LG electronic India pvt ltd by aneajiekusuma



    I the undersigned Mr. Amit H. Vaghela. Student of
T.Y.B.B.A Grace Collage of Commerce, hereby declare
that the project work presented in this report is my own work
and has been carried under the supervision of Ms. Bhavna
Vyas of Grace College Of Commerce, Rajkot.

    This work has not been previously submitted to any
other industries or universities for Examination.

Place :- Rajkot.
Date :-

                                      Amit H. Vaghela

The inclusion of practical study as a part of B.B.A
curriculum has not only enhanced my knowledge but with
its enriching experience corporate world of business.

The object of practical training is to develop awareness
among the students about Industrial atmosphere and how
to manage the industry or firm in general. The popularity
of most education increased because of its practical
approach and field knowledge.

In practical fulfillment of the study, I got the opportunity
to take industrial training at LG International.

The project report aims to provide all the data I have
collected on my own during practical training at LG.

     It is truly said that in all stages of life success
depends in a very large measure upon individual
initiative and exertion and cannot be achieved except by
dint of hard work. In any field success demands lots of
efforts knowledge guidance, co-operation and sincerity.

    It is my pleasure to present this report before you,
which is a combination of knowledge and hard work.

      I am heartily thankful and give me immense
pleasure to express my deep sense of gratitude to Prof. of
Grace College Of Commerce who gave me complete
guidance, which really helped me a lot.

     I am also thankful to my friends and family who
have always been with me whenever I needed.

     Last but not the least I would thank God for helping
me throughout because without his permission even a leaf
cannot move.

Place: - Rajkot
Date: -

                                   Amit H. Vaghela
              Main Index Page

SR NO.                PARTICULAR

  5.     FUTURE PLAN

SR NO.                  PARTICULAR







  8.     LOGO LOGIC


     Marketing is often dynamic, challenging and rewarding. It can
also be frustrating and even disappointing. But it is never dull. It is
the part of organization where “The Rubber meets Road” the place
where an organizations ideas planning and execution are given the
acid test of market acceptance or rejection.

     “Marketing is job to convert essential needs in to profitable
opportunities. Marketing consists of all activities by which a
company adopts itself to its environment relatively and profitability.”

     Before few years ago there was no need for marketing
because there was no competition in market and so as compared to
supply of product there was more demand so there was no use of
Marketing of products.

     Acc. to Philip Kotler, “Marketing is the process of planning,
executing the competition, pricing, promotion and distribution of
ideas, goods and services to create exchange that satisfy individuals
and organization goals.
     Marketing management includes management of demand,
promotion management etc. Promotion includes advertising,
publicity, sales promotion and personal selling etc Price includes
strategies of products, place includes management of distribution
network and its cost, effectiveness, efficiency etc.

     In today’s era each and every step any scale of business needs
marketing tools for marketing their business and providing a lifecycle
to it. Today consumer marketing serves as a doctor for patient.

     LG electronic India pvt ltd. a wholly owned subsidiary
of LG electronic, south korea was established in
January,1997 after clearance from the Foreign Investment
Promotion Board(FIPB).

      The trend of beating industry norms started with the
fastest ever nationwide launch by LG in a period of 4 and ½
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   color   Televisions,
Washing Machines, Air conditioners and Microwave
Ovens. During the year 2001,LG also commends the home
productions for eco friedly Refrigerators and established its
assembly line for its PC Monitors at its Greater Noida
manufacturing unit.
      The beginning of 2003 saw the roll out of the first
locally manufactured Direct Cool Refrigerator from the
plant at Greater Noida.

       In 2004 LGEIL also up its second Greenfield
manufacturing unit in PUNE, Maharastra that commences
operations in October this year.Covering over+ 50 acres,
the    facility   manufactures   color   Televisions,   Air
conditioners,Refrigrators,Washing machines, Microwaves
Ovens Color Monitors and GSM phones.
             GROWTH OF COMPANY

     We have now entered in to the world of 21st Century.
This new century has put before us many new challenges,
which we have to readily accept. It has also created many
innovations which might have been unimaginable or
unbelievable for people with the change.

    Looking ahead is India’s largest consumer. Electronic &
Home Appliances Company, with increasing investment in
diversify business.

   LG electronic India pvt ltd. a wholly owned subsidiary
of LG electronic, south korea was established in
January,1997 after clearance from the Foreign Investment
Promotion Board(FIPB).

