As gifts may increase our revenue in the short term but for the long term we have to communicate our real value to the customer.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Insightful innovation

B&E: What was the rationale behind going from mass to premium? MBS: The reason behind this step by the company is stiff price competition which is taking place very fast and China-made products are coming up. So we went on a survey in India to find out how people view LG as a brand. We will become service and quality oriented. The other rationale is that the resale value of LG products is high and the customer is always ready to pay more because of good quality. We have already experienced this from the mass marketing.

B&E: What has been the response to the strategy? MBS: The response is really enormous. In this campaign, the notice count on the trust and quality has been great. Last to last year, we have launched many discounts, but since last year we have stopped. We surveyed and found out that what the customer really wants is not gifts but extra service, good quality and user friendly products. As gifts may increase our revenue in the short term but for the long term we have to communicate our real value to the customer. Then only we can ask to pay more but not too much i.e. only 2-5 %.

B&E: Are you changing your target customers as well in the process? MBS: We are going to play across all segments. India’s market penetration rate is low. Still in the lower category we saw there is certain amount of customers who want good products like LG. Although it’s a price sensitive segment, customers are ready to pay more and they decide on a budget. Within the budget if somebody offers the product they are keen to it. Like Toyota has launched small cars also and they play across all segments. So when you play in price sensitive segment, it doesn’t mean that you have fewer brands. It’s a segment and you just fulfill the customer demands.

B&E: What is your future agenda for LG India? MBS: I have to leave some legacy with the company. It is all about a premium brand, organisation culture, teamwork as all the employees are very loyal to LG. Really good people are here and best of corporate practices have to be cultivated in them.


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

ZEE BUSINESS BEST B SCHOOL SURVEY


For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...