The Hindu Business Line : LG jumps into `Blue Ocean'

What it aims at
The company will enter new areas such as products, business model work, systems and people.
It plans to become export hub for LG worldwide catering to the West Asian and African markets.
LG eyes export turnover of $3 billion by 2010.

Bangalore , July 18

The Indian operations of LG Electronics will now be part of a completely new global marketing strategy of the consumer electronics company as it readies itself to become an export hub for some of the foreign markets.

LG Electronics' India's Vice-President for Sales and Marketing, Mr Girish Rao, told Business Line that LG worldwide is adopting the Blue Ocean strategy to create high growth and profit by focusing on five key areas of the company.

"Under the Blue Ocean strategy, we will be entering new segments and markets, and will aim to create uncontested market space," Mr Rao said. Mr Rao said the new areas are products, business model work, systems and people. "Improving in these areas will also strengthen our organisational competency," he said.

Global target

Globally, the target is to double the company's revenues, profits and shareholder's value and be among the top three companies globally by 2010. The company plans to become the export hub for LG worldwide catering to the West Asian and African markets. LG expects to touch an export turnover of $3 billion by 2010 which will contribute to 30 per cent of LG Electronics' India's turnover.

Home appliance campaign

Mr Rao said the company has also come out with a brand new communication for its entire home appliance range, breaking away from its health platform, which was conceptualised in 1997. The campaign for new `Health Plus' for the home appliances range will focus on intelligent and futuristic technology under the "Intello'' umbrella.

For example, refrigerators will be called as "intellocool refrigerators''.The company has worked out a formula, which not only creates the demand but also meets it by ensuring that the products are available everywhere.

"It works both ways for us and we not only achieve higher sales, but economies of sales also in the bargain, helping us to keep affordable price tags on our products," he said.

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