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LG to spend Rs 1.5 bn on ads & promotions in festive season

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MUMBAI: Consumer electronics major LG is launching new products will spend close to Rs. 1.5 billion on festival marketing and promotions, of which ad spend will be close to Rs 500 million.

LG India VP marketing LK Gupta said that one product which will be pushed heavily is the 84 inch Ultra HD 3D TV. This features LG‘s Cinema 3D technology, which provides a comfortable 3D viewing experience similar to what consumers experience in the theatre.

"LG Smart TV features LG‘s ‘3D World‘, where users can access blockbuster 3D content. Users can easily browse and navigate through the Smart TV ecosystem using LG‘s four-mode Magic Remote, which has Premium Content, Home Dashboard, Smart Share Plus and voice recognition. The 84 inch Ultra HD 3D TV range is available in the price range of Rs 17, 00,000. The new series hits the Indian market from 1 November."

In terms of sales growth being targeted, Gupta said that as per last trend in the festive season the company registered good growth in LED, LCD, Refrigerators and Washing Machines. "Last year we registered 25 per cent growth during festival sales. To ensure the numbers, we have an aggressive marketing strategy with a target investment of Rs 1 billion in flagship product communication."

The flagship products will be promoted through 360 degree campaigns. "We will be more innovative in designing our marketing campaigns and will increase visibility through campaigns, in store branding and BTL activations. This will be accompanied by experiential marketing campaigns like the smart idea camp and mallika-e-kitchen."

Gupta acknowledges that the slowdown poses challenges. "The penetration level of consumer durables is low and there is a huge potential for growth in India, though we have seen that consumers are postponing purchases of discretionary items in the last six months due to uncertain economic conditions.

"This has led to a slowdown in durables and electronics market. The same thing has happened in the automobiles and two-wheeler markets. The consumer sentiment is a worrying factor but we are expecting the festival season to lift the spirits in the market."

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