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BTL and innovation to be key focus areas for LG in 2010

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BTL and innovation to be key focus areas for LG in 2010

Consumer electronics major LG is quite upbeat about growth in 2010. As LK Gupta, Chief Marketing Officer, LG, declared, “Slowdown in 2009 didn’t affect us”, and added that the company had not cut down on its advertising budget during the year. Continuing with ‘Enriching Life through Technology’ as its brand positioning, LG laid emphasis on the logistics and the trade, which it believes is extremely important.

Taking the strategy forward, LG as a brand plans to strengthen its position along the same lines and specifically focus on growing its market share in the segment on which it already has a hold on.

Elaborating on LG’s 2010 plans, Gupta said, “Overall, we want to consolidate our strong position in the segments where we have leadership and we want to dramatically grow our market share, which is the end result, in LCD TVs and mobile phones. Frequent introduction of new products in both these categories will be there and having a better share of the market than last year is very important. The plan is to make sure that we are focusing our monies more on our growth engine products, which are LCD TVs and GSM mobile phones, you will see a lot more action there. At the same time, we will continue strengthening our below the line activities – the shop work, which will include strengthening our displays, distribution, investing in the training and better manpower for demonstrators. These will be the key areas where we will try to achieve higher excellence level when the consumer is closest to purchase.”

Along with Samsung, LG’s control in the global mobile market is more than 30 per cent, however, in the smart phone segment, it is below 5 per cent. On this, Gupta said that this was in their agenda list and the necessary steps were being taken.

“Work is in progress. We are not in a position to give any details, but yes, the mobile phone segment is very important for us. We are not the strongest player in home entertainment and appliances category, we are No 3 or No 4. There’s a lot of interest being generated in our mobile segment through the touch series and smart phones are on the horizon, but we won’t be able to divulge out plans as of now,” he added.

Meanwhile, LG’s advertising has been quite aggressive as it plans to have a healthy imprint of the brand in India and abroad. In keeping with this strategy, Lowe was replaced by Rediffusion Y&R as the creative agency.

Gupta explained, “The reason behind choosing Rediffusion Y&R as our agency was a global mandate. Globally, our headquarters decided to build more consistency and healthy brand across the world. So, they wanted a global agency and they appointed Rediffusion Y&R as the creative agency. As of now, there are no changes coming in. Not even in the case of MEC, our media agency.”


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