Dinu Mudukad Lg Mumbai

Submitted in partial fulfilment of the course requirements of Masters in Business Administration Dated: August 31, 2008 Submitted by Dinu Mudukad (CPG 07 BM 029) Amrita School of Business Amrtia Vishwa Vidyapeetham Coimbatore- 641105

Under the guidance of: External Guide:

Faculty Guide:

Mr. Nishkam Bhasin Branch Manager LG Electronics India Pvt. Ltd Mumbai Branch Office

Shri. Easwar Krishna Iyer Professor, Marketing Amrita School of Business Ettimadai, Coimbatore

DECLARATION I, Dinu Mudukad, second year MBA student of Amrita School Of Business, hereby declare that the project titled “Why LG is not the market leader in the GSM mobile segment in the Mumbai region”, has been done by me under the guidance of Prof. Easwar Krishna Iyer, Asst. Professor Marketing, Amrita Vishwa Vidyapeetham, Mr.Nishkam Bhasin, Branch Manager at LG Electronics India Pvt. Ltd, Mumbai and Mr. Samir Sheik, Area Manager - GSM, LG Electronics India Pvt. Ltd, Mumbai during the period May-June 2008. I also declare that this project has not been submitted by me, fully or partially, for the award of any other degree, diploma, title or recognition elsewhere.

Date: August 31, 2008

Dinu Mudukad, Amrita School of Business

2

ACKNOWLEDGEMENT I have great pleasure in thanking LG Electronics India Pvt. Ltd for having given me this opportunity to do my Summer Project with them. I would like to thank my Project Guide in the Company, Mr. Nishkam Bhasin and Mr. Samir sheik, for their invaluable assistance and support. I also take great pleasure to thank my project guide in college, Prof. Easwar Krishna Iyer for his guidance throughout the project. I would like to thank all the employees and customers of LG, who helped me complete my project successfully. Finally, I would like to extend my esteem gratitude to my family for the constant support and encouragement. I would also like to thank the Almighty without whose grace; this endeavour of mine would not have been possible.

Dinu Mudukad Amrita School of Business

3

EXECUTIVE SUMMARY India is the fastest growing mobile phone market in the world, adding around 6 million subscribers every month. The total mobile phone user population in the country is around 250 million. It is again expected to grow and reach 500 million by 2010. One of the major reasons for this particular phenomenon is that the disposable incomes of the people are increasing. In this 250 million more than 50% are GSM users. The size of the Indian mobile handset market was found to be Rs 8,805 crores. India is currently the third largest mobile phone market in the world. LG Electronics India Pvt. Ltd is the market leader in consumer durables industry and is recognised as a leading technology innovator in the information technology and mobile communications business. It is a wholly owned subsidiary of LG Electronics, South Korea, and was established in India in January, 1997. It has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. It is the fifth largest mobile handset manufacturer in the world and it also retains the same position in India. In India, LG is the market leader in the case of CDMA phones with a market share of more than 59%. The Mumbai market scenario is not favouring LG GSM mobiles. Company stands last when we consider major players like Nokia, Sony Ericsson, Samsung, Motorola etc. LG GSM mobile segment has a current market share of 2% in Mumbai region. LG wants to achieve the feat of being the top seller by bringing in better priced models which are also better phones and also by improving the support from the retailers by providing better schemes. LG wanted to know the reasons for why LG is not the market leader in Mumbai market The objective was to find out why LG is not the market leader in Mumbai region. The entire project was divided into two objectives. First one was to find out the consumer perception and the second one was finding out the retailers perception. The effectiveness of promotional activities of the company was also checked

4

The research design that followed started with an Exploratory Research, during this period, interviews and discussions were conducted both with the company officials and also the major mobile phone retailers. Mystery shopping was also instrumented. Interactions with LG distributors and competitor’s distributors were also arranged. In the consumers side depth interviews were conducted. This process helped to understand and study the current scenario. From the study questionnaire was framed for retailers and consumers. The survey was conducted across Mumbai, with a retailers sample size of 100 and consumers with 200. At the end of the study, a few of the conclusions and recommendations that were arrived at following study have been mentioned below: •

Retailers are not satisfied about the current scheme; company should introduce new schemes which benefit the retailers. From the survey it is found that 65% of retailers wanted more benefits and also satisfaction level of current scheme is also very low

•

Company should increase shop promotional activities. In the 100 retail outlets surveyed LG’s presence was only in 18 retail outlets and market leader was present in all the retail outlet surveyed

•

Company should improve the technical parameters of the handsets like the ease of use, battery backup, signal strength etc. In the consumers survey, it is found that the 157 consumers gave the above reasons for not preferring LG GSM mobile phones and it is also found that the 43 consumers who has used LG mobile phone gave very poor ratings for the above parameters

•

Company should give consumers more choice of products in the range of Rs 8000-12000 price tags. It is found that average budget of a consumer in Mumbai comes in this range.

•

Company should improve the advertisement campaign to consumers because in the survey it is found that consumers are less aware of LG mobiles and in consumers surveyed only 30.5% has seen LG’s ads. Those who have seen the ad showed a poor recall.

5

List of figures ................................................................................................................. 7 List of tables ................................................................................................................... 9 CHAPTER 1: INTRODUCTION TO THE PROJECT ............................................... 12 1.1 OBJECTIVE AND SCOPE OF THE PROJECT .............................................. 13 1.2 METHODOLOGY ............................................................................................ 13 1.3 LIMITATIONS .................................................................................................. 14 CHAPTER 2: INDUSTRY OVERVIEW .................................................................... 14 2.1 INDIAN SCENARIO ........................................................................................ 15 CHAPTER 3: COMPANY OVERVIEW - LG ELECTRONICS ............................... 17 3.1 Vision: Global Top 3 by 2010 ........................................................................... 17 3.2 Growth Strategy ................................................................................................. 18 3.3 Core Capabilities ................................................................................................ 18 3.4 The LG Brand .................................................................................................... 18 3.5 Positioning Statement ........................................................................................ 18 3.6 Slogan ................................................................................................................ 19 3.7 LG Electronics in Indian Mobile Market ........................................................... 20 CHAPTER 4: RESEARCH DESIGN.......................................................................... 21 4.1 Management Decision problem ......................................................................... 21 4.2 Marketing Research problem ............................................................................. 21 4.3 PROJECT FLOW .............................................................................................. 22 CHAPTER 5: OBJECTIVE 1 ...................................................................................... 23 5.1 APPROACH TO THE PROBLEM: - ................................................................ 23 5.2 METHODOLOGY ............................................................................................ 24 5.3 RESEARCH DESIGN ....................................................................................... 24 5.4 DATA ANALYSIS ............................................................................................ 25 5.4.1 QUESTIONNAIRE DESIGN ..................................................................... 25 5.4.2 SAMPLING PLAN ..................................................................................... 25 5.4.3 DATA COLLECTION AND CLEANING ................................................ 25 5.4.4 EXPLORATORY RESEARCH ................................................................. 26 5.4.5. SECONDARY RESEARCH ..................................................................... 28 5.4.6. COMPETITORS ........................................................................................ 31 5.4.7 New Offers from LG................................................................................... 34 CHAPTER 6: OBJECTIVE 2 ...................................................................................... 35 6.1 APPROACH TO THE PROBLEM: .................................................................. 35 6.2 METHODOLOGY ............................................................................................ 36 6.3 RESEARCH DESIGN ....................................................................................... 36 6.4 DATA ANALYSIS ............................................................................................ 37 6.4.1 QUESTIONNAIRE DESIGN ..................................................................... 37 6.4.2 SAMPLING PLAN ..................................................................................... 37 6.4.3 DATA COLLECTION and CLEANING ................................................... 37 6.4.4 EXPLORATORY RESEARCH ................................................................. 38 6.4.5 SECONDARY RESEARCH ...................................................................... 39 CHAPTER 7: DATA ANALYSIS AND FINDINGS ................................................. 40 7.1. RETAILERS ..................................................................................................... 40 7.2 CONSUMERS ................................................................................................... 78 CHAPTER 8: RECOMMENDATIONS.................................................................... 113 8.1 RETAILERS .................................................................................................. 113 8.2 CONSUMERS ................................................................................................. 114 6

CHAPTER 9: REFERENCES ................................................................................... 116 CHAPTER 10: APPENDIX ...................................................................................... 117 10.1 RETAIL QUESTIONNAIRE ........................................................................ 117 ...................................................................................................................... 117 10.2 CONSUMERS QUESTIONNAIRE .............................................................. 123 ...................................................................................................................... 123

Figure 1. WORLD MARKET SHARE ...................................................................... 15 Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS... 20 Figure 3. PROJECT FLOW ......................................................................................... 22 Figure 4. APPROACH TO OBJECTIVE 1 ................................................................. 23 Figure 5. INDIAN GSM HANDSETS MARKET SHARE ....................................... 28 Figure 6. NEW LAUNCHES IN MONTH OF MARCH’08 ...................................... 29 Figure 7. MUMBAI GSM HANDSET MARKET SHARE ....................................... 30 Figure 8. APPROACH TO OBJECTIVE 2 ................................................................. 35 Figure 9. SEGMENT CONTRIBUTION TO ZONES ................................................ 39 Figure 10. RATINGS OF NOKIA ............................................................................... 41 Figure 11. RATINGS OF SONY ERICSSON ............................................................ 42 Figure 12 RATINGS OF SAMSUNG ......................................................................... 42 Figure 13. RATINGS OF MOTOROLA ..................................................................... 43 Figure 14. RATINGS OF LG ...................................................................................... 44 Figure 15. RATINGS OF FLY .................................................................................... 44 Figure 16. PROMOTION OF NOKIA ....................................................................... 46 Figure 17. TABLETOP OF NOKIA ........................................................................... 47 Figure 18. WALL PAINTINGS OF NOKIA .............................................................. 47 Figure 19. DISPLAYS OF NOKIA’S NEW MODELS .............................................. 48 Figure 20. NOKIA FLUX ............................................................................................ 48 Figure 21. PROMOTION OF SONY ERICSSON ..................................................... 50 Figure 22. TABLELTOPS OF SONY ERICSSON..................................................... 51 Figure 23. SONY ERICSSON WALL PAINTINGS .................................................. 51 Figure 24. SONY ERICSSON FLUX ......................................................................... 52 Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL ................................. 52 Figure 26. PROMOTION OF SAMSUNG .................................................................. 54 Figure 27.SAMSUNG TABLE TOPS ......................................................................... 55 Figure 28. SAMSUNG WALL PAINTINGS .............................................................. 55 Figure 29. SAMSUNG DISPLAYS OF NEW MODEL ............................................. 56 Figure 30. SAMSUNG FLUX ..................................................................................... 56 Figure 31. PROMOTION OF MOTOROLA.............................................................. 58 Figure 32. MOTOROLA TABLETOPS ...................................................................... 58 Figure 33. MOTOROLA WALL PAINTINGS ........................................................... 58 Figure 34. MOTOROLA FLUX .................................................................................. 59 Figure 35. PROMOTION OF FLY ............................................................................. 61 Figure 36. FLY TABLETOP ....................................................................................... 61 Figure 37. FLY FLUX ................................................................................................ 61 Figure 38. FLY WALL PAINTINGS .......................................................................... 62 Figure 39. FLY DISPLAYS OF NEW MODEL ......................................................... 62 Figure 40. PROMOTION OF LG ............................................................................... 64 Figure 41. TABLETOPS OF LG ................................................................................. 64 7

Figure 42. LG WALL PAINTINGS ............................................................................ 64 Figure 43. LG DISPLAYS OF NEW MODEL ........................................................... 65 Figure 44. LG FLUX ................................................................................................... 65 Figure 45. LIVE DEMO SUPPLY .............................................................................. 66 Figure 46. LG SATISFACTION OF AWARENESS .................................................. 68 Figure 47. MOTOROLA SATISFACTION OF AWARENESS ................................ 68 Figure 48. NOKIA SATISFACTION OF AWARENESS .......................................... 69 Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS ........................ 69 Figure 50. SAMSUNG SATISFACTION OF AWARENESS................................... 70 Figure 51. FLY SATISFACTION OF AWARENESS................................................ 70 Figure 52. OFFLINE MODE ....................................................................................... 71 Figure 53. PROBLEMATIC AREA - USERFRIENDLY.......................................... 72 Figure 54. PROBLEMATIC AREA - OFFERS .......................................................... 73 Figure 55. PROBLEMATIC AREA- PRODUCT RANGE ........................................ 74 Figure 56. SATISFACTION LEVEL – AFTER SALES SUPPORT.......................... 75 Figure 57. SATISFACTION LEVEL OF ACCESSORIES AVAILABILITY ........... 76 Figure 58. RETAILERS RECOMMENDATIONS ..................................................... 77 Figure 59. BREAK UP- GENDER ............................................................................. 79 Figure 60. BREAK UP - AGE ..................................................................................... 79 Figure 61. BREAK UP OCCUPATION...................................................................... 80 Figure 62. BREAK UP ANNUAL INCOME .............................................................. 80 Figure 63. HANDSET TYPE ...................................................................................... 81 Figure 64 . AWARENESS OF LG .............................................................................. 81 Figure 65. BUDGET .................................................................................................... 82 Figure 66. FORM OF HANDSETS ............................................................................ 83 Figure 67. DUAL SIM ................................................................................................. 84 Figure 68. PHONE WITH BOTH GSM&CDMA ...................................................... 85 Figure 69. ACCESSORY SPECIFIC .......................................................................... 86 Figure 70. MEMORY OPTION .................................................................................. 90 Figure 71. USER FRIENDLY ..................................................................................... 90 Figure 72. LESS CHOICE ........................................................................................... 91 Figure 73. LESS PRODUCT FEATURES .................................................................. 91 Figure 74. PICTURE AND SOUND QUALITY ........................................................ 92 Figure 75. BATTERY UP............................................................................................ 92 Figure 76. AWARENESS OF MODEL ...................................................................... 92 Figure 77. AVAILABILITY ....................................................................................... 93 Figure 78.COST OF PHONE ...................................................................................... 93 Figure 79. OTHER REASONS.................................................................................... 94 Figure 80. FIRST TIME EXPERIANCE..................................................................... 97 Figure 81. HEATING UP OF PHONE ....................................................................... 97 Figure 82. POOR BATTERY ...................................................................................... 98 Figure 83. AVAILABILITY OF ACCESSORIES ...................................................... 98 Figure 84. LOW SIGNAL STRENGTH ..................................................................... 99 Figure 85. NOT SUITABLE FOR ROUGH USE ....................................................... 99 Figure 86. FREQUENT COMPLAINTS ................................................................... 100 Figure 87. POOR AFTER SALES SERVICE ........................................................... 100 Figure 88. RATING OF USER FRIENDLINESS..................................................... 104 Figure 89. RATINGS OF PICTURE AND SOUND QUALITY .............................. 104 Figure 90. RATINGS OF SIGNAL STRENGTH ..................................................... 105 Figure 91. RATINGS OF BATTERY LIFE .............................................................. 105

