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� Rural pop is about 73% of the total pop

� Total turnover of Rs.4500 Crore & share of 55 %

� corporate houses perceived great opportunity

� Urban ± 4%, Rural ± 11%

� long thought luxury -become a household sight

� With 128 million households, the rural population is

nearly three times the urban(MNC)



� Availability

To tap these unexplored country markets, LG has set up 45 area offices and 59rural/remote area offices. 230 service centres.

� Affordability

Cineplus- Rs 4900Sampoorna- Rs 3000

� Acceptability

LG Electronics in 1998 developed a customised TV ³Sampoorna´ for the ruralmarket. It was a runway hit selling 100,000 sets in the very first year.

� Awareness-

Mobile Vans(Garam Garam Khana)

Exhibitions , Road Shows



� inc in income

� growth in education

� enlarged media reach

� growing interaction with urban area

� marketers µs effort to reach rural areas



� The growing oppurtunity, one main driver

� Heat of competition in the urban market



� Bihar - Horlick

� Punjab - Washing Machine



� LG is a South Korean MNC

� World¶s 3rd largest appliance maker

� LG electronics India was established in January

1997

� LG India deals in many products

� AC

� Flat Panel Display� Microwave Oven



� Refrigerator

� Television

� Vacuum Cleaner

� Washing Machine

� Mobile Phones







� 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.



Mobile Van at Kasargod

1000 In StoreDemonstrators at Dealer

counters in Rural Cities

Promotion ofSampoorna TV·s

Cookery Classes at

different locations forRural Housewives



Mobile phone market

penetration strategies

� LG-BSNL ±Reliance tie up for rural

market.

� Handsets which are cheap and with offers

are provided to the rural customers.



� Customization

� Positioning

� Innovative marketing

� Product localization - Product localization is a key strategyused by LG. It came out withHindi and regional languagemenus on its TV.

Regional distribution model -This has resulted in quickerrotation of stocks and betterpenetration into the B, C andD class markets.



� Population Number of Villages % ofTotal

� Less than 200 114267 18%

� 200-499 155123 24.30%� 500-999 159400 25.00%

� 1000-1999 125758 19.70%

� 2000-4999 69135 10.80%

� 5000-9999 11618 1.80%

� 10000 and above 3064 0.50%

� Total 638365 100%









� LG·s turnover 2002 - 60%

Today ² 40% (urban)

� Turnover of 10,750 crore (2008)

13,000 crore (2009)� Sales contribution ² 35% (2008)

� Manufacturing capacity ² 30% by 2009

� By 2009-10, urban ² 4%rural ² 11%





� Giving Hindi names to the products

� How have they reduced cost without affecting the

quality

� Videos

� Focus the Melas and focus them

� Play with their emotions with Ads



� Introduction of finance schemes

� To roll out several new models in low-end segments

� Colour televisions and audio systems will have a

big market due to their low pricing policy.� Schemes like giving trial of products, and making

them aware of usage of products

�

The main challenge is electricity or power making

that kind of products in which there is less usage of

power



� Launch more models in their ³Sampoorna television

range´.

� Rural market is less affected than urban market in

slowdown. Then makes distribution network morestrong.



� Invest $ 40 million in 2009

� Expecting Rs 13,000 crore turnover in 2009

� 15% plus growth rate in rural marketing

� Decided to double business by 2010

� Launching 5 new Models in Flat Panel Display

� Form new kitchen appliance business group

� Focus on low-end products



� Invest Rs 400 crore on Marketing this year

compared to Rs 350 crore in 2008

� Launching 2 by 10 Blue Ocean Strategy

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