Top Story

e4m_logo.png

Home >> Marketing >> Article

LG to roll out AC-cum-heater for lean season

17-September-2004
Font Size   16
LG to roll out AC-cum-heater for lean season

With the onset of the lean season as far as air conditioner sales are concerned, LG Electronics is looking at creating a new category within the segment: reversible or heat pump ACs. These are ACs that also work as heaters, so can be marketed as a round-the-year product.

Traditionally, the AC industry sees a 80:20 sales pattern between the first and second half of the year. “We are looking at a 75:25 sales break-up this year and working it up to 65:35 by next year. A year-round product range will help achieve better second-half sales,” said product group head Ajay Bajaj.

While several players like Voltas and Videocon do have reversible ACs, as a category this is almost non-existent.

With small volumes, nobody has invested in building it up so far. The company will set the ball rolling with an ad campaign somewhere in the third week of October to coincide with the festive season.

Though, ACs are not a high-sale festive season item, this will assist in providing the build-up that should begin to see some returns next year, says the company.

According to LG marketing head Salil Kapoor, “The focus at this stage is to educate the consumer and help create an acceptability and mind shift for the product. By January, we should be ready to brand the segment and take it forward aggressively.”

Essentially, a north-centric product, Delhi and Punjab will be big target areas. Priced around 25% higher than its normal models, the reversible ACs will be manufactured at its Noida and Dehradun facilities. Another major focus area for the company this year is split ACs. Splits have been seeing a 42-45% growth in the residential segment. The room AC industry is expected to touch one million units this year, a growth of 15% over last year. Of this, splits are projected to account for 30% of sales.

LG is targeting a 40% growth in AC sales this year, with a projected sale of 4 lakh units (Rs 850 crore in value terms) against 2.8 lakh last year. Of this, splits should account for at least 35% of sales.

In other moves, LG will also from next month begin manufacturing its high-end range of Mirror and Split Art Cool ACs in India.

Currently, these are the only ranges imported. Trial production, which had been on at its Noida facility, has been completed and mass production should begin next month.

As part of its strategy to increase contribution from its high end ‘Whisen’ range, LG also has plans to set up 10 exclusive Whisen showrooms, of which 5-6 should be up by year-end.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

The aim is to advance the company’s goal of simplifying its business and drive deeper service connectivity to its clients