INTRODUCTION

The present day Indian economy is viewed a highly

competitive and market oriented.

At this state the success

of any organization is totally depends on customer and his

satisfaction only. So, every business organization should see
that the customer as sovereign of the market who decides
the fate of it. Hence, it is the responsibility of any concern
to meet the requirements of customers from time-to-time
with greater dynamism.
Sales and distribution management constitutes one of the
most

important

parts

of

marketing

management.

Exchange is the core, aspect of marketing, and it is the

sales and distribution management which facilities it. Sales
management has been defi ned as the management of a fi rm
personal selling function. The importance of the sales and
distribution function varies across organizations depending
upon

its

Consumer

nature

and

density

verity

and

of

products,

dispersion

and

target
the

market.

competitive

practices among the other things. Sales and distribution

function is organized internally, externally or jointly.
Finding and communication with prospective buyer.
Bringing together the markets off ering and the prospective
buyer.
Reaching an agreement on price and other terms of the
off er so that ownership and possession can be transferred.
Of the markets off erings, and his satisfaction generating
potential.
Actual transfer of possession i.e. timely and safe delivery.

Of relevant consumers information and revenue in exchange

of goods of services.

Selling
The basic task of marketing is to bring the buyers and
the sellers together. Regardless of the desire one has to sell
and the other to buy, no exchange can take place until each
one knows the desire of the other. The function of marketing
is to ensure that the right product is made available at the
place, in the right time and under the right impression to
the consumer.

Distribution of Consumer Market:

Five

channels

are

widely

used

in

marketing

tangible

products to ultimate consumers:

Producer
distribution

consumer:
channel

for

The shortest, simplest

consumer

goods

involves

no

middlemen. The producer may sell from door to door of by

mail. For instance, south-western company uses college
students to market its books on a house-to-house basis.
Producer

retailer

consumer: Many large

retailers buy directly from manufactures and agricultural

products. To the chagrin of various wholesaling middlemen.
Walmart has increased its direct dealings with products.

Producer

wholesaler

retailer

consumer:

If there is a traditional channel for consumer goods, this is

it, small retailers and manufactures buy the thousands fi nd
this channel the only economically feasible choice.
Producer

agent

retailer

consumer:

Instead of using wholesalers, many producers prefer to use

agent middlemen to reach the retail market, especially large
scale retailers. For example. Clorox uses agent middlemen
such as Eisenhart & wholesaler that distribute a wide range
of

products

to

retailers.

In

turn,

Dierbergs

off ers

its

assortment of products to fi nal consumers.

NEED FOR THE STUDY

Consumer satisfaction is the most important objective
for any manufacturing concern to successfully market its
products. Penna has from gradually and would want to take
a stock of the satisfaction level of consumers and defi ne
areas

where

possible

improvement

may

be

made.

The

research work has been therefore selected in this area.

The company which produces products doesnt give
life to sustain in competition without sales of products. So
sales are important function of the manufacturing company
to get profi ts. Through sales only wealth maximization if
possible.
Distributions are also one of the important functions in
marketing. Through distribution only one company can sell
its products. Here the distribution channels contain the
dealers. Who are very near to the customers and act as
3

middlemen between the organizations. So there is a need to

study sales and distribute on strategies.
Distribution

system

includes

distribution

channels.

Which are sets of independent organizations involves in the

process of making a product (or) a service available for the
consumption. Distribution network is necessary for smooth
fl ow of goods.

OBJECTIVES OF THE STUDY

Primary objective:
To assess the role of dealers in LG Electronics
Limited.
Secondary objective :
1. To assess the channel performance in LG Electronics
Limited.
2. To fi nd dealers opinion on various issues of the present
market

situation and furthering

(strengthening) channel eff ectiveness.

3. To off er suggestion in building eff ective channel strategy
to LG Electronics Limited

SCOPE OF THE STUDY

The study aims to measure satisfaction level of the
dealers regarding LG Electronics Limited. The area within

which the study was conducted regarding the information

the primary data is collected in the form of questionnaire
collected from the dealers in Twin Cities. To sum up the
project had with in the scope of the study in the area of
PEREFORMANCE of SALES and DISTRIBUTION CHANNEL of
LG Electronics Limited in Twin Cities for a particular time.

METHODOLOGY OF STUDY:
In
exploratory

view

of

design

the
has

objectives
been

of

adopted.

the

study,

Further

an
the

researcher also touched the descriptive researcher design

and causal analysis to relate between diff erent variables.
Exploratory research is one which largely interprets the
available information on the study and it lays emphasis on
the analysis and interpretation of the exiting and available
information. This research is generally useful when we use
the information collected from three sources, viz., study of
secondary

sources,

discussion

with

individuals

and

analyzing the some specifi c case.

Sources of Data:
To perform the Research study by Researcher, the sources of
data obtained are:
Primary Data:

This data is obtained by interacting and interviewing

the dealers in Twin Cities.
Secondary Data:
This data is obtained directly from the company in the
form of broachers, charts, diagrams, document and other
forms.

Data Collection Tool:

Questionnaire:
This is one of the data collection tools. It is quite
popular particularly in case big enquires. It is being adopted
by private individuals, research worker, private and public
organization

and

even

government.

In

this

method,

questionnaire is issued to the persons concerned with a

request

to

questionnaire.

answer
A

the

questions

questionnaire

and

consists

of

return
number

the
of

questions printed or typed in a defi nite order or a form or

set of forms.
The researcher used the structured questionnaire in which
the questions were:
Open-ended questions
Close- ended questions
Dichotomous questions
Multiple choice questions
6

Sampling Design
The researcher has done his research study on the dealers
of LG Electronics Limited to know their present satisfaction
and expectation from this brand. The researcher selected
the

dealers

of

LG

Electronics

Limited

at

HYDERABAD&

SECUNDERABAD for this research study.

Sampling Plan
Sample size: Sample size consists of 50 dealers.
Sampling unit: The Sampling unit includes all the dealers of
LG Electronics Limited products present in HYDERABAD &
SECUNDERABAD.
Sampling method: For collecting information from dealers,
non-probabilistic simple random sampling method is used.

Tools of analysis:
The data collected trough survey has been carefully
and

meaningfully

statistical

tool

analyzed
and

by

using

techniques.

well

Important

established
statistical

technique is percentage method.