8

Figure 92. RATING OF AFTER SALE SERVICE................................................... 106 Figure 93. RATING OF PROMOTION AND LOW COST ..................................... 106 Figure 94. RATING OF LONG LASTING.............................................................. 107 Figure 95. PRICE FACTOR ..................................................................................... 108 Figure 96. RANGING TV& OTHER COMMERCIALS......................................... 109 Figure 97. REACH OF AD...................................................................................... 110 Figure 98. AD FEED BACK .................................................................................... 111 Figure 99. PREFERANCE OF TOUCH SCREEN .................................................. 112

Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS .................................... 40 Table 2. RATINGS OF NOKIA .................................................................................. 40 Table 3. RATINGS OF SONY ERICSSON ................................................................ 41 Table 4. RATINGS OF SAMSUNG ........................................................................... 42 Table 5. RATINGS OF MOTOROLA ........................................................................ 43 Table 6. RATINGS OF LG .......................................................................................... 43 Table 7. RATINGS OF FLY ....................................................................................... 44 Table 8. PROMOTION OF NOKIA ............................................................................ 45 Table 9 . NOKIA TABLETOP DISPLAY .................................................................. 45 Table 10. NOKIA DISPLAY OF NEW MODEL ....................................................... 45 Table 11. NOKIA FLUX ............................................................................................. 46 Table 12. NOKIA WALL PAINTING ........................................................................ 46 Table 13. SONY ERICSSON PROMOTION ............................................................. 49 Table 14. SONY ERICSSON DISPLAY OF NEW MODEL ..................................... 49 Table 15. SONY ERICSSON WALL PAINTING ...................................................... 49 Table 16. SONY ERICSSON TABLETOP ................................................................. 49 Table 17. SONY ERICSSON FLUX ........................................................................... 50 Table 18. PROMOTION OF SAMSUNG .................................................................. 53 Table 19. SAMSUNG WALL PAINTINGS ............................................................... 53 Table 20. SAMSUNG TABLE TOP ........................................................................... 53 Table 21. SAMSUNG DISPLAYS OF NEW MODEL .............................................. 53 Table 22. SAMSUNG FLUX ...................................................................................... 54 Table 23. PROMOTION OF MOTOROLA ................................................................ 56 Table 24. MOTOROLA TABLETOP ........................................................................ 57 Table 25. MOTOROLA WALL PAINTINGS ............................................................ 57 Table 26. MOTOROLA DISPLAYS OF NEW MODEL ........................................... 57 Table 27. MOTOROLA FLUX ................................................................................... 57 Table 28. PROMOTION OF FLY ............................................................................... 59 Table 29. TABLE TOP OF FLY ................................................................................. 59 Table 30. FLY WALL PAINTINGS ........................................................................... 60 Table 31. FLY DISPLAYS OF NEW MODEL .......................................................... 60 Table 32. FLY FLUX .................................................................................................. 60 Table 33. PROMOTION OF LG ................................................................................ 62 Table 34. LG TABLE TOP .......................................................................................... 63 Table 35. LG WALL PAINTING ................................................................................ 63 Table 36. LG DISLPLAYS OF NEW MODEL .......................................................... 63 Table 37. LG FLUX ..................................................................................................... 63 Table 38. LIVE DEMO SUPPLY ................................................................................ 66 9

Table 39. AWARENESS OF LG................................................................................. 66 Table 40. AWARENESS OF MOTOROLA ............................................................... 67 Table 41. AWARENESS OF NOKIA ......................................................................... 67 Table 42. AWARENESS OF SONY ERICSSON....................................................... 67 Table 43. AWARENESS OF FLY .............................................................................. 67 Table 44. AWARENESS OF SAMSUNG .................................................................. 68 Table 45. OFFLINE MODE ........................................................................................ 71 Table 46. CROSS TABULATION .............................................................................. 72 Table 47. USER FRIENDLY ...................................................................................... 72 Table 48. OFFERS ....................................................................................................... 73 Table 49. PRODUCT RANGE .................................................................................... 74 Table 50. AFTER SALE SUPPORT ........................................................................... 75 Table 51. AVALABILITY OF ACCESSORIES......................................................... 76 Table 52. RETAILERS RECOMMENDATIONS ...................................................... 77 Table 53. TOTAL BREAK UP .................................................................................... 78 Table 54. GENDER BREAK UP................................................................................. 78 Table 55. AGE BREAK UP........................................................................................ 78 Table 56. OCCUPATION BREAK UP ....................................................................... 78 Table 57. ANNUAL INCOME BREAK UP ............................................................... 79 Table 58. AWARENESS OF LG................................................................................. 80 Table 59. BUDGET ..................................................................................................... 81 Table 60. TYPE OF HANDSET PREFERENCE........................................................ 82 Table 61. DUAL SIM .................................................................................................. 83 Table 62. SUPPORT BOTH GSM & CDMA ............................................................. 84 Table 63. ACCESSORY SPECIFIC ............................................................................ 85 Table 64. LESS MEMORY OPTION ......................................................................... 87 Table 65. NOT USER FRIENDLY ............................................................................. 87 Table 66. LESS CHOICE ............................................................................................ 87 Table 67. BAD PICTURE AND SOUND ................................................................... 87 Table 68. LESS BATTERY UP................................................................................... 88 Table 69. LESS PRODUCT FEATURES ................................................................... 88 Table 70. NOT AWARE OF MODELS ...................................................................... 88 Table 71. NON AVAILABILITY ............................................................................... 88 Table 72. COST FACTOR .......................................................................................... 89 Table 73. INTEREST FACTOR .................................................................................. 89 Table 74. OTHER OPTIONS ...................................................................................... 89 Table 75. FIST TIME EXPERIENCE ......................................................................... 95 Table 76. HEATING UP OF PHONE ......................................................................... 95 Table 77. POOR BATTERY ...................................................................................... 95 Table 78. AVAILABILITY OF ACCESSORIES ....................................................... 96 Table 79. SIGNAL STRENGTH ................................................................................. 96 Table 80. COMPLAINTS ............................................................................................ 96 Table 81. ROUGH USE ............................................................................................... 96 Table 82. POOR SERVICE ......................................................................................... 96 Table 83. TOTAL RESPONDENTS IN RATINGS.................................................. 101 Table 84. RATINGS IN USER FRIENDLY ............................................................. 101 Table 85. RATINGS IN PICTURE & SOUNG ........................................................ 102 Table 86. RATINGS IN SIGNAL STRENGTH ....................................................... 102 Table 87. RATINGS IN BATTERY LIFE ................................................................ 102 Table 88. RATINGS IN PROMOTIONS AND LOW COST ................................... 102

10

Table 89. RATINGS IN AFTER SALES .................................................................. 103 Table 90. RATING IN LONLASTING ..................................................................... 103 Table 91. PRICE FACTOR ....................................................................................... 107 Table 92. RANK FOR TV& OTHER COMMERCIALS ......................................... 108 Table 93. LG’S NEW AD........................................................................................ 110 Table 94. AD FEED BACK....................................................................................... 111 Table 95. TOUCH SCREEN PREFERANCE ........................................................... 112

11

This project was aimed at finding the reasons of LG not selling properly in the Mumbai region, in retailer’s and consumer’s perspective. The whole project was divided into two phases. Phase one involved knowing more about the GSM handset market in this region, learning more about the schemes that each company provides to the retailers, the price protection details of each company, the marketing strategies of each company and also learn more about the LG strategies. This was accomplished by conducting expert interviews, i.e. speaking with the major GSM retailers in the region. It also included tracking of different promotional activities present in each of the outlets visited. The other part of this phase included talking to the consumers about their general preferences while buying a GSM mobile phone and analysing this data for utilising it to increase the sales of LG. The second phase was featured by data collection in both consumer’s and retailer’s end with the help of properly framed questionnaires. Retailer’s survey was mainly focussed under the distributors and consumer’s survey was mainly focussing on different areas of Mumbai An additional job that came in my way was to check whether the promoters were good enough and whether they had adequate information about the product. This was completely done in the retail outlets under different distributors in which they have a company appointed LG promoter. The way used to accomplish this objective was mystery shopping.

12

1.1 OBJECTIVE AND SCOPE OF THE PROJECT •

To find out why LG is selling less in the Mumbai region.

•

To find out the perception of retailers towards LG mobiles and its competitors

•

To find out the reach and effect of promotional activities in retail outlets

•

To find out the attributes a consumer considers while buying a mobile phone

•

To understand the consumers perception towards LG GSM mobile phones and its competitors

•

To find out the awareness about LG GSM mobiles in consumers

1.2 METHODOLOGY The entire primary research study was done in Mumbai market. The project was conducted in both the retailer’s and consumer’s perspective. In order to provide a current snapshot, the data collection was achieved through direct interviews and questionnaire survey in both perspectives. The selected retail outlets under five distributors were selected and survey was conducted. Questionnaire design was based on the facts obtained from the exploratory research. One-on-one interviews with retailers were also conducted. The total sample size was 100 retailers. The technique used to find out the effectiveness of promoters was mystery shopping. The techniques used for the data collection was one–on-one interview with consumers. The instrument used for data collection is ‘Structured Questionnaire’ which is designed from the findings in the exploratory research. The questionnaire was administrated through the central, western and harbour parts of Mumbai. The sample consists of the consumers aged 18 to 55 years. Sampling technique used is judgemental. In addition to primary research the secondary data was collected from magazines, internet etc.

13

1.3 LIMITATIONS 1. The findings are based entirely upon the research conducted in Mumbai and hence may not be applicable to other metropolitan cities on account of socio cultural diversity and contextual factors. 2. Surveys should be taken periodically because the consumer perception will change with time. 3. The accuracy of the data collected cannot be verified.

Mobile phones have gained a lot of popularity and are considered to be great multimedia tools. Mobile phones are being used for entertainment purposes owing to the introduction of new features every day. They have become more than just calling and receiving devices. Mobile phone handsets now have more business-friendly applications that can enhance anybody’s business. With emerging technology, mobile phones have become more than communication devices; they are the tools to stay ahead of competitors and peers in the present times. According to a report by RNCOS, the mobile handset sales increased from 482.5 million in 2003 to 561 million in 2004. But it was expected that there will be a slow down in the growth rate of the sales in the next five years. The growth rate is expected to be just 4.8 percent in 2008 and 2.6 percent in 2009. Even withstanding that, the annual sales figures are predicted to reach 767 million by the end of 2009. Mobile handsets with better and innovative features have great markets in the developed countries and they have also gained large popularity among the population of these countries. But it is said that it will be the developing markets which are not yet saturated, namely India, Russia, Brazil, Mexico and China that will mainly contribute to the global handset sales.

14

Figure 1. WORLD MARKET SHARE

There are mainly five major players in the world market; they are Nokia, Samsung, Motorola, LG and Sony Ericsson. Nokia is the market leader with 39.1% market share with Samsung in the second position with 14.4%. Motorola and Sony Ericsson stand with third and fourth market shares respectively with 8.4% and 8.2%. LG mobile phone stands in the fifth position with a market-share of 6.2%. Others include players like Apple, Benq, Blackberry, Dopod, Haier, i-mate, O2, Panasonic, Philips, and Siemens etc. 2.1 INDIAN SCENARIO India is a country with the third largest number of mobile users in the world. Still India is considered as a great market for mobile phone growth. Less than 40% of the country’s total area is covered by mobile networks and only 8 in every 100 Indian owns a mobile phone. A lack of adequate infrastructure to support fixed landline services has led to a situation where there are only 50 million fixed landline customers in India, leaving the stage for mobile operators and thereby for the handset manufacturers. According to a research conducted by Gartner, they expect the mobile phone production in India to grow from 31 million units in 2006 at a compound annual

15

growth rate (CAGR) of 28.3 percent to reach 107 million units by 2011. According to the same research, the mobile phone production revenue is expected to reach $13.6 billion by 2011, from $4.6 billion in 2006. IDC has forecasted a 32 percent growth in the mobile handset market and the overall shipments of mobile phones is expected to reach an astounding amount of 80 million. As the mobile service operators are adding more than 5 million subscribers every month, this growth in shipments can be expected. India is also considered as the ‘potential market’ for the mobile phone manufacturers such that many mobile phone companies have decided to or have already set up mobile phone manufacturing units in India. According to the same research, as many as 10,000 mobile phones are being sold every hour in India.

