After making a quiet entry, LG Household and Healthcare (LG Care), a subsidiary of Korea’s LG Group, has now chalked out plans to make an aggressive foray in the Indian FMCG market. The company has lined up a major advertising campaign for its hair, skin, oral, body, baby and home care range of products. Vijay R Singh, Managing Director, says an extensive print and electronic campaign will hit media by August 15. Around 21 film, TV and sports celebrities would be featured in the various TVCs and print ads.
The advertising exercise will cost Rs 30 crore and three agencies, namely, Contract Advertising, Euro RSCG and MAA Bozell have been engaged for this. However, in the coming three years LG Care plans to invest Rs 100 crore in various advertising activities. This would also include outdoor and other below the line activities.
After the soft launch of a few premium products in 2003, LG Care has now launched its full range of premium products like toothpastes, shampoos, soaps, diapers and detergents in the northern market. These include ‘Cliden’ toothpaste, ‘Double Rich’ shampoos, ‘Super Enz’ detergents, ‘Cucumber’ and ‘White’ soaps and ‘Maman’ diapers. The region is expected to contribute around 30 per cent of total sales. The company has appointed 460 distributors across the country, Singh said.
An MoU between India Household and Healthcare Ltd (IHHL), the sole licensee for LG Care, and State Trading Corporation of India (STC), a Government of India undertaking, has also been signed. Under the MoU, STC will disburse a sum of Rs 100 crore for the first year which IHHL would utilize for import operations.
After testing the waters for a few months, LG Care has decided to compete head on with FMCG heavyweights like HLL and P&G. A market share of three per cent has been targeted by the end of this fiscal. The company is looking at a turnover of around Rs 500 crore in the coming three years. Plans of launching cleaners, cosmetics and hairstyling products are also in the offing, Singh said.