Final Thesis on Sales Channel in Airline Industry

This final thesis report covers the decision situation of a producer when confronted with the question whether to use Internet as a new sales channel or not. Three areas of consideration in that decision are: The relationship to the intermediaries, the added value in the traditional channel versus the Internet channel, and financials.

The study examined these issues in the airline industry. The traditional sales channel in the airline industry includes two intermediaries between the airline and end customer. The first is the GDS (Global Distribution System), there are four dominating actors in the world; Worldspan, Amadeus, Sabre, and Galileo.

The Characteristics of the airline industry include:

• Low differentiated commodity product with high service content.

• High competitiveness among incumbent companies.

• Low margins, 1-2% net profits versus 5% for the average industry in the US.

• High capital intensity.

• High information intensity, (both the value chain and content of the product).

The airline industry has gone through a change process beginning with the
deregulation of the market. This happened in 1978 in the US, and in 1990 in
Europe. This lead to increased competition on flight routes. Since the industry
became an almost perfect market, with the airlines as price takers, no single
airline could increase its prices due to the competitive pressure. Cost cutting was the only way to increase an airline’s profit. Internet emerged as a way of
reducing the sales costs, counting for 14% of the total costs in 1997 the third
largest cost of an airline. Cost reduction was the prime reason for the
implementation of the Internet direct channel.

Scientific Theory and Methodology:

Benefits:

Frame Of Reference:

Sales Framework:

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LG MARKETING PROJECT | Market report on LG

A few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market before the liberalization of the Indian economy, accounting for no less than 90% of the market. Then, after the liberalization, foreign company like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Now, these companies has controlled the major share of the consumer market. Consumer durables market is expected to grow at 10-15% in 2007-2008. 

The company was originally established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. LG Electronics is one of the leading companies in the field of electronics with a global presence in many countries.Before briefing, we have divided the introduction part into three main sub parts. LG Global, LG India, LG etc. Here we are going to share you a marketing project of LG company which will help you to analysis the current market position of LG company which was prepared by a student. Lets have a look

LG Electronics is a company that thrives on innovation. Its products and technologies enhance lives and introduce our customers to a whole new world of creative designs.
They are committed to finding new ways to make your life better and easier-through simple user interfaces, stylish designs and intelligent, state-of-the-art technology.

Objective of the project

Primary objective

You will find out the market share of the LG and also calculate the display share. Positional dealer who can sale the LG product in large volume. You will Identify potential dealer and development these dealer. So LG can make them their direct dealer. The problem faced by the dealer in sales and the distribution.

Secondary objective

You will find out that how far the exhibitions are helpful in branding, While purchasing the consumer durables which parameter is most important for the consumer, Do the consumers prefer the financial facility for buying consumer durable. Frequently consumers change the consumer durable. enhances the knowledge of consumer durable market, increases the knowledge consumer durable product of LG, enhances the knowledge about the marketing and branding activity.

History of LG Company

The company was originally established in 1958 as Gold Star

1958-1969-GoldStar The Electronics Industry Dream

1970-79 GoldStar symbol of The Technolgoy

1980-88 :- INTERNATIONALIZATION

1989-94  INOVATION

1995-98 GLOBAL LEADERS LG ELECTRONICS

1999-2003-DIGITAL MANAGEMENT

2004-2006 GREAT PEOPLE GREAT DESIGN

2007-THE PEOPLE COMPANY

The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current "Life's good" slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand.

In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States.

STRATEGIC ALLIANCE

LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies.

LG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies.

1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10. INTEL
11. NORTEL
12. HITACHI
13. PRADA
14. RENESAS
15. TOSHIBA
16. BESTBUY

Code of conduct of LG

Responsibility and obligations to customers 

• Respect for Customers
• Creating Value
• Providing Value

Fair competition

• Pursuit of Free Competition
• Compliance with Laws and Regulations

Fair Transaction

• Equal Opportunity
• Fair Transaction Procedure
• Support and Aid for Business Partners

Basic Ethics for Employees

• Basic Ethics
• Completion of Duty
• Self Development
• Fairness in Performance
• Avoidance of conflict with company interest

Corporate Responsibilities to employees

• Respect for human dignity
• Fair Treatment
• Promoting Creativity

Responsibilities to society and country

• Rational Business Development
• Protection of stock holder interest
• Contribution to social development
• Environmental Conservation

LG INDIA

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores.

LG corporate office is located at Plot no.51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens.

RECOMMENDATIONS AND SUGGESTIONS:

1. LG should improve it’s after sale service because its hits badly LGs market share in  region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at frequent time interval and feed back should be considered positively.
4. The company should look into the matter of person hiring for in shop demonstration. A big LG showroom should have at least 2 such kind of person.
5. LG should try new dealer who have the potential. So they can target more market.
6. As there is a bottle neck competition between Samsung and LG, it is necessary to take measure steps to overcome the area of downfall in LG with respect to Samsung.
7. The marketing managers should make better relations with dealers and reputation of the company.
8. Customer considers quality as their first preference, so the company should give more stress on this.
9. The switching of customer from LG product to other brand is due to the bed after sell service in shop.
10. The product is well aware and it is on top of mind of customer. 

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Financial Position of Telenor Group | Interim Report Q2 2010

Telenor is one of the leading group in telecommunication operation in all over the world that's why it's financial report is strong as compare to other. Here we are going to share you Q2 2010 Interim report (January-June 2010) lets have a look. As this report represents financial position of Telenor group so have following highlights Interim report, Telenor’s operations, Group overview ,Outlook for 2010, Condensed interim financial information, Notes to the consolidated interim financial statements and Responsibility statement. The statements below are related to Telenor’s development in the second quarter of 2010 compared to the second quarter of 2009, unless otherwise stated. All comments on EBITDA are made on development in EBITDA before other income and expenses (other items).





