Refrigerators are manufactured in India by predictability keeping in mind the tropical climate as more than 8 months in a year, 90% part of India faces hot humid weather. Now almost in all households refrigerators are used as they become necessity of daily life. It comes in the category of White goods. All the consumer electronic home appliances are known as White goods. For example- Washing machine, TV, Refrigerators etc.
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HISTORY:
The first refrigerator was introduced in 1927 was the Electric & quot; Monitor – Top" to see extensive used. Refrigerators in India have been manufactured since 1950s. Almost 90% of the markets have been controlled by the players like Godrej, Kelvinator, Allwyn, & Voltas till 1980s. After the Liberalization in 1990s number of foreign companies enters the market & diversification into refrigerator business was also their by domestic player. In all consumer durables refrigerator have 2nd highest aspiring value. This shows the growth rate for refrigerator market is high in India. Presently refrigerators are manufactured in two basic designs which are referred to as Direct Cool (DC) & Frost Free (FF) refrigerator.
There is large number of players in refrigerator industry & has become highly competitive as large number of brands has entered the market & now there is a wider choice in the hands of customers while purchasing. Some of the players are BPL, Videocon, Kelvinator, LG, Samsung, Whirlpool, & Godrej.
LG HISTORY:
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Thy full form of LG is Life’s good. LG is South Korean based company. In India it commenced business in 1997 through a wholly owned subsidiary named as LG electronics India Pvt. Ltd., manufacturing unit was set up by LG at Greater Noida.
Slogan: Fine art for your future
Brand Ambassador: Akshay kumar
CEO: Nam Yong
SAMSUNG HISTORY:
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Samsung is also a South Korean based company. Samsung commenced its operation in India in December 1995, today it has 20 Branch Offices & 40 Area Sales Offices located in India. Samsung has been the fastest growing brand in the world with total US $10.8 billion brand value & enjoys total turnover of US$ 1 Billion over a decade of its operation in the country. Samsung introduces latest technology products than other competing brand to create its brand image.
Slogan: NEXT IS WHAT……
Brand Ambassador: Priyanka Chopra
CEO: Jung Soo Shin
TARGET MARKET SEGMENT:
Market segmentation is the process that companies use to divide large heterogeneous markets into small markets. Target market segment are the set of buyers who share common needs or characteristics that the company is willing to serves in a particular market. The goal is to achieve higher sales of the product & stronger positioning of their products. Here the market is divided into three segments as Economy, Standard & Premium segment. In all the above mentioned segments the companies target the market by providing specific range of the product so as to satisfy the needs of different customers.
ECONOMY SEGMENT-
LG
SAMSUNG
Low-middle class
Low-middle class
D & E grade employee’s
D & E grade employee’s
STANDARD SEGMENT-
LG
SAMSUNG
Upper-middle class
Joint families
Small businessman
Small businessman
Joint families
Executive level employee’s
PREMIUN SEGMENT-
LG
SAMSUNG
High class businessman
New married couple
High income earning public & private employee’s
Nuclear family
COMPARISION OF TANGIBLE FEATURES:
Comparison has been made between tangible features of LG & Samsung refrigerators. The market has been divided in three segments Economy, Standard & Premium. And further the Premium segment has been divided into three sub-segments they are; basic model, luxury model & premium model. All the features of these segments of refrigerator are compared below. The comparison has been made among tangible features, prices & capacity of LG & Samsung.
ECONOMY SEGMENT –
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LG FEATURES
SAMSUNG FEATURES
Defrost system
5 star rated
Deodorizing ability
Clean back
Door lock
Fire retardant wires
Adjustable shelves
Stabilizer free operation
Price Range: Rs.7400-23000
Price Range: Rs.10000-20000
Capacity: 175-250 liters
Capacity: 190-230 liters
STANDARD SEGMENT –
LG FEATURES
SAMSUNG FEATURES
Door lock
Ice beam door cooling technology
Adjustable shelves
Five digital sensors
Moisture & Humidity control
External Micom
Quick freezing component
Magic crisper
Magic crisper
Green lead display
Price Range: Rs.25000-51000
Price Range: Rs.20300-51000
Capacity: 280-430 liters
Capacity: 255-400 liters
PREMIUM SEGMENT –
BASIC MODEL:
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LG FEATURES
SAMSUNG FEATURES
Ice beam door cooling technology
No frost technology
Five digital Sensors
Spill proof shelves
Green LED display
Deep bottle guard
External Micom
Digital display and control
Magic crisper
No frost with multiflow
Snack corner & wine rack
Twin cooling system
Price range: Rs.53000-61000
Price range: Rs.53000-61000
Capacity: 581 liters
Capacity: 550-600 liters
LUXURY MODEL:
LG FEATURES
SAMSUNG FEATURES
Taller water and water dispenser
No frost
seven digital Sensors
Spill proof shelves
Green LED display
Digital display & control
Green ion door cooling
Multi-flow
Clean line display
Consistent temperature
Bioshield
Twin cooling
Price range: Rs.70000-80000
Price range :Rs.65000- 80000
Capacity: 576 liters
Capacity: 531- 585 liters
PREMIUM MODEL:
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LG FEATURES
SAMSUNG FEATURES
Save cooling system
Stainless steel deep
Linear compressor
Twin cooling system
Vacuum fresh zone
Cool select zone
Exterior LCD touch panel
Multi flow
Eight digital sensor
Clear view ice maker
Miracle zone, wine rack
LED display & control
Express freezing, child lock & door alarm
Price range: Rs.89000-117000
Eco friendly refrigerant
Price range: Rs.90000-175000
Capacity: 585- 756 liters
Capacity: 576-721 liters
INTANGIBLE FEATURES:
LG-
Reliability: The products offered by LG are more reliable than any other brand as they perform their function more effectively & efficiently.