Name              LG electronic India pvt ltd
Year of           1997
Registered       20A Shivaji Marg,
Office           New Moti Nagar,
                 New delhi
Corporate        233/234,platinum plaza, nr judges
Office           bunglow cross road. Bodakdev.
Branch Office    301, Dhan Rajni,
                 Nr. Dr. Yagnik Roa`d,
                 Gujarat, India.
Form          of Private Limited Company
Size          of Large Scale
Products         Television, Refrigerator, Microwave,
                 Washing Machine, Air Conditioners,
                 DVD/VCD player, Dish Washer, Music
Competitors      Samsung, Onida, Bush/Baron, Sony,
                 Akai, Toshiba, Panasonic, TCL, BPL,
                 Whirlpool, Kenstar, Godrej, Philps
Accounting Year 1st April to 31st March
Bankers          State Bank of India, ICICI, HSBC,
                 Corporation Bank, Central Bank of

Website   www.lgindia.com

  The product is the most important converser by which any
firm can prove its efficiency and iteration of quality product
is a symbol of the business firm. It is a center point around
which all the activities of business i.e. Marketing, Finance,
Production etc. are woven without a product nothing to sale,
nothing to price & nothing to run business. Product is an
engine of the vehicle of the company for providing consumer

     LG is engaged in the production of Electronic &
Home Appliances.

     They produce television, Internet Television, Washing
Machine, Refrigerators, Air Conditioners, Video Cassette
Player, Video Cassette Recorder, Black & White
Television, Audios, Disk Washers, Power Inverters, Hi-
tech Product as well as No Frost Refrigerators.
            SIZE OF UNIT & TYPE OF

    There are 3 scales of industries that is large scale,
medium scale & small scale.

LG International ltd. is more than 3 crores investment so we
can say that it is Large Scale Industry.

The LG group emerges as a USD 2.5 Billion global
conglomerate continuing to set trends in every sphere of its
activities from a conference room sized assembly line in
Today the group operates through 4 key sectors:

                         Thomson         CRT
Consumer Durables                                 Oil & Gas
                           CPT           Glass

Consumer Electronics, Home Appliances & Compressor
manufacturing in India

    We enjoy a pre-eminent position in terms of sales and
customer satisfaction in many of our consumer products like
Colors Televisions, Washing Machines, Air Conditioners,
Refrigerators, Microwave ovens and many other home
appliances, selling them through a Multi-Brand strategy with
the largest sales and service network in India.
         Refrigerator manufacturing is further supported by
our in house compressor manufacturing technology in

Display industry and its components

    With the Thomson acquisition LG has emerged as one
of the largest Color Picture tube manufacturers in the world
operating in Mexico, Italy, Poland and China, continuing to
lead through new innovative technologies like slim CPT,
extra slim CPT and High Definition 16:9 format CPT.

Colour Picture Tube Glass

      LG is one of the largest CPT Glass manufacturers
in the world with a high level of experience and technical
expertise operating through Poland and India. LG will
leverage on this synergy after the Thomson acquisition to
internally source glass for its CPT manufacturing increasing
efficiencies and lowering costs.
Oil and Gas

    An important asset for the group is its Ravva oil field
with one of the lowest operating costs in the world producing
50,000 barrels of oil per day. The group has ambitious plans
for expansion in this sector globally.
                       LOGO LOGIC

     This is the LG symbol. It reiterates the ethos of a
company dedicated to maintaining the highest international
standards of excellence through quality, technology and
innovation. For over a decade now, LG has been bringing
the latest and very best in Consumer Electronics and
Home Appliances.

     Successfully adapting the best of international
technology to suit Indian needs, and crafting it to improve
the quality of life – as million of satisfied customers will agree.
The new symbol of LG asserts its passion for global impact,
and the two ‘E’s on either side represent the Group’s wide
spectrum of interests ranging from ‘Electronics to Energy’.
     Along with the steely glint, this communicates the
group's global ambition, its strength, sterling credentials and
innovative drive. A symbol that proclaims a paradigm shift.

     A sign that represent the new force that is LG. Thus
recapitulating our principle of reaching out and touching the
lives of millions of people. Worldwide.

    No business can function in a vacuum. There is the
society at large with which it engages in innumerable
transactions; the more involved the engagement, the better
its qualitative and quantitative effect on the business. Aware
of this debt to society, a successful corporate like LG is
committed to fulfilling its obligations: both as providers of
outstanding products as well as sterling community initiatives.

     They include, among others, a first-rate academic
haven for the high-school education of underprivileged girls
and a 100% world-class, charitable hospital specializing in
cancer and heart surgery for the benefit of society’s
marginalized sections. LG’s deep-rooted commitment to
environment     conservation      translates   into   process
improvements that help recycle CRT glass, curb carbon
emissions and other pollutants.
   Among others, the group’s India glass plant has
supported a large-scale initiative like the plantation of over
2,00,000 teak trees.
      A part from material support, society needs spirit; that
vital ingredient that makes the difference between living life
and merely existing. LG is inspired heavily by the uplifting
nature of sports; its power to generate mass passion, where
innumerable hearts throb as in unison; its ability to draw
people together irrespective of differences in race, religion,
gender or caste. Unity of spirit and purpose is ultimately
what builds bridges between diverse cultures.

     This is the core belief of a group that has operations
spread over a cross-cultural milieu worldwide. LG supports
mass sports for another reason: at the heart of sports is fair
play, a virtue that enjoys exalted status among values
cherished by LG.

     The group’s sponsorship of cricketing events across
the globe underlies its commitment and passion for sports as
well as its goal to uplift the spirits of a global audience. LG
has not forgotten the grassroots.

Sr No.                  Particulars

  1      Introduction

  2.     Organization chart

  3.     Marketing Competitiveness

  4.     Market of Product

  5.     Marketing Research

    Acc. to Philip Kotler, “Marketing is a social &
managerial process through which individual & groups can
obtain what they need & want through creating, offering &
exchanging product value with others.”

    Marketing    is   comprehensive      term,   marketing   is
management functions to plan promote & deliver product to
customer. A successful marketing strategy has better
marketing tools by which the firm may overcome existing
competition. We have to be strong either on one front as all
other fronts, which create a demand for our products. At
any time there may be no demand adequate and marketing
management must find ways to deal with marketing different
demand status.

    LG International Ltd. has a marketing department
branches in several cities like Rajkot, Ahmdabad, Baroda,
and Mumbai etc. all marketing decisions are taken from these

     The main aim of marketing department is to translate
consumers demand into physical product or services. It helps
the whole organization. It knows the demand of consumers
through marketing channels. The organization of marketing
department is dependent on structure of marketing

     The marketing department of LG is in Mumbai &
branches of marketing department are distributed in several

     The organization chart of marketing department of LG
is as follows:-

         Executive vice president of Marketing & Sale

SALES VICE                  Marketing Vice
PRESIDENT                     President

        Sales Forces

    LG today is a household name across the nation.
India’s no. 1 brand of colour TV’s, Audio Systems,
VCR/VCD, Washing Machine, and Refrigerators & Air

    LG is having so many competitors in the field of each
product. Some competitors of LG are Samsung, Onida,
Bush/Baron, Sony, Akai, Toshiba, Panasonic, TCL,
BPL, Whirlpool, Kenstar, Godrej, Philips etc.

    I have come to know from my survey that LG is better
than other companies and consumers demand more than
other companies’ product.

     The main product of LG International Limited is
Television and Home Appliances.

     Now days LG sell over five and half million consumer
electronic and more than million Home Appliances. All the
products are designed taking in to consideration the
customers convenience, entertainment and comfort etc.

      In short LG has both Domestic & International

      Beside the internal report of marketing executives, the
management often focused studying of specific problem &
opportunities     for   better   marketing     activities.     The
management often has to face many problem related with
marketing like pricing decision, promotion decision, market
segmentation etc. these problem look to be decreased of
marketing & therefore the exact cure is required.

       In marketing research the marketing is the doctor to
cure all these diseases.

      We can find its systematic meaning from definition
shown below:-
     “Marketing     Research     is   the   systematic       design,
collection analyses & reporting of data and finding relevant
to specific market situation facing the companies.”

      LG International Limited carried out their research
work in regular interval when there is fluctuation in sale of any
product of the company. Sometimes the company also
carried out research work to know the view of people about
the new introduced product of the company.