Hypothesis:
Hypothesis is a part of research that enables the
researcher to predict about the future based on the present
trend. It is very much essential in any research activity to
develop the policies for a better working of the system.
Based on the above concept, the hypothesis for the study

developed

by

the

researcher

analysis.

at

the

various

stages

of

Limitations of the study:

The

selected

sample

members

are

conspicuous

and

inconspicuous in nature. So, there is chance to arise some

errors in the courts of survey.
The errors may be as follows:
Respondents

may

not

disclose

the

right

information,

because the researcher is very stranger to them.

Respondents may give pleasing answers to the researchers
even though it is not correct from the prospective.
The perceptional values like status, not-disclosure of the
correct

information

and

diffi culty

in

expressing

their

personal feeling to an unknown researcher can bring wrong

opinion poll ton fi lling the questionnaire.
Since,

the sample

size is

small;

perfect

mix

of

the

respondents may not be available for the researcher to

conduct the opinion survey.

Company Profi le

10

COMPANY PROFILE
HISTORY:-

The

trajectory

of

LG

Electronics,

its

growth

and

diversifi cation, has always been grounded in the company

ethos of making our customers' lives ever better and easierhappier, even-through increased functionality and fun.

Since its founding in 1958, LG Electronics has led the way to

an ever-more advanced digital era. Along the way, our
constantly evolving technological expertise has lent itself to
many

new

products

and

applied

technologies.

Moving

forward into the 21st century, LG continues to on its path to

becoming the fi nest global electronics company, bar none.

BRAND IDENTITY
LG is the brand that is Delightfully Smart. "Life's Good" slogan, and
futuristic logo are a great representation of what we stand for.
Global, Tomorrow, Energy, Humanity and Technology are the pillars
that this corporation is founded on; with the capital letters L and G
positioned inside a circle to center our ideals above all else, humanity.
The symbol mark stands for our resolve to establish a lasting
relationship with, and to achieve the highest satisfaction for our
customers.

11

The letters "L" and "G" in a circle symbolize the world, future, youth,
humanity, and technology. Our philosophy is based on Humanity. Also,
it represents LG's efforts to keep close relationships with our
customers around the world. The symbol mark consists of two
elements: the LG logo in LG Grey and the stylized image of a human
face in the unique LG Red color. Red, the main color, represents our
friendliness, and also gives a strong impression of LG's commitment
to deliver the best. Therefore, the shape or the color of this symbol
mark must never be changed.
Our logo is the fundamental visual expression used to identify LG. It
expresses the quality and sophistication that is the hallmark of our
products. It is simple, modern and distinctive. Consistent and proper
usage of the logo is absolutely essential. The logo is symbolic of our
steadfast reputation for excellence; therefore, any variation of the
logo diminishes the visual identity of LG Electronics and its products.

VISION OF LG:

Management Based on Esteem for Human Dignity

Human Value each Individual.

Dignity Capitalize on Individual competencies, Respect for
personal

aspiration.

Esteem People are of the origin of all values. By developing

people we improve the organizations clear tasks and fair
treatment.

LOOKING

AHEAD

Our

Millennium

Commitment

On the way to becoming the Best Global Organization we

are promising:

DIGITAL

TECHNOLOGY

LEADERSHIP:

The

new

millennium sees the birth of the Digital Technology at LGEIL-

12

TL2006 (Technology Leadership), which off ers customers

easy to use, very aff ordable, and technologically ingenious
"Champion Products".
GLOBALISATION: 70 % of its total revenues are from

overseas. 54 subsidiaries carry out manufacturing, sales

and marketing, logistics, R&D and the customer services in
key geographical sites worldwide.
CREATING VALUE FOR THE PEOPLE: LG extends a warm

hand to contribute to the world community; to touch the

hearts of the customers, friends, shareholders, employees,
partners and subsidiaries at home and abroad. We create
value help people realize their dreams of a better life.

LG ELECTRONICS 50-YEAR HISTORY

1958 Founded as GoldStar

consumer radios

1959 Produce Korea's fi rst

1998 Introduce the 60-inch plasma TV

1999 Forge joint venture with Philips

GSM

handset

handset

market

2005

Develop

2003 Enter UK

3G

UMTS

2007 Launch HD disc-player and drive

1958
GoldStar (todays LG Electronics) established
1959
Koreas fi rst radio produced
1965

13

DMB

Koreas fi rst refrigerator produced

1966
Koreas fi rst black & white TV produced
1968
Koreas fi rst air conditioner produced
1969
Koreas fi rst washing machine produced
1974
GoldStar Communications went public
1977
Color TV produced
1978
Exports

surpassed

US$100

million,

fi rst

for

Koreas

electronics industry
1980
First EU sales subsidiary in Germany (LGEWG) established
1982
Color TV plant established in the US in Huntsville, Alabama
1984
Sales surpassed 1 trillion Won
1986
European-standard VCR plant established in Germany
1989
Sales

subsidiary

and

joint

production

subsidiary

established in Thailand
1990
Ireland-based design technology center established
1993
With

the

establishment

of

Huizhou

subsidiary

China(LGEHZ), marketing in China took full swing

1995
14

in

Company name changed to LG Electronics and US-based

Zenith acquired
1997
40-inch Plasma TV and the worlds fi rst IC set for DTVs
developed India production subsidiary (LGEIL) established
1998
Worlds fi rst 60-inch Plasma TV developed
1999
LG.Philips LCD established
2000
LG Information & Communications merged The worlds fi rst
Internet-enabled

refrigerator

launched

Global

sales

of

refrigerators reached the number one position

2001
Asynchronous
worlds

fi rst

conditioner,

IMT-2000

equipment

Internetenabled
and

microwave

commercialized

washing
oven

machine,

launched

The
air

LG.Philips

Displays, a joint venture with Philips established

2002
Under the LG Holding Company system, the Company spun
off

to

LG

Electronics

(LGE)&

LG

Electronics

Investment

(LGEI) The fi rst home network system commercialized in the

global market
2003
Worlds
phone

fi rst

synchronous-asynchronous

developed

The

worlds

fi rst

IMT-2000

76-inch

mobile

Plasma

TV

developed CDMA mobile handsets took the largest share in

the US and world CDMA market Launched the worlds fi rst
Super Multi DVD Rewriter
2004
15

