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LG targets a turnover of Rs 2,500 crore in 2001

By , agencyfaqs!, na | In Advertising | May 08, 2001
With April 2001 being a watershed as far as sales of its refrigerators, air-conditioners and colour monitors, LG Electronics has set a sales target of Rs 2,500 crore for 2001

agencyfaqs! News Bureau
NEW DELHI

Encouraged by an upsurge in the sales of its refrigerators, air-conditioners and colour monitors, LG Electronics (LG) has set a sales target of Rs 2,500 crore for this calendar year. And the year has started well for the Korean company, if the figures it has provided are anything to go by. In April 2001, LG claims to have achieved a sales turnover of Rs 213.54 crore - its best ever monthly performance to date - beating its previous record of Rs 207.66 crore, achieved last October. Overall, from January to April this year, the company has seen a 15.65-per cent growth (Rs 712 crore in Jan-Apr 2001, as compared to Rs 615 crore for the corresponding period in 2000).

The jump in LG's fortunes has primarily come from the sales of refrigerators, air-conditioners and colour monitors. According to the company, it sold 41, 000 units of refrigerators this April, as against 33,592 units sold last April. This translates into a growth of 21.06 per cent. In air-conditioner as well, LG claims to have sold the highest number of units - 18,150 - in April 2001 (as compared to 17,316 units in April 2000), registering a growth of 4.82 per cent. Same in the case of colour monitors, where LG has reported an impressive growth of 23.63 per cent over April 2000. However, the company did not divulge the corresponding figures for washing machines, microwaves and colour televisions. A company spokesperson, however, said that the company had recorded a growth of approximately 20 per cent across all other product categories.

Pradeep Tognatta, operating head, sales and marketing, LG Electronics India, believes that focussed consumer advertising and promotion is the main propeller for the growth in sales of refrigerators and air-conditioners. "We could anticipate the industry downslide well in advance, and our strategy of enhancing secondary sales in all product categories has turned out to be a well found answer to the situation," he said.

For example, in order to generate consumer interest, LG recently kicked off a birthday promotion (to commemorate four years of successful operations in India), which is scheduled to run till May 12, 2001. The idea behind the campaign is to move closer to the LG consumer, and thereby strengthen the community of loyal users of the brand.

According to Tognatta, revamping the entire product portfolio - which was done last month - is another factor that contributed to this overall growth. It may be recalled that LG launched 30 new models across all categories, including CTVs, refrigerators, air-conditioners, washing machines, microwaves, vacuum cleaners, MP3 players and PC monitors.

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