The Hindu Business Line : LG Care products may be priced at `slight' premium

AMID aggressive price cuts in the FMCG sector, newcomer LG Care has said it will price its products at a slight premium, at the most, over its rivals' brands.

LG Care, which unveiled a range of premium products across seven FMCG categories, said the price of any of its products would, at the most, be only Rs 2 more than the price of a rival product — that is, at current levels.

This level of premium pricing wouldn't deter consumers who would find value in LG Care's products, said Mr Vijay R. Singh, Managing Director of India Household & Healthcare Ltd, which markets the Korean company's wares in India.

The pricing strategy was pre-planned and wasn't influenced by the churn in categories such as detergents, where the top two players HLL and P&G recently cut prices, he said.

The seven categories under which LG Care has launched its products include toothpastes, shampoos, soaps, detergents, diapers, cleaners, and hairstyling products. Andhra Pradesh, Maharashtra and Tamil Nadu were the initial markets in which the company's products were launched. The pan-India roll-out will happen in three months, Mr Singh added.

All its products will be promoted under the umbrella brand LG Care. The sub-brands include Cliden toothpaste, Double Rich shampoo, Super-Enz detergent, Maman diapers, Cucumber Natural soap and White beauty soap.

Over the next two or two-and-a-half years, the company would launch products under 13 new categories, which would cater to niche markets.

The company, which has earmarked Rs 30 crore towards marketing, is taking "a different route for celebrity endorsements." It is signing on 21 celebrities — an equal number of models, film stars and television stars — for its ad campaigns, which is likely to be on air in July-August.

LG Care only recently shifted its creative account from Everest Integrated Communications, a Rediffusion DY&R arm, to Contract Advertising, which will handle the duties from Chennai.

The company hopes to garner a 3 per cent share in the over Rs 50,000-crore FMCG market in the first year of operations.

More Stories on : Strategy | Personal Products

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

Stories in this Section
LG Care products may be priced at `slight' premium

Rasna rejuvenates ad campaign with young mothers

JWT, Starcom bag Hungama TV account

As battle for market share intensifies — Variants swamp executive car segment

Hasbro store in Kochi

BenQ to focus on mobiles, after-sales service

Foster's Beer hopes to break even this year

LML launches three new bikes