EVSB, the next-generation DTV transmission technology,

chosen to be the US/Canada DTV transmission standard by
the US ATSC All-in- one LG 55-inch LCD TV, the worlds fi rst
and largest among LCD TVs, commercialized The worlds
largest and fi rst 71-inch Plasma TV commercialized The
worlds fi rst terrestrial DMB phone developed Developed
Wireless Speaker Home Cinema System
2005
The worlds fi rst DMB notebook commercialized The worlds
slimmest TV commercialized The worlds largest 102-inch
Plasma TV developed LG and Nortel Networks agreed to
establish a joint venture for telecommunication network
equipment Satellite-based DMB phone commercialized The
largest share seized in the global CDMA market
2006
Launched the LG Shine, the second handset in the Black
Label Series Globally launched the steam washing machine
and interactive TV refrigerator Developed the world's fi rst
100-inch LCD TV Launched the world's largest Full HD 102inch Plasma TV (1080p) Developed the world's fi rst dualformat high-defi nition Disc Player& Drive
2007
Launches the industry's fi rst dual-format, high-defi nition
disc player and drive Launches 120Hz Full HD LCD TV
Demonstrated the world-fi rst MIMO 4G-Enabled technologies
with 3G LTE Won contract for GSMA's 3G campaign

2008

Introduces new global brand identity: "Stylish design and

smart technology, in products that fi t our consumer's lives."

16

Posted

No.1

spot

in

US

frontloading

washers

in

consecutive quarters Unveiled the world's fi rst Bluetooth

headset combined mobile phone Unveiled the world's fi rst
Blu-ray network storage Developed the world's fi rst LTE
mobile modem chip Recorded over 100 million units of LG
air conditioners in accumulated sales

2009

Became second-largest LCD TV provider worldwide Became

third-largest supplier of mobile handsets market worldwide
Became Global Partner and Technology Partner of Formula
One

2010

Unveiled the worlds fi rst and fastest dual-core smartphone,

LG OPTIMUS 2X Unveiled the worlds fi rst full LED 3D TV
LG Electronics continues to pursue its 21st century vision of becoming
a worldwide leader in digitalensuring customer satisfaction through
innovative products and superior service while aiming to rank among
the

worlds

top

three

electronics,

information,

and

telecommunications firms by 2010.

On our way, we hold tight to a philosophy of "Great Company, Great
People," underscoring our belief that only great people can create a
great company.
LG strives for greatness in what we've identified as our three core
capabilities: Product Leadership, Market Leadership, and People
Leadershipeach strength a key part of realizing our growth
strategies for "fast innovation" and "fast growth".
LG Electronics is pursuing the vision of becoming a true global digital
leader,

attracting

customers

worldwide

through

its

innovative

products and design. The companys goal is to rank among the top 3
consumer electronics and telecommunications companies in the world

17

by 2010. To achieve this, we have embraced the idea of Great

Company, Great People, recognizing that only great people can
create a great company.

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 top ranking,
worldwide, thanks to a formidable market presence in countries
across the globe.
People leadership refers to the market dominance achieved by
selecting and nurturing talented team players able to internalize and
execute innovation across the board.

Growth Strategies
Fast innovation calls for securing a competitive edge over the
competition by settingand meetingthe highest of goals in all
realms of innovation, by at least 30%. This applies to new-product
development and unveiling, innovation in design and technologyas
well as product sales, market share, and corporate value.
Fast growth is the result of implementing strategies designed to
swiftly expand market size and earnings, with and eye toward
monetary growth.

Corporate Culture
Though a company can boast stellar management strategies and an
outstanding and talented pool of employees, it is still necessary to
adopt a corporate culture that can fully unleash the power of these
capabilities.

18

No to Nos
At LG, we try to meet every road block with an alternate route
brainstorming and working harder before saying no.

We not I
LGs embraces a code of strong teamworkencouraging pride in
achievement as goals are met by many working together as one.

Fun Workplace
LGs workplace is one where the individuals creativity and freedom
are respected, and work is made fun.

Established In : Jan 1997

Managing Director : Mr. Soon Kwon

Corporate Offi ce : Plot No. 51, Udyog Vihar, Surajpur

Kasna Road, Greater Noida (UP)

BUSINESS AREAS & MAIN PRODUCTS

Home Entertainment
Plasma Display Panels, LCD TVs, LED LCD TVs, Colour TVs, Audios,
Home Theatre System, DVD Recorder/Player, BluRay Players

Home Appliances
Refrigerators, Washing
Cleaners, Air Purifiers

Machines,

AC
Split AC, Window AC, Commercial ACs

19

Microwave

Ovens,

Vacuum

Business Solutions
LCD monitors, CRT monitors, Network Monitors, Graphic Monitor,
Optical Storage Devices, LED Projectors, NAS (Network attached
Storage) and Digital signage

GSM
Smart Phones, Color Screen GSM Handsets, Camera Phones, Touch
Screen Phones, 3G Phones, Multimedia Phones, Dual SIM Phones,
CDMA Phones

AWARDS
Award Name

Awarded By

Year

Most Admired Company in India

A&M Magazine

1998

Most Admired MNC

A&M Magazine

1999

No.1 Consumer Durable Company

A&M Magazine

1999

Best Marketing Company

A&M Magazine

1999

Most Ethieal MNC

Business World

1999

Techies Award Best Flat Screen Monitor

Computer World

2000

3rd Largest Exporter

ESC2001

2001

Best Employer

Business

Today/2001

Best Employer

Hewitt Assts
Business

Today/2002

Enterpreneur of the year

Gold
Rating
for

Hewitt Assts
Ernst & Young
Environmental CII

2002
2003

Performance
No. 1Awareness Award.

