Thirty per cent of our marketing budget is for digital: Marketing Head, LG India
As the brand completes 21 years in India, Amit Gujral shares the company’s plans for this year, and the new age marketing techniques explored by the brand
Published - May 29, 2018 8:59 AM Updated: May 29, 2018 8:59 AM
LG India has completed 21 years. Last week, the brand launched a heart-warming and aspirational campaign, #CelebratingtheNew, themed on how innovations make dreams come true.
As the brand celebrates its journey in India, exchange4media caught up with Amit Gujral, Marketing Head of LG India, to find out the company’s focus area for this year and new age marketing techniques being explored by the brand.
Tell us something about your new campaign #CelebratingtheNew
We believe in the philosophy of ‘innovation for better life’ and this video campaign is all about learning.
A father-child relationship is not much spoken about. This campaign is a story of a father and his teenage daughter where the father innocently surrenders to his daughter to overcome a challenge that he had been facing since his youth.
This year, the theme for LG is ‘celebrating the new’. It is a fresh take on every dynamic of a parent-kid relationship in India and how common things are passed on from one generation to another. We have captured this Indian philosophy as the ‘journey of innovation’. Through this campaign, we are celebrating new relations and emotions.
What marketing mix will you use for promoting the campaign?
Given that everyone is constantly consuming content on the go, digital and social media platforms Facebook, Instagram and YouTube will be driving this campaign. Within a day of the launch, we had over a million views, thanks to the power of digital.
LG has completed 21 years in India, how has the journey been?
It may seem like a long journey and we have gone from strength to strength in the last couple of decades, but we feel that we are still a young brand in India. We are still understanding specific needs of Indian consumers and developing products and solutions that cater to these needs. Today, we design and develop in India. Over 70 per cent of all our products are sold in the country. It feels great to be present in every Indian household for so many years and this is what we are celebrating today.
It's been 21 years and the Indian market has seen lot of changes. It is not what it was used to be 10-20 years ago. What changes has the brand seen in the long run?
We have evolved with the customers and have been part of their journey and their lifestyle aspirations. Today, home appliances and home entertainment category is no longer seen as luxury, but essentials. Also, consumers are now increasingly seeking value and meaningful experiences from brands. That’s where consumer loyalty lies. As a brand, we strive to make the lives of our consumers hassle-free and deliver more value. This is at the core of what we do, and our marketing efforts reflect this sentiment. Today, consumers want to hear something that touches their heart.
We are the only company that has started offering free home demos for our premium range. We want our customers to be fully satisfied before using our products. Another area that we are pioneering is artificial intelligence and Internet of Things (IoT).
How is LG using IoT and AI techniques to make the products better?
Features such as AI and IoT enable the products to communicate among themselves. And in doing so, they are designed to improve the lives of customers. LG is continually seeking to innovate and deliver an experience that is unrivalled in the industry.
We will be launching a new product category - ceiling fan - and one of the models will be based on IoT. The fans, which are made especially for the Indian market, would focus on energy efficiency and serve higher value propositions. The fans will have easily detachable parts that can be cleaned and joined back.
What marketing strategies would LG implement in 2018?
Experiential, emotional & digital are the three pillars of our marketing strategy. At LG, we focus on insight-led product marketing. Products and solutions developed on the basis of real consumer insights shape the marketing efforts. In doing so, it is also important to increase awareness about the real benefits of underlying technology. In this regard, experiential marketing is quite critical. Experiential marketing is an effective tool for us, and we will further increase our efforts on this important tool. We are also investing on digital marketing. Lastly, we believe in customizing our communication and offerings based on geography.
Where does LG currently stand with regards to the market share?
We have the highest market share when it comes to home appliance and AC categories, and the second highest in the TV market.
LG has been facing stiff competition, both in the budget segment and premium. Any comments?
In a business, competition is most welcoming. It gives us motivation to be innovative always. It is wonderful to have as many competitors as possible because they keep us motivated and on the toes.
What is your annual marketing budget?
Our marketing budget is Rs 600 crore annually. And of that, 30 per cent is for digital.
What was the company’s turnover last year and what are the expectations from the current fiscal year 18-19?
Our last year’s turnover was Rs 20,000 crore. For FY18-19, we are hopeful of registering double-digit growth.
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