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LG Care appoints Everest as creative agency, adspend worth Rs 30 crore

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LG Care appoints Everest as creative agency, adspend worth Rs 30 crore

LG Care has appointed Everest as its creative agency for the soon to be launched toothpaste, soaps, detergents, shampoos and diapers. There will be about 25 variants in all categories. The pitch lasted two months, and the contract was officially signed on January 15, 2004. LG Care is looking at an annual adspend of above Rs 30 crore. The product line targets the premium segment and LG Care hopes to garner 2% to 3% market share in the upper crust by the end of the current financial year. Pitches are currently on for both AOR and PR. The results are likely to be announced in the next 15 days.

Vijay Singh, Managing Director, LG Care, says, “The pitched was contested by the top 8-9 agencies. Everest was final choice because of the keen involvement of the top management and their commitment to the brand. We will be launching our product variants in all the five categories simultaneously. Print, Outdoor and Television will be extensively used and we would be looking at an annual adspend of above Rs 30 crore for starters. We are thinking long term and intend to build a strong foundation. The product line targets the premium segment and we hope to garner 2% to 3% market share in the upper crust by March-April, 2004.”

Singh adds, “Our goal is to set up a strong distribution in the next 2-3 years. The packaging and quality of the product will be of the same international standards as our product lines in countries abroad. Everest will be employing a 27-member, exclusive creative team in Chennai for our product line up. We are also negotiating for a media planning and PR agency.”

Among the agencies involved in the creative pitch, Contract, Everest and RMG David were short-listed. Expressing his thoughts over the win, Ram Sehgal, Managing Director, Everest Integrated Communications, says, “We have access to the Y&R tool BAV (Brand Asset Valuator), and we used it to give LG Care the exact strategy they need to successfully enter the country. We did not go to them with alternative positioning strategies for the simple reason that we had a strong and effective strategy we believed in. It was the single-minded positioning and the single-minded recommendations that worked for us. The client also liked the passion we displayed. A clear-cut strategy, backed by a 360-degree communication recommendation was what won us the business.”

Speaking about the expectations from the launch campaign, Sehgal says, “We expect our first campaign to drive people to the shop to check out the excellent range of LG Care products. I think the first campaign will establish LG Care credentials and the fact that they make 'best in class' FMCG products. We would want people to say, 'That looks interesting, I want to find out more about LG Care products.' We will be looking at print, television and innovative outdoor for the launch campaign.”

LG entered the FMCG category in 1947 in Korea and is now entering the Indian market with toothpastes, detergents, shampoos, soaps, cleaners, kid diapers and hair styling products. The international products are being imported out of the Korean factories. LG Care is present in 120 countries and is a leader in North East Asian markets like Korea, China and Japan. It has six factories in Korea spread over 900 acres. Their annual spend on R & D is in the around Rs 9000 crore. LG Care has its offices in Chennai and Mumbai in India.


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