A thought for Indianisation

Retailer: What’s the marketing strategy for your premium products?

Soon Kwoon (SK): We will have massive 360 degree marketing campaign that we will be undertaking for our products. Even though we are launching these products available in L.G outlets, but our broadcasting reach is expected to reach through to the various MBOs as well. As for the water solution, our marketing policy will be limited to particular lifestyle magazine as they cater to the niche class of consumers.

Retailer: What sort of investment that LG plans in India for this year?

SK: We plan to invest around Rs 700 crore for the overall marketing setup of L.G for this year, and a further Rs 800 crore inclusive of manufacturing quality and R&D.

Retailer: What’s your turnover for the current fiscal year? What’s your projection for the next fiscal year?

SK: Our current year turnover is Rs 16,000 crore and the projection for 2011 is Rs 20,000 crore. Presently we manufacture 6.7 million units in the country. Our aim is to expand our manufacturing capacity even further by the end of next fiscal year.

Retailer: Will you be importing these premium products?

SK: We import 10 per cent of finished products, which in turn means that the other share of 90 per cent is manufactured in the country itself. These products will be imported from Korea as we already have been approved in the Korean market for these products.

Retailer: What other products are you planning for the Indian market this year?

SK: Recently, we have launched a new line of air-conditioning in the country; we plan to introduce more of L.G TV products this year. In most of consumer durables L.G is in no. 1 position, in terms market share and brand awareness. We will emphasise on retaining our numero-uno status in the country. We will work towards finding more Indianised product solutions which will serve both the urban as well as rural market. We would like to incorporate this ethos in our product planning and manufacture, in a way the consumer can relate to us as an Indian brand. Whenever we have launched a new product, we have taken a step by step approach. When we talk about the Indian market, we understand that they prioritise on value-for-money products, but there are also consumers who do not mind spending the extra buck for quality.

Retailer: What’s your take on the outlook of downward market in the country?

SK: We also have witnessed an encouraging potential in the tier II and III cities, considering that, we will evaluate our possibilities of making our products catering to the downward expansion in the near future. We already have set up a team, working to create Indian Insight Product (IIP), which will further strengthen our belief in the segment, as well the consumers will take notice of our efforts towards them.

Interviewed by S Aadeetya