prabhu rajrubina

LG BEST SHOP DIGITAL WORLD
ENCHANCING SALES
THROUGH PROMTION

LG BEST SHOP DIGITAL WORLD (AUTORIZED DEALER)
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INFORMATION SHEET
1) Name of the company : Lg Best Shop Digital World.
2) Address of the company : 189, Bashyagaralu road,
R.S.Puram, Coimbatore – 641 002
3) Phone No. of the company : 9894499518
4) Email ID of the company : lgbestshop@consolidatedgroup.in
5) Date of internship Commencement : 2nd May, 2012
6) Date of internship Completion : 15th june,2012
7) Name of the industry Guide : Mr. Ganeshan
8) Designation of the industry Guide : Store Manager
9) Student’s Name : B.P. Prabhu raj
10) Student’s Roll Number : 2011033
11) Batch : PGDM: 2011- 13
12) Student’s E-mail ID : prabhurajb2wrubina@gmail.com
13) Student’s Mobile numbers : 07598850775

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Certificate of Completion from faculty Guide
This is to certify that Summer Project Report on "ENCHANCING SALES
THROUGH PROMOTION" prepared by
"B.P. Prabhu raj" Roll No. "2011033" of PGDBM 20011-13 Batch is his
genuine effort under my guidance and supervision.
Signatures of the Faculty Guide Signatures of the Student
Name of the Faculty Name of the Student

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Acknowledgement
This project is the outcome of sincere efforts, hard work and constant guidance of
not only me but a number of individuals. First and foremost, I would like to thank
my parents and then the college for giving me the platform to work with such an
emerging company in the Consumer Durable sector. I am thankful to my faculty
guide Ritu Srivatsava for providing me help and support throughout the internship
period.
I owe a debt of gratitude to my mentor Mr.Ganeshan. He not only gave me
valuable inputs about the industry but was a continuous source of inspiration
during these two months, without whom this Project was never such a great
success.
I would also take the opportunity to thank the entire staff of Lg Best Shop Digital
World who helped and shared their knowledge about the industry for which I am
highly grateful.
Last but not the least I would like to thank all my Faculty members, friends,
family members and the almighty who have helped me directly or indirectly in
the completion of this project.
B.P. Prabhu raj
PGDM 2011-13
NIILM –CMS, GreaterNoida.

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EXECUTIVE SUMMARY
“Many things that were considered as luxuries till about 10 years ago have
become necessities for most people today.” This has happened in the in case of
household goods consumption also.
A television which was a luxury good 10 years back has become a necessity good
now. This project is a study of “ENCHANCING SALES THROUGH
PROMOTION”. It reveals that, if the company has to increase its sale or revenue
it has to do promotion. Sources of information regarding authorized dealers’ and
shops, and technical expert advice through, media and influence of friends,
relatives and neighbors were found important factors influencing in purchase of
durables by respondents. We found that some people where not even aware of the
dealer’s or the shop from where to purchase.
So I did a survey with the questioner keeping in mind that whether the
customer are aware of the product/showroom or not. During the course of this
project, I was also fortunate enough to be able to study the promotional campaigns
carried.
This report contains the findings arrived after detailed analysis of the data
received through filing questionnaires by the users of LG products. The study was
also carried out to find the cause of the declining sales rate of these brands in
Coimbatore. I was indulged in many promotional activities and I went to various
societies, apartment for demo sales.

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INDEX
SI NO TOPICS PAGE
NO
1. LITERATURE REVIEW 6-9
2. INTRODUCTION 10
3. GROWTHSCENERIO 11
4. SCOPE OF THE PROJECT 12
5. OBJECTIVE OF THE PROJECT 12-13
6. INTRODUCTIONTO PROMOTION 14-21
7. COMPANYPROFILE 22-47
8. RESEARCH 48-50
9. DATA ANALYSIS 51-56
10. FINDINGS 57
11. RECOMMENDATION 58
12. LEARNINGS 59
13. BIBLIOGRAPHY 60

