Having grabbed a leading position in the urban markets for consumer electronics, LG Electronics India has now set its eyes on the virgin rural markets. As part of its strategy, the company has prepared a detailed aggressive marketing plan for tapping the rural markets.
In a move to design its products more congenial to the Indian taste and also for further customisation, LG has earmarked around Rs 18 crores towards research and development, to be taken up in conjunction with the Indian Institute of Technology, New Delhi.
While the company has made inroads into the rural markets with its colour televisions and refrigerators, it is now pushing its air-conditioners and microwaves.
As part of its strategy to tap the rural markets, LG has initiated steps in Andhra Pradesh, Tamil Nadu, Punjab and Haryana, mainly targeting the rich and middle class of agricultural segment.
LG, which has chalked out a two-phase marketing strategy for ACs, has successfully executed the first phase by attaining a dominant market position in the window and retail segments. In the next phase, the company is targeting leadership position in split and corporate segments and also launches ductable ACs. As against a sales turnover of around Rs 220 crore achieved during last fiscal, the company hopes to attain a revenue of over Rs 310 crore during the current fiscal.
Meanwhile, the company is scheduled to launch the country's first hot and cold ACs with Korean technology by month-end. Ductable ACs would also be launched during November.
LG, which is currently enjoying a market-share of 32 per cent, expects to end this fiscal with a share of 34 per cent. As against a sales of Rs 78 crores last year, the company hopes to post a turnover of around Rs 95 crores during the current fiscal.