The Hindu Business Line : LG to take direct marketing route to push microwaves

TO further consolidate its market position in the home appliances category - especially microwave ovens (MWO) -- the Korean consumer electronics and home appliances major LG Electronics India Pvt Ltd (LGEIL) has decided to `directly connect' with the consumer.

The company that has notched up a market share of 39.2 per cent as per November 2003 ORG-GFK figures, now has worked out aggressive direct marketing strategies to give the category a further push.

It has dedicated a budget of about Rs 1.5 crore for direct marketing initiatives for the product. The focus would be to reduce post-buying problems faced by consumer, Mr Saurabh Baisakhia, Product group head of MWO division, LG, said. The category had earlier suffered due to wrong perceptions about the product's usage and was seen as a mere heating device. The company now proposes to change this by giving constant home demonstrations in order to let the customer put the product to more usage. Further, 2004 will also see the launch of new models.

"We could achieve a major market share in such a short span mainly due to the fact that we were able to identify consumer buying behaviour in different zones and realised that the need of consumers vis-à-vis this product is not homogenous. Thus, we launched different capacity models for different zones," says Mr Baisakhia.

Elaborating further, he said that these models were launched based on people's food habits and usage that people put MWO's to. For example, it was found that the 20 litre model was preferred in Kolkata, while in the North the 30 litre one moves fast. In Chennai and its surroundings, the price-sensitive consumers prefer the basic model. "This consumer study was conducted for a period of one year and helped us break one major myth that MWOs sell only in the metros," Mr Baisakhia said.

Depending on the demand of each region, LG has come out with economy packages for each zone. In the West, along with the MWO, a dhokla maker is offered, in the South an idli maker and in the East and North, a steamer. Over and above, the consumer gets cookbooks. Commenting on the marketing push for the category, Mr Baisakhia, said, "We have tried to create excitement about this category through our constant product launches which would cater to each segment. Constant home demonstrations helped in attracting consumer attention."

In fact, efforts were made to explain the microwave oven's various uses to customers, he stated. "We have tried to offer various models which come with unique features such as the 25 litre grill has diet recipe's already fed into the ovens. We also have a toaster model wherein you can simultaneously use both -- the oven as well as toaster," he said.

The microwaves from the LG stable are priced in the range of Rs 5,990 to Rs 19,990.

More Stories on : Direct Marketing | Home Appliances

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Gokaldas may bring in Nautica smart casuals

Potter on POGO

Bosch to double car service outlets

AirTel bundled post-paid offer for Rs 3,999

Kochi Corpn drive against name boards

Classic Jewels ropes in Neha Dhupia as brand ambassador

Tanishq's promotional offer

LG to take direct marketing route to push microwaves

Oriental risk products at post offices

`Content, quality make HBO a leader'

Coffee Day Takeaway to expand

Aprilia mulls boutique showrooms in India

M&M launches tractor range

Reckitt test-marketing Dettol skincare soap