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LITERATURE REVIEW:
Last few years have witnessed of growing demands for different consumer
products (Chunawalla, 2000). Increase in demand is a result of increase in income
of the people and increase in discretionary income too
(Arora, 1995). A rise in discretionary income results usually in an increased
spending by consumer on those items that raise their living standards, Moreover, a
trend for people to utilize their income for more comforts and facilities is also
developing. Intense competition among the marketers of
Consumer durables (Sontaki, 1999). And the increasing awareness of consumers
about their own needs is making a major difference in marketing of consumer
durables (Kumar, 1998). In the context of the above scenario, it is interesting to
study how the human beings i.e. consumers, satisfy their different non-basic needs.
Moreover, it is interesting to study, why they buy a particular product, how they
buy it, when they buy it, from
where do they buy it, etc (Schiffman and Kanuk, 1995). A study (Radhakrishanan,
1990) has found that “many things that were considered as luxuries till about ten
years ago have become necessities for most people today.” And in case of
household goods consumption it has happened also, as scooter were luxury at once
becomes necessity.
On the other hand people were spending marginally for home appliances in
1999, in 2003 spending ontechnology goods/homeappliances has touched 6.6%
out of total spending of the Indian consumers’(Singhal, 2005, Kotler and others,
2007). The demand of home appliances has been increase much more in 2007-08.
Increase in demand is a result of increase in income of the people and increase

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in discretionary income too (Arora Renu, 1995, Bhatty I. Z., 1989, Gupta and Pal,
2001, Sontaki, 1999). Although research on household technologyis limited in the
consumer literature, some key studies have been reported over the past
Few years (Nickols and Fox1983; Strober and Weinberg 1980). Typically, these
studies have focused on the purchase decisions of families in regard to household
technologies (e.g. kitchen appliances) and/or the use of technologies primarily as
time saving devices.
Bhawaniprasadand Kumari (1987) have analysed “Impact of advertising on
consumer durables markets: A study of Refrigerator consumer”, in this study a
ranking/importance of refrigerator among other consumer durables is studied.
Study of 200 owners of Allwyn refrigerator in the twin cities of Hyderabad and
Secunderabad and Districts of Nizamabad and Karimnagar in Andhra Pradesh
indicates that a very positive impact of advertising is found on the consumer
durables market.
Bayus (1991) studied “The consumer durable replacement buyer”, and found that
replacements account for a substantial portion of the sale of consumer durables in
the U S. Results of replacement of automobiles indicate that “early” replacement
buyers are more concerned with styling and image and less concerned with
costs than “late” replacement buyers. Moreover, early replacements have higher
income but lower levels of academic achievement and occupational status than
late replacement.

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Mujahid-Mukhtar E, Mukhtar H (1991) has studied role of decision making for
household durables: good measure of women’s power within a household in
Pakistan. It is their influence in the purchase of new home improvement
technology good (cars, appliances, etc.), who’s expense and life-long nature makes
their purchase an important decision. The study identified various cultural and
economic factors that affect women’s decision making power:
Urban women, women in nuclear families, educated women, and working women
generally have more decision making power than rural women, women in extended
families, illiterate women, and unemployed women.
Indian’s consumer durable market is riding the crest of the country’s
economic boom. Driven by a young population with access to disposable incomes
and easy finance options, the consumer durable market is at its peak in these recent
years. The market share of the MNCs in this segment is more than 64%, its
because of the growing middle class in India.
The household income in the top 20 boom cities in India is projected to grow
at 10% annually over the next 8 years, which is likely to increase consumers
spending on durables. With the emergence of conceptsuch as quick and easy loan,
zero equated monthly installment (EMI) charges, loan through credit card, loan
over phone, it has become easy for Indian consumers to afford more expensive
consumer goods.
LG being the market leader in consumer durable segment is not yet able to
achieve the maturity stage. Even though the customers are aware of the product, if
we take the Coimbatore city the LG BEST SHOP DIGITAL WORLD is able to
achieve a sale of 65lakh only in a month and the customer walk in on every day
basis is from 3-10 among which only 4-6 customers gives sale to the company.

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This is because of the lack of awareness among the customers and less promotional
activity in Coimbatore regarding the showroom, because most of the customer
goes to multi branded showroom rather than coming to a single branded showroom
like BEST SHOP

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INTRODUCTION:
Marketing is seen as the whole business from the point of view of its final
result, that is, from the customer’s point of view (Peter Drucker,1986). The
consumer is king in age of consumerism (McGuire, 2000). The term consumer
behaviour defines as, state “the behaviour of consumers in deciding to buy or use
or not to buy or use or dispose or not to dispose of the products which satisfy their
needs”( Schiffman and Kanuk, 1995, Chunawalla, 2000, Solomon and others,
2001). Moreover one of the key analyses under the heading “consumer behaviour”
refers to the interaction between price changes of products and consumer demand
too (http:// www.bized.ac.uk/fme). It reflects in their search for different products
of different level of their involvement required to purchase & consume. High
involvement only requires in those products, which are of high price,
Complex features, large difference between options, high perceived risk, reflect the
self-concept of the buyer. Looking at this classification of products by the
consumption patterns, buying of the durable goods needs higher attention of
consumers. While, durables goods are expected to last longer than three years
(www.wisecon.org/ Online Guide). So, it is a product of high involvement for
consumers. This characteristics of the consumer’s behavior for durable goods,
makes it a more suitable and appropriate behaviour to study.

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GROWTH SCENERIO:
India with its huge middle-class population and rapid economic growth, is
one of the spenders in consumer electronics in Asia. Double-income families,
rising income levels, availability of credit, changing lifestyle, introduction of new
models and increasing consumer awareness led to the surging demand of consumer
electronics in India. Thus, our research foresees that the Indian consumer
electronics market will grow at a CAGR of around 18% during 2011-2014. The
Indian consumer electronics market today stands at over Rs.400 billion.
Air conditioners constituted 38% of the consumer appliances market,
followed by refrigerators at 14%, washing appliances at 7% and sewing machines
at 5%. They expanded at a CAGR of 11.7%. value growth of durables is expected
to be higher than historical levels as price declines for most of the products are not
expected to be very significant. Though price declines will continue, it will cease
to be primary demand driver. Instead the continuing strength of income
demographics will support volume growth.
Being the Market Leader LG has earmarked around USD292 million for
enhancing production capacity and strengthening its LG brand network by 2012.
CONSUMER
DURABLES
MARKET
SIZE(2011)
MARKET
SIZE(2012)
GROWTH (%)
Flat Panel TV 2.8 4.5 61
Refrigerator 9.0 12.0 33
Washing Machines 5.0 6.0 20
Air Conditioners 3.4 4.4 29
Microwave 1.0 1.5 44

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SCOPE OF THE PROJECT:
 To know whether the customers are aware of the product and the showroom
 To know the cause for poor walk in of customer in a day.
 To throw some light on the various promotional tools available in the
market.
 To know the cause of less sale in the showroom.
OBJECTIVE OF THE STUDY:
 To study the marketing strategies of LGBEST SHOP
 To ascertain the impact of promotional activity on purchase decision.
 To find out the effectiveness of promotional strategies
 To find out the measures to boostup sales.
 To conductpromotional activity to boostsales
 To analyze the awareness among public about the products and the
showroom.
 To find out the reasons for low sales of the products.

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 To conductpromotional activity in various places like shopping malls,
residential areas.

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INTRODUCTION TO PROMOTION:
Promotion is comprehensive terms, and covers the entire gamut of
advertising, publicity, public relations, personal selling and sales promotion. Sales
promotion is thus a part of promotion and is restricted to direct inducement on a
short term basis services.
The same promotional strategy was applied by LG BEST SHOP to promote
their products and boost up its sales. The BEST SHOP performed promotional
activities like 0% interest on loan, festival offers, free cookery classes, combo pack
sale, on season offers and demo sales in various places of Coimbatore.
In the present competitive world if any business organization has to survive
it needs to keep an eye on various forces operating in the market. More over
competitors constantly try to win over others. In this scenario, every business
organization needs to monitor the changes taking place in the market so that they
are not caught. Market research is an efficiency tool in the hands of a marketer that
helps him to take changes taking place in the market.
PROMOTION
Basically promotion is an attempt to influence. More specifically,
PROMOTION is the element in an organization’s marketing mix that serves to
inform, persuade and remind the market of a product and/or the organization
selling it, in hopes of influencing the recipient’s feelings, beliefs, or behavior. Out

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of 4 P‟s of marketing i.e. product, price, place, and promotion, the most important
role is of 4th P i.e. promotion.
ROLE OF PROMOTION IN MARKETING
 Promotions help marketers to communicate information to potential
customers. This information could be about the product’s Existence
(Awareness), value and benefits offered by products.
 A well designed promotion mix is extremely crucial for brand building and
positioning. In fact communication or promotional mix is at the centre stage
in brand positioning and Brand building activities.
 The promotional mix or marketing communication helps marketers to
attract, persuade, urge and remind customers of the company’s brand.
 Effective promotions prove helpful in product differentiation and also help
to counter competition.
COMPONANTS OF PROMOTION
There are five components of promotions: Advertising, Sale promotion,
Personal selling, direct marketing, Public relations. Each has distinct features that
determine in what situation it will be most effective.
1. ADVERTISING:
“It is any paid form of non-personal presentation and promotion of ideas, goods,
and services by an identified sponsor”. The most familiar forms of advertisements

