LG to launch DC refrigerator; earmarks Rs 3-4 crore ad spends for hi-end TV DIOS

LG is planning to launch a range of direct cool refrigerators in the next two months. Simultaneously, it has unveiled its next hi-end product – TV DIOS

The marketing approach practised by LG Electronics India (LGEIL) has always been to manufacture mass-market products, and at the same time, straddle the premium-end of the market by launching digital and Internet-enabled appliances. In keeping with this dual strategy, LGEIL is planning to launch a range of direct cool (DC) refrigerators, priced at Rs 5,000, in the next two months. The range of DC refrigerators would come in two capacities - 150 litres and 160 litres. Simultaneously, it unveiled its next hi-end product - TV DIOS, which is a refrigerator with a television - at the press meet in the capital, yesterday.

While details on the soon-to-be-launched range of DC refrigerators are not forthcoming at this stage, officials at LG are particularly excited about the seventh model of the premium DIOS range of refrigerators. Not surprising, considering TV DIOS is LG's next hi-end product in the digital appliances category - after the launch of the Internet refrigerator. Priced at Rs 2 lakh, TV DIOS comes with a 13-inch hi-definition TFT LCD TV installed in the centre of its door. The 600-litres TV DIOS also has a built-in radio tuner providing access to FM stations, and is supported by built-in speakers. TV DIOS comes with a silver nano-antibacterial and nano-carbon deodorizing technology, which has won LG the KT new technology mark, states the company release.

Speaking about the rationale behind the launch of TV DIOS, KR Kim, managing director, LGEIL, said, "We are seeking to develop the market for DIOS refrigerators in India and expect to take an early lead in this product segment, owing to the technological edge that we enjoy worldwide. With the launch of this product, we will fulfil the needs of the homemaker. The trend in the Indian market is also gradually shifting to hi-end futuristic products, with India making a sizable dent in the international markets. LG in India has repeatedly set new benchmarks and raised the bar on technology, performance, comfort and customer care, and will continue to meet the expectations of the Indian consumers in the future also."

TV DIOS will be promoted through a mix of print and on-ground events in the metros such as Delhi, Mumbai, Bangalore, Hyderabad and Pune. "We would be using magazines such as Cosmopolitan and Femina, and business dailies such as The Economic Times to advertise TV DIOS," mentioned Anil Arora, head of marketing, LGEIL. The total media budget set aside for the promotion of TV DIOS is between Rs 3 and 4 crore. For the record, O&M is working on the advertising campaign for the product. The company is looking at selling not more than a handful of TV DIOS units in India this calendar year (2004), although globally, it expects to clock sales of 30,000 units.

Young-Ha Lee, executive vice-president and CEO, Digital Appliance Company, LG Electronics Inc, who was also present at the launch, added, "The TV DIOS is a revolutionary product meant to change the way the kitchen is used. The product has been received very well in America and the UK, and we are confident it will do equally well in this part of the world also." © 2004 agencyfaqs!