Business Today

2003

Super Achivers Award : MD LGEIL

CETMA

2003

Green Technology Gold Award

Green

Best

Designer

Award

-Art

Cool

Tech2003

Foundation
AirBusiness World

&2003

Conditioner
VAR India User Choice Award : Monitors

NIT
VAR India

2003

Most Admired Product Microwave

EFY

2004

20

Award for IT Innovation

Business Today

2004

Most Trusted Brand -CD Writers

DIGIT/Jasubhai

2004

Digital Media
EFY's Electronics Organisation of the Year Electronics for You

2005

Award for Television

Consumer Durable Retailer of the Year

ICICI Bank

2005

& CNBC TV 18

2005

Excellence

in

Corporate

Leadership

Entreprerenural Spirit
Most preferred Brand- CTV & WM

CNBC

Consumer2005

Vote Awards
Maximum Imports & Third Highest Exports CONCOR

2005

EFY Reader's Choice Award For Microwaves EFY

2005

Outstanding Contribution in the fi eld of HR CETMA

2005

Outstanding Contribution in the fi eld of HR MID DAY

2005

Top Company :CDMA Handsets

V & D

2005

Top Company : Fixed Phones

V & D

2005

Best in Recruiting & Staffi ng

RASBIC

2006

Most Preferred Brand - CTV, WM, Computer CNBC

& AC
4
P

Award

Refrigerator

and

Awaaz2006

Consumer Awards
Air 4Ps
Power
Brand2006

Conditioner
4P Power Brand

Award
CNBC

Consumer2006

Vote Awards
Most Trusted Brand - LCD TV, Plasma TV, Reader's Digest

2006

AC, WM, Ref, PC

Maximum Exports-Consumer Electronics

ESC

2006

Maximum Exports

CONCOR

2006

First Consumer Awards - CTV, Ref, WM, AC, Times Group

2006

MWO, PC
Business World Customer Loyalty Survey : Business

World

&2007

Air-conditioner & Refrigerator

Top Newsmaker Consumer Durables

IMRB
Business

Today

&2007

Most Trusted Brand - TV, AC & HA

Cirrus
Super Brands

Reader's Digest Trusted Brands: Platinum Reader's Digest

Awards- Airconditioner. Gold Awards- LCD
21

2007
2007

TV/Plasma TV, Ref, Washing Machine,PC

EFY Reader's Choice Award For IT & MWO

EFY

2007

India's Most Trusted Brands 2007

Brand Equity

2007

4 Ps Business & Marketing : India's 100 Planman Consulting2007

Most Valuable Awards
& ICMR Ranking
Business Leadership Award in Consumer NDTV

2007

Durable Sector
Most Preferred Brand -CTVs, ACs, Ref.and CNBC

2007

Washing Machines
Loyalty Awards -

Customer

and

Brand India

Loyalty in the Consumer Durables Sector

Avaya

Global

Mindscape

with

Savile-Row
Customer ET Avaya Awards

Connect

Responsiveness Awards
EFY
Reader's
Choice

Times-2008

Awards

2008 EFY

2008
2008

-Microwaves
Smart Living Awards -TV, AC, Microwave & 360 degrees, Times2008
Washing Machine
Brand for Excellence 2008

of India
VAR India

2008

Reader's Digest Trusted Brand : Platinum Reader's Digest

2008

Awards -AC. Gold Awards - LCD TV /Plasma

TV,Ref, PC
Most
Preferred

Brand-

ConsumerCNBC

Electronics and Home Appliances

Most Admired MNC in India

Awaaz2008

Consumer Awards
4Ps Award

OBJECTIVES OF COMPANY
LG Electronics (LG), a major player in the global fl at panel
display market, recently announced business strategies and
goals for its display business at IFA International 2009 in
Berlin, Germany.

22

2008

Competition has intensifi ed since the fl at panel

TV industry has fully matured,' said Simon Kang, President

and CEO of LG Electronics Digital Display Company, during a
press conference at IFA.
we

marketing

are

confi dent

activities

that

emphasizing

focused,
our

localized

products,

which

embody the perfect harmony of design and technology, will

separate us from our competitors.'
LG has established itself as a premium brand by

systematically focusing on brand marketing activities, for its

products which balance stylish design and smart technology.
The company plans to invest in marketing and

will

take a segmented, regional approach. LG plans to

reinforce

partnerships

with

premium

distributors

and

centralize brand marketing activities in developed markets

such as North America and Europe.

In contrast to assembly line manufacturing, cell

assembly allows one person to assemble a TV from start to

fi nish

LG will maximize its return on invested capital

through outsourcing, innovative manufacturing technology,

and an advanced supply chain management system.

MANAGEMENT SYSTEM
When LG Electronics removed the Circulating Investment Structure of
its affiliated companies (through the launch of a holding company
system), this enabled the holding company to take full charge of
investments. Consequently, LG Electronics has been able to focus on
its own businesses while increasing the overall value of the Company.

23

This corporate governance structure has laid the groundwork for

increasing

managerial

transparency.

Through

responsible

management system comprising of the CEO of LG Electronics and a

Board of Directors, we are taking huge steps in strengthening our
competitiveness at both the domestic and international level, in order
to maximize corporate and shareholder value.

Board of Directors
LG Electronics' Board of Directors maintains independence from its
management and major shareholders. Currently, the Board has a total
of seven directors, four of whom are outside directors. To ensure that
external directors are appointed fairly and independently, the
"External Director Recommendation Committee," comprised of one inhouse director and one external director, nominates external directors
following close examination of their qualifications. These outside
directors are then voted on at the next shareholders' meeting.

Committees
The BOD is supported by three Board Committees. They are the Audit
Committee,

the

Outside

Director

Candidate

Recommendation

Committee and the Management Committee. The Audit Committee

consists of three Outside Directors, and is responsible for examining
corporate financial records and accounting to ensure compliance with
the accounting laws and transparency. The Management Committee
reviews and determines the agendas delegated by the BOD and
ordinary

management

activities.

In

Committee reviewed a total of 52 agendas.

24

2010,

the

Management

Evaluation and Compensation

Compensation for the BOD members is made within regulations
pertaining to BOD compensation that has been approved at the
General Shareholder's Meeting. The evaluation of management and
executives of LGE is held annually. Top management and executives
are evaluated to determine whether they have set and achieved
challenging

goals,

whether

their

job

objectives

composed

of

quantitative and non-quantitative factors were achieved, as well as

their capability through fair and objective process, and appropriate
compensation corresponding to the outcome of the evaluation is
determined.

Key Executives for LG Electronics India Pvt. Ltd.

Mr. Soon H. Kwon
Managing Director and Director
Mr. Y. V. Verma
Chief Operating Offi cer
Mr. Chandramani M. Singh
Product Chief and Head of Consumer Electronics
Mr. R. Manikandan
Business Group Head of Digital Display & Storage
Mr. V. Ramachandran
Head of Strategy
Compensation as of Fiscal Year 2012.

ORGANIZATION
Take a look at LG Electronics organization information, including our
global operations.

