Competition is hotting up in the New Display Products (NDP) segment. In a bid to gain a competitive edge over Philips’ “LCD Mirror TVs” , LG Electronics India Ltd is planning to set-up 30 ‘X-Canvas Studios’, in order to popularise, and, market its NDPs, across the country, in 2004.
LG’s NDP includes colour televisions in the category of plasma display panels, liquid crystal display (LCDs) panels and televisions, digital light processing (DLP), and, projection CTVs, Mr C M Singh, head - product group, CTVs, LG Electronics India told FE C M Singh, head - product group, On the objective behind the move, explained Mr Singh: “Our aim is to to help consumers touch, feel and experience the technological perfection of these high-end products in a non-intrusive yet informative and educational fashion. The X-Canvas Studio will also seek to be a mine of information for the discerning electronics buff as the purchase of such a high-end product calls for specialised knowledge and tailor-made advice.”
According to Mr Singh, with the move, LG hopes NDPs to contribute 10 per cent to 8 million CTV industry, and, aims to be a front-runner in the NDP category, within a year. In comparison, in China, NDP contributes around 50 per cent to the overall TV industry.
On the future plans, said Mr Singh: “In the year 2004, LG is planning to beef up its distribution network from 4,000 dealers which includes, direct dealers, sub-dealers and authorised service dealers to 6,000 dealers, within a year.”
Further, Mr Singh added that with the move, the company hopes to contribute 1 million LG flat CTVs to 2.5 million overall flat CTV industry, during the period. As part of the strategy, plans are also on the anvil to expand its marketing base in the small remote areas by expanding our number of authorised service dealers. In the year 2002, CTV industry size was 7.2 million, and, the contribution of flat CTVs was around .5 million which went up to 1.4 million, a 200 per cent growth.
Besides, LG has recently lau-nched a consumer promotion called “LG Cup Uthao, Inam Pao” which entails assured gifts on every purchase of an LG product ranging from high-end gifts like projections TVs, audio systems, My PC, GSM phones, Tromm washing machines, floor standing ACs, DIOS refrigerators, and also full-size bats autographed by LG Captains of India, Saurav Ganguly, Sunil Gavaskar, K Srikanth, Gavaskar and Ravi Shastri to branded T-Shirts. This promotions has taken off well.
According to Mr Singh, for Diwali this year, LG hopes to sell around 5 lakh flat CTVs, and, for the purpose, is chalking out new marketing plans to promote them. Besides, in the flat CTV category, LG will contribute 45 per cent in value terms to LG’s overall sales turnover, as compared to 12 to 13 per cent of the contribution, in the previous corresponding period.