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are found in the broadcast (TV and RADIO) and print (Newspaper and Magazines)
media. However, there are many other advertising alternatives, from direct mail to
billboards and the telephone directory to yellow pages. Advertising is often termed
as pull strategy. In pull strategy the goal is to get consumers to pull the product in
the supply chain by demanding it.
MAJOR ADVERTISING DECISIONS
While setting up an advertising plan, following decisions are required to be taken.
 Identify the target audience
 Set the advertising objectives
 Determine the advertising budget
 Design the message
 Evaluate and select media
 Create an advertisement
 Measure the impact.

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TYPES OF ADVERTISEMENT
MEDIUMS OF ADVERTISING
 Newspapers
 Television
 Radio
 Magazines
 Direct mail
 Outdoor advertisings.
2. SALES PROMOTION:
Just as Advertising is known as „Pull‟ strategy, Sales Promotion is known as
„Push‟ strategy. This promotional technique can be defined as “short-time
incentive to the customer to buy a product”.
According to Philip kotler; “Sales Promotion consists of a diverse collection of
incentives tools, mostly short term designed to stimulate quicker or greater
purchase of a particular product or services by consumers or the trade”.
The free gifts-offers, discounts, coupons, lucky draws, etc., are some of the ways
used in sales promotion.

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SALES PROMOTION TOOLS
 Consumer promotion:
The consumer promotion directed at Consumers. It includes Samples, Price off,
free gifts; Cash refund offers, premiums, prizes, warranties, cross promotion, point
of purchase. Consumer’s promotion is to create Consumer pool for the brand.
The objective behind the several Consumer promotion programs of different
organizations is:
 To generate consumer interest, this should lead to trial.
 Increase the rate of purchase.
 Generate inquires from the target, consumer group.etc.
 Trade promotion:
The trade promotions directed to the members of distribution channel. It includes
advertising, Display Allowances. The Prime objective is to push the product
through the marketing, intermediates and to get them to market the product
aggressively.
Other objectives are:
 Encouraging trade to invest built inventory.
 Getting trade’s co-operation in production.

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 Business and sales promotion:
It includes trades shows and conventions, contents for sales promotion
representatives and for special advertising. Although sales promotion tools are
highly divers but they all offer three distinctive benefits:
 Communication
 Incentive
 Invitation.
3. PERSONAL SELLING:
The importance of personal selling is pretty evident as this is the only marketing
activity that directly results into Revenue earning as its outcome. The simplest
definition of personal selling is-“selling that involves face- to-face interaction
between the sales person and prospective customer.”
There are certain products, which need demonstration or explanations. Personal selling is most
effective in promoting such products.
Advantages of personal selling:
 There is a personal touch and with trained salesman, the customer can feel
important and gives full attention to the productdetailing.
 Demonstration of the productfeatures and productworking helps in better
productawareness and acceptanceby consumers.
 Consumer’s queries and apprehensions can be effectively answered.

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 Follow–up action and persuasion are possible.
4. DIRECT MARKETING:
The Direct Marketing association defines Direct Marketing as follows: “Direct
Marketing is an interactive marketing system that uses one or more advertising
media to affect a measurable response and or transaction at any location”. This
definition makes it clear that direct marketing is directly from the company to the
customer and there is no intermediary (retailer, whole seller etc.) involved in
between.
Various forms of direct marketing:
 Direct mail
 Telemarketing
 Email Marketing
 Couponing
 Direct responsetelevision marketing
 Direct selling.
5. PUBLIC RELATIONS:
Public relations are defined as deserving, acquiring and retaining a favorable
reputation in the market place. Public relations function aims at creating
maintaining favorable public opinion about company’s products, people, policies
and plans.

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Public relations are defined as “any group that has an actual or potential interest or
impact on company’s ability to achieve its objectives”. The public relations do not
directly help promoting the productbut can make productor policy acceptanceby
the public easy by generating a favorable image about the company.
PUBLIC RELATIONS IS USEFUL IN
 Acceptance of a company’s as a specialist in a productgroup.
 Acceptance of company’s policies regarding its employees, dealers,
consumers etc.
 Attracting capital and man-power.
 Acceptance of new productand new brand.

