LG Care has decided to shift its Rs 30-crore creative account to Contract Advertising. The account was earlier with Everest Advertising and had been awarded to the agency in a multi-agency pitch in January 2004. It must be noted that Contract was among the agencies that were short-listed in that pitch.
Confirming the move, Vijay R Singh, Managing Director, LG Care, said, “We have moved our creative account to Contract Advertising who will have a dedicated team of 16 persons to manage our account. They will handle the entire umbrella branding of our seven FMCG categories, which requires a dedicated team including a planning department, three creative directors, a team of four art directors and copywriters and six studio managers.”
Explaining the reason for the shift in such a short time, Singh said, “This is the first time the umbrella branding is being tried out here. It is a challenging task that requires dedicated resources. But it takes time to set up an exclusive team. Everest did not have a full-fledged office in Chennai whereas Contract has a complete team in place and since they were already short-listed in the recent pitch, we decided to move the account to them.”
Why was Contract not chosen in the earlier pitch? Singh said: “Our current strategy that involves umbrella branding across seven FMCG categories requires great efficiency and a terrific amount of dedicated resources. For this, we wanted the entire top management to be involved and take ownership of the umbrella branding mandate. This was not possible due to the unavailability of Contract’s President Colvyn Harris, since he was traveling. But once we got the commitment from them, we decided to give them the account as they had a complete team in place.”
It is pertinent to note that LG Care has just launched consumer products across seven key FMCG categories. The product range features 200 product packs in various sizes, packs and variants. It has unveiled popular international products like LG Cliden toothpastes, LG Double Rich shampoos, LG Super ENZ detergent, LG Cucumber Natural & White Beauty soaps and LG Maman diapers.
Industry estimates peg the southern market to be the highest in terms of sales growth and hence LG Care projects the four southern states of Tamilnadu, Karnataka, AP and Kerala to contribute 30 per cent of the overall national sales. LG Care has also appointed 40 distributors and 25,000 retailers in Tamilnadu, which is the key market in the south.
Distribution and channel development is nearing completion in most parts of India. LG Care products will be made available in all metros, mini-metros and major towns by July 2004. The company has put together an aggressive package of trade schemes and promotions for its channel partners to drive growth. Special emphasis is also being given to retailers as they form the customer contact points. The company has planned an aggressive marketing, advertising and promotions campaign. LG Care will depend on an innovative mix of advertising, direct marketing, events and promotions to establish a long-term relationship with the Indian consumer. A strong research focus is also in place to be able to generate consumer feedback.
For LG Care, India is one of the fastest growing markets in Asia. The size and potential of the market coupled with low penetration levels made it attractive for LG Care to enter India. Worldwide, LG Care has been among the top FMCG companies in some 40 countries and is expected to grow rapidly. LG Care aims to be one of the top three players in the Indian FMCG market by 2006.
(The story was first run on the site on May 13, 2004 at 8.10 p.m.)