Financial position 

• During the first half of 2010, non-current assets increased by NOK 15.7 billion, primarily due to an increase in the carrying amounts of associated companies mainly resulting from the contribution of Kyivstar to VimpelCom Ltd. The increase in carrying amounts resulted from the step-up to fair value on the shares received in consideration for Kyivstar.
• Net interest-bearing liabilities decreased by NOK 0.8 billion to NOK 25.5 billion, as a result of a NOK 3.1 billion increase in cash and cash equivalents. The increase was largely attributable to strong operating cash flow, partly offset by new debt in Uninor of NOK 2.2 billion.
• As of 30 June 2010, the Norwegian Krone had depreciated against most of the functional currencies of Telenor’s foreign subsidiaries and associated companies when compared to 31 December 2009. Total equity increased by NOK 13.9 billion to NOK 99.0 billion. The increase is due to strong earnings and positive translation effects contributing to a total comprehensive income of NOK 18.9 billion for the period, partly offset by total dividends declared of NOK 5.3 billion to equity holders of Telenor ASA and non-controlling interests in subsidiaries.

Cash flow

• The net cash inflow from operating activities in the first half of 2010 was NOK 13.8 billion, a decrease of NOK 4.2 billion. Income taxes paid amounted to NOK 3.2 billion, an increase of NOK 1.8 billion due to the jointly taxed Norwegian entities being in a tax paying position from the end of 2009. Dividends received decreased by NOK 3.2 billion, related to high dividend payments from Kyivstar in 2009. The positive change in working capital of NOK 3.2 billion was mainly related to revenue share accruals in DTAC and strong cash inflow resulting from a high level of receivables in the fourth quarter of 2009 and prepayments in the second quarter of 2010.
• The net cash outflow from investing activities in the first half of 2010 was NOK 8.6 billion, of which NOK 7.1 billion was related to intangible assets and property, plant and equipment. Paid capex was higher than reported capex, related to the network roll-out in Uninor as well as high capex payables in Pakistan at year-end 2009. The acquisition of C More Group AB amounted to gross cash outflow of NOK 1.1 billion.
• The net cash outflow from financing activities in the first half of 2010 was NOK 3.3 billion. This was mainly attributable to payment of dividends to equity holders of Telenor ASA and non-controlling interests in subsidiaries, partly offset by net proceeds relating to interest-bearing liabilities.
• Cash and cash equivalents increased by NOK 3.1 billion to NOK 14.6 billion as of 30 June 2010.

Transactions with related parties
For detailed information on related party transactions refer to Note 34 in Telenor’s Annual Report 2009. In addition to transactions described in the Annual Report the following new significant related party transactions occurred in 2010:

• On 13 January 2010, the extraordinary general meeting of shareholders of Kyivstar approved additional dividends of UAH 0.8 billion (approximately NOK 0.5 billion) for the fiscal year of 2008, of which Telenor has received its appropriate share of approximately NOK 230 million. The dividend distributed is a proportion of total net profit of UAH 5.1 billion for the fi scal year of 2008.
• On 21 April 2010, VimpelCom Ltd. successfully completed the Exchange Offer for OJSC VimpelCom shares and American Depository Shares. As part of the transaction, Telenor’s shares in Kyivstar was transferred to VimpelCom Ltd. and a gain of approximately NOK 6.5 billion has been recognized in the second quarter of 2010.
• On 11 May 2010, at the same time as Telenor Media & Content Services AS acquired 35% of the shares in C More Entertainment commented on in note 4, Telenor received a payment of approximately NOK 0.5 billion related to a sublicense agreement with C More Entertainment of certain Danish sports rights entered into in 2009.
• On 28 June 2010, Telenor signed a 3-year agreement with TV 2 for distribution of Premier League matches from the 2010/2011 season until the 2012/2013 season to Canal Digital’s cable and satellite subscribers.
• Outlook for 2010 Based on the current group structure including Uninor and currency rates as of 30 June 2010 Telenor expects:
• Organic revenue growth of 3–5%.
• An EBITDA margin before other income and expenses of around 28%.
• Capital expenditure as a proportion of revenues, excluding licences and spectrum, of 12–13%.
• Telenor expects that Uninor will contribute with an EBITDA loss in the range of NOK 4.5–5 billion and capital expenditure in the range of NOK 2.0–2.5 billion.

Risks and uncertainties
The existing risks and uncertainties described below are expected to remain for the next six months. A growing share of Telenor’s revenues and profits is derived from operations outside Norway. Currency fluctuations may influence the reported figures in Norwegian Kroner to an increasing extent. Political risk, including regulatory conditions, may also influence the profits.
For additional explanations regarding risks and uncertainties, please refer to the Report of the Board of Directors for 2009, section Risk Factors and Risk Management, and Telenor’s Annual Report 2009 Note 30 Financial Instruments and Risk Management and Note 35 Commitments and Contingencies. Readers are also referred to the disclaimer at the end of this section.


Disclaimer
This report contains statements regarding the future in connection with Telenor’s growth initiatives, profi t fi gures, outlook, strategies and objectives. In particular, the section ‘Outlook for 2010’ contains forward looking statements regarding the Group’s expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Cash Flow Statement

Changes in Equity

Income Statement

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