A 300 per cent jump in sales is no small matter. LG's success can be attributed partly to its smart marketing strategy and to the fact that it is unencumbered by joint venture partners.
Plus, it has the full backing of its parent. From the beginning, LG has positioned itself as a high technology, premium brand. It has resisted the temptation to rush into exchange offers. The USP of all its products are freshness and health. An aggressive marketer, it spent close to Rs 8 crore on its product ads in the Cricket World Cup.
Its ACs are positioned as LG Health Air Systems with plasma purifying technology. Its advertising is a combination of product and corporate highlights, with a clever slant on digital technology.
LG has ambitious plans for the future. Besides stepping up sales, the company would continue with its focus on enhancing the perceived value of the brand and increasing its visibility. It has invested $50 million in its expansion plan (all product categories),which will be implemented by 2001. Part of the budget is to go towards stepping up AC production capacity to two lakh units per annum. At present though, LG is marketing directly imported ACs in the Indian market.