The Hindu Business Line : LG to reposition brand on aspirational plank

Chennai, Nov. 9 LG Electronics India is all set to reposition its brand in the market from the present ‘value-for-money’ plank to an ‘aspirational’ brand by offering a range of “differentiated” products, rather than remaining in the “me-too” category. “In future, even our advertisements will not talk about the pricing of our products. Instead, they will talk about features, quality and our after-sales service support,” said Mr Moon B. Shin, Managing Director of the company.

With that in mind, the company is planning to focus more on futuristic and technologically advanced products. “We are working on rolling out a range of differentiated products in the IT, flat panel display and mobile phones segments, as they are going to be our growth engines in the years to come,” Mr Shin said.

He said the company’s recent launch of Pearl Black LCD TVs and ‘Shine’ range of mobile handsets are well received in the market.

In the year 2006, LG India reported a turnover of Rs 8,250 crore and hopes to post Rs 9,500 crore for the current year. “In October alone, we clocked record sales turnover of Rs 1,100 crore. We are planning to double our turnover by 2010, and we are in the right direction,” he said.

As consumers generally rely on experience and their long-held perception of a brand, the key to establish an aspirational brand is gaining customer loyalty. This is precisely where the need for rolling out innovative, easy-to-identify and differentiated products, which are of high quality, come into play. “That’s why, we in LG are spending a substantial amount in R&D.” According to Mr Shin, currently the company spends 4-5 per cent of its turnover in R&D.

Answering a question on whether LG would support Blu-ray, an optical disc technology, he said the company is planning to launch its Blu-ray disc players next year in India.

Expanding portfolio

LG is also planning to expand its product portfolio in the home appliances segment with new products such as 80- to 100-litre wine cellars, air purifiers and a new range of vacuum cleaners.

Besides, LG will soon launch 22-inch LCD TVs and 32-inch Plasma TVs (the smallest in the plasma category) in the Indian market.

According to Mr Amitabh Tiwari, Business Head – Consumer Electronics, LGEIL, the 22-inch LCD TV would be priced on a par with 29-inch conventional flat-screen TVs (approximately Rs 20,000) and the 32-inch Plasma will sport a price tag of a 26-inch LCD TV.

The Korean player spent over Rs 550 crore last year on advertising and intends to spend over Rs 940 crore this year. “We are planning to increase it by 60 per cent for 2008,” said Mr Shin. With this increased ad spend, LG aims to penetrate the market, the southern market in particular, more effectively.

While GroupM is handling LG’s media buying, Lowe is its advertising agency.

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