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It’s Lowe all the way for LG; Capital kept out

24-August-2006
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It’s Lowe all the way for LG; Capital kept out

Nobody is saying it on the record. Off the record LG Electronics India Ltd (LGEIL) appears to have reworked its creative assignments, giving Capital Advertising a cold shoulder. It is learnt from sources close to the development that Lowe will now handle the creative duties for the entire basket of LG products that includes Home Appliances and Consumer Electronics. The size of the business is pegged at close to Rs 70 crore. Capital Advertising was handling the creative duties for LG Home Appliances.

Though industry insiders are aware of the development, both the client and the agencies have decided to maintain a discreet silence.

When exchange4media spoke to Girish V Rao, Vice-president, Sales, LGEIL, he denied the news but said that “Lowe will handle the festive season business”. This fact was confirmed by Mohit Beotra, Executive VP, Lowe.

This development in itself says a lot as a bulk of ad budgets of most consumer durables brands is spent in festival promotions lasting from September-October to December. So what does it leave Capital Advertising with?

It may be recalled that in November last year LG had consolidated its Home Appliances business with Capital Advertising. At that time Capital was already handling LG CDMA phones. It also got the mandate for LG air-conditioners and microwave ovens that were being handled by O&M. From McCann Erickson, Capital got washing machines while from Lowe it got the refrigerator business.

Lowe already handles the creative duties for LG consumer electronics and IT business. This business was consolidated with Lowe in January this year.

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