16

!

"

# $

3.1 Vision: Global Top 3 by 2010 LG Electronics is pursuing its 21st century vision of becoming a true global digital leader that can make its customers happy throughout the world by means of its innovative digital products and services. LG Electronics has set a new mid-term and long-term vision, aiming to achieve the position of one of the top three electronics, information, and telecommunication firms in the world by 2010. As such, they are embracing the philosophy of "Great Company, Great People," whereby only great people can create a great company, and pursuing two growth strategies involving "fast innovation" and "fast growth." Likewise, they are also seeking to secure three core capabilities - product leadership, market leadership, and people-centred leadership.

17

3.2 Growth Strategy Fast Growth - It is the result of strategies designed to expand the earnings quickly, while improving the growth rate in terms of monetary value rather than quantity. Fast Innovation - It involves setting extremely high innovation goals and securing a competitive edge, aiming for a target of 30% more than what competitors can achieve. Fast innovation also means 30% more sales and improvement in market share, new product development and unveiling such products 30% faster, developing technology and establishing corporate value three years ahead of competitors.

3.3 Core Capabilities Product Leadership - Refers to the ability to develop creative, top-quality products using specialized new technologies. Market Leadership - Refers to the ability to achieve the "LG brand is No. 1" goal, thanks to its formidable market presence worldwide. People Leadership - Refers to talented people, who perform extremely well by internalizing and executing innovations. The LG brand comprises four basic elements: values, promise, benefits, and personality. 3.4 The LG Brand

3.5 Positioning Statement LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of selfexpression and self-satisfaction. The customer will take pride in owning it and take comfort in knowing he/she has made a smart and informed decision.

18

3.6 Slogan "Life' s Good" represents LG' s determination to provide delightfully smart products that will make the customer’s life good. It best expresses the brand' s values, promises, benefits and personality. It is an ultimate expression for what the brand stands for and what they strive to deliver continuously.

19

3.7 LG Electronics in Indian Mobile Market LG is a Korean based consumer durables company, which has always set its mark in all the fields it has ventured into. This company is already one of the biggest consumer durables company in India and it is also the fifth largest mobile maker in the world. LG ventured into Indian mobile market IN 2003, by launching CDMAenabled services when operators like Reliance started offering WLL. By the end of 2003, LG forayed into the GSM segment by launching two models G5300 AND G7030. Initially, LG had targeted only the premium segment and did not target or did not have any models to compete in the other segments, but later they came out with different models which belonged to different segments so that they could compete with all the other manufacturers like Nokia, Sony Ericcson, Motorola and Samsung. Currently LG has 14 handset models catering to all segments of the people; the price of these mobile phones varies from Rs. 1000 to Rs 25000. Market Share Nokia: 62.5%

Sony: 12.8%

Samsung: 6.2%

Motorola: 5%

LG: 2.5%

Others: 11%

Figure 2. INDIAN MARKET SHARE OF GSM MOBILE PHONE HANDSETS

20

Nokia’s success is mainly attributed to distribution deals they inked - Of the estimated 79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of them .The other brands include FLY, CHINA PHONES, PHILIPS BLACKBERRY, SIEMENS, PANASONIC etc.

%

$

4.1 Management Decision problem To increase the market share of LG mobile phones in Mumbai region. 4.2 Marketing Research problem In this particular scenario, we find the below defined problem as the most apt market research problem: 1. To understand the overall perception of retailers towards LG mobile phones and the effect of promotions and offers 2. To determine underlying factors for less preference for LG GSM mobile phones by consumers The two different research problems can be best explained under two different chapters as the mode of survey and work done for the above cases are different. The work done in the survey can be divided under two basic objectives which mainly focus on retailers and consumer’s perspective which best explains the two research problems.

21

4.3 PROJECT FLOW

Figure 3. PROJECT FLOW

22

&

'

TO UNDERSTAND OVERALL PERCEPTION OF RETAILERS TOWARDS LG MOBILE PHONES AND EFFECT OF PROMOTIONAL ACTIVITIES AND OFFERS. COMPONENTS: 1. To understand the retailers preference towards the brands of LG as compared to its competitors. 2. To understand the satisfaction level of LG mobile brands and its competitor’s brands. 3. To find the problematic areas that retailers are facing while selling an LG GSM mobile phone. 4. To find out the effect of promotional activities inside the shop, considering both LG and its competitors. 5.1 APPROACH TO THE PROBLEM: -

Figure 4. APPROACH TO OBJECTIVE 1

23

5.2 METHODOLOGY The methodology that has been followed is that of direct interviews with the retailers, Direct interviews with service centre people, Questionnaire for retailers was focussed on the problems they are currently facing while selling an LG GSM mobile phone and about the effectiveness of promotion/ advertising activities in their shops, In-depth interviews with LG distributors and competitor’s distributors Sample size contains 100 retailers in Mumbai city Secondary data collection from internet, magazines, company resources.

5.3 RESEARCH DESIGN This section discusses the various methods, techniques and tools that were used for the project. Exploratory research: This method was used at the commencement of the project. This helped in orienting the research process and focus on the appropriate course of action. In this case, the following methods were adopted to get an insight into the problem: •

Secondary data Internet Magazines

•

Primary data a. Qualitative data •

Interviews with retailers

•

Interview with the service centre people

b. Quantitative data Survey Observational and other data

24

5.4 DATA ANALYSIS &(%( )

$

Questionnaire was designed with a primary objective to find the reasons for less sales of LG mobile phones and to find the overall perception of retailers towards the brands of LG GSM mobiles. Questions were also aimed to find out the retailers perception about the competitor brands. Questionnaire also focussed on checking satisfaction level of retailers towards different attributes of LG when compared to its competitors. Questions for understanding the promotional activities of LG and its competitors were also included. Questions to check the awareness among consumers in retailer’s point of view was also included. Feed back and recommendations from retailers was asked through open ended questions in order to obtain more precise answers.

&(%(

"

$

The target population of the research is all the retailers who sell GSM mobile phones in Mumbai, which includes places like Andheri, Vileparle, Goregaon, Santakruz, VT, Church gate, Mumbai central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra, Powai, Marol, etc. The number of sample was directed from the company. In demographic sampling judgemental process was used. Retailers under five major distributor’s area were covered. The selection of shops was on judgemental basis. Sample size: 100

&(%(!

$

The questionnaire was pretested in the market before data collection. Two questions were added and again pretested. The whole process of data collection took 10 days. The responses were analysed using SPSS. The missing values were considerably negligent. One question was eliminated because of the irrelevance in survey.

25

&(%(% *

PRIMARY RESEARCH a) Face to face interactions with retailers. This included a formal talk with retail owners under major distributor area. Retailers were selected according to counter size. The selected retailers were from different distributor’s area. There was around 20 retailer’s interaction, these included retailers who sell 200 LG handsets a month and also few who sell fewer than 5 handsets a month. The interaction was not with the aid of any properly framed questionnaire. This interaction was mainly focussed on the problems that they are facing while selling a LG mobile handset. The discussion was also pointing about schemes of LG and its competitors. They also gave some valuable recommendations Retailers were really unhappy about the offers and benefits that LG Company is offering. LG had come out with different schemes like Scratch Card, Point schemes and now the Basket scheme. According to these retailers, these schemes were not very beneficial and that stood out as one reason why retailers were not purchasing LG phones. As per these retailers the schemes provided by the competitors like Sony Ericsson, Samsung and Motorola were better than that of LG. They also informed that companies like Sony Ericsson and Samsung also gave a large discount of 2 - 3% when they purchased a bulk amount; this was in addition to the schemes they provided. This also helped them to sell these products at lesser price and earn the same profit as that of LG. They also said that Nokia had a classification of retailers according to the sales volume and each retailer was getting Rs 20 extra on each of the model they sold. Nokia also did better promotional activities in the shops of the most preferred retailers. They also indicated that the billing system of NOKIA is perfect; as far as LG is concerned retailers have to wait for one week. Nokia also provides target sales achievement which is also a benefit for retailers Retailers were also complaining about the price protection scheme of the company. The retailer who sells more than 200 handsets of LG mobiles which comes under the

26

S+ category said that the price protection scheme should be increased for the high end mobile phones of LG. This point was raised by almost all the retailers. The retailers other than the category of S+ were complaining about the non availability of brochures of new models. They said that whenever a new model was launched they received the brochure typically after one month. They said that this negligence from the company’s side results in missing valuable sales opportunities, because the promoters were finding hard to explain about the product without a brochure and it is not practical to open a sealed box to show the product. The retailers were also complaining about the bad service quality of LG service centres. They are also unaware of the location of service centres which LG Company operates in Mumbai. Retailers also complained about the bad promotional campaigns of LG. According to retailers, consumers are unaware of the products launched by LG; they quoted the example of KS 20 model. They also said that the accessories of LG are not available and more over costly. The request from retailers was to give live demo models in order to show the features and technology that LG is offering to consumers. a) MYSTERY SHOPPING This was employed to find out the effect of promotions inside the shop. Mystery shopping was conducted in five major shops in Mumbai. Acting as consumer who wanted to buy a mobile preferably LG. The conclusions are LG promoters are not aware of the new models launched in the market and they were also not smart in convincing consumer. They also lack in communication skills. b) DIRECT INTERVIEW WITH SERVICE CENTRE STAFF In Mumbai there are 18 service centres for LG which is directly operated by the company. The interview with service centre people was mainly focussing on the type of complaints that LG phones are currently encountering. The major complaints that LG phones are facing is error in the software. The other major complaint is that of poor battery back -up of the phones. The complaints are generally fixed within 36 hours. The major feedback from the service

27

centre people is that consumers are unaware of the location of service centres in Mumbai. &(%(&(

This process involved getting data regarding the schemes of LG and its competitors; it also involved the analysis of all the data that was collected from secondary sources. In India the total number of mobile subscribers is nearly 201 million. Earlier mobile phones were used just to make and receive calls but now it is not so, it is called as the ‘Fourth Power’. It has emerged as an alternative to cinema, TV and computer screens (Business world). Now people are looking for value added services with each mobile phone. All the mobile manufacturers in India are trying to upgrade their networks to Edge and 3G. MARKET SHARE Nokia: 62.5%

Sony: 12.8%

Samsung: 6.2%

Motorola: 5%

LG: 2.5%

Others : 11%

Nokia Sony Samsung Motorola LG Others

Figure 5. INDIAN GSM HANDSETS MARKET SHARE

28

Nokia’s success is mainly attributed to distribution deals they inked - of the estimated 79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of them.(www.gartner.com) NEW MODELS LAUNCHED In the month of March ’08 there are the following new models launched by various companies.

Figure 6. NEW LAUNCHES IN MONTH OF MARCH’08

29

In India the top selling model for the month of March was Nokia 1208, which sold around 2, 60, 000 handsets all over the country. The other models are 1200, 1650, 2626. These models are also from Nokia. In Mumbai the total market share of LG is 2%. Nokia is the market leader with 64% share. In Mumbai in the month of May Nokia sold around 160000 handsets approximately. LG sold around 10,000 handsets.

Figure 7. MUMBAI GSM HANDSET MARKET SHARE

30

&(%(+(

"

The major players in the Indian mobile market are Nokia, Sony Ericsson, Samsung, Motorola and other regional players like Fly, Bird, Sagem etc. Recently a new threat is being posed by China mobile handsets. These companies come out with large number of models which tend to be stylish and have added features.

NOKIA Nokia is currently the market leader in the GSM mobile phone segment with a market share of 59.5%. It started its operations in India in the year 1995 and presently operates from offices in major cities like New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad. In India it mainly operates on handsets and network infrastructure business. The company has a great R&D back up in cities like Bangalore, Hyderabad and Mumbai. The handsets are manufactured from Chennai. The decade year old company has now got a man power strength of around 6000 s revenues from the mobile phone segment stood at Rs 15,000 crores, people. Nokia' up by 30.6 percent, compared to Rs 11,486 crore in 2006-07. Nokia’s 50% total market share comes from India. In India, Nokia has a product range of about 50 running models and three more models are in the pipeline to be launched this year. The price ranges from Rs 1200 - 54000 which is intended to serve all the classes of people.

SONY ERICSSON Sony Ericsson is the second largest company in terms of market share in India. It has a market share of 12.8% in India. Sony Ericsson mobile communication was established in the year 2001 by telecommunication leader Ericsson and consumer durables giant Sony Corporation. The company was equally owned by the two giants and they announced their first product in the year 2002. The company’s products have a universal appeal and are different in their key areas of imaging, music and technology. Now they also cater to the entry level mobiles. In India, Sony Ericsson

31

has around 38 running models and two more in the pipeline for this year. Its price ranges from Rs 1800 – 26000.

