LG launches new washing machine range; hikes category spend to Rs 12 crore

Korean white goods company LG Electronics is bullish about the washing machine segment.

It has launched of a new range of fully automatic washing machines recently. The new range is available in three models - Turbo Deluxe (WF-T7517TE), Turbo Choice (WF-T6517TE) and Fuzzy Nova (WF-S6610TD) priced at Rs 18,400, Rs 16,300 and Rs 14,700 respectively. While the Turbo deluxe model has a 6.5-kg wash capacity, Turbo Choice and Fuzzy Nova have a 6-kg wash capacity.

LG Electronics has outlined an advertising and promotional budget of over Rs 12 crore for the washing machine segment for 2002. To promote its new range of washing machines, LG will unveil an-all India advertising campaign today. Talking about the advertising strategy, Sunil Sachdeva, director, Capital Advertising, says, "The campaign goes beyond the gentle wash promise. The promise now is that clothes will live forever, thus addressing a prime concern of every middle-class homemaker. Keeping that in mind the ad revolves around the very Indian hand-me-down theme, where the mother preserves the shirt of her son for her grandson, conveying the idea that clothes last much longer with LG."

Elaborating on the unique fabricare system of the 3-Step Turbo Drum, Ganesh Mahalingam, general manager, marketing, LG, says, "The machine divides the wash process into 3-steps - ‘Saturate, Shake and Separate'. Clothes washed through this process stay as good as new, year after year, wash after wash." How? "Unlike conventional technology, LG's technology ensures minimum tangling of clothes. In the 3-Step Turbo Drum, the whole drum moves in an anticlockwise direction. Which makes the churn greater. Yet, despite the heavy churn, there is minimal tangling of clothes."

The company has put up a new manufacturing line for the fully automatic washing machines. "The manufacturing line of these fully automatic washing machines in India will give us an advantage of being able to cater to the OEM market and provide us with a better supply chain management process," adds Mahalingam. LG is targeting sales of around Rs 360 crore across the entire washing machine category, which is a 55 per cent jump from previous year's sales of Rs 235 crore.

A total of Rs 25 crore has been invested by LG in setting up this manufacturing line. This unit would manufacture the three models of top-loading fully automatic washing machines. LG had spent another Rs 100 crore in the semi-automatic washing machine unit. The company has set aside another Rs 50 crore till the year 2003 for product development (for washing machines). The company shall start production of front-loading fully automatic washing machines by next year.

With such a huge investment in the pipeline LG hopes to capture the number one position in the fully automatic washing machine category by the year-end. It has set a turnover target of Rs 131 crore in this segment during the year, which is almost a 100 per cent growth over last year's turnover of Rs 67 crore. If LG achieves its target, the company would capture 25 per cent of the market, up from the current 12 per cent it has in the fully automatic washing machine category.

Currently, LG Electronics has three models in the semi-automatic segment, four models in the front-loading fully automatic segment and four models in the top-loading fully automatic segment. The company plans to add five models each in the semi-automatic, front-loading fully automatic and top-loading fully automatic segment by the year end. © 2002 agencyfaqs!