LG IN INDIA source: www. researchersworld. com LG first attempted to enter India during early 1990s floundered as a result of difficulties encountered mainly working with the local importers. The company’s fault was that it did precisely what other white goods brands were doing such as some half-hearted advertising and pushing the products only when the consumer entered the store. But, it again entered the market in January, 1997 after the Indian Government’s light for establishing state-of-the-art white goods factory in Greater Noida and it was named as LG Electronics India Private Ltd. Low brand awareness among consumers was another challenge for LG in India. Secondly, it had to take care of high levels of import duty, the high levels of competition from the local players and other MNCs, and the sensitivity of Indian consumers towards pricing issues. The company overcame all challenges by using innovative marketing strategies, specifically planned for Indian markets. In order to develop a stronger connect with the Indian audience it initiated a close tie-up with cricket that included signing on leading Indian cricketers and launching cricket games on its television models.
It was recognized as the first major MNC that forged very strong tie-ups with cricket by sponsoring the World Cups in the year 1999 and 2003. It focused on products which took care of the health of the Indian consumers only with launches like “Golden Eye” colour television, ACs using the “Health Air System” and the microwave ovens with “Health Wave system” etc. They also came up with localized products like CTVs which had Hindi and regional language menus as options. For the price conscious customers it introduced low priced “Cineplus” and “Sampoorna” range for the rural markets.
This shows that how LG became successful global brand in the Indian market the second time. 2. INITIAL BLUNDERS AND SUFFERINGS FOR COCA-COLA INDIA: source: www. researchersworld. com Coca-Cola Initially entered the Indian market during the late 1970s and the Government’s order had forced the company to leave the Indian market. The company again made an entry into the India in the year 1993. After years had passed in the Indian market, the company was not able to realize profits because of its very aggressive strategies of huge amounts of promotions and very aggressive pricing strategy to beat the competition.
It also suffered in the Indian market because of the pesticides controversy that resulted in 11 percent decline in the sales during that time making very negative impact on Coca-Cola’s brand image in the minds of the Indian consumers. The company rode on two of the strongest pillars, a brand can use in Indian advertisement and communication industry to succeed i. e. Bollywood and Cricket. It roped in multiple filmstars and cricketers so as to promote its brand in the Indian market. Its campaign with the tag line “Thanda matlab Coca-Cola” was able to create the mass appeal for the brand in the market.
For positioning the brand Coca-Cola for rural consumers, the company roped in Aamir Khan. To increase penetration in rural market, the brand also reduced the entry level price point to Rs. 5. only. After overcoming all these challenges, Coca-Cola was again set to expand India as a market further and took it from number 7 in the global pecking order to a market that is number 5 for Coca-Cola globally and for achieving this objective the company has earmarked US$ 5 billion for ensuring that the company is not letting go its focus on developing the Indian market further successfully.