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COMPANY PROFILE:
The company LG BESTSHOP DIGITAL WORLD is an authorized dealer for
selling the various LG products in Coimbatore. The showroom is situated at the
centre of the city so that the customers are able to come from all over the city.
The address of the company is
LG BEST SHOP DIGITAL WORLD
189, BASHYAGARALU ROAD,
R.S.PURAM,
COIMBATORE - 641 002.

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PRODUCT DISPLAY:
The entire product in which the company deals with is to be displayed in the
showroom. The products are displayed in a row manner. There are five sections
in which the products are displayed, such as TV section, Washing Machine section,
Refrigerator section, micro oven section and Ac section. The products are to be
displayed so as to attract the customer and to make them know about the products.
At the same time weekend offer tags are pasted all around the showroom. Finance
companies also paste their tags in every product (0% interest and how many EMI
to pay).

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PRODUCTS CATEGORIES
The company deals with which ten products they are as follows
 AIR CONDITIONER.
 COLOR TELEVISION.
 DISH WASHER.
 DVD.
 HIFI SYSTEMS.
 LED, LCD TV, PLASMA.
 MICROWAVE OVEN.
 REFRIDGIRATOR.
 WASHING MACHINE.
 VACCUM CLEANER.
 GSM

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PRODUCT VARIETIES
Some products have two or more varieties they are as
AIR CONDITIONER
FLOOR STANDINGCASSETTE A/CSPLIT A/CWINDOW A/C
WASHING MACHINE
SEMI AUTOMATIC FRONT LOADTOP LOAD
REFRIDGERATOR
DIRECT COOL FROST FREE DIOS

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ORGANISATIONAL STRUCTURE
STORE MANGER
ASST STORE MANAGER
SALES EXECUTIVES SALES EXECUTIVES SALES EXECUTIVES
BILLING/CASHIER

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SALES AND PROMOTIONAL ACTIVITIES
SALES:
It means selling the product to the customers and it’s done by the sales
executives in the showroom. In every showroom there are LG’s direct sales
executives and showroom sales executives. Every month the manager decides the
sales target to be achieved in the particular month and divides the value and assign
to each and every sale executive to be achieved in the end of the month. Likewise
every day the showroom manager prepares the target list which includes the data of
 Last year’s sale on the same date. (Product wise & Value wise).
 Targets achievedtill date.
 Targetto be achievedon the day.
The sales executives are given points on the basis of their sale done in the
particular month and they are awarded with incentives.
PROMOTIONALACTIVITIES:
To have a good sale they need to do some promotional activities. So in
BEST SHOP they use some of the promotional activities to promote their product
and make customers aware of their product they are as
 SHOWING DEMO.
 CONDUCTING COOKERY CLASSES.
 LUCKY DRAW.
 FREE USE OF GYM AND YOGA CLASSES.
 VECHILE DISPLAY.

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SHOWING DEMO:
In every week they choose a day and conclude the area where they have to
do the demo. The LG executives demonstrate how to use the product. This
makes the customer to know more about the product and it also works as a
promotional activities.
CONDUCTING COOKERY CLASSES:
The customers when they buy any of the products they are given a slip. The
customers can use this slip to attend the cookery classes conducted by the LG’s
chef. So it works as a promotional activity for MICROWAVE OVEN and at the
same time motivates the customer to buy the product.
LUCKY DRAW:
When the customers are given the slip they are asked to write their details in
one side of the slip which is used by the company to have a lucky draw and the
winning customer is awarded with a MICROWAVE OVEN. So this also acts as a
promotional activity for the product.
FREE USE OF GYM AND YOGA CLASSES.
The customers when they buy any of the product in the showroom along
with their bill they are given a slip which can be used as a entry for gym and yoga
classes. It makes customers feel that even the company is more concern about the
health and it also acts as a promotional activity.