25

26

INDUSTRY PROFILE

27

INDUSTRY PROFILE
Electronics is the study of the flow of charge through various
materials and devices such as, semiconductors, resistors, inductors,
capacitors, nano-structures, and vacuum tubes. All applications of
electronics involve the transmission of either information or power.
Although considered to be a theoretical branch of physics, the design
and construction of electronic circuits to solve practical problems is an
essential technique in the fields of electronics engineering and
computer engineering.
The study of new semiconductor devices and surrounding technology
is sometimes considered a branch of physics. This article focuses on
engineering aspects of electronics. Other important topics include
electronic waste and occupational health impacts of semiconductor
manufacturing.

Consumer Durables
(Data table headings are shown Year-wise in descending
order)

Air Conditioners

Bicycles

Crystal Glass

Domestic Electrical Appliances

Gems and Jewellery

Glass Products

Kitchen Equipment

Liquefied Petroleum Gas Cylinders

Microwave Ovens

Refrigerators

Sewing Machines
28

Sunglasses

Toys and Games

Washing Machines and Vacuum Cleaners

Watches and Clock

29

Channel conflict
Over-distribution:
Sometime Company over distribute their product. These kinds of
problem happen when company authorizes several distributors in the
same area. LG management and sales department authorize one
distributor in each area and not facing any over saturation. If
they need to authorize more than

one

distributor

they

set up

showroom according to the demand or either they just expand

the current showroom.

Stocking levels:
The primary responsibility of a showroom to maintain adequate
stock of the companys product. Each showroom maintain a certain
amount of stock which is possible for them.
Assigned markets:
Distributors want to

do business in their

comfort or existing

zone. When company open any new showroom in other area

other showroom

sales

personnel

too

get

business there. IF any distributor seeing that

new showroom in

Mohammadpur

the chance

to do

company opening a

other showroom personnel

also get the chance to operate that showroom.

Transshipping:
Out of authorized product shipments by distributor is call
transshipping. This kind of activity is harmful for the company,
because

of

strict

control

and

better

managerial

performance

transshipping dont happen in LGs distribution process.

30

Competition resources:
Each of direct sales personnel get the training and other
sales

improving

performance

technique

what is

allocated

for

them. Company gives training fairly and treats them equally.

Size

of profit margin:
Making money is the primary target

here

company

transferring

use

their

direct sales

force

for any distributor, but

channel .They are

cost. They invest their money to

distribution facility or showroom. Their profit

not

build a

comes through how

they charge for their product.

Pricing issues:
Company who use direct sales force channel ,they are not
much

worried

indirect
of

about

their pricing

issues. If

they

would

use

sales force channel then there were some possibilities

pricing

issue

between them and

the

indirect

sales

force

channel ,sometimes company is prevented to charge a price by

the indirect channel force.
Overselling without regard to
This kind of
shift the

full

Availability:

conflict happens when distributor unethically

burden of order to the manufacturer. Direct

sales

force channel of LG do not perform this kind of work , if they

need any

product they call the

main office to

supply the

product and after that if the product is not available to the main
office then they told the customer that it will take time to give
them the product.
New product launches:

31

When launching any new product company dont need to

pull any

distributor because of the advantage of using direct

sales force channel, whatever product they are introducing the

showroom will get the

product. The company dont need to

perform any pull strategy.

Sales quotas:
LG dont follow any sales quota system. They dont force their
direct sales channel that they have to sell this amount or unit of
product.
Large account coverage:
Their direct sales force gets the advantage of large account
coverage. When they deal with any large corporate customer
they can deal with the corporate customer or the company can
also handle it directly. Company dont interfere in the case of
large corporate when they directly contact with the direct sales
force.
Competitor:
AC-General, Refrigerator-monopolybusiness, Washing machineSamsung, Microwave oven-Samsung, TV-Sony

Better alternatives for the company

Indirect channel:
Distribution is a cost transfer business, by using indirect
channel the company can transfer the cost and can save money.
Traditionally they are sspending their own money to set up a

32

showroom which is quiet costly. They can take the help of

indirectchannel.

5.2.

Demonstration:
The product they give their showroom is only for sell, but

some customer dont want to take the showroom product, they

want new

product, so they can give some demonstration which

will only for demonstration purpose.

5.3.

Increase Warehouse:
Now they have only 9 showroom which is very big ,but the

increasing demand of the product

require them to build more

warehouse so that they can more efficiently stock their product.

.
Distribution management is "managing the channels or the path that
helps to reach a product of a company to the end user". Usually there
is a vacuum or gap between the manufacturer and the end user or
consumer. This vacuum is been reduced with the help of channel of
distribution or by a sales force.
From the operational standpoint, a marketing channel is the path a
product or service takes as it moves form the manufacturer to its end
user or consumer.
Direct Channel of Distribution: The manufacturer employed direct
sales force that sells products to the end user. The manufacturer does
have the authority in controlling, directing, how to sell, what to sell,
how much to charge. Form the production point to the reaching point
to end user its totally been controlled by the manufacturer.

Indirect Channel of Distribution:

33

When a media is used to reach the end user with the transfer of the
ownership of the product is called the indirect channel. Indirect
channel of distribution helps a company to reach the end user more
efficiently and effectively as they specializes in the channel of
distribution.

Primary Business Challenge:

The primary business challenge is to set up and mange a complex
network of distributors and resellers that sell your product along with
those of many other manufacturers. Crafting a business relationship
with indirect channel member by achieving the disproportionate share
resource commitment.

Market coverage strategy:

There are different kinds of market coverage strategies that a
company follows to reach the end user. They are as follows:
Intensive Coverage: Covering a market by authorizing several
distributors to sell product in a given geographic area or market
segment.
Selective Coverage: Selecting only those distributors that meet
certain channel selection criteria to sell products in a given market.
Exclusive Coverage: Authorizing only one distributor per geographic
area or market segment to sell products.

Market:
Horizontal Market: A company or its product is all things to all people.
Example: for the products those does not have complex feature to
understand.
Vertical Market: A company or its product is all things to some people.
For instance the product does require some extent of specialization.

34

Research and rank customer satisfaction requirements:

A company must assess what the customer or end user requires form
the organization that sells the product of the company or service.
Canvassing an adequate number of buyers to discover how well they
know the product, whom they purchase the product form, which do
they prefer to buy the product form, etc. then according to the often
mentioned choices should be ranked first and then according to the
task should locked to perform first.

