LG, Sony, Videocon plan investment push

LG, Sony, Videocon plan investment push

Author | exchange4media News Service | Friday, Dec 17,2004 7:12 AM

LG, Sony, Videocon plan investment push

Consumer durable majors are planning to spend Rs 200 crore to implement new marketing initiatives and widen their distribution network in 2005.

LG Electronics India business group head CM Singh said, “We plan to invest Rs 100 crore in marketing 3.5 million ‘LG’ CTVs in 2005, compared to 2.5 million units we sold last year.” According to him, the primary focus will be to market 29-inch flat CTVs and home theatres. “With the move, we hope to garner 50% sales growth in CTVs in 2005,” he added. Currently, the Rs 400-crore premium CTV segment is growing at 12-13%.

LG plans to increase the number of ‘LG’ outlets, trade partners and branches by 20% in 2005. The company is looking at a growth of 40% from the refrigerator segment, compared to about 15% today.

Videocon group chairman VN Dhoot said, “Videocon plans to invest Rs 125 crore next year. This will include Rs 100 crore on capital expenditure, and Rs 20 crore on new consumer promotions. It will increase focus on its new sub-brand, ‘X-Lent’, across all product categories which will be endorsed by actor Shah Rukh Khan. Videocon vice-president (sales and marketing) Sunil Tandon pointed out that Videocon sold 8.5 lakh colour TV sets this year and was looking to cross the 1.1 million CTV-mark next year.

According to Sony India product head-CTVs Sabiha Kidwai, the company will increase the ‘Sony’ exclusive outlets from 75 to 92. “With the move, the company hopes to garner an additional 60% growth in the projection TV segment. For 2005, Sony is likely to invest around 5% of its overall sales turnover in implementing new marketing initiatives for Sony CTVs,” she said.

Meanwhile, Kenstar president and chief operating officer Rahul Sethi informed that Kenstar too plans to invest Rs 30 crore in implementing new consumer promotions and advertising campaigns in 2005, compared to Rs 18 crore it had invested during the previous corresponding period. This year, Kenstar has grown by 15% in overall product categories, whereby in certain categories such as food processors, microwave ovens, the growth has been around 25% to 30%.

Sansui Ltd director-marketing Anil Khera said, “Sansui plans to pump in Rs 10 to Rs 15 crore in implementing new marketing activities to spur more sales growth of Sansui CTVs.

Tags: e4m

Write A Comment