Lg india sales and distribution

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LG reaches into the hinterland through a pyramidal sales structure. A penetrative distribution strategy ensured that products were available even in smaller towns and cities, breaking the chain of urban dependency that plagues most white goods manufacturers. Technology, too, is being used to the hilt to ease their jobs. At LG, each TV set on the line needs to be checked by switching on remote control. At the Greater Noida unit, multi-product lines ensure that in-demand products can be given priority -- in summers and during the Diwali season, for instance, the line makes more TV sets; during the winter, it switches to washing machines. The research for these adaptations and innovations is done in-house. For instance, Kim points out that consumers in southwest India prefer big sounds and big bass outputs.

This is at a time when the parent company is reporting losses and betting on few top geographies like India and its smartphone business to get back into black. How does it do that? At LG, each TV set on the line needs to be checked by switching on remote control. All fittings on the TV are done from the back, while a microwave requires work from the front.

And the momentum hasn't let up since. The advantage of an extended distribution network is that marketing executives can keep a finger on the pulse of the market. Other solutions are less elegant, but their relevance is undoubted.

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Importantly, for LG, a nationwide launch meant just that. Since they're both nearly the same size, now the same size carton is used to pack both types of TVs -- a sticker outside indicates the size and model. The LG spokesperson said the company is registering impressive business growth this year.

More than 65 per cent of last year's Rs 6, crore Rs 65 billion revenue came from non-urban sources; up from under 60 per cent the previous year. Kim doesn't think so. The company was ready to do battle on two flanks: it offered modern, features-packed products, at the same time keeping its margins wafer-thin.

LG has already set up 75 exclusive showrooms for these products, which were launched earlier this year, with more in the pipeline.

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The TV set costs close to Rs ,, but several families took the bait and considered buying the TV -- at which point the showroom staff offered them carefully planned finance schemes. Each RAO has servicing, marketing and sales teams at its disposal and an individual budget for marketing activities in its territory. For instance, Kim points out that consumers in southwest India prefer big sounds and big bass outputs. Tarun Pathak, senior analyst at Counterpoint Research, said that while LG is one of the few vendors offering devices in the premium segment, sales are more polarised towards Apple iPhone due to aspirational nature of the brand. LG has been careful right from the start to offer customers a "value-plus" proposition. On with the new But that was in the past. Workers are routinely sent to do sales stints at company showrooms and even to customers' homes to service the products. The advantage of an extended distribution network is that marketing executives can keep a finger on the pulse of the market.

Accordingly, LG India created Ballad, a flat screen television model that sells only in the subcontinent and comes equipped with 2,watt speakers.

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