LGEIL has introduced its new revamped range of air-conditioners. The company plans to sell 600,000 units this fiscal and one million units by 2007, said Ajay Bajaj, Product Group Head, LGEIL.
"The Whisen range of air-conditioners is expected to contribute 20 per cent of the overall sales of our AC segment and by the end of the season we hope to see it contributing 22-25 per cent," he added.
Bajaj indicated that the company has planned to boost the sales of split air-conditioners. He said, "40 per cent of our sales, which amounts to Rs 2.5 lakh of the total sales, comes from this segment and we recognise that it is the growing segment."
While the industry CAGR is at 28 per cent, LG CAGR has been 38 per cent and the company plans to grab 50 per cent market share by 2007. Currently, LGEIL's overall share in all air-conditioners is 46.1 per cent with split air-conditioners at 49.2 per cent and window air-conditioners at 44.6 per cent. Samsung, Voltas and Videocon are LG's competitors in this segment.
The new range includes Art Cool and Art Cool Mirror split, and Tele-Smart ACs. It will be available between Rs 23, 490 and Rs 66,000. "As part of the communication strategy, we have come out with a new campaign called 'jiyo life non-stop,' which shows the evolution of the air-conditioner models from the theme of health to happiness to now blissful happiness," said Bajaj. The campaign has been created by O&M and has already hit the media.
The branding strategy for the products will be 'not value-for-money' brand but 'money for value' brand, said Bajaj. Also, to ensure best post-purchase services to its customers, LG air-conditioners has also launched 100 authorised service centres, which will offer round the clock service initiative in Delhi, Mumbai, Hyderabad, Chennai and Kolkata.