Lg Experience In Rural Market

“LG”s experience in Rural marketing “

Presented By: Raveendhar.k IIPM, Bangalore.

LG Electronics India Ltd.

LG’s Rural Foray 

LG India- tripled the number of its retail & distributor outlets in rural areas from 2004 to 2008.



The avg. price of its Sampoorna range of CTVs came down to about the price so competitive that, thereby bridging the gap between CTVs and other local B/W TVs.



It also tapped local forms of entertainment like annual haats and fairs and made huge investments in infrastructure for distribution and marketing.

Rural India: The Challenges    

Electricity Shortage – Sporadic Power Supply Acute Water Shortage. Poor Transportation availability. Consumer Finance Options.

üCan LG make energy saving products?? üCan LG give him a washing machine which consumes less water?? üCan LG give him access to buying products near by his location??

The Solution ü Set up of a Life style Research Team which would analyze the needs & preferences of the consumer , In-depth.. ü Understand at length his comfort levels in terms of what they wants and what they would spend for what they wants.. ü Make products and service available for him to suit his needs & Preferences.. ü Have a deep pocket network to make products available for him at a close proximity from where they can access product easily..

4 A’s of Rural Marketing

Network/Channel Development – The key to improving Rural reach

Increased Channel Networking which Resulted

Market ▷

Regional

approach

Purchasing

power

in

marketing

is

by 1.

NORTH Market LG

Traditional Agriculture base Extreme Temp. EAST Market LG 8%

WEST

Conservative Poor Region Humid

Market 25% LG 24%

Cosmopolitan Commercial Modern Trade

SOUTH Market LG 28%

Market

is

Consumer Behavior - S/W : Shift to Mid-High Segment Split A/C, FTV, W/M - N/E : Conservative, Win.A/C, 2Tub W/M, 1Dr Ref 2.

Different

culture,

Diversity in lifestyle - Food Habits / Clothing - Language :18 official - Customs/Religion

High Literacy Industrial Zone Modern Trade D

life

BEST PRACTICE – DISTRICT NETWORKING(Example

B.O RAO Population

-

72

%

21

Profit -Heading & supporting -Equipped with Stock point, -Equipped with Functional

RAO -

RAO

BO

(Branch

Sales

(Remote &

Area

A/R

- Enhance mkt penetration -Enhance Relationship --Accounting Solutions Equipped with Infrastructure & Manpower

RSO

(Remote

Sales

-Covers Sub-Dealer Network. -PR & Motivation of - SD. Enhance penetration

&

Sales Rural

&

Service

focus

through

Reach

excellent

Branch Off RAO

Jammu Chandigarh Dehradun Ghaziabad

Jalandhar Ludhiana Kundli Gurgaon

Delhi(2 Lucknow

Varanasi

Jaipur Jodhpur Ahemedabad Surat Thane

Mumbai

Ranchi

Asansol BANGL

Bhubaneshwer

Indore Nagpur

Raipur

Hyderabad

Goa Hubli

Bangalore Chennai Kozikode • ASC - Authorised Svc Centers • ASP -- Authorized Svc Provider • SSD - Sales and Svc Dealers • MW - Motherware House

D

Rural Sales Channel

Dealers/SD : 9000 Distributors : 1100

Kolkata

Bhopal

Pune

Guwahati

Patna

: 40 : 63

Coimbatore

Cochin

SRI LANKA

Channel ASC SSD ASP

: 1 : 600 : 590

Statistics MW Stock Point Br Warehouse

: 5 : 46 : 36

Rural Marketing - Promotion Support initiative

LG Mobile Van at Exhibition

Kasargod

Exhibition at Rajamundry

Cookery Classes at different locations for Rural

Rural Marketing - Promotion Support initiatives

1000 In Store Demonstrators

at

Dealer counters Rural Cities

in Road

Road show Show at

Findings…

“Improving

the lives of the

billions of people at the bottom of the economic pyramid is a noble endeavour. It can also be a lucrative one” - C.K Prahlad