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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
year-end
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| To make itself a known brand in the consumer
electronics sector, LG has taken innovative marketing
and promotional initiatives: