Consumer electronics major LG is quite bullish about the digital medium and has decided to up the budget for its digital spends in the year 2011, believing it to be the medium of the future.
Giving a sneak peek into the coming year, L K Gupta, Chief Marketing Officer, LG India, told exchange4media, “We have had Rs 15-20 crore as our digital marketing budget this year, which is less than 10 per cent. We are going to increase it by 50 per cent for the coming year.”
When asked about how the company is looking at next year, Gupta replied, “2011 will be challenging. We will try to bring more efficiency in our marketing spending. Digital is the medium of future and we are looking forward to it.”
Quite a few brands have taken up e-commerce in a big way as a tool of easy availability, convenience and to shoot up sales figures, but Gupta thinks otherwise. “We have no plans for e-commerce. Online sales would play an insignificant role as it could form only 1 per cent of our overall sales. We are not sure if the customer is ready for an online purchase as the products are usually bought after a physical know-how,” he pointed out.
LG has always been a huge spender when it comes to advertising. According to company officials, 50 per cent of the overall marketing budget, which is around Rs 250 crore, is spent only and solely on advertising.