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LG Electronics India, which aims to graduate the rural customer from coolers to ACs, is aiming to double its rural AC sales to Rs 500 crore in the next two years, thereby contributing 20 per cent to its overall turnover, said Ajay Bajaj, business head - air conditioners, LG Electronics India. The company is betting big on its sub-Rs 10,000 AC in the rural markets, which competes with high-end coolers from companies such as Bajaj, Symphony and Kenstar. The consumer durables company, which has 65 AC models in its portfolio, is hopeful that ACs will soon replace air-coolers in rural markets. LGs rural sales are less than 10 per cent for ACs now but by 2012 we expect this to become a competitive 20 per cent. Our rural AC turnover now stands at Rs 250 crore and we hope to double it in the next 18-24 months. 2

LGs rural sales are less than 10 per cent for ACs now but by 2012 we expect this to become a competitive 20 per cent. Our rural AC turnover now stands at Rs 250 crore and we hope to double it in the next 18-24 months. Our rural offering is priced at Rs 9,990 and that helps to bridge the affordability gap. The purchasing power is slowly shifting towards rural markets and we want to grab the pie," said Ajay Bajaj during a press conference here.

While the overall AC market is growing by 30-35 per cent annually, the rural market has the potential to grow much faster and deliver huge numbers in the coming days, said Bajaj.
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LG believes that disposable incomes especially during harvest seasons and higher aspiration levels will do the trick in rural markets. LG consciously go deeper and farther into the hinterland, LG has set up 50 Central Area Offices (CAOs) in B class cities and 59 Remote Area Offices (RAOs), in C class towns, besides its 18 branch offices. 1.2 tonne AC model in place of the traditional 1.5 tonne AC has resulted in a price differential of Rs 2,000. marketing focuses is shifted from item-based sales and marketing to different models, different channels (DMDC) strategy. It has also started media campaigns focused on regional papers.
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Through Nautanki, LG can change the perception of Rural customer that it is very expensive. As we launch this product Especially during Harvest Seasons

Wall Paintings helps Rural Customer to understand the need of AC that it is not only for cooling but also provide Anti-oxidant agent that makes Individual Fair and Healthy

LG should Educate rural customer that AC is better then Cooler as AC control Humidity, Temperature, and Fresh Air (Without Dust) and this AC is available at minimum cost EMI

Electricity Shortage Consumer Finance Option

Solar Cell Plant Battery Run AC

Low Rate EMI at the time of Maximum Earning With Minimum Specification and Easy to use AC can attract more rural customer
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Consumer Friendly Product