SAMSUNG Samsung was founded in the year 1938, as a consumer durable giant which produced cathode ray tube for computer peripherals. Samsung is known for its innovation and style in the GSM arena. This company has a market share of 6.2% in the Indian market. Samsung has recorded an exponential growth in this sector for the last two years with some innovative stylish products. It has around 17 running models in India with 6 models yet to be launched this year. The phone’s price ranges from Rs 1700 – 19000.

MOTOROLA Motorola was started in the year 1928 in USA. It started with the production of radio sets and later focused on wireless devices. Motorola started the Indian operations of GSM mobile phones in late 2001. The company’s market share has dipped to 5% this year in India. It has a product range of about 17 running models which is priced from Rs 1700 – 18000. The company is famous for its R&D which is situated in Bangalore. In the Indian context, the GSM devices are segregated into four categories based on prices: Sub-Entry Level - This segment covers phones of prices up to Rs. 2499, this segment include models like A38,A31,AL21 from Benq Siemens, 245x,250x,214x,253x from Bleu, V60, M90 from Fly, KG 276, KG 271,KG285,KG288 from LG, W180 and W215 from Motorola, 1200, 1112, 1208, 1600, 2310, 1650,2610 from Nokia etc. Entry Level - This segment covers all the phones from Rs. 2500 – Rs. 5999. All the leading mobile manufacturers in India have their models in this particular segment. There are more than 70 models under different brands currently positioned in this particular segment. 32

Mid Level - This segment includes all the models which are priced between Rs 6000 and Rs. 11,999. All the major companies have their presence in this segment. Models like KG300, KE770, KE500, KE590, and KE970 are the phones from LG in this particular segment. Even in this segment there are more than 70 models from different companies. High Level - This segment includes phones which are priced above Rs 12000. Even in this segment we can find that all the phone manufactures have their presence. This includes models like KF600, Prada, Viewty, and KS20 from LG. There are mainly 30 models in this particular segment from the houses of LG, Motorola, Samsung, Nokia and Sony Ericsson. There is also segment called the Enterprise Segment, it is not based on the prices, it includes all the business phone models. Enterprise Level - This segment has all the business phone models and in this segment LG has no presence, there are no business phone models for LG. This segment includes 56 models from different manufacturers like Nokia, Sony Ericsson, Blackberry, Asus, Vertu, HTC, I mate, Motorola and Palm. (The source for this piece of information is www.mymobile.co.in)

33

&(%(,

-

. ./

$

Mobile theft is a major area of concern for all the mobile users across the world. Now LG has come with a new insurance plan. LG has tied up with United India Insurance co. to offer this benefit to all its mobile users with no extra charge levied on it. In such an event of handset theft, the user files an FIR within a 24 hours and then blocks the SIM card through the respective service provider and then should inform the insurance company within 7 days after the loss. The 4 simple steps to avail insurance are as follows: 1. Fill the claim form. 2. Attach a copy of the bill given to you at the time of purchase. The invoice must contain the IMEI number of the handset. 3. Lodge FIR under Section 379 IPC for handset theft and attach a copy with the claim form. 4. Mail the documents to the insurance company through registered post. Once the claim form and all these are done, the insurance company will settle the claim within 15 days. Some of LG mobiles (selected models) also contain LG’s anti mobile theft tracker (ATMT) which can track the mobile phone when it is stolen and a new sim card is inserted into it. In these kinds of phones, we have an option to save two phone numbers and when the phone is stolen and a new SIM is inserted, phone automatically sends messages to these two numbers (LG company sources). The new scheme provided by LG is called the Basket offer; there are three classifications for this offer A, B and C. These offers are according to the volume that each retailer purchases.

34

+

'

TO DETERMINE THE UNDERLYING FACTORS FOR CONSUMERS NOT PREFERRING LG GSM MOBILE PHONES. COMPONENTS: 1. To understand the factors that consumers consider while buying a mobile phone. 2. To understand the overall perception of consumers about LG and its competitors. 3. To check the extent of awareness about LG mobile phones. 4. To understand the satisfaction level of LG consumers. 5. To check the reach of LG mobiles phones promotional activities. 6.1 APPROACH TO THE PROBLEM: CUSTOMER

Desired to purchase a mobile phone / Change existing phone

Purchase LG

Satisfied

End

Not purchased LG

Dissatisfied

reasons

Reasons

Figure 8. APPROACH TO OBJECTIVE 2

35

6.2 METHODOLOGY 1. Direct interview with consumers 2. Consumer survey was focusing on the consumer perception about LG and its competitors and the factors they consider while buying a mobile phone. 3. Sample size is 200

4. Secondary data collection from internet, magazines, company resources.

6.3 RESEARCH DESIGN This section discusses the various methods, techniques and tools that were used for the project. Exploratory research: This method was used at the commencement of the project a. This helped in orienting the research process and focus on the appropriate course of action. In this case, the following methods were adopted to get an insight into the problem, Secondary data Internet Magazines Primary data a. Qualitative data •

Direct Interview

b. Quantitative data Survey Observational and other data

36

6.4 DATA ANALYSIS +(%( )

$

Questions were designed to get a clear understanding of consumer perception. It was also aimed to find the factors that consumers consider while buying a mobile phone. There were questions specially targeted to obtain the extent of awareness about LG mobiles. Questionnaire also contained the questions to check the perception of consumers towards LG mobiles and its competitors. The extent of promotional activities was also checked. Questionnaire also contained open ended questions which are aimed to find what consumers really need in a mobile phone. Consumers were also asked to associate different company’s or brands to given phrases. +(%(

"

$

The target population was consumers in all age groups who currently are using GSM mobile phone and also who are planning to buy a GSM mobile phone in Mumbai city. The places like Andheri, Vileparle, Goregaon, Santakruz, VT, Church gate, Mumbai central, Churney road, Mahalakshmi, Colaba, Dadar, Bandra, Powai etc was considered for survey. The survey was carried out in malls, railway stations and also in some house holds. The sampling technique used is judgemental sampling. Consumers from different age group were considered and questions were asked according to the questionnaire. Sample size 200 +(%(!

0

$

The questionnaire was pretested and surveyed. The filled questionnaire was analyzed through SPSS. The missing values were high on some questions like people who used LG phones.

37

+(%(% *

PRIMARY RESEARCH Direct interview with consumers This involved conducting an informal talk with consumers. The consumers were selected on a judgmental basis. Direct interview was conducted with ten consumers in different age group. The whole process was to get an overview of the consumer perception and the factors they look for while buying a mobile phone. The consumers are generally not aware of the LG mobiles. Most of the consumers associate LG mobile as a CDMA phone. They have a general perception that LG mobile phones are not user friendly and have a less battery backup. The direct interview with aged consumers really gave a new insight that no company is producing simple user friendly phone to aged consumers, their point is that they use phone only for picking up the call and for making a call. There are no phones in the market which are so user friendly that they can handle. One consumer who is around 65 years, complained that she can’t even use Nokia basic model which her son got for her. She uses the phone only to make and answer calls. The youth are generally focused on the entertainment part of mobile phone. They said that LG lacks picture and sound quality. They also conveyed that there is less memory option in LG mobile phones. The general view of female consumers is that LG phones are not trendy. Most of the consumers are happy with bar type phones and they showed less interest in slider phones. They also have an opinion that LG mobiles are giving less choice to consumers. Most of the consumers prefer Nokia or Sony Ericsson because they are superior in some attributes.

38

+(%(&

For consumer perspective, the secondary data are mainly considered in checking the price of various mobile phones. Websites of LG and its competitor was also surfed. In the competitor’s website the details of up coming models are shown, it lacks in LG companies official website. The secondary data from the blogs, discussion forums were also considered. The main feed back from the website is that people are using their mobile phone not only as an instrument to talk but also as a music player, camera, internet accessing device etc. They are focusing more on value added services.

Figure 9. SEGMENT CONTRIBUTION TO ZONES

Source: GFK It is found from the survey conducted from GFK that people using that colour phones with camera is around 28% in March and colour phones without camera is around 52%. People using monochrome phones are around 20% as of March 08. This survey

39

is conducted in 35 major towns in India. This is the clear indication that consumers are moving to phones with more product features.

,

1

$

Data analysis and findings was done in two phases:

• •

Retailers Consumers

The total sample size was 300, retailer’s sample being 100 and consumer’s 200. The commonly used test was frequency test. Hypothesis was created and the test is performed. Graphs for each test are shown. 7.1. RETAILERS HYPOTHESIS 1: AMONG THE RETAILERS, NOKIA IS THE MOST PREFERED BRAND IN THE MUMBAI REGION. Test performed: frequency test Over-all respondents: Statistics Table 1. OVER ALL RESPONDENTS FOR ALL BRANDS

N

Valid Missing

Nokia 100 0

Sony Ericsson 100 0

LG 100 0

Samsung 100 0

Motorola 100 0

FLY 100 0

Others 100 0

(1 = worst, 5 = best) NOKIA Table 2. RATINGS OF NOKIA

Valid

5

Frequency 99

Percent 99.0

Valid Percent 99.0

1 Total

1 100

1.0 100.0

1.0 100.0

Cumulative Percent 99.0 100.0

40

From this frequency test, we can see that 99 out of 100 respondents chose Nokia as their most preferred brand

Figure 10. RATINGS OF NOKIA

.

SONY ERICSSON Table 3. RATINGS OF SONY ERICSSON

Valid

4 3 Total

Frequency 65 35 100

Percent 65.0 35.0 100.0

Valid Percent 65.0 35.0 100.0

Cumulative Percent 65.0 100.0

41

From this frequency test, we can see This test shows that out of 100 respondents 65 respondents gave Sony Ericsson as their second best preference and 35 respondents gave it as their third best option

Figure 11. RATINGS OF SONY ERICSSON

SAMSUNG Table 4. RATINGS OF SAMSUNG

Valid

4 3 2 1 Total

Frequency 6 9 61 24 100

Percent 6.0 9.0 61.0 24.0 100.0

Valid Percent 6.0 9.0 61.0 24.0 100.0

Cumulative Percent 6.0 15.0 76.0 100.0

Here for the brand Samsung, 6 respondents gave it as their second best option, 9 gave it as their third option while 24 respondents gave it as the worst option. 61 gave it as the next worst option. Figure 12 RATINGS OF SAMSUNG

42

MOTOROLA Table 5. RATINGS OF MOTOROLA

Valid

4 3 2 Total

Frequency 21 56 23 100

Percent 21.0 56.0 23.0 100.0

Valid Percent 21.0 56.0 23.0 100.0

Cumulative Percent 21.0 77.0 100.0

For the brands of Motorola, 56 out of 100 respondents gave this brand a value three and 21 gave it as the second best option a value of four. 23 respondents gave the second worst option.

Figure 13. RATINGS OF MOTOROLA

LG Table 6. RATINGS OF LG

Valid

4 2 1 NA Total

Frequency 8 10 76 6 100

Percent 8.0 10.0 76.0 6.0 100.0

Valid Percent 8.0 10.0 76.0 6.0 100.0

Cumulative Percent 8.0 18.0 94.0 100.0

43

For LG, 76 out of 100 respondents marked the company as their worst preference. 10 responded for the second worst option, 8 responded for second best option, while six retailers didn’t give LG any preference

Figure 14. RATINGS OF LG

FLY Table 7. RATINGS OF FLY

Valid

2 NA Total

Frequency 6 94 100

Percent 6.0 94.0 100.0

Valid Percent 6.0 94.0 100.0

Cumulative Percent 6.0 100.0

For FLY it is found that 6 retailers give rating 2 for and rest of 94 retailers didn’t give any preference

Figure 15. RATINGS OF FLY

44

H2: LG HAS THE LEAST PROMOTIONAL CAMPAIGNS WHEN COMPARED TO ITS COMPETITOR BRANDS. Test performed: frequency test Over-all respondents:

NOKIA NOKIA’S PROMOTIONAL ACTIVITIES

Table 8. PROMOTION OF NOKIA

Valid

Yes

Frequency 100

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

TABLE TOP DISPLAYS

Table 9 . NOKIA TABLETOP DISPLAY

Valid

Yes No Total

Frequency 9 91 100

Percent 9.0 91.0 100.0

Valid Percent 9.0 91.0 100.0

Cumulative Percent 9.0 100.0

Nokia’s Display of New Models Table 10. NOKIA DISPLAY OF NEW MODEL

Valid

Yes No Total

Frequency 36 64 100

Percent 36.0 64.0 100.0

Valid Percent 36.0 64.0 100.0

Cumulative Percent 36.0 100.0

45

Nokia Flux

Table 11. NOKIA FLUX

Valid

Yes No Total

Frequency 89 11 100

Percent 89.0 11.0 100.0

Valid Percent 89.0 11.0 100.0

Cumulative Percent 89.0 100.0

Nokia Wall Painting Table 12. NOKIA WALL PAINTING

Valid

Yes

Frequency 100

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Figure 16. PROMOTION OF NOKIA

46

Figure 17. TABLETOP OF NOKIA

Figure 18. WALL PAINTINGS OF NOKIA

47

Figure 19. DISPLAYS OF NOKIA’S NEW MODELS

Figure 20. NOKIA FLUX

Nokia has the highest promotional activity reach, i.e. out of 100 retailers Brand Promo of Nokia has reached in all the retail outlets. In 9 outlets they have table top displays, 36 outlets have displays of new models, 89 outlets have Nokia’ flux. Wall paintings of Nokia are present in all the 100 outlets.

