LG Electronics is going in for a makeover to associate itself with the youth. The company believes that targeting young customers is the key to tomorrow’s profit as 54 per cent of the population in India is below 25 years.
The South Korean brand plans to realign itself from a qualitative to a quantitative brand position to attract youngsters with higher disposable incomes.
As part of this exercise that will drive the company’s strategy for the next four years, LGEIL will reposition itself as a more aspirational brand, shift imagery to be associated with younger consumers and position itself as a single point brand to address all segments.
“When we entered India in 1997, our aim was to be market leader in 10 years but having achieved that goal much earlier, we will now focus on driving growth into the future as an aspirational brand without losing out on market share,” said Sandeep Tiwari, head–marketing, LGEIL. Keeping in sync with this strategy, termed as Blue Ocean 2-by-10, the new focus categories are all high end --laptops, GSM phones and flat panel display televisions.
Higher disposable incomes, plastic money and interest free loans are increasingly shifting buyers to the sub-30 age group in the consumer and home electronics segments.
“Growth in the consumer and home electronics segments will be in the 10-15 per cent range over the next five years while mobile phones and IT products will grow at 25-30 per cent, where the majority of buyers are below 30 years, so we will have to keep ourselves relevant to this age group,” Tiwari said.
LGEIL plans to increase the contribution of high-end products from the present 22 per cent to 30 per cent by 2010.
Further, it will increase its association with entertainment and sport to lend it a youthful image. To add to its association with cricket since 1999, the brand is also planning to bring on board golf and tennis.
A makeover for its 154 exclusive brand shops is also on the anvil.