In a significant development, LG Electronics India Ltd (LGEIL) has consolidated its consumer electronics and IT businesses with Lowe. Previously these businesses were split between McCann-Erickson and Lowe. While company officials refused to divulge the account size, it is known that around 60 per cent of LG’s ad spend is taken up by the consumer electronics and IT categories. According to industry estimates, LG’s spend on these two categories is in excess of Rs 50 crore.
Elucidating on the reason for the consolidation, Deba Ghosal, Head-Product Marketing, LGEIL, said, “The consumer electronics and IT categories required synergy in communication and strong emotive connect with consumers. Lowe’s work was in sync with our objective.”
The company didn’t invite any external agencies in the pitch process. The pitch process saw presentations by McCann-Erickson and Lowe, with the latter winning the business.
As part of the assignment, Lowe will be looking after the advertising for LG’s DVDs, colour televisions, flat panels, audio systems and the IT category.
Recently, the company had consolidated its home appliances business and assigned the creative duties to Delhi-based Capital Advertising. O&M, Lowe and McCann-Erickson had been handling the home appliances portfolio earlier.