48

SONY ERICSSON Sony’s Promotional Activities Table 13. SONY ERICSSON PROMOTION

Valid

Yes No Total

Frequency 88 12 100

Percent 88.0 12.0 100.0

Valid Percent 88.0 12.0 100.0

Cumulative Percent 88.0 100.0

Sony’s display of new models Table 14. SONY ERICSSON DISPLAY OF NEW MODEL

Valid

Yes No NA Total

Frequency 30 58 12 100

Percent 30.0 58.0 12.0 100.0

Valid Percent 30.0 58.0 12.0 100.0

Cumulative Percent 30.0 88.0 100.0

Sony’s wall painting Table 15. SONY ERICSSON WALL PAINTING

Valid

Yes No NA Total

Frequency 69 19 12 100

Percent 69.0 19.0 12.0 100.0

Valid Percent 69.0 19.0 12.0 100.0

Cumulative Percent 69.0 88.0 100.0

Sony table top Table 16. SONY ERICSSON TABLETOP

Valid

No NA Total

Frequency 88 12 100

Percent 88.0 12.0 100.0

Valid Percent 88.0 12.0 100.0

Cumulative Percent 88.0 100.0

Sony flux

49

Table 17. SONY ERICSSON FLUX

Valid

Yes NA Total

Frequency 88 12 100

Percent 88.0 12.0 100.0

Valid Percent 88.0 12.0 100.0

Cumulative Percent 88.0 100.0

Figure 21. PROMOTION OF SONY ERICSSON

50

Figure 22. TABLELTOPS OF SONY ERICSSON

Figure 23. SONY ERICSSON WALL PAINTINGS

51

Figure 24. SONY ERICSSON FLUX

Figure 25. SONY ERICSSON DISPLAYS OF NEW MODEL

In Mumbai, out of 100 retail outlets Sony Ericsson’s promotional activities has a reach to 88 retail outlets. Amongst these, 30 shops had the displays of new models, 69 outlets had Sony wall paintings and 88 shops had Sony flux. There were no shops with Sony table top displays.

52

SAMSUNG Samsung if promo Table 18. PROMOTION OF SAMSUNG

Valid

Yes No Total

Frequency 75 25 100

Percent 75.0 25.0 100.0

Valid Percent 75.0 25.0 100.0

Cumulative Percent 75.0 100.0

Samsung wall painting Table 19. SAMSUNG WALL PAINTINGS

Valid

Yes NA Total Missing System Total

Frequency 75 14 89 11 100

Percent 75.0 14.0 89.0 11.0 100.0

Valid Percent 84.3 15.7 100.0

Cumulative Percent 84.3 100.0

Samsung table top Table 20. SAMSUNG TABLE TOP

Valid

Yes No NA Total Missing System Total

Frequency 6 69 14 89 11 100

Percent 6.0 69.0 14.0 89.0 11.0 100.0

Valid Percent 6.7 77.5 15.7 100.0

Cumulative Percent 6.7 84.3 100.0

Samsung display of new models Table 21. SAMSUNG DISPLAYS OF NEW MODEL

Valid

Yes NA Total Missing System Total

Frequency 75 14 89 11 100

Percent 75.0 14.0 89.0 11.0 100.0

Valid Percent 84.3 15.7 100.0

Cumulative Percent 84.3 100.0

53

Samsung flux Table 22. SAMSUNG FLUX

Valid

Yes No NA Total Missing System Total

Frequency 65 10 14 89 11 100

Percent 65.0 10.0 14.0 89.0 11.0 100.0

Valid Percent 73.0 11.2 15.7 100.0

Cumulative Percent 73.0 84.3 100.0

Figure 26. PROMOTION OF SAMSUNG

54

Figure 27.SAMSUNG TABLE TOPS

Figure 28. SAMSUNG WALL PAINTINGS

55

Figure 29. SAMSUNG DISPLAYS OF NEW MODEL

Figure 30. SAMSUNG FLUX

In the Mumbai region Samsung’s promotional activities is in 75 retail outlets out of 100. In these, all 75 outlets have displays of new models and wall paintings. The same flux is covered in 65 outlets and 6 shops have Samsung table top displays. MOTOROLA

Motorola promotion

Table 23. PROMOTION OF MOTOROLA

Valid

Yes No Total

Frequency 86 14 100

Percent 86.0 14.0 100.0

Valid Percent 86.0 14.0 100.0

Cumulative Percent 86.0 100.0

56

Motorola table top Table 24. MOTOROLA TABLETOP

Valid

Yes No NA Total Missing System Total

Frequency 20 60 14 94 6 100

Percent 20.0 60.0 14.0 94.0 6.0 100.0

Valid Percent 21.3 63.8 14.9 100.0

Cumulative Percent 21.3 85.1 100.0

Motorola wall painting Table 25. MOTOROLA WALL PAINTINGS

Valid

Yes NA Total

Frequency 86 14 100

Percent 86.0 14.0 100.0

Valid Percent 86.0 14.0 100.0

Cumulative Percent 86.0 100.0

Motorola display of new model Table 26. MOTOROLA DISPLAYS OF NEW MODEL

Valid

Yes NA Total Missing System Total

Frequency 80 14 94 6 100

Percent 80.0 14.0 94.0 6.0 100.0

Valid Percent 85.1 14.9 100.0

Cumulative Percent 85.1 100.0

Motorola flux Table 27. MOTOROLA FLUX

Valid

Yes NA Total Missing System Total

Frequency 80 14 94 6 100

Percent 80.0 14.0 94.0 6.0 100.0

Valid Percent 85.1 14.9 100.0

Cumulative Percent 85.1 100.0

57

Figure 31. PROMOTION OF MOTOROLA

Figure 32. MOTOROLA TABLETOPS

Figure 33. MOTOROLA WALL PAINTINGS

58

Figure 34. MOTOROLA FLUX

In the Mumbai region, out of 100 retail respondents Motorola promos were present in 86 retail outlets amongst which there were 20 tabletop displays and 86 wall paintings in shops. In 100 outlets Motorola recorded 80 flux and 80 displays of new models. FLY

Fly promotion Table 28. PROMOTION OF FLY

Valid

Yes No Total

Frequency 30 70 100

Percent 30.0 70.0 100.0

Valid Percent 30.0 70.0 100.0

Cumulative Percent 30.0 100.0

Fly table top Table 29. TABLE TOP OF FLY

Valid

No NA Total Missing System Total

Frequency 40 12 52 48 100

Percent 40.0 12.0 52.0 48.0 100.0

Valid Percent 76.9 23.1 100.0

Cumulative Percent 76.9 100.0

59

Fly wall painting Table 30. FLY WALL PAINTINGS

Valid

No NA Total Missing System Total

Frequency 30 22 52 48 100

Percent 30.0 22.0 52.0 48.0 100.0

Valid Percent 57.7 42.3 100.0

Cumulative Percent 57.7 100.0

Fly display of new model Table 31. FLY DISPLAYS OF NEW MODEL

Valid

Yes NA Total Missing System Total

Frequency 30 22 52 48 100

Percent 30.0 22.0 52.0 48.0 100.0

Valid Percent 57.7 42.3 100.0

Cumulative Percent 57.7 100.0

Fly flux Table 32. FLY FLUX

Valid

No NA Total Missing System Total

Frequency 30 22 52 48 100

Percent 30.0 22.0 52.0 48.0 100.0

Valid Percent 57.7 42.3 100.0

Cumulative Percent 57.7 100.0

60

Figure 35. PROMOTION OF FLY

Figure 36. FLY TABLETOP

Figure 37. FLY FLUX

61

Figure 38. FLY WALL PAINTINGS

Figure 39. FLY DISPLAYS OF NEW MODEL

In the region flux promos was recorded in 30 retail outlets out of 100. No table top displays were recorded. In all 30 outlets company’s wall paintings, flux and displays of new model was recorded. LG

LG promotion Table 33. PROMOTION OF LG

Valid

Yes No Total

Frequency 18 82 100

Percent 18.0 82.0 100.0

Valid Percent 18.0 82.0 100.0

Cumulative Percent 18.0 100.0

62

LG table top Table 34. LG TABLE TOP

Frequency 8 10 42 60 40 100

Valid

Yes No NA Total Missing System Total

Percent 8.0 10.0 42.0 60.0 40.0 100.0

Valid Percent 13.3 16.7 70.0 100.0

Cumulative Percent 13.3 30.0 100.0

LG wall painting Table 35. LG WALL PAINTING

Valid

Yes NA Total Missing System Total

Frequency 18 42 60 40 100

Percent 18.0 42.0 60.0 40.0 100.0

Valid Percent 30.0 70.0 100.0

Cumulative Percent 30.0 100.0

LG display of new model Table 36. LG DISLPLAYS OF NEW MODEL

Valid

Yes No NA Total Missing System Total

Frequency 8 10 42 60 40 100

Yes No NA Total Missing System Total

Valid Percent 13.3 16.7 70.0 100.0

LG flux

Table 37. LG FLUX

Valid

Percent 8.0 10.0 42.0 60.0 40.0 100.0

Cumulative Percent 13.3 30.0 100.0

Frequency 8 10 42 60 40 100

Percent 8.0 10.0 42.0 60.0 40.0 100.0

Valid Percent 13.3 16.7 70.0 100.0

Cumulative Percent 13.3 30.0 100.0

63

Figure 40. PROMOTION OF LG

Figure 41. TABLETOPS OF LG

Figure 42. LG WALL PAINTINGS

64

Figure 43. LG DISPLAYS OF NEW MODEL

Figure 44. LG FLUX

In the Mumbai region, LG recorded the lowest promotional penetration when compared to its competitor brands. In 100 respondents of retailers, LG recorded only in 18 outlets. In the 18 outlets, 8 have LG tabletop displays and 18 have LG wall paintings. While only 8 outlets recorded LG flux and displays of new models. H3: LACK OF LIVE DEMO IN THEIR RETAIL OUTLET IS ONE OF MOST IMPORTANT PROBLEMATIC AREAS THAT RETAILERS ARE CURRENTLY FACING WHILE SELLING AN LG GSM MOBILE Test performed: frequency test Over-all respondent

65

Live demo supply Table 38. LIVE DEMO SUPPLY

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

100

100.0

100.0

100.0

highly problematic

In the survey conducted among retailers, the most important and problematic region while selling a LG GSM phone is supply of live demo. All the retailers i.e. 100 out of 100 believe it’s one most important problematic areas. They find it difficult to sell a LG mobile without live demo

Figure 45. LIVE DEMO SUPPLY

HYPOTHESIS 4: RETAILERS ARE LEAST SATISFIED FOR AWARENESS ABOUT LG PRODUCTS AMONG CONSUMERS Test performed: Frequency test

LG Table 39. AWARENESS OF LG

Valid

Least Satisfied Moderately Less Satisfied Total

Frequency 84

Percent 84.0

Valid Percent 84.0

Cumulative Percent 84.0

16

16.0

16.0

100.0

100

100.0

100.0

66

MOTOROLA Table 40. AWARENESS OF MOTOROLA

Valid

Moderately Highly Satisfied Highly Satisfied Total

Frequency

Percent

Valid Percent

Cumulative Percent

54

54.0

54.0

54.0

46 100

46.0 100.0

46.0 100.0

100.0

NOKIA Table 41. AWARENESS OF NOKIA

Valid

Highly Satisfied

Frequency 100

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

SONY ERICSSON Table 42. AWARENESS OF SONY ERICSSON

Valid

Moderately Highly Satisfied Highly Satisfied Total

Frequency

Percent

Valid Percent

Cumulative Percent

21

21.0

21.0

21.0

79 100

79.0 100.0

79.0 100.0

100.0

FLY Table 43. AWARENESS OF FLY

Valid

Least Satisfied Average Satisfaction Total

Frequency 9 91 100

Percent 9.0 91.0 100.0

Valid Percent 9.0 91.0 100.0

Cumulative Percent 9.0 100.0

67

SAMSUNG Table 44. AWARENESS OF SAMSUNG

Valid

Moderately Highly Satisfied

Frequency

Percent

Valid Percent

Cumulative Percent

100

100.0

100.0

100.0

Figure 46. LG SATISFACTION OF AWARENESS

LG

Figure 47. MOTOROLA SATISFACTION OF AWARENESS

MOTOROLA

68

Figure 48. NOKIA SATISFACTION OF AWARENESS

NOKIA

Figure 49. SONY ERICSSON SATISFACTION OF AWARENESS

SONY ERICSSON

69

Figure 50. SAMSUNG SATISFACTION OF AWARENESS

SAMSUNG

Figure 51. FLY SATISFACTION OF AWARENESS

FLY 1. From the above frequency test and graph its clear that among 100 retailers 84 were least satisfied and 16 was moderately less satisfies for the awareness of LG products among consumers. 2. From the test 100 out of 100 retailers were very satisfied for Nokia awareness among consumers 3. For the company Motorola the 54 retailers were moderately highly satisfied and 46 were highly satisfied for the awareness among consumers

70

4. For the company Samsung 100 out of 100 were moderately highly satisfied for the reason 5. Sony Ericsson recorded 71 for high satisfaction and 29 for moderately less satisfaction 6. For fly 91 average satisfaction and 9 was for least satisfaction. HYPOTHESIS 5: LG HANDSETS CANNOT BE OPERATED WITHOUT A SIM WHICH POSE A DIFFICULTY WHILE SELLING A LG GSM MOBILE PHONE. Test performed: Frequency test Offline Mode Table 45. OFFLINE MODE

Frequenc y Valid yes 79 no 21 Total 100

Percent 79.0 21.0 100.0

Valid Percent 79.0 21.0 100.0

Cumulative Percent 79.0 100.0

From the frequency test its found that 71 retailers believe that its difficult sell those phones while only 21 respondents believed that it is not difficult to sell those type of handsets which work without a sim

Figure 52. OFFLINE MODE

71

HYPOTHESIS 6: LG’S PROMOTIONAL ACTIVITIES HAS A POSITIVE CORELLATION WITH SALES Test performed: cross tabulation LG’s promotion and sales are cross tabbed. In recorded 18 outlets the shops which showed the sales between 5170 has got in store promotional activities present

Table 46. CROSS TABULATION

LG

0-10 11-20 21-30 51-70 Total

LG IF PROMO Yes No 0 47 0 35 8 0 10 0 18 82

Total 47 3 43 7 100

HYPOTHESIS 7: LG HANSETS ARE LESS USER FRIENDLY WHICH RETAILERS CONSIDER AS A ROBLEMATIC AREA WHILE SELLING AN LG GSM MOBILE PHONE Test performed: Frequency test Table 47. USER FRIENDLY

Valid

highly problematic moderately highly problematic Total

Frequency 90

Percent 90.0

Valid Percent 90.0

Cumulative Percent 90.0

10

10.0

10.0

100.0

100

100.0

100.0

In the retail outlets surveyed out of 100 retailers, 90 retailers believe that user friendliness of LG mobile phones is highly problematic and 10 believe that it is moderately highly problematic.

