LGEIL planning Rs1,000 crore for marketing
14 Dec 2007
New Delhi: Consumer durables major LG Electronics is re-strategising its business in India, shifting focus to the premium end of each product category, while improving the product range and service network, and enhancing quality assurance.
LG took around 10 years to attain the Rs10,000 crore turnover mark, with the projected turnover for 2007 being reported to be in the range of Rs9,500 crore. Reports indicate that the company is optimistic of doubling the topline in within about three years, basis its changes in product portfolio, marketing and promotional strategy and even organisational structure.
The company has reportedly earmarked around Rs1,000 crore as its investment into marketing and related activities over the next three years, mainly to communicate the shift in strategy to the consumer. The company has commenced its positioning of the brand on the aspirational plank (See: LG repositions brand on aspiration plank), and expects around 20-22 per cent of its sales to happen in the premium end of the market, estimating it to grow to beyond 30 per cent by next year.
On the organisational restructuring, two new regional managers have been reportedly appointed, which takes the number of regions within the LG sales system to eight. Additionally, new positions created at the headquarters are expected to streamline operations, and a pricing review is underway, which could result in a five per cent price hike across some categories in about a week’s time, according to reports.