Distribution growth, innovations around sachet offerings, employment rates and index of industrial production IIP are key influencers of FMCG sales in India. Sales have been affected by a weak economy and high inflation.
South Korean firm tweaking product, pricing strategies and doubling marketing spend Mumbai, May 2 In a bid to catch up with South Korean peer Samsung, LG is changing its strategy in India by building products specifically to suit Indian needs and by doubling its marketing budgets. Kim Ki-Wan, Managing Director of LG Electronics India, told BusinessLine in an interview that the company will double its marketing spend this year to accelerate growth in the country, with focus more on engaging with customers through roadshows and in-store marketing than just traditional TV and print advertising.
That attracted about 1, of our partners. LG had been struggling to grow in the Indian market for a long time as Samsung revenues skyrocketed in India.
With such a growth, there was some mismatch in the company and we took time to adjust to the scale we reached. Samsung India earns about 70 per cent of its revenues from smartphone sales.
We have very premium phones. Since I came here, we developed some affordable priced products K7 and K10 for the Indian market. He said similar tweaks in product and pricing strategies are being done in every product category as the company tries to steal the market share from Samsung across segments.
If we can satisfy customer demands, then the growth will follow.
I collect consumer purchase behaviour every day. He said the company has been following this strategy in the last nine months, and in March and April the company is growing faster than any previous month in the last one year. Ki-Wan said he also expects higher growth this year even from upcountry market despite of the drought situation in many States.
So we expect better sales from upcountry markets this year.LG is a household name.
Appliances, televisions, cell phones, and air conditioners made by LG can be seen in homes and businesses everywhere. Now, you can also see LG products on rooftops, in the form of high-quality monocrystalline and polycrystalline solar panels.
The case examines the marketing strategy of LG Electronics in the Indian market. It provides a detailed account of LG's strategies for gaining market share by examining its approach to product, pricing, distribution and promotion.
Apart from that LG also has a Direct Sales Network where it narrows the distribution channel by handing out franchise rights of exclusive only-LG showrooms, called LG Shoppe, to an agency like SpectraVision that can stock/display/sell its products.
Apply to LG Electronics Jobs on initiativeblog.com, India's No.1 Job site. Explore LG Electronics openings across different locations in your desired industry. l.g. india: l.g. india LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, after clearance .
A senior industry executive said LG India needs to focus on modern and regional retail chains which account for almost % of industry sales, whereas for LG it is around 10%. “The major chunk of LG India’s revenue comes from distribution to smaller stores and its exclusive showrooms,” he said.