Alokananda Chakraborty
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LG: Banking on health

With the launch of the Intellowave range the Korean company now claims to have the largest share in the microwave market

Sabil Francis

agencyfaqs!

NEW DELHI, December 6

At LG, microwave marketing strategy is moving on to phase two. In tune with its usual marketing strategy LG, first launched its futuristic microwaves without compromising on price and, now, has launched the Intellowave Even Heat System microwave ovens.

The new microwave oven comes in two models - MG 605AP and MB 394AA, at a price of Rs 17,490 and Rs 11,490 respectively. The USP of the models, according to the company, is that a specially designed wave-guide system inside the microwave oven cavity transforms the waves into three-dimensional (3D) waves that envelope the food and cook it more evenly than other microwaves. The company plans to sell about 45,000 units by the end of the first year.

The company plans to harp on LG's health-centric positioning in its advertising campaign for the product. Says Ajai Kapila, vice-president, sales and marketing, LG India, "Our aim is to provide a key differentiator in the product and make it accessible to the consumer." It is a strategy that the company has consistently followed. First introduce a product, identify it with a value - a value like health or technology that people are willing to pay for - and then sell. The draw - product differentiation. No need for freebies or discounts, and volume sales.

The same strategy will be followed with the new models, say company officials. The 28-lt model MG 605AP (the Intello Grill) has a programmable Intello system with a five-cook option. It will be on such differentiators that the product will be sold. Other features that the company has incorporated to attract customers include a one-touch preset Indian Menu System.

The new product fits perfectly in LG's evolution pattern in India. The company was able to successfully capture the high-technology platform right at the launch phase. For example, a Lowe Lintas survey in July found that consumers saw LG as the most Internet-ready brand. In the survey, almost 66 per cent of the respondents associated LG with high technology.

It was a marketing strategy that the company hewed post its disastrous entry into India in 1993 as Lucky GoldStar, and then again in 1995, in an alliance with Bestavision. After that, LG decided to go in for a clear brand differentiation, and the differentiation was health. Refrigerators became PN (preserves nutrition) systems, washing machines were Fabric Care Systems that respected the health of clothes, and microwaves Health Wave systems.

The strategy has succeeded in the microwave market where LG's main competition in early days came from domestic players like BPL and Kenstar. The aggressive positioning that LG followed enabled the company to capture the largest market share in the microwave market with a 32 per cent share, say company officials. LG officials are quick to point out that chief rival Samsung, which also entered the microwave market at around the same time, has not done very well.

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