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Presented By:Presented By:Raveendhar.kRaveendhar.k

IIPM, BangaloreIIPM, Bangalore..

LGs experience in Rural marketing

LG ElectronicsLG ElectronicsIndia Ltd.India Ltd.

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LG India- tripled the number of its

retail & distributor outlets in ruralareas from 2004 to 2008.

The avg. price of its Sampoorna rangeof CTVs came down to about the priceso competitive that, thereby bridgingthe gap between CTVs and other localB/W TVs.

It also tapped local forms ofentertainment like annual haats and

fairs and made huge investments ininfrastructure for distribution andmarketing.

LGs Rural ForayLGs Rural Foray

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Rural India: The ChallengesRural India: The Challenges

Electricity Shortage Sporadic Power

Supply Acute Water Shortage. Poor Transportation availability. Consumer Finance Options.

Can LG make energy savingproducts??

Can LG give him a washing machinewhich consumes less water??

Can LG give him access to buyingproducts near by his location??

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The SolutionThe Solution Set up of a Life style ResearchTeam which

would analyze the needs & preferences of theconsumer , In-depth..

Understand at length his comfort levels interms of what they wants and what they

would spend for what they wants..

Make products and service available for him tosuit his needs & Preferences..

Have a deep pocket network to make products

available for him at a close proximity fromwhere they can access product easily..

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4 As of Rural Marketing4 As of Rural Marketing

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Increased ChannelIncreased Channel

Networkin which ResultedNetworking which Resulted

Network/Channel Development The key to improvingNetwork/Channel Development The key to improvingRural reachRural reach

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Market

Re ional a roach in marketin isPurchasin ower b

1. Market is

Consumer Behavior- S/W : Shift to Mid-Hi h Se ment

NORTHS lit A/C, FTV, W/MTraditional

Market A riculture baseLG - N/E : Conservative,Extreme Tem .

Win.A/C, 2Tub W/M, 1Dr Ref

EAST 2. Different culture, life

MarketDiversity in lifestyleLG 8%WEST

- Food Habits / ClothingConservativeMarket 25% - Lan ua e :18 officialPoor Re ionLG 24% - Customs/Reli ionHumid

Cosmo olitanCommercialModern Trade

SOUTH High LiteracyIndustrial Zone

MarketModern TradeLG 28%

D

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BEST PRACTICE DISTRICT NETWORKING Exam le

B.O (Branch

- Profit

RAO -Headin & su ortinPo ulation - 21 -Equipped with Stock point,

-Equipped with Functional72 %

RAO (Remote Area- Sales & A/R

RAO - Enhance mkt penetration-Enhance Relationship

--Accounting Solutions

Equipped with Infrastructure

& ManpowerBO

RSO (Remote Sales

-Covers Sub-DealerNetwork. -PR & Motivation

- Enhance enetration &

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Sales & Service

Rural focus throu h excellent Reach

Branch Off : 40Jammu

RAO : 63Chandigarh

JalandharDehradunLudhiana

Kundli GhaziabadRural Sales ChannelGurgaon Delhi(2 GuwahatiPatna

LucknowVaranasi Dealers/SD : 9000Jaipur BANGLAsansolJodhpur Ranchi

D Distributors : 1100KolkataAhemedabad BhopalSurat Bhubaneshwer

Thane ChannelIndore

MumbaiRaipur ASC : 1Pune Nagpur

SSD : 600HyderabadGoa

ASP : 590Hubli

BangaloreChennai Statistics

KozikodeCoimbatore

MW : 5 ASC - Authorised Svc CentersCochin ASP -- Authorized Svc Provider Stock Point : 46

SSD - Sales and Svc Dealers Br Warehouse : 36 MW - Motherware House SRI LANKA

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Rural Marketin - Promotion Su ort initiative

LG Mobile Van at

ExhibitionExhibition atRajamundry

Cookery Classes atdifferent locationsfor Rural

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Rural Marketin - Promotion Su ort initiatives

at Dealer counters inRural Cities

Road showRoad Show at

1000 In Store Demonstrators

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FindingsFindings

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Improving the lives of the

billions of people at the bottom

of the economic pyramid is a

noble endeavour. It can also be alucrative one

- C.K Prahlad- C.K Prahlad