Sr.   Particulars
(1)   Introduction

(2)   Product Mix

(3)   Price Mix

(4)   Place Mix

(5)   Promotion Mix

    Marketing mix is the bridge that diminishes the gap
between the products and consumes without marketing all
production activities would be fulfill. Therefore more
production is not enough. It is equally important to make the
consumer aware of the goods produced. After the consumer
importance to distribute the goods to all prospective
consumers. But the marketing activities do not here. The
view and ideas of the consumers are taken into and the
product is to be changed according to the consumer’s needs.
Thus the sum total of all the activities undertaken to satisfy
the consumer’s wants and demands constitutes the activities
of marketing.

    Marketing is comprehensive firm and it includes all
resources and a set of activities necessary to direct and
facilities to direct the flow of goods and services from
product to utility consumer in the process of distributing. In
other words marketing comprises of all the activities involved
in the determination and satisfaction of consumer needs at a
profit. Thus marketing encompasses all activities of
exchange conducted by producers and middleman in
commerce for the purpose of satisfying consumer demand.

     In marketing planning, marketing information is used to
assess the situation specific marketing targets are selected
in the form market segments for each segment of market a
combination of a number of devices or types of marketing
activities that are

     Coordinated into a single management programs to
reach a particular target or market segment is formulated.
The combination of these marketing methods or devices is
known as the marketing mix.

     Product is an engine of Vehicle of the company for
providing consumer satisfaction. The product is the most
important converser by which firms can prove its efficiency
identification of quality. Product is the symbol of the
business firm product is the center point around which all the
activities of business i.e. Finance, Marketing, Production
etc. are woven. Without a Product nothing to sale, nothing
to price and nothing to run a business.

2.   PRICE

       Price is the matter of vital importance to both seller
and a buyer in the market place. Without pricing there
cannot be marketing only when a buyer & a seller agree on
price we can have exchange of goods or services.

      Promotion      is   the      process    of   Marketing,
Communication.       Persuasion,      involving    information.
Promotion has three major purposes; it communicates
marketing information to consumers, users & retailers. The
Promotion mix includes the following:-

Sales Promotion, Advertising, Sales Force, Publicity,
Direct Marketing.

4.   PLACE

      The Place mix decision, the decision of location also
plays critical role for retailer should locate enough stores in
easy city to get gain promotion & distribution economic. The
place includes channels of distribution, coverage, inventory
transport, warehousing etc.

      Distribution channel means the channel by which
finished product is reached from producer to consumer or
users. It is the channel through which goods are moved as
smoothly as possible.
                PRODUCT MIX INDEX

SR.                PARTICULARS
(1)   Introduction

(2)   Types Of Product

(3)   Brand & Slogan

(4)   Quality

(5)   Packing

(6)   Warranties


    Product is the pivot around which all the marketing
selectivities revolve without product, all the marketing
activities become useless. People satisfy their needs and
wants with products. Product can be defined proudly to
cover anything that can be offered brings to someone to
satisfy a need or want normally, the ward product brings to
mind a physical object such as on automobile, a television or
a soft drink. We normally use the expression “product and
services” but in thinking about products, their importance lies
not so much in owning them as in using them to satisfy our

    Manufacturers get into a lot trouble by paying more
attention to their physical product then to the services
produced by these products. The marketer’s job is to sell
the benefits or services built into physical products rather
than just describe their physical features.
       Product mix is the set of all the products line and items
that a particular server offers for sale to buyer the product
                     Types of Product

          LG has Different Products & it is describe as

         1. Televisions,
         2. Air Conditioners
         3. Refrigerators
         4. Washing Machines
         5. Microwave Ovens
         6. Color Monitors
         7. GSM phones.
                  Brand & Slogan

        Brand name is the sign, symbol, design of a mix if
there used in identifies the product of any firm and to
distinguish it from the competitive product in developing a
marketing strategy, the seller has to comfort the branding
decision. An every company tries level best to be leader or

        The LG International Ltd. uses the brand name
LG for its each & every product.

     Some slogans are used in branding & trading. The
slogan with right meaning attracts the consumer to purchase
particular product. some slogans collected from different
magazines and any other sources but LG selected his own
one slogan are as follows:

                      “Life’s   Good”

    In today competitive age quality is the most important
aspect so for as the success of any product is concerned
quality here means the port of the physical object for which
the ultimate customer is paying in terms of money.

          LG produce the best quality product, it is the only
reason why consumer wants to purchase the LG product.