Which distribution channel to chose:

A company has thoroughly research and determines what channel
structure that are available. Constructing a matrix that illustrates the
various structures through which reaches the end user more
efficiently.

Then they need to decide which channel structure

opportunities should b e brought on board. The priority for channel

introduction should specifically orient around channel sales revenue
potential, profit possibilities, and whether or not the company can
provide the internal support for the channel.

Decide upon eagle channel partners:

To make final candidate decision and decide the sequence in which
the company will bring the new member into the company the
participation of the other corporate managers in the company are
also important. Because they do have criteria to meet for the new
channel member.

Monitor and evaluate the channel structure:

After selecting new member of the company it is absolutely necessary
to monitor and evaluate the operation of the member, other wise they

35

might leave the company's sales high and dry. And also for the
internal environment is working well.

Marketing channel macro influences:

End users buying behavior: As the end users are the ultimate goal
that's why they do have certain degree of influences over how
products finally reach them. That's why the changes that should be
constantly kept in observation are:
Where the customers buying the products.
How they but the company's product.
When they purchase the products.
Who does the buying?
The Economy: The economy does affect the three parts of the total
channel equation.
Interest rate: High interest slows the spending, decreasing
the company's sales commensurately.
Product and material shortage: In poor economic time the
suppliers are reluctant to supply goods or materials for
production thus the rate of production goes down.
Inflation: In inflation time the consumers spends less on
buying thus the sales goes down.
Recession: It puts pressure on cost of sales, thus the
corporate has to cut down the current structure.

Competitors: There is little control over the competitors who are using
the current channel. But to evaluate the competitors three basic
questions should be kept into consideration:
Who are the main competitors?

36

How strong is their presence in the COD company

desires?
Is the company is willing to use the same marketing
channel?
Political Factors: the state political arena is another area over which
the company have little or no command. For example, a channel
marketing manager at a medical products company needs to be
concerned about federal healthcare legislation that may require him
or

her

reorganize

channels

in

order

to

meet

new,

more

administratively demanding influencers such as HMOs and PPOs.

These influencers must be included in the company's future channel
marketing plans.
Environmental regulations could affect the way a company produces a
product and therefore add to the total cost that is passed through the
channel to the end user. In this case, the manufacturer must conform
risk a penalty or disqualification.

Direct competitive analysis:

Need develop a descriptive profile of the company's top three to six
direct competitors. This profile should be continually and faithfully
maintained.
Evaluating each competitor's strengths and weaknesses as they
accurately and fairly compare to the company's own characteristics.
Anticipating each competitor's future strategies and tactics. This is
critical for the company future success or failure and is clearly the
most important.

Where to find information about competitors:

Customer

37

Existing indirect channels(dealers, manufacturers representative,

distributors,
and resellers )

Suppliers

Competitors ' employees

Advertising agencies

Other channel managers at noncompetitive companies in the same

industry.

What does the Distributor Desires?

Quality product: All the distributor want to represent a quality product
of a company. That's why it's wise to have a quality product on the
production line. Because representing a low quality product can lead
to a bad impression to the end user, which most of the distributor
doesn't want to face.
Adequate compensation: If a company cannot or will not meet a
distributor's margin demands, then the distributor will refuse to deal
with the company.
Committed manufacturer field sales people: As they are the last line
of communication and management between the manufacturer an d
the distributor, an d they are responsible for implementing the
business policies and procedures of a company. They distributor want
a sales person to be a company representative, channel defenders,
trainers, and field sales manger at a time of the service.
Competent internal support system: Customer service, technical
support, training, and marketing service support are one of the key
ingredients of lasting a relationship with a distributor.

38

Reputable manufacturer image: All of the distributors want to

represent a manufacturer who is well known in the market. It makes
them proud to be part of the reputed company.

Differentiating the product or service:

A Company can block competitive moves by positioning the product
or service in a way that clearly shows it's advantage over the
competition in the eves of the channel and the end users. They're a
number of ways the company can accomplish this objective:

Achieve a higher product quality image in the eyes of the

customers.

Offer consistently superior customer or channel member service

that exceeds all marketplace satisfaction requirements.

Forge formal and informal business relationships that build long

term loyalty.

Employ the most efficient, state-of-earth business technology to

improve communication flow among all channel members.

Implement policies that make it easy to do business with your

company.

What are channel selection criteria:

Channel selection criteria are what the company and the end user
wants the company distributor to perform tasks. First the company
needs to judge what is the company's need and secondly what the
customers desire from the distributor.
The criteria is based on three different categories:

Business and Operation Criteria (What are the quality does the
company have in terms of organizational structure and policies).

Sales and Marketing Criteria (What kind of marketing strategy do

they follow and the current sales competency).

39

"Coup de Grace" Factors that Indicates a Motivated Candidate

(Perception towards the interested company and their willingness
to work with the company).

Enticements to offer:
Antes: Are the policies that are necessary to get into the channel of
distribution business. They are what the company to put into the pot
in order to play.

They include basics like meeting the channel's

economic demands for profitability, quality, and physical distribution.

Pluses: Are policies that strengthen the company's position and make
an

advantageous

company's

difference

main competition.

between

the

Lucrative

company

and

the

payment terms,

and

increased warranty period or a higher standard of quality are all good

examples.
a) Adequate or superior discounts/margins: An adequate discount or
margins should be offered to the channel member, because it
reflects the profitability of channel member. Based on the
profitability they may want to stay or not. That's why it's better to
leave the provision to adequate discounts or margins.
b) Quality product: Always try to present the best quality product to
the channel member, because non of the member would want to
present a bad quality product in front of the end user, because it's
would put a very bad impact on the other present products of the
member.
c) Full product line/mix: Just as customers want one stop shopping
from distributors, the company's distributor look to a full array of
products. Before the company approaches distributors it has to
make sure that it offers a complete assortment of products of it's
product line.
d) Consistent and responsive sales and marketing support: if the
channel partners do not receive quick, accurate, consistent, and
40

honest responses to requests for information, they would simply

cease contacting the company. That's why it's better to meet the
situational demands at the point of the demand.
e) Rapid or timely delivery : Every market place has it's won set of
product delivery standards. Finding out what they are and then
decide how the company can meet or beat the time required to
fulfill the channel shipment needs.

