Case Study of LG India: Consumer behaviour towards buying white goods.
Table of Contents
- 1. Introduction
- 1.1 Background of the Research
- 1.2 Research aims
- 1.3 Research objectives
- 1.4 Research questions
- 1.5 Research Rationale
- 2. Literature Review
- 2.1 Indian Market of White consumer goods
- 2.2 Growth of LG in India
- 2.3 Literature Gap
- 2.4 Conceptual Framework
- 3. Research design and methodology
- 3.1 Research philosophy
- 3.2 Research approach
- 3.3 Data collection method
- 3.4 Data analysis plan
- 3.5 Sampling method
- 4. Conclusion and Time Table
- 4.1 Conclusion
- 4.2 Timetable
- References
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1. Introduction
1.1 Background of the Research
White consumer goods referred to the large appliances that are used for household purposes. These include electronic devices like refrigerator, dishwashers, stoves or washing machines. India is a large market owing to its huge population and its density. This has made India one of the most prospective markets for introducing new products or brings out innovation in the existing products in case of the consumer goods industry(Rao, N.D. and Ummel, 2017).While the brown goods are the small and light electrical appliances like computers radios televisions which can be semi portable in nature, the white goods are large and quite expensive. So this study will be trying to analyse the demand of the consumers in case of white goods and how the brand LG has been able to establish their business in India. it will also try to evaluate the strategies taken by the organisation and the ways in which they can be developed in order to have better demand and generate more revenue.
1.2 Research aims
The aim of the research is to understand the behaviour of the consumers in relation to white goods and develop effective strategies that would enhance the growth of LG, India.
1.3 Research objectives
The objectives of this research are:
• To identify the factors affecting with consumer buying behaviour
• To analyse the demand for various types of white goods of LG
• To recommend effective strategies that would help LG to enhance consumer satisfaction and overcome the challenges of competition
1.4 Research questions
The following research questions will be addressed with the help of this research:
1. What are the factors that affect consumer purchasing behaviour?
2. What are the prominent white goods in the Indian economy and hoe high is the demand for them?
3. How can LG enhance consumer satisfaction and get a better position in the market?
1.5 Research Rationale
The present day businesses in the global economic scenario are facing stiff competition from the rivals.With growing technology, the consumers' expectations and tastes are also rapidly changing. This has made survival difficult. It is essential; to find solutions to the problem, which leads to the conduction of the research. The market scenario has been analysed through LG, India.
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2. Literature Review
2.1 Indian Market of White consumer goods
According to (Durables, 2019), there is a significant rise in the income of the people of India which has let them to have easy accessibility e to electrical equipments. This has in turn led to an increase in the demand ofthe white goods as well. Hence there is a growing demand in the sector which is accelerated by the increase in the disposable income of the customers in India. In addition to this there is a growing demand of products like air conditioners washing machines and refrigerators in India due to the enhancement of the lifestyle that is led by the people of the country. India has a huge population which is another great opportunity to address a large number of potential customers and enhance the sales accordingly(Kalaiselvi, D.K. and Muruganandam, 2015). The foreign direct investment policy in case of any hardware that is dealing in the electronics industry of India is set up at hundred percent within addition of entry through automatic route. This implies that any foreign investor in feel invest in this sector without any hindrance with the help of foreign direct investment policy. The industry that deals with foreign goods also has high concentration. (Durables, 2019)also states that the top five organisation that is dealing in the sector of industry in India has the majority of the shares of 75% and about 50% in case of specific products like air conditioners for around 35% in case of other kitchen appliances. This clearly shows that there is a dominance of the bigger organisations that are dealing in the white goods industry of India.