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VECHILE DISPLAY:
During the festival and season period the LG products are taken in the
vehicle and are displayed to the customers. This activity acts as a reminder for the
product and makes the customer to buy the product.
BIRTHDAY CELEBERATION:
When a customer buys any product in the BEST SHOP, the customer’s
details are stored in the system. So when there is a birthday for the customer they
call the customer to the showroom and celebrate their birthday. It makes the
customer feel that they are more valued and respected at the same time it
motivates them to be a loyal customer.
WEEKEND OFFERS:
At the end of every week that is FRIDAY, SATURDAY AND SUNDAY
there will offers in every product. The offers would be in the form of price cut
down. This motivates the customers to buy more products.
FESTIVAL OFFERS:
In the festival season the company offers many offers in the form of
EXCHANGE, LOW PRICE AND COMBO PACKS

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PRICE RANGE
According to the options and functions available in the productthe price varies
they are as follows
PRODUCT RANGE FROM
IN RUPEES
RANGE UPTO IN
RUPEES
NORMAL TV 5000 7000
FLAT TV 5700 15990
LCD 11990 74990
LED 16990 700000
PLASMA 42990 109990
DVD 2990 8990
AUDIO(HOME
THEATER)
8990 59990
REFRIDGERATOR
DIRECTCOOLING
11550 20350
REFRIDGERATOR
FROSTFREE
17250 69000

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SIDEBY SIDE 65500 186500
TOP LOAD WASHING
MACHINE
12690 54990
FROND LOAD
WASHING MACHINE
28490 77990
DISHWASHER 42390 59990
MICROWAVEOVEN 5150 34990
AIRCONDITIONER
(SPLIT)
30490 77990
AIRCONDITIONER
(WINDOW)
17490 33990

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EMPLOYEE MOTIVATION:
In every concern EMPLOYEE MOTIVATION is very important and it
plays a vital role in success of any business. So in BEST SHOP also they
motivates the employee in two ways such as
 EVERYDAY MEETING.
 PERFORMER OF THE MONTH.
EVERYDAY MEETING:
Everyday the store manager along with assistant store manager and the sales
executives sits for a meeting in which the store manager reads out the yesterday’s
sale and the sale of the present day in the previous year. And asks for the targets
for the present day to each sale executive and writes in the performance chart. At
the same time the store manager reads out the remaining stock of the present day
and assists the sales executives to sell out the old stock first.
PERFORMER OF THE MONTH:
Every month the sales executives are given a target to be achieved. Their
every day achieved targets are calculated and summed up in the end of each month.
The highest achiever name is displayed in the performer of the month display
board. The sales executives are also awarded with incentives according to the sale
that they have made in the particular month. By doing this the sales executives are
motivated to do more sale in the coming months.

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PURCHASING POWER:
It means the willingness to buy and how much power the customers have,
to buy any product in the market. So if we take the area (Coimbatore) in our
concern means the people who are spread all around the area are well educated
and earns a minimum income of 10000-20000 a month. Their life style has
changed in the last 4-5 years. As the life style has changed every individuals in the
city like to own some electronic products. The purchasing power on electronic
products has increased very fast. Even though some customers can’t afford the
entire amount they like to own the products which are of high cost.
The BEST SHOP has sensed the thought of the customer and provides
finance for the customer who likes to take in finance rather in ready cash. Any
customer who walk-in to the showroom just even for seeing the products the
sales executives convince them to buy any product buy explaining the features
and quality of the product and the financial assistance which they provide with
the help of the finance companies like BAJAJ AND SHRIRAM. So the customer
can own the product but only the product is transferred from the company to the
customer but not the ownership, it’s transferred only after the payment of full
amount of the product.

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FINANCE ASSISTANCE:
There are two finance companies which provide finance to the customers:
 BAJAJ.
 SHRIRAM.
They provide finance to the customer who wishes to take the product in
finance. There are some requirements to avail the finance such as
 ADDRESS PROOF.
 PHOTO PROOF.
 BANK ACCOUNT TRANSACTIONS.
After receiving all the required documents from the customer the finance
assistance divert all the documents to the head office for verification. The head
office has a team divided according to the particular area who visit the
customer’s placepersonally for FIELD VERIFICATION, in which they verify that the
documents provided by the customer are true or not and at the same time they
verify whether the customer can pay the amount or not. If all the things are ok
then they approve for the finance to be provided to the customer.

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The customers are provided finance based on the product they choose or
buy. The customer can also avail finance for more than one product and they are
asked to pay and down payment according to the product and the remaining
amount to be paid in 8 months with equal installments.

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SOFTWARE USED:
The softwareused in the BEST SHOPEis APX. Itis used for the following
purpose
 Billing
 Purchase.
 Reports (stock details).
 Sales details (person wise, mode wise, productwise).

