The Hindu Business Line : LG hopeful of Rs 1,300 cr in festival sales

Mr Salil Kapoor, Head, Marketing, LG Electronics India, at the launch of the mega consumer offer for Diwali, Dhoom Macha De in the Capital on Wednesday. — Kamal Narang

New Delhi , Oct. 13

LG Electronics India is eyeing a turnover of Rs 1,300 crore during the festival season (October-November) and would be spending Rs 100 crore on a high-pitched consumer promotion during the festival months.

The Rs 1,300-crore sales target would be 44 per cent more than last year's sales during the festival season, the LG Electronics Head (Marketing), Mr Salil Kapoor, told a news conference.

Consumer electronics will contribute 50 per cent to the targeted sales, appliances 35 per cent, IT 10 per cent and GSM mobile phones five per cent.

The company expects to achieve 31 per cent value growth in electronics category, 43 per cent in appliances, 48 per cent in IT at the end of the season, he said while announcing the consumer offer called `Dhoom Macha De'.

In the fast growing flat TV segment, LG is aiming at a 300 per cent value jump over last year's festival sales.

The company's marketing expenditure during the festive period has also increased this year as compared to the Rs 62-crore spent in the last season.

Meanwhile, LG, in order to upgrade consumers to higher value products, has launched a new refrigerator under the sub-brand SFF (semi-frost fridge), which intends to create a new category between the direct cool and the frost-free segments.

"We want to upgrade the direct cool customer to this category. The price differential between a semi-frost fridge and direct cool one is only about Rs 600-800," Mr Kapoor said.

LG has been focusing on becoming a value player rather a volume one and has taken steps across the categories it is present in to `upgrade' the consumer to higher value products.

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