer

Philips Audio-
HIT THE HAT-
TRICK OFFER!
POP & POSM OF REST OF THE BRANDS
POP COMPARISON

MITSUBISHI sHITACHI sDAIKIN


sSAMSUNG LG VOLTAS
Stores POSM & POP

60

50

40
Number of Stores

30
POSM
POP

20

10

0
5-4.5 4.5- 4 4-3.5 3.5-3 below 3

Stores Rating
LG Planogram

Samsung
Planogram
LG

Sony
Planogram
LG

Panasonic
Planogram

LG

Videocon
Brand Visibility
Brand Visibility (LG)

DND FLYOVER
Other Brands Visibility

Saket Lajpat nagar

DND Flyover Pitampura


Online Visibility(Digital)

• LG electronics has always believed in the concept


of promotional advertisement.
• Its advertisements can be seen throughout the year
in televisions, internet, newspaper, magazine etc.
• The Advertisement is the maximum for newly
introduced product which give high turnover like
panel (OLED), Refrigerator(Side by side).
Online Visibility

Xiaomi TV Ad on Youtube Lloyd TV Ad on Youtube

VU TV Ads on Facebook & Instagram


Samsung Smart TV Ads
on Youtube.
Samsung FEST offer on
website.

Sony BraviaTV AD
on YOUTUBE &
Instagram
Activities(Housing Society)

LG organizes Activities in different housing societies to enhance the


Brand Visibility & promotion of the new product like OLED, XBOOM,
Water Purifier & Microwave to generate Lead or Consumer
Interaction.

Pic:- Childrens’Painting competition organised by LG


Pic:-Microwave Demonstration & Singing Performance

Pic- Prize distribution to the winners in


painting competition
Activity(Store)

Product promotional Activity performed at different LG shoppe, Modern trade & dealer shops
Pic:-Water Purifier & Microwave demonstration to the Customer at the store
Retail Visibility
Retail Visibility at multibrand Store

LG SAMSUNG SONY HAIER


Consumer Finance Offers
CARD FINANCE
Scheme Title:- Card Finance offer JUL’19
Tenure EMI Cashback
0 MONTHS NO NO
3 MONTHS YES YES
6 MONTHS YES YES
9 MONTHS YES YES
Tenure:- 3 Months
12 MONTHS YES YES
18 MONTHS NO NO
24 MONTHS NO NO

EMI Available from banks


American Express, AXIS_CREDIT, AXIS_DEBIT, BOB, CITI,HDFC_CREDIT, HSBC,
ICICI_CREDIT, ICICI_ DEBIT, INDUSIND, J&K BANK, KOTAK, RBL, SBI_CREDIT,
SCB_CREDIT, UBI & YES BANK.
Cashback Offers:-
Bank Debit Credit Cashback% Max cashback

BOB N Y 10 6000

HDFC Y Y 10 6000

J&K BANK N Y 10 6000


Paper Finance Offers:
Offer’s Impact(for Delhi Region)
FPD
According to MoneyControl.com, the expected
growth for Flat Panel Display would be 25%.
According to Brand SSE, the growth would be
around 5-10%.
But the actual growth from the sales data is
15%(approx).
Customer Preference(FPD)

Brand
Ranking Reasons
Name
Brand recognition
low pricing
1st
Samsung Wide range of product
More brighter display compared to other brands
Brand Visibility
IPS Display
OLED Technology
2nd Artificial intelligence (ThiQ AI)
LG
Dolby Vision
After Sales Service

Picture quality
3rd Excellent Brand Image
Sony Loyal Customer
Store rating based on various parameters

Grade Points
40

35 34

30

25 24

21
20
No. of Stores

15
11
10

5
2

0
4.5-5.0 4.0-4.5 3.5-4.0 3.0-3.5 2.5-3.0
SWOT ANALYSIS
Strength
It offers wide range of products to consumers to serve all
categories and give strong focus on the technology
Strong Distribution Network: Over the years LG Group has
built a reliable distribution network.
Highly successful at Go To Market Strategies for its products.
High level of Customer Satisfaction
Strong Brand Portfolio
Company sponsors different sports and entertainment activities
which can increase brand visibility.
Weakness

• Effective advertising and socializing of product could not be


done effectively.
• Limited success outside the core business e.g . Failure in mobile
technology.
• Pricing issue
• Gaps in the product range sold by the company. This lack of
choice can give a new competitor a foothold in the market. e.g
absence of window A.C.s .
• Low amount of spending on Research and Development .
Opportunity
 OLED Technology:-
 Less Power Consumption
 Lower Cost in the future.
 Flexible and thin display
 Safer for environment.
 Air Purifier :
 The Air Purifier market is estimated to be about Rs 200-Rs 250 crore
 It is growing at 30%- 40% this every.
 Due to increase in air pollution, the need for purifier is going to increase mainly in Delhi NCR.
 Population
 With government reforms in form of GST, making the electronic and appliances industry
look positively toward next phase of exponential growth.
 Rise in the income of middle class.
 Consumers are becoming more and more technology savvy.
 Environment friendly goods
 Now consumer are more committed toward greener and cleaner environment.
 Government are focusing on sustainable development
 Advantage to become the First Mover in the field of consumer Durables.
Threats
 Technology development by competitor.
 New Enterant like Xaiomi, ONEPLUS, etc.
 Increase in competition.
 Political uncertainity.
 Aggressive advertisements and promotion by competitors reduces the
promotional Impact by LG.
Findings & Conclusion
 LG embraces the philosophy of “Great Company, Great People,”
where as only great people can create a great company, and
pursue two growth strategies involving “fast innovation” and
“fast growth.”

3S of LG 3C of LG
LG has number of dealers and warehouse.
They have LG exclusive Shoppe. For the marketing of the product, LG perform
following tasks:-
1. Activities are conducted time to time at different stores.
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 during festive season.
6. For dealer relationship they arrange dealer meeting at several time in the
year.
7. LG divide dealer in gold silver etc. category to know the performance of the
dealers.
8. They have their sales persons(SSE) at various dealers, sub dealers, modern
trade,etc particularly for the promotion of LG products.
9. LG also uses the FM radio for the promotional activity.
10. LG also provide coupons and scratch cards for Festive season.
 HE industry is not growing as per expectation.
 Sony has more Loyal Customer as compared to Other TV Brands.
 The impact of offer on Sale was very minute.
 Percentage of Female SSE are just about 2%.
 Planograms of LG are better and attractive than other Brands.
 LG performs aggressive Activities & campaigns as compared to other
Brands.
 Samsung is the biggest competitor of LG.
 LG should shift its mainstay LCD towards next- generation OLED
panels, as the LCD panel industry is crowded with Chinese rivals.
Thank you
Life’s Good

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