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| It's a twin-pronged strategy that has worked brilliantly for LG Electronics,India. Two years ago the
company's top brass was debating how to reachout to rural India.
| At one level, the company figured it needed new cheaper products to lurethe rural buyer. At
another level, it figured that more offices in smallertowns and cities were the need of the hour.
| LG moved quickly on both fronts. At one level, it has introduced cheaperproducts like it Sampoorna
television range. At another it has gone on anoffice-opening spree in India's smaller towns.
Currently, it has 40 branchoffices. That will climb to 150 by year end.
| The urban consumer durable market for products like color TVs, washingmachines, refrigerators
and air-conditioners is growing annually atbetween 7 per cent and 10 per cent. The rural market is
growing faster thanurban India now, The urban market is a replacement and up-gradationmarket
today. Leading the way is LG. In 2002, 60 per cent of its turnovercame from the urban market.
Today, that's down to 40 per cent. Themajority of LG's revenues are now coming from smaller
towns like Hapur,Trichy, Jorhat and Asansol.
| The company has also taken other initiatives like 65 Remote Area Officesunder the branch offices
that are empowered to directly link to the centralbilling system for orders, 230 service centres and
2,600 mobile authorizedservice personnel for villages having below 10,000 residents. All
thesemoves are part of LG's efforts to push turnover to a whopping Rs 7,000crore (Rs 70 billion) by
| To make itself a known brand in the consumer
electronics sector, LG has taken innovative marketing
and promotional initiatives:

| Launch of new technologies in consumer electronics

| and home appliances.
| LG was the first brand to enter cricket in a big way, by
| sponsoring the 1999 World Cup, and followed it up in
| 2003 as well.
| LG brought in four captains of the Indian cricket team
| to endorse its products. LG invested more than US$ 8
| million on advertising and marketing in this sport
| roduct localization is a key strategy used by LG.
| LG came out with Hindi and regional language menus
| on its TV.
| Introduced the low-priced ͞Cineplus͟ and
| ͞Sampoorna͟ range for the rural markets.
| LG was the first brand to introduce gaming in CTV͛s.
| In continuation of its association with cricket, LG
| introduced the cricket game in CTV͛s
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| LG has adopted the regional distribution model in India. All

| the distributors work directly with the company. This has
resulted in quicker rotation of stocks, and better penetration
into the B, C, and D class markets.

| LG also follows the strategy of stock rotation, rather than

| dumping stocks on channel partners.
| LG has over 46 branch offices and another 110 area offices
| across the country
| "
| Today LG is one of the top rated
| electronics company in India,
and its products are widely used
by all sections of consumers in

| LG India͛s annual turnover was

| 10700 cr in 2008,which is an
indication of tremendous growth
of the company, since the day it
was launched
|  #  
| Of all the elements of marketing mix, LG seemed to have
| put more emphasis on promotion and advertising.
| In 2002, it spent around 1.3 billion on advertising. An ad
| agency which handled the account of one of the LG's
rivals,commented: "Communication creates a mind space
amongthe consumers and LG has occupied that fairly well."
| Unlike many Indian brands which advertised seasonally
| (two-three months of the festival season-September,
| October and November), LG advertised all round the year
| LG India-trip led the number of its
| retail & distributor outlets in rural
| areas from 2004 to 2008.
| The avg. price of itsSa mpoorn a range
| of CTVs came down to about the price
so competitive that, thereby bridging
the gap between CTVs and other local
B/W TVs.

| It also tapped local forms of

| entertainment likeann ua lha atsan d
| fairs and made huge investments in
| infrastructure for distribution and
| marketing
| u  
| The following information tells us that proper marketing
| skills and strategies are immensely important for any
company to build and maintain its stand in a widely
diversified country like India where customer satisfaction
comes at a high cost.

| LG has proved its mettle by providing its customer with

| value for money, along with maintaining and at times
| increasing its profit.
| LG is surely the perfect example for other MNC͛s who
| want to set their foot in India
| USet up of a Life style Research Team which
| would analyze the needs & preferences of the
| consumer , In-depth..
| UUnderstand at length his comfort levels in
| terms of what they wants and what they
| wouldspend for what they wants..
| UMake products and service available for him to
| suit his needs & references..
| UHave a deep pocket network to make products
| available for him at a close proximity from
| where they canaccess producteasil