If a eagle takes 24 hrs to

process order and the company takes more than one day then it
would unwise to continue with the same standard.

f) Price protection: Depending on the industry, price protection ca be

a major channel policy consideration . In a fast moving, dynamic
market place like cellular products, pricing fluctuations can be
deteriorate as a product approaches a commodity classification
while a great deal of units are available for purchase. With price
protection the distributor is protected when the manufacturer
decides, for competitive reasons to lower its entire pricing
schedule.
g) No penalty rotation: No penalty stock rotation motivates channel
members to carry adequate physical inventory levels of the
company's product line by allowing distributors to return slower,
nonmoving units. Generally, product returns are allowed only once
or twice during a twelvemonth calendar period - the first two
weeks in December. It's a good idea to limit the amount of non
moving stock a distributor can send back. This limit is normally
based on a specified percentage of purchases during the period of
time. These amounts vary but usually top out at 10 percent of total
annual purchase.
h) Market

knowledgeable

manufacturer

management:

The

manufacturer management should be updated and knowledgeable

41

about the market place and the changes that are occurring in the
present time. This helps to easily communicate and also to take
preparatory actions.
i) Product customization: This special possibility may appeal to large,
national distributors that want to promote and market their
tremendous size as a competitive advantage to their customers.
Let such distributors know that the company are receptive to
changing product features to meet a distributor's customer
requirement to affixing their corporate logo to the company's
product to complement their business plans.
j) An effective and frequent channel communication program: The
company' s distributor wants to know how pertinent information
will be conveyed.

During the meeting, show examples of

newsletters, testimonials, and other communications vehicles.

k) Sales

training:

Manufacturer

should

constantly

pursuing

distributors to take their product sales training.

l) Territorial integrity: As convincingly as possible, inform the
potential channel partner that the company do not intend to over
distribute the product line.

If an exclusive market coverage

strategy matches the company's channel marketing plan, tell the

distributor that it will be the only authorized representative in its
geographical marketplace. No distributor in his or her right
managerial mind wants to have several other same market, same
customer counter parts serving common geographic markets.

Push and Pull strategies:

There two kinds of promotional activities: (1) those that push products
through the company's channel and (2) those that pull products
through the company's channel.
Push: A push strategy is any marketing activity that entices the
company's COD to sell its product rather than those of other
42

manufacturers the channel represents. In other words, these types of

promotions push the product through the channel. Push strategy
examples are:

Travel incentives programs that award an all-expense-paid trip to a

domestic or foreign destination for meeting a quota during a
specified period of time.

Merchandise programs that reward salespeople for performance

with items such as televisions, sporting goods, clothing, and
gourmet foods.

Training programs that increase the distributor salespeople's

comfort level with the company's products, thereby making ti easy
to sell the products to their customers and reap compensation
accordingly.

Monetary SPIFFS (special promotional incentive factory funds) that

draw specific attention certain models or groups of units in the
company's product line.

Special discounts or allowances that draw special attention to

company's product line through a limited time offer.

Local COOP advertising efforts (direct mail, exhibitions, space

advertising) that produce local market quality sales leads that
materialize into real purchase.

Pull: A Pull strategy motivates the end user to approach the

company's channel of distribution and "call out" for the product. A
customer that asks for a specific product won't be satisfied with
anything else- so the distributor must sell the intended company's
product n order to fulfill its customer's demand. This kind of strategy
pulls the product through the channel. Pull strategy examples are:

43

Space advertising in leading publications that generates qualified

customer inquiries that produce actual purchases of the company's
product.

Public relations releases announcing new products or features,

which cause potential ends users to request further information or
a demonstration form the company's distributor.

Rebate programs offering a limited-time, factory-issued cash

rebate to end users that purchases the company's product.

Exhibitions where end users spend time in company's exhibit

booth expressing an interest in the product line.

Direct mail campaigns targeted at qualified individuals who

request further contact.

End user seminars conducted by the company's staff and attended

by individuals who have, by their presence and time commitment,
expressed a sincere interest in the product.

Internet exposure via a Web page illustrating the features and

benefits of the companys product line and that directs visitors to
local distributors for further information.

Radio and television advertising that promotes the products to

potential end useres that then contact the company's COD for
additional details and sales information.

44

Data Analysis & Interpretation

45

1. LG Brand of TV you have in Your house?

Content
Yes
No

Respondents
91
87

Percentage
51%
49%

Here as our respondents for LG is 91 which is 51%, who are not using
LG is 87 which is 49%.

46

2.If No then which TV brand are you using?

Samsung
Sansui
Akai
Videocon
Philips
Onida
Other

23
6
2
7
9
6
12

35%
9%
3%
11%
14%
9%
18%

As per the respondents Samsung take the third position followed by

other brands and Phillips, Akai grabs the last position with a just 3%
market share.

47

3. When did you purchase the LG TV?

1 Month

26

12%

6 Months

73

34%

12 Months

46

21%

More then12
Months

78

36%

48

4. From where did you buy this T.V

Supermarket

47

21%

Discount Store

44

20%

Departmental
Store
Retail Chain

38

17%

66

30%

Internet

10

5%

Any other

17

8%

Retail chains here proves to be the most preferred choice of end

consumers for their purchases, however super markets are not much
far behind ,also internet is slowly becoming a significant contributor
to the sales.

49

6. Overall, to what extent are you satisfied with (RETAILER)

when it comes to buying [PRODUCT]?
1-Very good

1%

11

5%

42

19%

95

43%

5-Very good

71

32%

As it is very clear from the responses that most of the people are very
happy with the buying experience at the retailers.

50

7. Innovation: Retailer continuously offers a wide enough

choice of new products & innovative ideas that meet your
needs
1-Very good

2%

13

6%

34

15%

103

46%

5-Very good

68

30%

51

8. Reliability: TV sold by the retailer are reliable

1-Very good

1%

11

5%

51

23%

77

35%

5-Very good

82

37%

Retailers are proving to be delivering the value proposition promised

by the companies, this can be related to the proper training and
feedback provided by the companies

52

9. Product labelling: Product information provided by the

company on the label/packaging is clear, accurate & sufficient.
1-Very good

0%

12

5%

55

25%

80

36%

5-Very good

72

33%

The labelling/ product information is very good as per the consumers.

This may be an outcome of the market research they do.