Figure 53. PROBLEMATIC AREA - USERFRIENDLY

72

HYPOTHESIS 8: FEWER OFFERS FOR CONSUMERS FROM RETAILERS POINT OF VIEW IS HIGHLY ROBLEMATIC AREA WHILE SELLING A LG GSM MOBILE PHONE. Test performed: Frequency test Offers Table 48. OFFERS

Valid

highly problematic moderately highly problematic Total

Frequency 44

Percent 44.0

Valid Percent 44.0

Cumulative Percent 44.0

56

56.0

56.0

100.0

100

100.0

100.0

Figure 54. PROBLEMATIC AREA - OFFERS

From retailers point of view offers to consumers from LG is a highly problematic area while selling a LG GSM phone. In 100 respondents 44 retailers believe that it’s a highly problematic area while 56 respondents believe that it’s moderately highly problematic area.

73

HYPOTHESIS 9: LESS PRODUCT RANGE IN DIFFERENT PRICE RANGES POSES A DIFFICULTY WHILE SELLING A LG GSM MOBILE PHONE Test performed: Frequency test

Table 49. PRODUCT RANGE

Valid

Product range

Frequency highly problematic 60 moderately highly 40 problematic Total 100

Percent 60.0

Valid Percent 60.0

Cumulative Percent 60.0

40.0

40.0

100.0

100.0

100.0

Figure 55. PROBLEMATIC AREA- PRODUCT RANGE

LG phones less product range according to retailers is posing difficulty while selling an LG phones. 60 retailers believe that it is highly problematic and 40 retailers out 100 believe that it is moderately highly problematic.

74

HYPOTHESIS 10: RETAILERS HAVE LESS OR AVERAGE SATISFACTION WITH LG’S AFTER SALES SERVICE Test performed: Frequency test

LG After Sales Support Table 50. AFTER SALE SUPPORT

Valid

Moderately Less Satisfied Average Satisfaction Moderately Highly Satisfied Total

Frequency

Percent

Valid Percent

Cumulative Percent

21

21.0

21.0

21.0

51

51.0

51.0

72.0

28

28.0

28.0

100.0

100

100.0

100.0

Figure 56. SATISFACTION LEVEL – AFTER SALES SUPPORT

In Mumbai region LG has around 18 service centres, out of 100 retailers 28 were moderately highly satisfied, 51 retailers have average satisfaction and 21 retailers are moderately less satisfied with the service offered by LG.

75

HYPOTHESIS 11: THE AVAILABLITY OF ACCESSORIES AFFECTS THE SALES OF LG PHONES ACCORDING TO RETAILERS. Test performed: Frequency test LG availability of accessories Table 51. AVALABILITY OF ACCESSORIES

Valid

Least Satisfied Moderately Less Satisfied Total

Frequenc y 88

Percent 88.0

Valid Percent 88.0

Cumulative Percent 88.0

12

12.0

12.0

100.0

100

100.0

100.0

Figure 57. SATISFACTION LEVEL OF ACCESSORIES AVAILABILITY

In Mumbai region 88 retailers are least satisfied and 12 are moderately less satisfied with the availability LG mobile phone accessories which they think affects the sales of LG products.

76

RETAILERS RECOMMENTATIONS Test performed: Frequency test Recommendations Table 52. RETAILERS RECOMMENDATIONS

Valid

improve promotion give more price cover-up time more benefits to retailers Total

Frequency 21

Percent 21.0

Valid Percent 21.0

Cumulative Percent 21.0

14

14.0

14.0

35.0

65 100

65.0 100.0

65.0 100.0

100.0

Figure 58. RETAILERS RECOMMENDATIONS

In Mumbai region 100 out of 100 retailers responded for recommendation. In respondents 65 retailers asked for more benefits and 14 retailers recommended for more price cover up time. While 21 retailers recommended to improve promotional activities.

77

7.2 CONSUMERS Sample size break up Test performed: Frequency test

Statistics

Table 53. TOTAL BREAK UP

Gender N

Valid Missing

Age

200

200

0

0

0

0

Gender

Frequency 117 83 200

Percent 58.5 41.5 100.0

Valid Percent 58.5 41.5 100.0

Cumulative Percent 58.5 100.0

Age

Table 55. AGE BREAK UP

Frequency Valid

Annual_income

200

Table 54. GENDER BREAK UP

mal female Total

Occupation

200

Percent

Valid Percent

Cumulative Percent

below 18

42

21.0

21.0

21.0

18-25

84

42.0

42.0

63.0

26-35

29

14.5

14.5

77.5

36-55

30

15.0

15.0

92.5

over 55

15

7.5

7.5

100.0

200

100.0

100.0

Total

Occupation

Table 56. OCCUPATION BREAK UP

Frequency Valid

Percent

Valid Percent

Cumulative Percent

house wife

11

5.5

5.5

5.5

student

68

34.0

34.0

39.5

professional

89

44.5

44.5

84.0

business man

3

1.5

1.5

85.5

others

29

14.5

14.5

100.0

Total

200

100.0

100.0

78

Annual income

Table 57. ANNUAL INCOME BREAK UP

Valid

100001-250000

Frequency 12

Percent 6.0

Valid Percent 6.0

Cumulative Percent 6.0

250001-500000

21

10.5

10.5

16.5

500001-100000

83

41.5

41.5

58.0

1000001-2000001 NA Total

5

2.5

2.5

60.5

79

39.5

39.5

100.0

200

100.0

100.0

Graphs

Gender 60

Percent

50 40 30 20 10 0 male

female

Gender Figure 59. BREAK UP- GENDER

Figure 60. BREAK UP - AGE

79

Figure 61. BREAK UP OCCUPATION

Figure 62. BREAK UP ANNUAL INCOME

HYPOTHESIS 1: MOST PEOPLE ARE NOT AWARE OF THE KINDS OF HANDSETS THAT LG MOBILES MANUFACTURES Test performed: Frequency test AWARENESS OF LG HANDSET TYPES

Table 58. AWARENESS OF LG

Valid

GSM both don’t know Total

Frequency 27 60

Percent 13.5 30.0

Valid Percent 13.5 30.0

Cumulative Percent 13.5 43.5

113

56.5

56.5

100.0

200

100.0

100.0

80

Figure 64 63..HANDSET AWARENESS TYPE OF LG

Most of the consumers are not aware of the type of handsets that LG mobile is producing. In 200 consumer samples 113 respondents don’t know what types of handsets company is producing. Only 60 think that it is both and rest 27 consumer samples believe it’s only GSM. HYPOTHESIS 2: THE AVERAGE BUDGET OF CONSUMERS IS BETWEEN 8001-12000 Test performed: Frequency test BUDGET Table 59. BUDGET

Valid

3001-5000 5001-8000 8001-12000 12001-16000 16001-22000 Total

Frequency 12 14 138 29 7 200

Percent 6.0 7.0 69.0 14.5 3.5 100.0

Valid Percent 6.0 7.0 69.0 14.5 3.5 100.0

Cumulative Percent 6.0 13.0 82.0 96.5 100.0

81

Figure 65. BUDGET

It is found from the test that the average budget of consumers is in between 800112000, i.e. among 200 consumers 138 gave the choice 8001-12000 and 29 gave it for the choice of 12001-16000. For the choice of 16001-22000 number of respondents was seven. While the price ranges between 3001-5000 and 5001-8000 was recorded 12 and 14 respectively. HYPOTHESIS 3: CONSUMERS ARE PREFERING BAR TYPE PHONES MOST THAN SLIDERS Test performed: Frequency test Type Table 60. TYPE OF HANDSET PREFERENCE

Valid

BAR FLIP SLIDER Total

Frequency 103 70 27 200

Percent 51.5 35.0 13.5 100.0

Valid Percent 51.5 35.0 13.5 100.0

Cumulative Percent 51.5 86.5 100.0

82

Figure 66. FORM OF HANDSETS

From the survey it is found that 103 consumers out of 200 prefers bar phones most. 70 respondents prefer flip type phones and only 27 consumers preferred slider phones. HYPOTHESIS 4: IF A CHOICE GIVEN, CONSUMERS WILL PREFER GSM MOBILE PHONE WHICH IS COMPATABLE FOR DUAL SIM Test performed: Frequency test Dual SIM

Table 61. DUAL SIM

Valid

Yes No Total

Frequency 173 27 200

Percent 86.5 13.5 100.0

Valid Percent 86.5 13.5 100.0

Cumulative Percent 86.5 100.0

83

Figure 67. DUAL SIM

In survey out of 200 consumers 173 consumers prefers mobiles which is compatible for dual SIM while 27 consumers didn’t prefer that type of phones HYPOTHESIS 5: CONSUMERS LESS PREFER PHONES WHICH CAN BE USED IN BOTH CDMA AND GSM TECHNOLOGIES. Test performed: Frequency test Support both GSM and CDMA Table 62. SUPPORT BOTH GSM & CDMA

Valid

Yes No Total

Frequency 49 151 200

Percent 24.5 75.5 100.0

Valid Percent 24.5 75.5 100.0

Cumulative Percent 24.5 100.0

84

Figure 68. PHONE WITH BOTH GSM&CDMA

Consumers less prefers the phone which is compatible for both GSM and CDMA technologies i.e., out of 200 consumers 151 didn’t preferred those type of phone while 49 consumers prefers those type of phones. HYPOTHESIS 6: CONSUMERS PREFER HANSET COMPANY PHONES WHICH MANUFACTURES ITS OWN ACCESSORIES. Test performed: Frequency test Accessories Specific Table 63. ACCESSORY SPECIFIC

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

166

83.0

83.0

83.0

No

34

17.0

17.0

100.0

Total

200

100.0

100.0

85

Figure 69. ACCESSORY SPECIFIC

Consumers are accessory specific buyers ,most of consumer prefers the phones which have own company made accessories ,in test it is found that 166 consumers are accessory specific and rest 34 was not specific. HYPOTHESIS 7: THE MAJOR REASON FOR CONSUMERS NOT PREFERING LG GSM MOBILE PHONES ARE • LESS MEMORY OPTIONS • NOT USER FRIENDLY • LESS CHOICE AMONG MODELS • BAD PICTURE AND SOUND QUALITY • NOT AWARE OF THE MODELS • LESS BATTERY BACKUP Test performed: Frequency test

86

LESS MEMORY OPTION Table 64. LESS MEMORY OPTION

Frequency 114 43 157 43 200

Valid

yes no Total Missing System Total

Percent 57.0 21.5 78.5 21.5 100.0

Valid Percent 72.6 27.4 100.0

Cumulative Percent 72.6 100.0

NOT USER FRIENDLY Table 65. NOT USER FRIENDLY

Frequency 157 43 200

Valid yes Missing System Total

Percent 78.5 21.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

LESS CHOICE Table 66. LESS CHOICE

Valid yes Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

BAD PICTURE AND SOUND QUALITY Table 67. BAD PICTURE AND SOUND

Valid yes Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

87

LESS BATTERY BACKUP Table 68. LESS BATTERY UP

Valid yes Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

LESS PRODUCT FEATURES Table 69. LESS PRODUCT FEATURES

Valid

yes no Total Missing System Total

Frequency 67 90 157 43 200

Percent 33.5 45.0 78.5 21.5 100.0

Valid Percent 42.7 57.3 100.0

Cumulative Percent 42.7 100.0

NOT AWARE OF MODELS Table 70. NOT AWARE OF MODELS

Valid yes Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

NOT AVAILABLE Table 71. NON AVAILABILITY

Valid

yes no Total Missing System Total

Frequency 12 145 157 43 200

Percent 6.0 72.5 78.5 21.5 100.0

Valid Percent 7.6 92.4 100.0

Cumulative Percent 7.6 100.0

88

TOO COSTLY Table 72. COST FACTOR

Valid

yes no Total Missing System Total

Frequency 12 145 157 43 200

Percent 6.0 72.5 78.5 21.5 100.0

Valid Percent 7.6 92.4 100.0

Cumulative Percent 7.6 100.0

NOT INTERESTED Table 73. INTEREST FACTOR

Valid no Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

OTHERS Table 74. OTHER OPTIONS

Valid no Missing System Total

Frequency 157 43 200

Percent 78.5 21.5 100.0

89

Figure 70. MEMORY OPTION

Figure 71. USER FRIENDLY

90

Figure 72. LESS CHOICE

Figure 73. LESS PRODUCT FEATURES

91

Figure 74. PICTURE AND SOUND QUALITY

Figure 75. BATTERY UP

Figure 76. AWARENESS OF MODEL

92

Figure 77. AVAILABILITY

Figure 78.COST OF PHONE

93

Figure 79. OTHER REASONS

FROM THE ABOVE FREQUECY TEST IT IS FOUND THAT 157 CONSUMERS RESPONDED THAT THE MAIN REASON FOR NOT BUYING LG MOBILE PHONE IS • • • • • •