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SERVICE:
The service category is given to the authorized service centre named
CRYSTAL AIR SYSTEMS. Their work is to do the following works
 INSTALLATION.
 SERVICE.
 REINSTALLATION.
 COMPLAINTS CLEARANCE.
This work is done through the help of Call Centre Office; they are assigned
with calls from the customer support head office located in Chennai. It’s done by
using software provided by the LG Company. The booked calls are stored in the
SERVICE RESULT ENTRY WINDOW and likewise the work to be allocated is
to be stored in ALLOCATED SERVICE RECEIPT WINDOW respectively.
After booking the calls with customer details and complaints then their work is
to assign those works to the service engineers. This is done by sending a message
to the engineers through WAY2SMS service
The engineers are divided as a team to a particular area. According to this they
are assigned to work (i.e. service, complaints, installation and reinstallation). All
LG service centre has to work on the basis that as soon as the customer book the
complaints and the work are assigned to the service centre by the head office and
to the service engineers. The engineer has to make a call and ask the customer the
complaint and within 24hrs the engineer has to respond to the complaint. Within 2

45
days the complaint has to be resolved likewise installation and reinstallation are
done.
The engineer has to mention all the work done in the field in the job sheet. It
includes details such as customer details, product details, changed spares and other
details these details are maintained for office use and for accounts maintenance.
HAPPY CALL
It’s the call made by the head office to the customer after the complaint has
been resolved. As the work done in the service sector are updated in the system by
software the head office comes to know whether the complaint are resolved are
not. The head office cco enquires the customer whether the complaint has been
resolved are not and whether they have satisfied with the service or not. According
to this the LG rates the service centre.
HAPPY LIVING PROMISE
It’s a plan made by LG and it’s for the assured maintenance and service. It
is also called as AMC (ANNUAL MAINTENANCE CONTRACT). It’s a contract
between the service centre and the customer. The customer can enter into this
contract after the warranty period or on the purchase of the product, but the
contract period starts after one year only even though the customer enter into the
contract on the purchase of the product. The contract is valid for one year only. If
there is no complaint means they compensate by providing free service to the

46
customer. The customer gets 15% discount if they enter into the contract within 1
month of the purchase of the product and if they enter into the contract within the
period of the warranty they can avail 10% discount. The customer gets 15%
discount if they enter into contract for 2 products and avail 20% discount if they
enter into contract for 3 products.

47
RESEARCH:
Research refers to „a search for knowledge‟. It can be defined as a scientific and
systematic search for pertinent information on a specific topic.
Research comprises defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deduction
and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis – Clifford Wood.
RESEARCH METHODOLOGY
It is a way to systematically solve the research problem. It may be understood as
science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by the researcher in studying his research problem
along with the logic behind them. In general methodology is an optional
framework within which the facts are placed so that the meaning may be seen more
clearly. The sources of data shown that designing of a research plan calls for
decision on the data sources are research approaches (primary and secondary data)
research instruments (observation survey experiment) sampling plan and contact
methods (personal interviews).
RESEARCH DESIGN
A research design is the determination and statement of the general research
approach or strategy adopted for the particular project. It is the heart of the
planning. If the design adheres to the research objectives, it will ensure that the
client need will be served.

48
TYPE OF ANALYSIS
As all the data found in the survey is totally numerically so the type of analysis
was statistical.
SOURCE OF DATA
 PRIMARY DATA
The data which is collected fresh and for the first time and thus happen to be the
original one characteristic is called as the primary data.
 SECONDARYDATA
The data which is already collected by someone else and which have been passed
through the statistical process is known as the secondary data.
METHODS OF COLLECTING PRIMARYDATA
Interview Method
In this project I have taken the questionnaire method for collecting necessary
information. In this method a questionnaire is given to the person concerned with
question to answers the question and return the questionnaire. A questionnaire
consists of number of question printed in a definite order on a form or a set of
form.
SELECTION OF THE SAMPLE/SAMPLING PLAN
This is one of the most important steps of a research design procedure. Generally
in most of the marketing studies on sample or most of the sub group of the total
population pertaining to the subject is included on the place of the universe.

49
The following things are primarily considered in the sample:-
 Sample Size
The sample size of the population was 50 respondents.
 Sample Population
The survey of people who either own or plan to purchase LG products in the areas
such as r s puram, vada covai, poomarket, ukkadam, goundampalayam,
chinampalayam.
 Sampling Methods
The sampling method for the survey was random sampling. Random
sampling suggest away of sample selection where in any item of the population is
likely to be selected in a sample as any other item it means that all items of the
population have equal probability of being selected in the sample.
SECONDARYDATA COLLECTION
The report mainly consists of a data from the primary sourcegathered the schedule
of questions. Questionnaire is the formal toolof asking questions directly from
respondents by which questions are asked. Information about the productis taken
from various sources suchas websites, newspapers etc.

