B&E: What were the vision and mission for the Indian market when LG started off its operations in India?
MBS: The company pursued the vision of becoming a true leader, attracting customers worldwide through its innovative products and design. In the first few years after its entry, LG did not get into price wars. Unlike other players, it did not offer any exchange schemes or discounts. We believed in an ‘honest pricing policy’ and our message to customers read ‘No scheme, no gimmick, great products and honest prices.’
B&E: What understanding of the Indian market did LG had then and what strategies did LG as a company formalise for penetration at that time?
MBS: Since its initial years in India, LG has focused on bringing out new models regularly in its product range. In its first year of operation in India, LG launched 70 models across a range of products. In 1997, it introduced its Golden Eye Technology TV, which had a light sensitive natural algorithm ‘eye. Thus, LG showed that it cared for customers’ health through its products. LG’s concern for health of customers was its Unique Selling Proposition (USP) in the Indian consumer durables market. Similarly, LG positioned its refrigerators as the ‘preserve nutrition system’ refrigerators.
B&E: What were the key challenges that LG as a company had to face at that time?
MBS: When LG started its operations in 1997, it sold products that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese) products. However, in 1998, LG launched ‘Sampoorna’, its first low priced TV for rural consumers, and followed it with ‘Cineplus.’ The Indian customers wanted the best products at reasonable prices; LG started introducing quality products in the economy range.
B&E: What is your vision and what are your plans and the challenges for the company?
MBS: The company’s goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,” recognising that only great people can create a great company.
MBS: The company pursued the vision of becoming a true leader, attracting customers worldwide through its innovative products and design. In the first few years after its entry, LG did not get into price wars. Unlike other players, it did not offer any exchange schemes or discounts. We believed in an ‘honest pricing policy’ and our message to customers read ‘No scheme, no gimmick, great products and honest prices.’
B&E: What understanding of the Indian market did LG had then and what strategies did LG as a company formalise for penetration at that time?
MBS: Since its initial years in India, LG has focused on bringing out new models regularly in its product range. In its first year of operation in India, LG launched 70 models across a range of products. In 1997, it introduced its Golden Eye Technology TV, which had a light sensitive natural algorithm ‘eye. Thus, LG showed that it cared for customers’ health through its products. LG’s concern for health of customers was its Unique Selling Proposition (USP) in the Indian consumer durables market. Similarly, LG positioned its refrigerators as the ‘preserve nutrition system’ refrigerators.
B&E: What were the key challenges that LG as a company had to face at that time?
MBS: When LG started its operations in 1997, it sold products that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese) products. However, in 1998, LG launched ‘Sampoorna’, its first low priced TV for rural consumers, and followed it with ‘Cineplus.’ The Indian customers wanted the best products at reasonable prices; LG started introducing quality products in the economy range.
B&E: What is your vision and what are your plans and the challenges for the company?
MBS: The company’s goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,” recognising that only great people can create a great company.
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