This presentation on LG's Sampoorna Color TV talks about an innovative consumer product for Rural India, Its marketing strategies and growth story. It explains 4As and 4Ps of Rural Marketing wrt LG Sampoorna

1. 6,50,000 Villages
850 mn consumers
Half of India’s Gross domestic
GDP
Growing Size of the
Consumer Durables Market,
Increasing Demand, Vast
opportunities for MNCs
India is set to become 5th
largest Consumer
Durable market &
3rd largest Television Industry
Better networking among
rural consumers and their
tendency to proactively seek
information via multitude
sources
Wider reach of media and
telecommunication services has
provided information to India’s
rural consumers and is
influencing their purchase
decisions
Discretionary spending of a
typical rural Indian household
rose from Rs.14,000 in 2004-05
to Rs.24,000 in 2009-10, growing
at about 11% every year, and
faster than the inflation rate of
nearly 6% a year over that period
Rural consumers are particularly
aspiring or striving to purchase
branded, high quality products.
(3rd Edition of Accenture
Research)
Positive Initiatives taken by
Governments after
Liberalization period : Boost
to manufacturing, Rural
Electrification

2. LG demonstrated that Rural Customers are not just price conscious, but are actually value conscious and are
ready to pay reasonable premium if organization deliver solution to their long-standing problem.
Sampoorna CTV

3. The LG way of penetrating Rural Markets in India
Product Innovation
LG believed in holding the interest of its
customers by bringing out new products
regularly. In its first 03 year of operations(1998-
2001), it launched 70 models across a
range of products. During 2001-03, it launched 45
new models across its entire product range. LG
started customized Consumer Product for Indian
markets. Before developing products, LG
conducted market research to ensure that its
products met local requirements...
Price
Initially, when LG entered the Indian market, its products
were priced high. This was because LG had to import products
in the absence of a manufacturing facility in India. Thus, its
products were priced as high as Japanese products. According
to some analysts, this strategy was adopted to make local
consumers feel that LG products were by no means inferior to
Japanese products in performance or in quality.
However, in 1998, LG launched 'Sampoorna,' a low priced TV
aimed at rural consumers to become Mass Market Brand
‘Sampoorna’ : Complete solution to the needs of
Rural Market.

4. The LG way of penetrating Rural Markets in India
Distribution
Soon after its entry into India, LG realized that it
needed to be innovative to capture the market.
LG expanded throughout the country to remote
Towns, rural areas and semi-urban
markets. It sent vans across the country,
covering a distance of 5000 km every month, to
increase brand awareness among the trade and
the customers.
Promotion
Of all the elements of marketing mix, LG seemed to have put more
emphasis on promotion and advertising. In 2002, it spent around 1.3
billion on advertising. An ad agency which handled the account of
one of the LG's rivals, commented: "Communication creates a mind
space among the consumers and LG has occupied that fairly well.“
Unlike many Indian brands which advertised seasonally i.e.,
(two – three months of the festival season), LG advertised all round
the year. According to analysts, this resulted in high brand recall and
successful positioning. In all the communications of LG, the USP
remained the same for individual products. For refrigerators, it was
"preserve nutrition;" for CTVs, it was "less strain on eyes;" for air
conditioners, it was "healthy ambience and air quality;" for washing
machines it was "fabric care;" and for microwave ovens it was
"healthy cooking’’.
New Cheaper
Products
Increased Reach

5. Making the product Available & Affordable – Secrets of Conquering Rural Market
• Awareness• Acceptability
• Affordable• Available
65 Remote
area offices,
2600
Dealerships &
Service
Centres, tied
up with OEM
Sampoorna –
INR 14,400
2,000 more
than existing
competitor
products
BTL Promotions
‘LG Ki Dua, All
the Best’ to
Indian Cricket
Team , Word of
Mouth
Hindi &
Regional Menu
(21 lac spent)
Gaming in TV
(Cricket WC)
Localizing & Creating awareness for the mass – Secrets of Conquering Rural Market
 Sold 1 lakh 20 inch Sampoorna in
1998-99. (All In villages of
population around 10,000)
 20 % overall revenue came from
Rural Markets
 By 1999, 12% of LG’s 950 cr
turnover came from ‘Sampoorna’.
 Increased Customer Loyalty &
Brand positioning through Direct
Engagement

6. Future Growth Opportunities
Key Areas to Look For:
 Emerging e-commerce sector & growing
Internet users in India
 Expanding Mobile Advertising industry
 Domestic outlets which appeals to growing
Youth & Middle Age customer segments
 Rapid urbanization & ease of financing
 Omni channel distribution systems & IT

7. Thank You 
Prepared & Presented By,
Group-01
Kashyap Shah
Anubhuti Gupta
Manali Kukreja