LESS MEMORY OPTION NOT USER FRIENDLY LESS CHOICE BAD PICTURE AND SOUND QUALITY LESS BATTERY BACKUP NOT AWARE OF MODEL

94

HYPOTHESIS 8: THE MAJOR REASONS FOR THE LG USED CONSUMERS ARE NOT USING LG PHONES NEXT TIME WHEN THEY CHANGE THEIR PHONE IS THAT • • • • • •

DID NOT LIKED FIRST TIME USED PHONE IS HEATING UP FAST POOR BATTERY BACKUP ACCESSORIES NOT AVAILABLE FREQUENT COMPLAINTS POOR AFTER SALES SERVICE

Test performed: Frequency test Did not like it the first time when used Table 75. FIST TIME EXPERIENCE

Valid yes Missing System Total

Frequency 29 171 200

Table 76. HEATING UP OF PHONE

Valid yes Missing System Total

Frequency 29 171 200

Table 77. POOR BATTERY

Valid yes Missing System Total

Frequency 29 171 200

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Heating up fast

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Poor battery

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

95

Accessories not available Table 78. AVAILABILITY OF ACCESSORIES

Valid yes Missing System Total

Frequency 29 171 200

Table 79. SIGNAL STRENGTH

Valid no Missing System Total

Frequency 29 171 200

Valid Percent 100.0

Cumulative Percent 100.0

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Not suitable for rough use

Frequency 29 171 200

Table 82. POOR SERVICE

Valid yes Missing System Total

Percent 14.5 85.5 100.0

Frequent complaints

Table 81. ROUGH USE

Valid yes Missing System Total

Valid Percent 100.0

Low signal strength

Frequency 29 171 200

Table 80. COMPLAINTS

Valid yes Missing System Total

Percent 14.5 85.5 100.0

Cumulative Percent 100.0

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Poor after sale service

Frequency 29 171 200

Percent 14.5 85.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

96

Figure 80. FIRST TIME EXPERIANCE

Figure 81. HEATING UP OF PHONE

97

Figure 82. POOR BATTERY

Figure 83. AVAILABILITY OF ACCESSORIES

98

Figure 84. LOW SIGNAL STRENGTH

Figure 85. NOT SUITABLE FOR ROUGH USE

99

Figure 86. FREQUENT COMPLAINTS

Figure 87. POOR AFTER SALES SERVICE

FROM THE FREQUENCY TEST CONDUCTED IN LG ONCE USED CONSUMERS THE REASON FOR NOT PREFERRING LG FOR NEXT TIME IS • • • • • •

DID NOT LIKED FIRST TIME USED PHONE IS HEATING UP FAST POOR BATTERY BACKUP ACCESSORIES NOT AVAILABLE FREQUENT COMPLAINTS POOR AFTER SALES SERVICE

IN THE TEST ITS FOUND THAT 100% RESPONDENTS (once used LG mobile phones) GAVE THE ABOVE REASONS

100

HYPOTHESIS 9 : THE CONSUMERS WHO USED LG PHONES RATES LOW IN DIFFERENT TECHNICAL PARAMETERS OF PHONE. PARAMETERS TAKEN: • USER FRIENDLY • PICTURE&SOUND QUALITY • SIGNAL STRENGTH • BATTERYLIFE • PROMOTIONAL OFFERS AND LOW COST • AFTER SALES SERVICE • LONG LASTING Test performed: Frequency test Customers are asked to give points in a scale of -5 to +5, for the above given parameters. In the scale the different range of ratings are associated to different feedback which is given below -5 to -4 -3 to -2 -1 to 1 +2 to 3 +4 to 5

---------- very poor ---------- poor ---------- neutral ---------- good ---------- excellent Statistics

Table 83. TOTAL RESPONDENTS IN RATINGS

N

Valid Missing

User Friendly 43 157

Pic & sound 43 157

signal strength 43 157

Battery life 43 157

Promo & low cost 43 157

after sale service 43 157

long lasting 43 157

User Friendly Table 84. RATINGS IN USER FRIENDLY

Valid

very poor poor Total Missing System Total

Frequency 42 1 43 157 200

Percent 21.0 .5 21.5 78.5 100.0

Valid Percent 97.7 2.3 100.0

Cumulative Percent 97.7 100.0

101

Picture and sound quality Table 85. RATINGS IN PICTURE & SOUNG

Valid

very poor poor neutral Total Missing System Total

Frequency 29 13 1 43 157 200

Percent 14.5 6.5 .5 21.5 78.5 100.0

Valid Percent 67.4 30.2 2.3 100.0

Cumulative Percent 67.4 97.7 100.0

Signal strength Table 86. RATINGS IN SIGNAL STRENGTH

Valid

very poor poor Total Missing System Total

Frequency 24 19 43 157 200

Percent 12.0 9.5 21.5 78.5 100.0

Valid Percent 55.8 44.2 100.0

Cumulative Percent 55.8 100.0

Battery life Table 87. RATINGS IN BATTERY LIFE

Valid very poor Missing System Total

Frequency 43 157 200

Percent 21.5 78.5 100.0

Valid Percent 100.0

Cumulative Percent 100.0

Promotions and low cost Table 88. RATINGS IN PROMOTIONS AND LOW COST

Valid

neutral good excellent Total Missing System Total

Frequency 3 37 3 43 157 200

Percent 1.5 18.5 1.5 21.5 78.5 100.0

Valid Percent 7.0 86.0 7.0 100.0

Cumulative Percent 7.0 93.0 100.0

102

After sale service Table 89. RATINGS IN AFTER SALES

Valid

very poor poor Total Missing System Total

Frequency 32 11 43 157 200

Percent 16.0 5.5 21.5 78.5 100.0

Valid Percent 74.4 25.6 100.0

Cumulative Percent 74.4 100.0

Long lasting Table 90. RATING IN LONLASTING

Valid

very poor poor Total Missing System Total

Frequency 25 18 43 157 200

Percent 12.5 9.0 21.5 78.5 100.0

Valid Percent 58.1 41.9 100.0

Cumulative Percent 58.1 100.0

103

Figure 88. RATING OF USER FRIENDLINESS

Figure 89. RATINGS OF PICTURE AND SOUND QUALITY

104

Figure 90. RATINGS OF SIGNAL STRENGTH

Figure 91. RATINGS OF BATTERY LIFE

105

Figure 92. RATING OF AFTER SALE SERVICE

Figure 93. RATING OF PROMOTION AND LOW COST

106

Figure 94. RATING OF LONG LASTING

IN THE ABOVE FREQUENCY TEST THE NOUMBER OF CONSUMERS GAVE VERY POOR RATINGS TO THESE PARAMETERS ARE USER FRIENDLY ------ 97.7 PICTURE&SOUND QUALITY - --- 67.4 SIGNAL STRENGTH ---- 55.8 BATTERYLIFE -- 100.0 AFTER SALES SERVICE74.4 LONG LASTING58.1 HYPOTHESIS 10: CONSUMERS ARE LEAST PRICE SENSITIVE WHILE SELECTING A MOBILE PHONE Test performed: Frequency test

Table 91. PRICE FACTOR

Valid

1 8 9 10 Total

Frequency 12 75 76 37 200

Price

Percent 6.0 37.5 38.0 18.5 100.0

Valid Percent 6.0 37.5 38.0 18.5 100.0

Cumulative Percent 6.0 43.5 81.5 100.0

107

Figure 95. PRICE FACTOR

In the above frequency test for the attribute price most the consumers ranked 8th and 9th for the attribute price ie 75&76 respectively. While 37 consumers ranked 10th for the attribute price. Only 12 consumers gave first priority. So from the above test the hypothesis is proved

HYPOTHESIS 11: ADVERTISEMENTS IS ONE OF THE IMPORTANT FACTORS CONSIDERED BY CONSUMERS FOR BUYING A MOBILE PHONE Test performed: Frequency test TV and other commercials Table 92. RANK FOR TV& OTHER COMMERCIALS

Valid

3 4 5 7 9 Total

Frequency 40 40 71 37 12 200

Percent 20.0 20.0 35.5 18.5 6.0 100.0

Valid Percent 20.0 20.0 35.5 18.5 6.0 100.0

Cumulative Percent 20.0 40.0 75.5 94.0 100.0

108

Figure 96. RANGING TV& OTHER COMMERCIALS

From above frequency test it is found that 40 consumers each ranked for 3rd and 4th in their preference, while 71 gave fifth preference. Only 37 consumers ranked 7th and 12 customers ranked 9th. From the above test it is cleared customers gave higher priority for advertisements.

109

HYPOTHESIS 12: LG’S NEW AD IS NOT REACHING TO TARGET POPULATION Test performed: Frequency test Consumers have seen LG companies new AD or not

Table 93. LG’S NEW AD

Valid

yes no Total

Frequency 61 139 200

Percent 30.5 69.5 100.0

Valid Percent 30.5 69.5 100.0

Cumulative Percent 30.5 100.0

Figure 97. REACH OF AD

FROM THE ABOVE TEST IT IS FOUND THAT ONLY 61 OUT OF 200 RESPONDENTS HAS SEEN LG COMPANIES NEW AD FOR VIEWTY/DYNAMITE.

110

HYPOTHESIS 13: CONSUMERS HAVE POOR RECALL ON LG’S NEW AD Test performed: Frequency test

Table 94. AD FEED BACK Feedback

Valid

Ad showcased features of phone efficiently doesn’t convey anything poor recall Total Missing System Total

Frequency

Percent

Valid Percent

Cumulative Percent

3

1.5

4.9

4.9

18 40 61 139 200

9.0 20.0 30.5 69.5 100.0

29.5 65.6 100.0

34.4 100.0

GRAPHS

Figure 98. AD FEED BACK

FREQUENCY TEST CONDUCTED IN THE CONSUMERS WHO HAS SEEN LG NEW VIEWTY/DYNAMITE AD 65.6% OF CONSUMERS SHOWED A POOR RECALL

111

HYPOTHESIS 14: CONSUMERS ARE NOT PREFERING TOUCH SCREEN PHONES IN 10,000Rs PRICE Test performed: Frequency test

Touch screen Table 95. TOUCH SCREEN PREFERANCE

Valid

yes no Total

Frequency 19 181 200

Percent 9.5 90.5 100.0

Valid Percent 9.5 90.5 100.0

Cumulative Percent 9.5 100.0

Figure 99. PREFERANCE OF TOUCH SCREEN

IN TEST IT IS FOUND THAT CONSUMERS ARE LESS PREFERRING MOBILE PHONES WITH TOUCH SCREEN. IN 200 RESPONDENTS 181 WERE NOT PREFERRING MOBILE PHONES WITH TOUCH SCREEN

112

2

""

8.1 RETAILERS •

Company should come up with new offers which give more benefits to retailers. Company can also come up with target offers like extra pay off per mobile phone which they sell. Retailers are currently unhappy about the new scheme called ‘BASKET OFFER’. In the current offer the additional earnings is only for bulk purchase. This is not affordable for small retailers.

•

Price protection period should be increased for high end mobile phones of LG. the models like KU990,KF600,KF510,KS20 etc should be given more price protection time. The high end models of LG are not having very high frequency of purchase. So retailers are reluctant to keep the stock.

•

In shop promotional activities of LG must be increased. The company should pump in more flux and displays of new models into shops. It is found that retailers are asking no charge for keeping POP s inside the shop. Company should exploit those areas. The table top displays should be allotted to S&A category shops also.

•

The retailers which accept and sell second hand phones should be tracked and POPs of new models and ‘TABLE TOP’ should displayed in those outlets. In those outlets are more populous when compared to other outlets.

The

presence of flux, brochures, displays of new models and table top will be a added advantage to the company •

Company should distribute the accessories of LG mobiles to more retailers to increase the availability.

•

Live demo pieces can be supplied to retailers. This can be properly monitored with help of RSO’s. Live demo’s can be displayed in table top with the help of LOCK AND KEY mechanism. This can give the consumers a touch and feel experience. The other advantage is that consumers can directly feel the quality of LG phones and also it will be very easy for promoters to demonstrate the attributes of the model

•

The brochures about the product of LG mobiles should be supplied to all possible retail outlets. All retail outlets surveyed are facing the shortage of brochures. Company should set a visual merchandizing team to supply the 113

POP s and brochures to retail outlets to increase the visibility. In the present scenario the POPs and brochures are supplied to distributors. This resulted in un even distribution of POPs and brochures to retail outlets. LGs presence in promotion activities is not all visible in small retail outlets which is in the category of B, C, D, E. •

The service quality of LG service centres should be promoted by the company. The location of different service centres in Mumbai is to be informed to retailers with help of brochures specially designed for those purpose. This helps them in guiding the consumers to service centres. As per the findings from the in depth interview the consumers usually goes to the particular retail outlet from where they purchase the mobile phone.

