Innovations as Cutting Edge Solutions in Rural Marketing

Presented By:
ASHISH JAIN
PUNEET AGARWAL

07-II-711
07-II-738

LG Electronics India Ltd.

INDIA - ENVISION of LGEIL

INDIA The LG Vision

Re-defining the position of Indian Rural Poor by extending the boundaries for their activities (products and services) through Cutting Edge initiatives.

Untapped Rural Potential

600,000 villages with 700 mn people >50% of total GDP from rural India Nearly 50% of Very rich + Well off households in rural India

Rural India: The Challenges

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

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

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

4 As of Rural Marketing
Availability Affordability

65 Remote Area Offices under the branch offices that are empowered to directly link to the central billing system for orders. 230 service centers. 2,600 mobile authorized service personnel for villages having below 10,000 residents.

Reduce cost by replacing 4 speakers by 2. Sampoorna- Rs.3000. Cineplus- RS 4900.

4 As
Acceptability Product localization is the key strategy used by the LG LG came out with Hindi and regional language menus on its TVs. Introduced the low-priced Cineplus and sampooma for the rural market. Awareness

Mobile Vans (Garam Garam Khana) Exhibitions Road Shows

Promotion Support initiatives of LG

Network/Channel Development The key to improving Rural reach

Increased Channel Networking which Resulted in an increased Rural Market Reach

Consumer Goods companies must go the Rural Way

LGs 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.

Findings
The rural market accounts for 60% of new CTV buyers for LG
The rural market for LG grew at 25% over the last year, against a 15% growth in urban areas.
Sampoorna TVs sold in the Indian heartland and the semi urban belts, enforced a strong connection with India for LG.

It connected very well with down the pop strata.