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LG entering cellular handset market, Capital to handle Rs.15-20 crore account

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LG entering cellular handset market, Capital to handle Rs.15-20 crore account

Eying the booming cellular market in India, LG Group is launching its cellular handsets by the end of this month. The company has awarded the Rs.15-20 crore advertising account for the same to Capital Advertising which already handles LG's refrigerator, washing machines, DVD players and corporate account.

LG Group is set to enter the cellular market with handsets based on Code Division Multiple Access (CDMA) based technology. Though worldwide as of September 2002, there were 127 millions CDMA users but here in India most of the cellular handsets are based on Global System for Mobile Communications (GSM) technology.

As per the market speculations, LG's launch is going to coincide with Reliance Infocomm, expected be the largest CDMA service provider in Indian market, launch on the 28th of this month. LG along with Samsung are one of the fastest growing cellular brands in the world currently. Interestingly, LG offers GSM based cellular handsets also in the global market. But here in India, it has decided to launch CDMA based handsets only whereas its archrival Samsung has a strong presence in the GSM market also in India.

Recently, Samsung had awarded its CDMA account worth Rs.25 crore to Mudra. For LG's cellular campaign, Rediffusion DY&R, Lowe, Leo Burnett, McCann-Erickson and TBWA\Anthem were also reported to be in the fray besides Capital.

But what clinched the deal for Capital as Prasad Subramaniam, Director of Capital Advertising says, "The presentation that we made demonstrated our understanding of the key strategic issues in relation to building a brand in this space. Our creative solutions also added to the clients conviction of how we could make a difference to the task." The agency is expected to break the ad campaign by the end of this month.

The recent acquisition is going to give a fillip to Capital's target of ending this financial year with a capitalized billing of Rs.70 crore thanks to LG and other clients including Maruti Suzuki, LML Motorcycles, Escotel mobile phone service, Rayban and Associates Financial Services.


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