MAKING LIFE GOOD IN INDIA, TWO DECADES ON

Submitted by admin on Mon, 05/22/2017 - 11:36

Amit Gujral, Head of Corporate Marketing, LG Electronics India, says strategy of putting customer first and adapting communication for India’s diverse markets has been the key to the brand’s success over the past 20 years

 

BY CHRISTINA MONIZ
 

Q] What have been LG’s learnings over the past 20 years in the Indian market?

The most beautiful thing about India as a market is its diversity and variety. The kind of diversity we have seen in this country is not limited only to cultures and languages. There is diversity also in changing consumer behaviour. The demands from consumers in India vary from one geography to another, and this is a classical thing that is unique to India.Because we put customers first, we have learned to strategize in terms of local behaviour and trends. You will see different communication and campaigns from LG in different parts of the country.So we have had phenomenal learnings over the years from region to region in the country and I won’t say that the learnings are really over. We will continue to learn and we will continue to garner the love and loyalty from our customers in everything we do.
 

Q] Are you rolling out any discounts or promotions for the brand’s 20th year in India?

We believe in celebrating with our consumers since it is with their love and loyalty that we have been so successful. We are running a wide range of offers such as Rs. 20,000 cashback, Rs. 20,000 discounts and 20 month EMIs that are usually never available. We’ve introduced a digital campaign inviting customers to share their stories of how LG has impacted their lifestyles. These will be rewarded every week and the final winner will have the opportunity to appear in our commercials.
 

We also have plans to bring our premium LG Signature range of products to India like the OLED TVs, refrigerators, washing machines and air purifiers. We are confident that consumers will appreciate these products since they are ultra-premium in both design and functionality.
 

Q] Considering how competitive the consumer durables space is, how does LG set itself apart?

Well, there is no other brand in this space with a television screen that is OLED. Only LG televisions have these screens that offer such immersive viewing. Also, I believe there are very few other companies in this space that can really plan for Internet of Things (IOT). I am certain with how much growth we have already seen in terms of internet connectivity, IOT is not very far from reality in India. LG is completely geared up to lead the way with IOT. So our technological advancement and innovation is another quality that sets us apart. We also have the country’s largest after-sales network. Moreover with automation becoming key to our production, you will see robots at work in our Pune plant. But that doesn’t mean we are not people conscious. Who better for after-sales service than someone who was previously involved in the manufacturing process? So on the one hand, we have improved production productivity and on the other, we have carved out the service careers for those who were in production. Most importantly, we have zero compromise on quality. I believe all of these factors set us apart from other players in the market.
 

Q] Where does LG stand with regard to market share, currently?

We are the No 1 brand in many categories – ACs, refrigerators, washing machines and several others. But this is not something we are focused on. We’re only trying to up the mark for ourselves. We have two big production houses here so we can meet demand and supply without having to go elsewhere. People are talking about Make In India now but we have been doing this since 1997! Almost 90% of our products are made in India.

 

 

Q] What is LG’s current turnover, and how much growth are you expecting this year?

We closed last year at Rs. 22,000 crores and we are expecting a minimum of double digit growth. The largest chunk comes from home appliances – refrigerators, microwaves and washing machines.
 

Q] Which product line are you betting big on this year?

The one product that we are betting big on is the water purifier. In the air-conditioner category, while we are No 1, going by the penetration of this category in the country, we believe there is huge, untapped potential for growth.
 

Q] What is your strategy in Tier II and III markets?

Our strategy for the smaller markets is to localise and customise our communication for each of them. Our communication for the South market for instance will be very different from what we do with a market in another location. Our product range is also diverse enough with products across different price points. We have the lineup of ACs, refrigerators, TVs and microwaves for a Tier III city just as we have a vast product line-up for the metros. In fact for this summer, we have launched as many as 48 types of ACs so there is something for each category of consumer and city.
 

Q] You have always been big on BTL. How well has that worked for the brand?

Our activities have not been like a typical brand activation but more like a celebration with the society we are in. For example, people still fondly remember us in our early years for all our cricket focused consumer engagement initiatives. Our endeavour is always create communication that will strike an emotional chord with customers and help drive recall.

Q] How much of your sales come from E-commerce?

We are known for enabling consumer experiences. We are very selective about the products we make available on E-commerce platforms and this is an understanding we have with the various players. We don’t see the online platform as either competition or as an easy way of selling our products.
 

Q] What can Indian consumers expect from LG, going forward?

We hold this wonderful belief that we are in almost every Indian household be it a television, washing machine, microwave or refrigerator. It is this belief that keeps us innovating. Today, we recognise that brands and people across the globe are increasingly focused on being environment conscious and health conscious. We also recognise that in India, the consumers are focused on purchasing ACs that reduce electricity consumption. That is why you will find Indian consumers typically keeping the AC on only for a few hours each night. Keeping this unique behaviour in mind, what we have done this year is we have changed the entire air-conditioning line up to the inverter ACs. The inverter is built for air conditioners to save electricity. As a responsible brand and as the market leaders, we have also just introduced dual inverters that allow you to reduce electricity consumption and thereby reduce your electricity bills to the tune of 50%. Our refrigerators are also built with technology that keeps food fresh and retains nutritional value for the longest period of time, compared to competition. With the introduction of LG Signature, we will also be launching air purifiers that have been created keeping the parameters of health and environment in mind. Our new air purifiers will feature an advanced aqua-cyclone feature that allows harnessing the power of water to filter out harmful chemicals and contaminants while bringing room to comfortable humidity levels. We will continue to make a conscious effort to align our products to make them environment friendly and beneficial for people’s health.
 

@ FEEDBACK christina.moniz@exchange4media.com

Category: 
Volume No: 
13
Issue No: 
50