50
DATA ANALYSIS
WHICH BRAND AC/REFRIDRATOR YOU PREFER THE MOST?
INTERPRETATION:
From the survey I came to know that 64% of the respondents prefer only LG
brand, 16% of the respondent prefer Samsung brand, 4% of the respondent prefer
Voltas and 16% of the respondent prefer Blue star.
64%
16%
4%
16%
LG
SAMSUNG
VOLTAS
BLUESTAR

51
ARE YOU AWARE OF THE LG PRODUCTS IN THE MARKET?
INTERPRETATION:
From the above survey I came to know that only 60% of the people in
Coimbatore were aware of the LG products and the remaining 40% were not aware
because of the lack of promotional activities by the BEST SHOP.
60%
40%
AWARE NOT AWARE

52
WHAT IS YOUR OPINION ABOUT THE PRODUCT AND THE
SERVICE?
INTERPRETATION:
From the survey I came to know that 62% of the people in Coimbatore says
the product and service provided by the LG BEST SHOP are very good, 10% says
its good, 14% says its satisfactory and 14% says its fair.
62%
10%
14%
14%
very good
good
satisfactory
fair

53
DOES PROMOTION HELPS IN PRODUCT AWARNESS?
INTERPRETATION:
From the survey I came to know that 88% of the people where ready to
know the productbetter through promotion and only 12% said no. so the company
has to spend more on its promotional activity to improve the productawareness
and to increase the sale thereby increasing the profit.
88%
12%
yes
no

54
WHAT TYPE OF PROMOTIONALACTIVITY ATTRACTS AND
NEEDED BYTHE CUSTOMER?
INTERPRETATION:
From the above survey I came to know that more than 70% of the people
are attracted by the advertisement and discount promotional activities in which the
32%
36%
12%
12%
8%
AD
DISCOUNT
OFFER
GIFTS
DEMO SALES

55
company is lacking so definitely their sales will be less so as to boostup their sales
they have to concentrate on these areas.

56
FINDINGS:
Through this project I got to know many of the things related to consumer durable
products, Sales Promotion, Consumer behavior, making of new customers and
handling of old customers and Selling & marketing Concepts, managing the sales
executives and managing the store.
 Before the use of promotional tools the products were not known to the
public’s but after the use of promotional tools the products got good
exposure in the market.
 The reason for low sales of the products was lack of promotional activities
due to this most of the public was not aware of the products.
 The company should use all the promotional tools so as to increase their
sales and target new customers.
 At the time of purchasing customer also demand for free accessories like
stand for keeping the product, headphones, 3D specs, stabilizer and gifts too.
 The company was not much aware of the promotional tools available in the
market, they just though that we can be able to sell with the brand image of
the LG product. but their sales didn’t boost up after a period of time.

57
RECOMMENDATION:
From the above survey and findings I came to know that there are some particular
areas in which the company has to focus in to get more revenue and more sale and
so as to target the new customer and to keep the loyal customers.
 The company has to focus more on the promotional activity so as to boostup
the sale.
 Rather than celebrating the customer’s birthday in the showroom, they can
send a gift or coupon or an invitation to visit the showroom.
 They have to change the view of productdisplayed in the showroom every
month. So as to give the customer a new feel ( as they do in Big Bazaar and
other retail store).
 They have to do demo sales not only in apartments but also in areas such as
shopping malls, public gatherings and corporate office so as to get orders in
bulk.
 They have to keep a track of old customers so as to make repurchase of the
productand to avoid them from switching to other brands.

58
LEARNINGS
By working with LG BEST SHOP DIGITAL WORLD, I have developed
many skills and have learned many things such as the way to handle the customers,
how to sell a product, the way of talking with the customers, managing the
employees, coordinating the employees, leadership quality and the way to manage
the store and various promotional activity adopted by the company and consumer
behavior and their purchasing power.
So this has given me a immense knowledge about the working culture in the
company and the way to behave with employees and to the customer

59
BIBLIOGRAPHY
INTEGERATED MARKETING COMMUNICATION --------------KENNETH E.
DONALD BAACK.
ADVERTISING-----------------------------------TERENCE A. SHIMP
WEBLIOGRAPHY
 www.google.com
 www.lgindia.com

prabhu rajrubina

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