LG allocates Rs 50 crore media budget for 10 years celebration

LG Electronics, India, will complete 10 years in May 2007 and the company plans to spend Rs 50 crore on advertising to celebrate its 10 years of existence in the Indian market.

Senior LG executives revealed this to agencyfaqs! at the press meet to launch its new product, the Time Machine TV. However, the exact media plan will be decided only by January 2007.

The Time Machine TV comes with a built-in Digital Video Recorder. The marketing budget for this new product is Rs 10-12 crore. The maximum spends will be on print and television, especially during the Cricket World Cup to be held early in 2007.

In addition, there will be some unique below-the-line activities starting at the end of January 2007.

“The product has been a success worldwide, especially in markets such as Europe and South East Asia, and we are expecting the Time Machine TV alone to contribute around 25 per cent to our total flat panel display sales,” adds Rao.

The campaign will be followed by campaigns on LG celebrating 10 years of presence in the Indian market.

LG plans to capture a 40 per cent market share in the high end plasma television segment by 2007-08. At present, the company’s turnover for 2006 in this category stands at Rs 150 crore. The company has set the ambitious target of Rs 1,140 crore by the end of 2007.

LG executives say that with the changing market dynamics, plasma television sets will not be restricted to just institutional sale, but also move to consumer sales in the near future.

© 2006 agencyfaqs!