(Saxena, M. and Mittal, 2016) states that the behaviour of the consumer is very complex and needs sophisticated understanding of the complex dealings that takes place in the market. This includes understanding of marketing techniques which can we identified with the help of a psychological physical and social logical actions taken place why the consumers are buying the products or areavailing the services of their choice. (Manjunath, 2015)States that it is not just about what are the consumer is purchasing but it is also about the reason behind their purchase and the frequency at which they purchase the product. In addition to this other features like the mode of purchasing for the duration for which the products are being used also play a crucial role in determining the consumer behaviour (Pandey, 2016) Hence from this literature review it can be said that in order to understand the consumer behaviour and the factors that I leadingthem to the purchase of white goods in Indian industry it is very essential to take care of the other associated factors and the reason behind their purchase. This will help to analyse the reason why the consumers would prefer one brand over the other.
(Ghosh, 2017) points out thatthere is a significant growth in the consumption of the electronics goods among the people of India. The author emphasise that there is a significant growth in the consumption of electronics which is witnessed in the Indian industry dealing in white goods. (Alex and Selvi, 2016) states thatthere are a number of factors like the price the promotion the location and the strategies adopted for having a competitive advantage play a crucial role in persuade in the customers to buy the products.
(Rao, N.D. and Ummel, 2017)income is one of the most significant factors that help in determining the behaviour of the customers in case of household products. The author says that irrespective of the socio demographicbackground the affordability of any appliance is a major factor especially for white goods because they are expensive in nature. In addition to this author suggests that it is necessary to understand the drivers behind then on income of the people in order to understand their behaviour regarding purchasing of white goods.
2.2 Growth of LG in India
According to (Mukherjee, 2019)LG is one of the largest manufacturers of white goods in India. It has 14% increase in its net profit in the year 2017-2018 1450 4.2 crore. The organisation is just the second position right after Samsung with its recent growth in the industry. They have a number of products including the home appliances and other electronic goods like air conditioners which are of high demand in the market. Some of the competitors of LG in Indian market are Whirlpool, Sony, Voltas, Bluestar and Hitachi. LG has introduced some innovative appliances in Indian market which includes appliances with extra power saving options are the ones that are friendly to the environment. Some of the other innovative features are like that direct cooling refrigerators or exclusive models for microwave ovens and other white goods in the Indian market.
2.3 Literature Gap
From this review of literature it can be seen that most of the earth have analyse the factors associated with the purchase of white consumer goods in India while 1 literature has been found which is analysing the growth of LG as a brand dealing in white consumer goods industry. Even though there has been significant mention of consumer behaviour and it can be seen that none of the authors have talked about the consumer behaviour with respect to the goods produced by LG. Here lies the gap of the existing literatures which can provide a new inside to the research topic and will be addressed to with the help of this research.
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3. Research design and methodology
3.1 Research philosophy
There arethree types of research philosophy star are widely used by different researchers(Kumar, 2019). This research philosophy includes positivism, realism and interpretivism. In case of interpretivism the researcher tries to find out the research results in an interpretative.this implies that the researcher interpret the different elements that are associated with the study and then these are correlated or integrated to the human interests of the human elements who are a part of the study. Other hand if the research uses the philosophy of realism then the researcher will try to correlate the reality of the research topic with the human interest or the human elements of the study. Now in case of positivism the researcher will try to analyse the research topic of the research problems with the help of scientific or logical sequence of philosophies that can be verified with the help of the data collected during the research.
Justification:This research will follow the philosophy of positivism. This is because the research will be trying to analyse the consumer behaviour and the influence of the brand in this market which requires to be run in a logical sequence with the help of scientifically verified data and analysis
3.2 Research approach
Increase of resources process there are two types of approaches that are widely followed by a number of researches. These approaches include the inductive approach on the deductive approach(Flick, 2015). The basic difference between these two approaches lie in there dealing with the theory associated with the research topic. This is biggest in case of inductive approach the research tries to analyse the theories and then justify them with the help of the data collected. On the other hand in case of deductive approach the researcher tries to collect the data and then with the help of journalising of those status new theory is emerged which helps to give a new insights to the research topic. Both inductive and deductive approaches deal with theories but they differ in their approach of testing the theory or generalizing it during the course of the research.