       Some marketers have called packaging a fifth ‘p’,
along with product, price, promotion & place However
packaging is treated as an element of packaging consists of
all the activities designing & producing the container or
wrapper for a product. The container or wrapper is called
the package physical product require packaging decisions to
create such benefits as protection, economy convenience
and promotion packaging also have various elements like size,
shape, materials, colour, text & brand name.
           LG has to sale their products in domestic &
foreign exports products they have to be more care full
about about it. LG packed it into the printed boxes & on
the printed they write brand name, party cash no., party
shipping name from whose send &receive and both the
country name etc. are written on printed boxes. So, the
transportation of products becomes easy.

           LG packing system is very nice to see, their logo
&the MRP of the product is also include in the box. So that
the people be familiar with the LG products.

            Product warranties are an important promotional
tool especially as consumers because more quality sensitive
warranty means authority or justification that the thing sold
is fit for use and the producer accepts reproducibility for
repairs over a period of time.

            The company can promote sales by adding a free
warranty offer or service contract. Instead of changing for
the warranty or service contract it offers it free or at a
reduced price if the customers buy that product. Thus,
warranty forms an important part of customer durables
customers always except a longer period of warranty. But
the cost burden on the company is very high and the
company has to perform cost benefit analysis while deciding
the period and scope of warranty only that policy should be
selected where the benefits cut run the costs. But it is very
difficult to calculate and maintain balance by cost and
      The warranty period of LG is one year, or two year
depending a is policy. The company replaces all the parts
and movement’s period is over the retailer.

 (1)   Introduction

 (2)   Pricing Policy

 (3)   Pricing Objective

 (4)   Discount Policy

 (5)   Allowance
         “Price is the only element of marketing mix that
produces revenue, all the other elements i.e. product, place
and promotion products cost.”
                                      Philip Kotler

         Price is the only element of marketing mix that
produces revenue. All the other elements that is product,
place and production procedure etc. Pricing composition is
the first problem facing the marketing executive.

         All profit organizations and many non profit
organization set their prices and product and service.
Though most of history price were set by buyers and sellers
negotiating with each other sellers would also for higher
prices then they expect to receive and the buyers would
offer less than their expect to pay. Through bargaining they
would arrive at an acceptable price. Setting one price for all
buyers is relatively a modern idea.

        Inspite of the high degree of importance given to the
price mix and the fact that the price mix is only revenue
earning element, most companies do not handle pricing well
price is set independent of rest of the marketing mix rather
than as an interstice element of market positioning strategic
and price is not valid enough for different products items and
market segments.

        Companies handle pricing in a variety of ways. In
small companies prices are often set by the top management
rather than by the marketing or sales department.
                   PRICING POLICY

        There are various methods of pricing such as going
rate pricing, customers cost plus pricing, mark up pricing,
value pricing etc. Pricing policy varies from organization to
organization and from company to company. The pricing
policy of the two companies who are competitors may not be
same. But it helps in determining the price of the products.

        In this competitive era, any company cannot keep
cost plus pricing because the competitors will lower the
prices and ultimately there will be loss as customer will buy
only those products with reasonable prices. Therefore cost
plus pricing is not beneficial for the company.

         LG gives more importance to prices they set price
as possible low so that middle class and poor people can
also purchase their product.

               The price policy of LG is formulated keeping
in mind, the fact that majority of LG Consumers belong to
upper class & upper middle class. Therefore the pricing
policy is formulated in such a way that it is affordable by all
classes of people & it is not burden on the income. The top
most of the Company formulates all policies.
                     Pricing Objective

            It is only of company to decide the objectives of
pricing before determining the price. The most important
objectives of pricing is to maximum profit. So they fix price
that gives maximum profit and other objectives are:

    To achieve target return on investment.
    To maintain or improve a large share of the market
    To meet or prevent competition.
    To survival and growth of business.

       In LG company determining objectives of pricing
policy with considering reaction of customers, competitors ,
distributors and also government policy and after these all
factor determine they fixed price. The main objective of
price is to maximize profit and survival and growth of
                     Discount Policy

          Discount is an amount deducted from the price of
the product and though the profit of all parties can be
maintained. Discount is given to the customer for early
payment, to increase off season buying and to increase sales
volume. Discount is very popularly used to increase the sales
volume. Top management used this tool very effectively.
Discount may be in term of cash, quality function or
seasonal. These discounts are directly or indirectly
beneficial to all parties concerned in buying and selling.

