Innovative promotions have long been the staple of the consumer electronics business; but LG Electronics may buck the trend by building new brand properties.
After the LG ICC cricket ratings, the company plans to set up a cricket academy. "We plan to create more brand properties after our LG ICC cricket ratings. We will set up a cricket academy by the end of the year to leverage our association with cricket," Mr Salil Kapoor, Head, Marketing, LG Electronics, told Business Line.
While the consumer electronics major will plough the cricket space for more properties, it has also set his eyes on the entertainment space. LG Electronics will sponsor the Stardust Max awards to be held in March.
"Bollywood and Cricket have their way with Indian audience, and we want to occupy both spaces effectively," Mr Kapoor said while indicating that the company's association with actor Zayed Khan will also be exploited through product placements in films.
The company is also reinventing its micro-marketing initiatives by planning to have region-specific promotional activities. "We will use every occasion in the Indian festive calendar to promote our range of products," he added.
The Korean company has plans for the retail front. It will expand its network of specialty retail formats in next three months. "LG had developed specialty formats to cater to specific shopping needs of customers, and we plan to take them further from 35 to 100," Mr Kapoor said.
The specialty formats include X-Canvas for plasma TVs and theatre systems, Cyber Shoppe for all its IT products, and Lifestyle Shoppe for GSM phones and other lifestyle products.
LG Electronics has set a marketing budget of Rs 200 crore this year to achieve the sales target of Rs 9,000 crore. According to LGEIL growth map, the company expects 42 per cent of it total turnover from Home Appliances, 37 per cent from consumer electronics, 13 per cent from IT products, and 8 per cent from their GSM phones.