Justification: This research will be based on the inductive approaches and it will try to collect the data and analyse them in such a way so that their generalization gives rise to a new theory which will help in determining the consumer behaviour in case of white goods in India.
3.3 Data collection method
Data that are involved in a research can be e primary or secondary depending on the source from where there are collected(Quinlan et al, 2019). If the data collected from the human elements associated with the research then that data can be called as a primary data. On the flip side if the data is is being collected with the help of books journals reports or any other secondary documents then that can be called as a secondary data. While primary data helps in providing more authenticity and an in-depth view of the research the secondary data also tries to provide necessary information and interpretation of the existing works that are done on the same topic the similar ones.
Justification: In case of this research both primary and secondary data will be collected so that they can help in providing better justification to the research topic. Moreover since the research is trying to follow inductive research philosophy it is very essential to consider different types of data before generalizing them and giving rise to new theory.
3.4 Data analysis plan
In case of analysis the data can broadly be divided into two types which are qualitative and quantitative(Kumar, 2019). Qualitative data includes the ones that are collected with the help of interviews for content analysiswhile a quantitative data includes the ones that are collected with the help of surveys. The qualitative data deals with index approach of the concepts that is associated with them where as analysing the quantitative data is done with the calculation of the numerical values of the number of respondents who were associated with the survey.
Justification: In case of this research both qualitative and quantitative data can be used. Interviews with three managers from the organisation LG will be conducted in India. In addition to this service will be conducted with 45 consumers in order to derive their idea about white goods and the ways in which they are influenced by such products. In addition to this the survey will also help to identify the demand of white goods produced by LG among those respondents and the consumer of India as a whole.
3.5 Sampling method
Sampling is a process that is practised while choosing the respondents for the survey(Kumar, 2019). This is one of the most important steps that are associated with the research because it helps in determining the number of respondents and there characteristics features which will help to identify if they have a probability of being selected for the research or not. Something can be broadly divided into two parts that are probability sampling and non-probability sampling. For probability sampling a large number of people are chosen as the population of the research out of home using different theories orprobabilities the sample for the research is chosen. In this case all the individuals who will be associated with the population may have the equal opportunity of being selected for the research. On the other hand for non probability sampling there is no mathematical formula for scientific method used for choosing the population.
Justification: In this case mixed sampling method from probability sampling will be used for the survey because it will increase the authenticity of the process and at the same time it will ensure that no probable respondent will be neglected while collection of data.
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4. Conclusion and Time Table
4.1 Conclusion
This research will help to find out the gap in the existing literatures and the factor that areassociated with the research. From the review of the existing literature it is quite evident that there is a significant gap in the literature that is available on the topic. Even though that have been able to describe the factors leading to the consumer behaviour but there are no significant mention of consumer behaviour according to the demand of the products that are produced by LG in the white goods sector. Hence, this research will be analysing the different factors that are associated with the demand of products produced by LG in India and how the behaviour of the consumer are dependent on those factors. in addition to this the research will also a mad identifying the organisations that a prominent in the white goods sector of Indian market and the ways in which we can try to enhance the satisfaction of the consumers and overcome the challenges from its competitors.
With the help of the consumer survey the factors that can affect the behaviour of the consumers and there expectation from the organisation dealing in the white goods industry will be analysed. Since, this research follows inductive approach, hence, after collection of different data there will be generalized so that it can give rise to a Theory regarding the consumer behaviour and its influence on the demand of the products produced by LG in India.
4.2 Timetable
From the above time table it can be seen that the research work can be broadly classified into redefining the research topic for selection of the topic followed by the review of the existing literature, designing the methodology, collecting data and analysing them so that they can give rise to a new theory with the help of inductive approach.
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FAQ:
- What are white goods?
- What influences consumers when buying white goods?
- Where do consumers research white goods?
- What are some additional factors to consider?
- Do shopping habits differ depending on the white good?
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