       “LG company” do not believes in such discount
policy. They give some extra benefit with every sale.
Because it has covered sufficient market share through its
best quality. But in the festival time if declare the discount
scheme in the market.

        Allowances are the other type of reduction from the
list price. For e.g. trade in allowances is price reduction
granted for turning all item when buying a new one.
Promotion as allowances is payment of price reduction to
reward the dealers and distribution for participation in
advertising and sales support programmed.

       LG Company is given commission to agent for trade
promotions activities.

SR.                PARTICULARS
 (1)   Introduction
 (2)   Channels Of Distribution
 (3)   Distribution Network
 (4)   Location
 (5)   Physical Distribution
 (6)   Transportation


       “Marketing channels can be viewed as sets of inter
dependent organizations involved in the process of
marketing product or service available for use or

                                              - Philip Kotler

        This is third important element of marketing mix. It is
also known as distribution mix. Between products & the final
customers there are so many marketing intermediates
performing a variety of function. In place mix, we take into
account various distribution channel of the organization
storage inventory control system & physical distribution of
the products.

        So, place mix is related to various places where
marketing activities of the firm are carried on. Therefore
place mix covers all the major activities of marketing as a
related place. Due to this place mix, it covers all the markets
of the product transport area & also include the inventory &
storage department of the firm.

    So, we can say that the scope of place mix is much wide.
               Channels of Distribution

         Channel of distribution means router or pathways
through which goods or services flow from producer to

    The types of channels of distribution are as follow:

    1. Two level channel ;( producer & consumer):

         A producer may sale his goods directly to the
consumer by employing his own personal to distribute on
door to door basis.

    2.     Three   level   channel   :(   Producer,   Retailer,

          This type of channel contains one intermediate in
keeping the producer consumer. He must be retailer we
often see that some big retailer purchase directly from
     3. Four level channel:(Producer ,Agent, retailer,

      Many Producers prefer to vice agent. Selling agent
to reach the retail market.

      LG Company mostly adopts the four level channels,
sometimes it also adopts three level channels also.

      LG Company adopts the following distribution
channel for the market.




    For Rajkot level:

               The company adopts two level channel of



     For saurashtra & kucth level:



                Distribution Network

    Some companies have small distribution network
because it wants to establish its image in small market and to
create monopoly of its product. Some companies have large
coverage of market; generally they are large size companies.

    LG has coverage in whole India. In international market
it covers more than 70 countries like UK, USA, UAE,
Egypt,    South    Africa,   Kenya,     Hungary,    Shrilling,
Bangladesh, Vietnam, Nepal, Hong Kong, Ethiopia,
Russia, Sudan, Nigeria, Spain, Austria, Singapore, Israel,
Uganda, Malaysia, Indonesia etc.

     In Place Mix location plays a significant role because it
decides many decision like channel of distribution, its cost
coverage etc. Location should be selected in taking
consideration the factors as follows:

      Availability of raw materials
      Cheap and skilled Labor
      Transport factor
      Government assistance
      Personal Factor
      Market Factor

     The present location at the firm is optimum for all
necessary infrastructure and other facilities are available
easily. The finance & banking as well as other facilities like
labour supply, accessibility to markets, and proximity to
needed transportation are also easily available at this

         Transportation means a transport a goods from
one place to another place.

         In export order a LG send a goods by ship way.
They send goods from kandla port which is one of the free
trade zone in India. LG send order by printed box shipping
co. pvt. Ltd.it is natural that, in domestic market they use a
road way by transportation.

SR.                  PARTICULARS
 (1)   Introduction
 (2)   Advertising
 (3)   Personal Selling
 (4)   Sales Promotion

    Promotion     has   three   specific   purposes.   It
communicates marketing information to consumers,
users and reseller. It is not enough to communicate
ideas. Promotion persuades and convinces the buyer
and influences his/her behavior to take the desired
action. Promotional efforts act as powerful tools of
competition providing the cutting edge of its entire
marketing programme.

    Broadly speaking promotion means to push
forward or to advance an idea in such a way as gain as
its acceptance and approve. Promotion is any
communicative, activity whose main objective is to move
forward a product, service or idea in any channel of
distribution. It is an effort by a marketer to inform and
persuade buyers to accept, recommended or use the
article, service or communication with an additional
element of persuasion. The promotional activity always
attempts to affect ideas, products services etc. is the
heart of promotion
    Modern     marketing   causes   for   more   than
developing a good product priding attractively and
making it accusable to target Customers Company
must also communicate with their present and potential

      Advertising is a form of mass communication; it is
a paid form by a sponsor who wants to communicate
about his product or service to his customer.

