LG to focus on brand building and strong channel interaction

LG Electronics India Ltd has seen a lot in the past one year or so. Now it wants to take persistent measures to affirm its position in the market. Focus this year will be on brand building to enhance market share and on strengthening the channel partner relations. This was announced in the recent reseller meet held in Delhi by Pradeep Tognata, VP (Sales & Marketing), and Ganesh Mahalingam, GM (Marketing), LG Electronics India Ltd.

LG plans to ramp up its channel operations, give a complete face-lift to its IT division workforce and settle any pending issues in the market. The work force would be redefined and a channel loyalty program will be in place. The company has also tied up with Solutions Integrated Marketing Service Pvt Ltd to supplement its relationship management. In addition, it launched a range of Flatrons at the event.

Barely two months ago, LG had denied market rumors about closing its IT business in the country, attributing the rumors as mischief by its competitors who are seeking to gain market share at its expense. In fact, KR Kim, MD, LG India, commented, "These are absolute rubbish and a pack of lies and is the handiwork of our competitors. We are very focused about the IT business and have recently invested $ 10 million in setting up our assembly lines for monitors at
NOIDA."

As per him, the IT division of LG will be buzzing with activities and has an extended agenda of expansion both in terms of reach and product portfolio. LG has planned to flood the market with an array of new products including DVD RAMs (which would be the only available brand in the market), combo drives, and revamp its high-end monitor range by January 2002.

The dealer meet was the start of nationwide road shows meant to build the brand awareness. Such activities are planned to remove the skeptical ideas about the existence of LG's IT presence in India, especially in the channel community. The company has appointed four new regional distributors in the last four months-Micro Max for UP and Uttaranchal, Salora for North, Jupiter for the East and Wellwin for the South. These were in addition to its four existing national distributors-Aditya Infotech, ACI Computers, Priya International and Compuage Infocom. Such a huge distribution network was in place to sustain a constant push in the market.

Mahalingam said, "We are aware that there were loopholes in the system. May be we have been a very open company. Our transparency was vulnerable, now our house is in order. We want people to take us seriously. Now each and every issue will be addressed urgently, we want market and our partners to move on; we would provide the helping hand."

Commenting on the competition LG is facing, he said, "Our products speaks for themselves. The pricing is very aggressive, service is at par and brand recall is high. With the forthcoming branding exercise, our position will be healthier in the IT market."

When asked about the friction faced by LG from its channel partners, Mahalingam said, "Channel partners need us as much as we need them. It is imperative to keep relations. We would like to make sure that thrust is on the right issues and wrong issues are filtered out as soon as possible."

With resolved measures to capture the market, LG's channel partners have a single strategy--wait and watch. The partners are optimistic about the LG's potential to gain more market share; they are just waiting for a feasible channel policy to be in place and all the pending issues to be resolved.