c



m Apart from the urban household segments the are also targeting
institutions, governmental agencies and rural segment. They also estimate the
sales growth form 5% to 10%.

m They position their brand as ³high technology product with reasonable price´

m As they already found huge opportunity for rural market-

m Company sanctioned rs 10 crore budget for rural marketing for next one year.

m For rural market their target is rich and middle class of agricultural segment for
which they are planning to enter initially in 4 states
- Andhra Pradesh
- Tamilnadu
- Punjab
- Haryana
J  

m ëajor competitors are BPL, Samsung, Videocon, Whirlpool

m The major reason for their success is their brand image among customer as
³Technologically superior product´
m Œt is 4th favoured refrigerator brand in country
m Œt is also 4th preferred brand among intending buyers
m On among top two in terms of top of mind awareness
m Washing machine- although videocon is leading but LG is leading in terms of
growth
- 1999 ± 46%
- 2000 ± 67%
- 2001 ± 78%

m Also fastest growth in colour tv segment since 1999.

m¦

m Company agenda ± ³Human touch´
- T.V. ± The Golden Eye
- Refrigerator ± Preserve nutrition system.
- AC ± bacterial filters

m Energy saving and eco-friendly products

m Launched low cost products like cine plus (rs 5000-7000) and sub-300 litre
refrigerator.

m For customisation they also sanctioned 18 crore for R&D.

m Already has huge presence in television and refrigerator in rural segment and now
concentrating more on acs and microwaves.
¦


m Cost innovation
- higher technology effeciency
- reducing design related frills
- purchasing cheaper components
- more effective HR policies
m They managed to cut cost - 20% in AC
- 15% in CTV
m Planning to implement digital management system ± 30% cost
reduction
- higher productivity

- 5 % reduction in prices in all products.

¦
 

m Overall promotional budget is 100 crores.

m But they believe that even if they deduct the budget it will make minimal effect
because they believe they have crossed the minimal threshold

m Rural promo ± 40 roadshows in the 4 states for 3.5 lakhs/ town for 45 days
å



m Planning to setup area offices in 50 plus regions

m Also planning to open 15 LG shoppes (exclusive outlets) to add to current 35.

m Also have 100 service centres across country for effective after sales services.

m 95% of customers complaints are responded in 24 hours.

 Œ
  
   

 




A All other estimates looks achievable looking at

the past achievements but the real doubt is cost
cutting of 30% manufacturing expenses.
Œ



 









A There is market for LG in rural but in segment of TV and

Refrigerator only not in microwave and AC yet.

A They should try to expand the market share rather then going
for microwave and AC.
 å  










A Road shows
A Low cost products
A Wall paintings
A Regional tv channels
A Awareness campaigns
A Word of mouth is the best
A Follow distributor-dealer channel