  “Advertising is any paid form of non-personal
presentation of ideas, goods or services by business
firms, identified in the advertising message intended to
lead to a sale immediately or eventually”.

   Advertising involves the uses of such media as
Magazines, News Papers, Outdoor Posters, Neon
Signs, Radio, Television, Catalogues, Directories,
Pamphlets, and Direct Marketing etc.

   As far as the advertising of LG is concerned there
is no doubt that, it is adequately and continuously
managed with considerable efforts in very accurate

   LG advertising is effective and attractive perhaps it
is the factor by which it has been really able to generate
and create good demand and a reputed name in the
field of Electronic & Home Appliances.
              Personal Selling

    “Personal Selling is the oral presentation in
conversation with one or more prospective purchasers
for the purpose of making sales”.

    Generally LG does not go for personal selling.
As it has strong distribution network, all the products
are available everywhere and the consumers are aware
of the same through advertising and sales promotion
schemes. The company does not need to go for
Personal Selling.

    But if there is any prospective customer who wants
to buy bulk order for his personal use, the company
undertakes Personal Selling for those customers.
                 SELECTION OF MEDIA

    There is no. of choices available to the company for
advertising its products. Nevertheless, it has to select the
most cost efficient & that media by which most of persons
are attracted.

          The reason behind better media is to have better
reach, frequency & impact. The task of management is to
identify available media, evaluate them as per considered
factors & select the best media in order to achieve the set

    LG takes into consideration the following aspects while
selecting the media.

1. Target Audience:-

     Target audience is the first & the main factor in
selection of media. If the company has to give advertisement
of oven or washing machine then it would select the
periodicals of magazines, which are read by women. For
advertisement of CTV LG branch office generally prefers
newspapers & for advertisement of audio system in which
their target audience is young generation, they will advertise
their product in such newspaper, which are read mostly by

2. Kinds of Product:-

          The nature of the product determines the media
for the company. If any advertisement of CTV is to be given
than most reasonable source is that of newspapers. For
advertisement of Air Conditioner, it will choose some costly
magazine as it is a high priced product. Therefore, in this
way the product, which is to be advertised, is to be taken into
consideration while selecting the media.

3. Budget:-

    Budget of LG for different media is allocated so it
makes easy for the executives for selection of different
media. According to their budge allocation, spending of
various media is divided.
                 PUBLIC RELATIONS

     Public relations are more subtle and rely mainly on your
own personality. For example, you can deliver public
speeches on subjects suchas economics geo-economics,
fururology to several organizations (civic groups, political
groups, fraternal organizations, professional associations)

     These speeches will enable you to develop new
relationships and their cost is nil1!
                SALES PROMOTION

     It includes fair trades, coupons, and discounts and are
linked to the sales strategy.

     SALES bring in the money. Salesmen are directly
exposed to the pressure of finding prospects making deals,
beating competition and bringing money.

     “Sales promotion mean any steps that are taken for the
purpose of obtaining or increase sales”.

Sales promotion tools:

    Major consumer promotion tools
    Major dealer promotion tools
    Major business promotion tools

     LG Company has adopt Major dealer promotion
tools. The company give commission to agent.
            SWOT ANALYSIS


 LG has very reputed market position
      It is market leader in new innovative in plant and
 machine development.
      main strength is the brand name, LG is to no.1 in
 consumer electronic and home appliance category
 according to brand equity as well as it is mindset of
 consumer (2004, brand equity)
      it is also completive in world class market it is
 certified by 9002 as well as man foreign institute
 certified LG
      it was pioneer in the field of electronics and home
 appliance in India.
      it has great financial position (refer balance sheet)
 having support of share capital.

         LG is having good brand name but according to
    research it’s brand name is at second position, so they
    have to try to improve it.
         LG is buying semi-finished goods from other firm
    rather then they should produce it at home.
         LG having good position in many industries but
    they are somewhat lacking in refrigerator industry.

Opportunities and threats:
         The sale of Colour Television in the year 2003
    was good and increased because of sporting events like
    Cricket World Cup.           With no such major event
    scheduled in 2005, manufacturers will need to be more
    innovative in the coming year.
         The aggressive marketing and pricing by Indian
    Companies       to   counter     the   competition    with
    multinationals are putting margins under pressure.
         The companies are working under very low
    margins. The decline in pricing by the manufacturers as
a whole will have impact on the Company’s revenues
and profits.
     The cost on marketing, advertising and after sale
services is increasing tremendously.
     The consumer electronics market is very price-
sensitive. A surge has already been seen in the demand
for CTV vis-à-vis price cuts. Pricing of a product
largely depends upon the cost of input, distribution,
marketing and general industry scenario in the light of
the level of competition.
     Over the period, costs and interest rates are going
to be the key issues that are likely to shape the growth
rates in the industry. Costs of major inputs have been
on the rise. Inflation linked increases in other expense,
including wages and increasing advertising expenditure
only add further to the situation.     The players are
operating on thin margins and it could be possible that
their investments in brands would reduce sharply.
     Lower priced products wit basic features account
for a major market share of the domestic market on
account of large number of households in middle to
lower income segments.
Lower priced products with basic features account for
a major market share of the domestic market because of
large number of households in middle to lower income
     The market for the consumer electronic good is
increasing in the rural areas. The customers in rural
areas are showing the preferences for the branded
goods instead of local made products.
     The Government has reduced the customs duty
on raw materials and inputs used for manufacturing
electronic components to nil for most items, while duty
on   capital   goods   for   manufacturing    electronics
hardware has been reduced to nil.            The special
additional customs duty of four percent has been
abolished. The peak rate of customs duty has been
reduced from 25 percent to 29 percent, which means,
lower production cost for electronics manufacturers,
and competition will ensure lower prices to consumers.
                        FUTURE PLANS

             To strengthen and maintain & its leadership status,
the LG group has clearly charted out its course for the
future. Aggressive development is in full swing at the R & D
Centers to bring out state-of-the-art technologies including
True Flat, Slim, Extra Slim, Plasma & LCDs, at the

             Cost rationalization processes - are in various
stages - including rationalizing factories in Europe,
increasing automation and improvement of efficiency in
China, accessing flass shells from India for international
CPT facilities and a lot more - are in various stages of

            I internationally all existing client relationships are
being strengthened. The cost competitiveness and increase
in capacity in Mexico and Poland has opened up big
opportunities in the business.
Last but not the least, in the domestic market consolidation
with multiple brands paves the way for an unassailable lead in
the market.

         In the Oil & Gas business, having all the basic
operator capabilities of a prospecting entity, the group is
looking to add more explorations and production depth as
also oil bearing assets. The group will also get into gas
distribution in India significantly.

     Viewing LG International Ltd. from every angle, it can
be concluded that overall the unit is progressing good
because LG International Ltd. has provided excellent
quality of product due to sophisticated technology
computer used & highly qualified technical staff. By this way,
they can be able to create good demand of their product &
satisfy the consumer.

     As far as advertisement is concerned this companies
advertising department is effective and they spent lot of
money for advertisement and attract the customers.

     It can be said that credit of success of the company
goes to management as well as workers & Employees that
LG International Ltd. has bring bright future.

     In short, its grip on every aspect of the business is tight
which helps it in fight every uncertainty. If it continues to do
well sure its future will be full of success.

The key elements, which will enable LG to achieve
greater progress and market share:

     In house manufacture of parts like Glass Shells,
etc. can put company in cost advantageous position,
but glass cell manufacturing may not long time business
because new technology like LCD and Plasma do not
need this.      Company purchase new glass cell
manufacturing factory so they have to conceder this

     The company can also takes advantage of
reduced taxes and other incentives granted by certain
states in India for locating manufacturing facilities in
such states and economic zone.

     LG should have each and every product has
covered the spectrum from the least to most expensive.
In their respective categories, thus meeting requirement
of all class of customers.
     The company sells its products through a well-
expanded network of independent retail outlets located
throughout India, which are supported by the
company’s strong sales force.    But this distribution
network can prove sometime very expensive. So, if LG
establish it’s own show room then they can get benefits
of this price difference.

     Things done by R&D department, but promotion
of refrigerator may lacking.

   For Preparing A Project Report, We Requrie
Practical As Well As Theorical Knowledge . So I
Use Some Books         & Site Which Helps Me To
Prepare The Report .

    Following Are The Books & Media Which I Can
Take Help For The Report .

Marketing Management -Philip Kotler

Marketing Management-S.A.Sherlekar


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