53

10. Enough choice of Prices: Retailer offers a wide enough

choice of TVs at different prices.
1-Very good
2
1%
2

13

6%

46

21%

98

45%

5-Very good

59

27%

Customers get wide range of price choices to select from at the

retailer.
11.Ease of Purchase: It is quick & easy to find the LG TV at
the retailer.
1-Very good

0%

4%

39

18%

76

35%

5-Very good

96

44%

54

80% of the respondents find LG easy to locate which means the retail
network is very good

55

12. Staff: The staff at the retailer is well informed about the
product & is helpful to you when you need it.

Approx 70% of the respondents are happy with the staff at the
retailers outlet i.e they are well trained & groomed.

56

13.Delivery Fulfillment: Products are delivered as per the

purchase order.
1-Very good

0%

4%

36

16%

87

40%

5-Very good

88

40%

80% of the respondents are happy with the delivery pattern

57

14. Overrall: Retailer offers quality of service overrall.

1-Very good

0%

13

6%

37

17%

93

42%

5-Very good

77

35%

More than 75% of respondents were happy with the overall quality of
service the retailers provide.

58

15. Advertising from the companyn/retailer does not

deceive,mislead or omit relevant information.

1-Totally Agree

73

33%

54

25%

49

22%

33

15%

5-Totally Disagree

11

5%

The advertisement done by LG does not mislead the customer

59

16. Defective Good: Retailer/company would agree to replace,

repair, reduce the price or give you your money back if the
product was defective.

1-Totally Agree

60

27%

70

32%

47

21%

27

12%

5-Totally Disagree

15

15%

59% of the respondents agreed with the hassle free replacement of

goods if the good were defective.

60

17. Aggressive Practice: You have felt unduly pressurized to

buy the TV at the retailer.

1-Totally Agree

16

7%

25

11%

43

20%

72

33%

5-Totally Disagree

63

29%

There is slight aggressive practice with respect to the sales at the

retailers outlet. 62% of the respondents disagreed with the
aggressive practice & 38% were not happy with the practice.

61

18. Clear contract terms: When a written contract is provided

by the retailer, the contract terms are fair.

1-Totally Agree

76

35%

57

26%

47

22%

22

10%

5-Totally Disagree

16

7%

62

19. How many problems have you experienced in the past 12

months with LG TV.

None

157

72%

Once

31

14%

Twice

23

11%

Thrice

1%

Multiple

2%

72% of the respondents never faced any problems with respect to the
TV, which is a very healthy sign for both the company.

63

ANNEXURE- 1
Questionnaire
(For Dealers/Retailers/Franchisee)

Person contacted:

..

Name of dealer:

..

Address:

..

Tel. No.:

1) What are the different brands which you keep in stock?

2)

Which brand is most asked by the customers

i) LG

ii) SONY

iii) Samsung

iv) Videocon

v) others

3) What is your average sales/month?

4) Which brand do you recommend to the customer and why?
5)

Do you get any credit period from the company?

a) YES

b) NO

If Yes, What is the credit period you get:

i) Upto 15 days

ii) 15-30 days

days

64

iii) >30

6) What is your average order size?

7) What are the margins that you get from the company?
8) What is the average order cycle time taken by the company?
i) < 5 days

ii) 5-10 days

iii) > 10 days

9) Where would you rank the services/assistance provided to you

by the company/s
Very

Good

Good

Satisfact

Poor

ory

Delivery Time
Quality Maintenance
Incentives
Promotional activities
Condition of Product
Ease and Flexibility of
placing Order
Transporters
Behavior
Customers
Orientation
Commercial Terms
Services of Sales
Persons

10) How will you rate the efficiency of your sales persons

65

Very
poor

a) Very Good

b) Good

c) Satisfactory

d) Poor

e) Very poor
11) Does company provides you with any assistance by means of
promotional activities?
a) YES

b) NO

If Yes,
i) Numbers
ii) Timing
iii) Quantity of promotions.
12) Do you provide appraisals to your sales persons?
a) YES

b) NO

If Yes, on what Parameter

66

ANNEXURE- 2

1. Which Brand of TV you have in Your house?

Sony

Lg
2. If No then which TV brand are you using?

Samsung

Sansui

Akai

Videocon

Philips

Onida

Other
3. When did you purchase the LG TV?

1 Month

6 Months

12 Months

More than 12 Months

4. From where did you buy this T.V

67

Supermarket

Discount Store

Departmental Store

Retail Chain

Internet

Any other
6. Overall, to what extent are you satisfied with (RETAILER)
when it comes to buying [PRODUCT]?
1 2 3 4 5
very
bad

very
good

7. Innovation: Retailer continuously offers a wide enough

choice of new products & innovative ideas that meet your
needs
1 2 3 4 5
very
bad

very
good

8. Reliability: TV sold by the retailer are reliable

1 2 3 4 5
very
bad

very
good

9. Product labeling: Product information provided by the

company on the label/packaging is clear, accurate & sufficient.
1 2 3 4 5
very
bad

very
good

10. Enough choice of Prices: Retailer offers a wide enough

choice of TVs at different prices.
1 2 3 4 5
very
bad

very
good

11. Ease of Purchase: It is quick & easy to find the LG TV at

the retailer.
1 2 3 4 5
68

very
bad

very
good

12. Staff: The staff at the retailer is well informed about the
product & is helpful to you when you need it.
1 2 3 4 5
very
bad

very
good

13. Delivery Fulfillment: Products are delivered as per the

purchase order.
1 2 3 4 5
very
bad

very
good

14. Overall: Retailer offers quality of service overall

1 2 3 4 5
very
bad

very
good

15. Advertising from the company/retailer does not deceive,

mislead or omit relevant information
1 2 3 4 5
Totally
Agree

Totally
Disagree

16. Defective Good: Retailer/company would agree to replace,

repair, reduce the price or give you your money back if the
product was defective.
1 2 3 4 5
Totally
Agree

Totally
Disagree

17. Aggressive Practice: You have felt unduly pressurized to

buy the TV at the retailer.
1 2 3 4 5
Totally
Agree

Totally
Disagree

18. Clear contract terms: When a written contract is provided

by the retailer, the contract terms are fair.
1 2 3 4 5
Totally
Agree

Totally
Disagree

69

19. How many problems have you experienced in the past 12

months with LG TV.

None

Once

Twice

Thrice

Multiple

70