Safety: It provides safety to their customers by providing different intangible features like Fire retardant wires & Spill proof shelves.
Service: The LG provides after sales service to their customers so as to gain more & more customers & customer’s loyalty.
Simplicity: LG products are easy to handle by all the people as they are simple to use & operate, this feature make this brand to be chosen by different people.
Installation: While the LG products are sold to different customers they also provide the installation free of cost facility to their customers.
Durability: The products offered by LG are more durable as compared to other brands as they can be used for long period of time.
Prestige: As the product earns a high prestige so while purchasing any product the customer first preferred to buy the products offered by LG.
SAMSUNG-
Distinctiveness: As Samsung introduce new technology products regularly in the market so they declare them as distinct brand image for launching new products.
Safety: The product offered by Samsung also provides good services to their customers in order to grasp more & more market share.
Reliability: The products offered by Samsung are reliable to use in day-to-day life by the customers.
Service: The after sales services are also offered by Samsung as the other market player also offer it, so as to remain in the completive market.
BRAND IMAGE:
LG-
High Durability
Brand loyalty
High quality
Higher range of product
Higher price higher value
Having all white goods of one company
Large warranty period
High star rating product
Design of product
SAMSUNG-
new and advance technology
comparatively low price than others
have more feature than other at the same cost
brand loyalty
provide more value in less price
good after sales service
having some perception
size and dimension
the number of doors
color
PERCEPTUAL MAPPING:
Perceptual mapping is the graphics technique which is used by marketers to display the perceptions of customers for product, brand, product width, product line, product depth & company is displayed with comparison to their competitor. Perceptual maps have any number of magnitudes but mostly two are used to make it simpler.
Y-axis indicates price while X-axis denotes segment in the map. LG & Samsung are on the X-axis as their segment of comparison are; Basic, luxury & Premium. Both companies provide huge range of products to these three segments while there is gape between each segment which is not serving by companies. This shows that they are not targeting to the hyper market segments which they can increase the range of products to target huge markets. It also shows that the products in the three segments have huge variety & the prices are similar up to some extent in each segment.
The maps provide insights into:
Product development opportunities – It helps company to identify various areas where the product portfolio is well developed and areas where the portfolio is more sparse, so as to increase the product line, product depth, & product width.
Products that can be grouped together for marketing purposes- The range of products which can be grouped for marketing purpose in the market so large number can be targeted.
The product development opportunity is more in case of LG between Premium & standard segment as the price gap is from Rs. 20000 to Rs. 25000 i.e. 5000. So there are a large number of customers to be targeted by the company in case if they want to increase their market share.
RECOMMENDATION:
Price: The prices of premium segment of LG are to higher as compared to Samsung in market. They can reduce their price up to some extent so that the standard segment can also afford the products & it would be helpful for the company to increase their margin of profit.
Product development: Between the three segments the company can improve their products offerings to cover huge market share.
Expansion of market: The Company can give more emphasis on the expansion of market in India as there is huge opportunity in the market available for them to grow.
Advertisement: They must emphasis on the advertisement of their products by choosing different modes of advertisement. Because other competitor gives more advertise from them. This will not harm them in the short run but this will affect them in the long run.
CONCLUSION:
It is concluded that as Samsung is competitor of LG, the price range of their products are similar to each other of each segments in the market. But in economy segment LG has lower price range product than Samsung whereas in standard & premium segment Samsung has higher price than LG. Samsung provides new innovated technology products to their customers in the market. The features provided are also same in both the cases but differ in some cases or the other from each other provided by them. Although LG commenced it business in India two year after than Samsung it has more market share in India. LG share 25% of Indian market whereas Samsung share 15% of market share.
BIBLOGRAPHY:
http://www.learnmarketing.net/images.htm
http://www.lg.com
http://www.indiahousing.com/samsung-refrigerators.html
http://www.indiahousing.com/lg-refrigerators.html
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