Indian Consumer Durable Industry

8157 WordsFeb 22, 200933 Pages
Dissertation Report On Growth Strategies Of LG Electronics (India) Submitted By P Hari Krishnan Roll no: 41109 MBA (IB) - Marketing for the partial fulfilment of MBA-IB (2007-09) SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS PUNE Executive Summary The first of the 3 part dissertation series on “Growth Strategies of LG Electronics India” presents a picture of the consumer durables industry in India. The consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorised into…show more content…
There has been a 40-50% decline in offers like discounts, gift vouchers and other schemes over the last one year as it could not help companies sustain margins. Instead, they are now coming up with innovative marketing schemes like combination of products to consolidate profits, Competition has forced companies to offer efficient after sales service and support and this, in turn, has swayed customer preference for branded products. Success in the long-term will require firms to develop a wide and robust distribution network, differentiate their products in areas of relevance to the consumer and innovate in the areas of promotion, product financing. There is a discernible shift in the consumers’ preference in favour of higher-end, technologically superior branded products, the demand being spurred by increasing consumer awareness and preference for new models. It reflects the changing dynamics of consumer behaviour – luxury goods are now being perceived as necessities with higher disposable incomes being spent on lifestyle products. This shift is also explained by the growing trend of products being manufactured in the organized sector of the economy and the narrowing down of the price differential between branded and non-branded goods. The consumer durables industry in India is set for sustained growth over the long term, fuelled by favourable
Open Document