8.2 CONSUMERS

•

Company should improve the technical parameters of phone mainly the battery backup, ease of use and improve the signal strength of phone. The above complaints are frequent complaints that LG mobile phones is currently having. When consumers make a choice in buying a mobile phone they go for the brand which is having maximum battery backup. They also consider the user friendliness factor to major extent. From the survey its found that consumers are less preferring LG mobile phones because these technical problems in the phone.

•

Consumers should be given more offers like exchange offers and free accessories. The accessories like stereo Bluetooth headset , extra memory card should be introduced. Company should introduce phones with memory compatibility of 4GB, 8GB, and 16GB.

•

LG should come up with more bar phones in high end mobile segments because consumers are less preferring the slider phones which LG normally have in high end mobiles.

•

LG mobile phones should increase the product range in the price range of 8000 – 12000. The average budget of the consumer for a mobile phone is around this range. LG mobiles should maximise the promotional activities

114

•

Company should advertise about the product at least one week after the launch of new phone in the market. Company should also take care of distribution of the POP’s of new products within a week time.

•

The promotional activities of LG mobiles should be improved. The frequency of advertisements should be increased. The television Ads of LG viewty lacks a human element which may be the reason of poor recall. The inclusion of human element in television Ads will be help in recall of the brand.

•

Company should also come up with TV ads which show the quality of service that LG is giving to consumers. Which helps to change the perception of consumers about LG service centres

•

The promotional activities like road shows, inside mall demonstration about the newly launched products of LG mobile phones should be increased.

•

Companies’ official websites should be updated with forth coming attraction from LG mobile. The website can also include the software downloads, blogs etc. This will help company to know more about the consumer perception.

•

Company should increase the brand value LG mobiles. For this company can associate their brands with band ambassadors.

115

3

1

PRINT SOURCES Naresh K. Malhotra, Marketing Research – An applied orientation, 5th edition, Pearson education My Mobile – Magazine Business World – Magazine Hindu Business Line Economic Times WEBSITES 1. http:// www.in.lge.com/ Products/Products-gsm 2. http:// www.efytimes.com/full news 3. http://financial express.com/India/news 4. http://www.c-i-a.com 5. http://www.idcindia.com 6. http://www.gartner.com 7. http://www.marketreasearch.com

116

4

*

10.1 RETAIL QUESTIONNAIRE

The following questionnaire is a tool for the market research project carried out for LG, as part of the academic requirements for MBA in Amrita School of Business, Coimbatore. It will help us to analyze the consumer’s preferences regarding LG GSM mobile phones in the Mumbai market. I would be highly grateful for your valuable time spent on this survey. Before proceeding kindly fill in the following details:

Name:

_________________________________________

Designation:

_________________________________________

Location of outlet:

_________________________________________

Date:

_________________________________________

1. Please tick on the brands whose products are sold at your outlet and rate them in the order of overall preference. (1- least preferred to 5- most preferred)

Brands

NOKIA

SONY ERICSSON

LG

SAMSUNG MOTOROLA

FLY

Others (Please specify)

Kindly place your tick Rate

117

2. Please mention the average monthly sales (in terms of number of units) of the following brands of GSM mobiles that you sell through your outlet? Brand name

Nokia

LG

Average sales

Sony Ericsson

Samsung

Fly

HTC

Others Motorola (Please specify)

3. What is the average sale per month for different categories of mobile phones? (Kindly tick on the closest given option)

A. SUB- ENTRY LEVEL MODELS (upto Rs. 2499) a. less than or equal to 100 b. 101 – 200 c. 201 – 400 d. 401 – 500 e. above 501

B.

ENTRY LEVEL MODELS (Rs. 2500 – 5999) a. less than or equal to 50 b. 51 – 100 c. 101 – 150 d. 151 – 300 e. above 301

118

C. MIDLEVEL MODELS (Rs. 6000 – 11,999) a. less than or equal to 20 b. 21 – 40 c. 41 – 75 d. 76 – 150 e. above 150

D. HIGH END MODELS (Rs.12000 & above) a. less than or equal to 20 b. 21 – 40 c. 41 – 75 d. 76 – 150 e. above 150

E. ENTERPRISE LEVEL (BUSINESS CLASS PHONES) a. less than or equal to 20 b. 21 – 40 c. 41 – 75 d. 76 – 150 e. above 150

119

4. Please rate your level of satisfaction in terms of the following factors that might affect the sales of a company’s products at your outlet. (1- Least satisfied, 2- Moderately less satisfied, 3- Average satisfaction, 4Moderately highly satisfied, 5- Highly satisfied) Factors affecting sales

Product features

Brand

After sales support

Pricing of product

Awareness of products among consumers

LG Motorola

Support from distribut or Or company

Promotio n of products

Availa bility of accesso ries

Nokia Sony Ericsson Samsung Others, please specify

5. Are there any promotional activities being invested in by any company, in your outlet? If yes, please specify the company name and the amount spent. What kind of promotion are they carrying out? Yes

No

COMPANY NAME _____________________________________________________

:

AMOUNT ____________________________________________________

:

PROMOTIONAL ____________________________________________________ ACTIVITY ____________________________________________________ DURATION

:

____________________________________________________

120

Profit margin

6. Kindly rate the problematic areas (if any) that you are currently experiencing difficulty in, while selling an LG product? (1- Highly problematic, 2- Moderately high problematic, 3- Moderately problematic, 4- Moderately less problematic, 5- Least problematic)

AREAS

1

2

3

4

5

Resale value Brand value Product features when compared to others Battery life Profit margin Supply of live demo Offers Product range Product Supply User friendly

121

7. Many of LG’s handsets cannot be operated without inserting a SIM. Does this pose as a hindrance in the sales of the phones? Yes

No

8. Does LG offer ‘cover-ups’ while in cases of stocks being affected by price cuts in the market? Yes

No

9. Please coin in any recommendations of yours to LG or any additional steps to be implemented by them in order to increase market share and consumer preferences, while put in comparison with other successful brands. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

122

10.2 CONSUMERS QUESTIONNAIRE

The following questionnaire is a tool for the market research project carried out for LG, as part of the academic requirements for MBA in Amrita School of Business, Coimbatore. It will help us to analyze the consumer’s preferences regarding LG GSM mobile phones in the Mumbai market. I would be highly grateful for your valuable time spent on this survey. 1. Are you aware that the company LG manufactures mobile phone handsets?

Yes

No

2. If Yes, what type of handsets do you think LG manufactures?

a. GSM

c. Both

b. CDMA

d. Don’t know

3. What type of mobile phone are you using now? (Please tick the option applicable) a. GSM

b. CDMA

c. BOTH

4. How many GSM mobile phones do you own now? a. One b. Two c. Three d. more than three

123

5. Which company’s GSM/ CDMA phone do you own? (Mention the model also) a. Nokia

_________________________

b. Motorola

_________________________

c. Sony Ericsson

_________________________

d. LG

_________________________

e. Samsung

_________________________

f. Fly

_________________________

g. Others, please specify

_________________________

6. In the past one year, how many times have you changed your mobile phone? (Please tick the option applicable) a. once b. twice c. thrice d. more than thrice e. never

7. Do you update your handset according to the changing consumer needs? a. Yes

b. No

124

8. If yes, which amongst the following features do you consider while updating your phone? (Please tick all the factors which apply)

a. User Friendly b. Technology c. Looks d. Entertainment e. Data Capacity f. Social needs g. Price h.Others, please specify _____________________________________________

9. What are the factors that influence your decision to purchase a mobile phone? (Rank the following factors according to your priority preference from 1 to 11, with 1 being the highest priority and 11 being the lowest) a. Brand

___________

b. Product features

___________

c. New technology

___________

d. Peer influence

___________

e. TV & other commercials

___________

f. Reviews

___________

g. Value for Money

___________

h. Special promotional offers

___________

i. Trial & error

___________

j. Looks & Dimensions

___________

k. Price

___________

l. Others, please specify ___________________________________

125

10. Tick the average amount of money you would spend on a mobile phone? a. Rs. 1000 – 3000 b. Rs. 3001 – 5000 c. Rs. 5001 – 8000 d. Rs. 8001 – 12000 e. Rs. 12001 – 16000 f. Rs. 16001 – 22,000 g. Rs. 22, 001 & above

11. Rank the following companies according to the extent to which they serve consumer needs at the lowest cost? (1 – Best & 5 – worst) a. LG

___________

b. Motorola

___________

c. Nokia

___________

d. Sony Ericsson

___________

e. Samsung

___________

12. Which type of mobile phone do you prefer the most? (Tick any one) a. Bar

b. Flip

c. Slider

d. Rotating

13. Which built of handsets do you prefer more? Metal case

others, please specify____________________

Fibre/ Plastic 126

14. Would you prefer a GSM phone with dual SIM? a. Yes

b. No

15. If yes, would you prefer a phone which can support both GSM and CDMA technologies? a. Yes

b. No

16. While purchasing a mobile phone, will you go only for brands which offer company made accessories for e.g. Nokia has its own Bluetooth headset? a. Yes

b. No

17. While purchasing a mobile phone, what are the accessories which you are likely to purchase along? (Please rate the best suited option) 1 -Definitely will not buy

2 - Probably

3 - undecided

4 - probably

5 - definitely

will buy

will buy

will not buy

a. Bluetooth headset

__________

b. Bluetooth wireless stereo head set

__________

c. Leather pouch

__________

d. Mini speakers

__________

e. Extra panel

__________

f. Car charger

__________

g. Bluetooth headset mounted on sun glasses

__________

127

18. Please tick a mobile manufacturing company which you feel the following phrases best describe?

company Sony phrases

i-mate

LG

Motorola

Nokia

Samsung

Ericsson

Perfection Battery life Sound quality Picture quality Promotional Offers Value for money After sales service Style Low cost Product range

128

19.

Have you used an LG GSM mobile phone? a. Yes

b. No

19. (a). If yes, please rate the following qualities in an LG GSM phone on a scale of 5 to +5.( -5= worst , +5= best ) +5

+5

+5

+5

+4

+4

+4

+4

+3

+3

+3

+3

+2

+2

+2

+2

+1

+1

+1

+1

User friendly

Picture & Sound quality

Signal strength

Battery life

-1

-1

-1

-1

-2

-2

-2

-2

-3

-3

-3

-3

-4

-4

-4

-4

-5

-5

-5

-5

__________________________________________________________________ +5

+5

+5

+4

+4

+4

+3

+3

+3

+2

+2

+2

+1

+1

+1

Promotional offers & Low cost

after sales service

long lasting

-1

-1

-1

-2

-2

-2

-3

-3

-3

-4

-4

-4

-5

-5

-5

129

19. (b). If no, please specify the reason for the same too (tick all that apply) a. less memory option b. not user friendly c. less choice/ variety d. bad picture & sound quality e. less battery back up f. less product features g. no colour variants h. not aware of the models i. not available j. too costly k. not interested l. Others, please specify ________________________________

20. If the answer to question 19 is yes, then are you still using LG GSM mobile phone? a. Yes

b. No

21. If no, kindly specify the reason? (Tick all that apply) •

Did not like it the first time you used

•

Phone is heating up very fast

•

Poor battery life

•

Accessories not available

•

Low signal strength

•

Not suitable for rough use

•

Frequent complaints

•

Poor after sales service

130

22. Which amongst the reasons listed below, would drive you the most to purchase an LG phone? (Rank as 1 – highest to 5 - lowest) a. exchange offers

_______________

b. other offers

_______________

c. free accessories

_______________

d. celebrity endorsements/ advertisements

_______________

e. more user friendly

_______________

23. Are you planning to change your mobile handset in the coming two months? Yes

No

Maybe

Don’t know

24. Have you come across the ad for LG’s new launch ‘VIEWTY/ DYNAMITE’? a. Yes

b. No

25. If yes, what amongst the following will be your most suitable feedback to the ad? a. The ad showcased the features of the phone efficiently b. There was some useful message in the ad c. There was no coherence between the message and the product d. The ad does not convey anything e. The ad has a poor recall

26. Associate LG mobile handsets with an adjective/ phrase. _____________________________________________________________________

131

27. Compare LG handsets with other brands and reveal your preference over certain parameters given. Tick the criterion which you think the other brand offers better than LG. (Tick all that is applicable) Criterion

Awareness

LG vs.

Product

Price

Availability

Re-sale

Quality

Range

&

opportunity &

Serviceability

value

Nokia Samsung Sony Ericsson Motorola Any Other __________

28. Here’s a chance to pool in your recommendations for LG to give them an opportunity to serve you better. Could you please customize your dream phone for a price of roughly Rs. 10,000? Kindly add in features which you think are essential for a good quality phone. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

132

Personal Details: (a) Gender: (b) Age:

Male

Female

Below 18 18-25yrs 26-35yrs 36-555yrs Over 55 yrs

(c) Occupation:

Housewife Student Professional Businessman Others (specify) ___________

(d) Annual Income (in Rs):

under 1, 00, 000 1, 00, 001 – 2, 50,000 2, 50, 001 – 5, 00, 000 5, 00, 001 – 10, 00, 000 10, 00, 001 – 20, 00, 000 Over 20, 00, 000

Thank you!!!

133

134