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Will LG’s focus on remote areas work?

13-September-2004
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Will LG’s focus on remote areas work?

LG Electronics India Pvt Ltd has charted out a clear-cut roadmap to touch a sales turnover mark of Rs 10,000 crore by 2005-end. Said LG Electronics India zonal manager (Maharashtra and Goa) Vishal Dutta: “To start with, we believe that PCs, GSM mobiles, laptops and high-end CTV products will largely contribute to achieve the target. We have started focusing on remote areas to spur volumes of LG plasma and projection CTVs. For the purpose, we are in the process of setting up remote area offices (RAOs) called ‘LG Life-style Shoppe’ in the rural markets across the country within a year at an investment of Rs 2.5 lakh per RAO.”

According to Mr Dutta, the objective behind focusing on high-end CTVs in the rural markets is to meet the evolving needs of the segment which need more nurturing and help consumers upgrade. The aim is to spur contribution from remote areas to the company’s overall sales turnover—from 45 per cent to 60 per cent within a year.

“The move is part of an emerging trend wherein there is potential for plasma and projection CTVs to grow at the rate of 50 per cent, unlike 20 per cent growth being witnessed in urban areas,” he said.

Through the RAO route, LG Electronics India hopes to garner 100 per cent volume growth of its projection and plasma CTVs by 2005-end.

Apart from this, the company hopes to garner 100 per cent volume growth of LG microwave ovens in rural markets as well. This will be done by conducting live cookery classes with use of LG microwave ovens at RAOs in the rural markets.

As for implementing new CRM initiatives, emphasis is being laid on pre- and post-purchase customer satisfaction. Initiatives are being taken to enhance services, concentrating on in-shop branding and other below-the-line activities, summed up Mr Dutta.

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