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Tag: LK Gupta

  • CarDekho launches new ‘monu-mental’ TVC highlighting new feature

    CarDekho launches new ‘monu-mental’ TVC highlighting new feature

    MUMBAI: CarDekho’s recently released quirky TVC will strike a chord with auto enthusiasts who are ‘senti-mental’ about their car and if they believe that all the information, right down to the vehicle’s sound, is ‘instru-mental’ before making a purchase?

    Highlighting the new ‘Feel the Car’ feature available on the CarDekho app, the off-hand, humorous TVC highlights the unique approach undertaken to bring alive a car through the app feature that enables a truly immersive virtual car experience for users.

    Contrary to the normal video advertisements featuring “industry experts,” the entire TVC has been shot with real employees, with all the aspects such as shooting, editing, casting or post-production being handled in-house by CarDekho to maintain the integrity and clarity of the messaging.

    Speaking on the TVC, CarDekho CMO LK Gupta said, “We know how attached Indian consumers are to their cars, and we know how crazy our own employees are to develop product features to really bring alive a virtual car experience. This new TVC is the perfect way of defining the new feature, explained and demonstrated by the actual mavericks behind the development. We are confident that our new feature will enhance user experience and allow consumers to make the most informed car purchase decisions.”

    With a full 360 degree interior and exterior view, recreation of the sounds such as horn, ignition or revving, embedded video and text pop-ups to explain various car features, CarDekho’s ‘Feel the Car’ feature is a high-functionality development. With a unique confluence of video, text and audio stimulus made available for users to peruse, CarDekho has customised the feature for more than 40 popular car models.

  • LG CMO LK Gupta resigns

    MUMBAI: LG Electronics India chief marketing officer LK Gupta has decided to move on from the company after a stint of five years.

    Gupta is serving notice period at the company, which will end in the last week of December.

    At LG, Gupta’s job was to oversee overall brand and marketing strategy – conceptualisation and implementation at company level and by all business units. His responsibilities also included managing teams and initiatives such as brand campaigns, sports sponsorships, digital marketing, CRM, consumer and business research, media planning and buying, agency relations and ground level marketing activation at branches.

    Gupta said, “My journey at LG was very good. However, I am not in a position to comment on my next venture right now.”

    Gupta has over two decades of experience in the industry. Prior to joining LG in 2007, he has also worked with P&G, Gillette and Indian Market Research Bureau.

  • LG to spend Rs 1.5 bn on ads & promotions in festive season

    MUMBAI: Consumer electronics major LG is launching new products will spend close to Rs. 1.5 billion on festival marketing and promotions, of which ad spend will be close to Rs 500 million.

    LG India VP marketing LK Gupta said that one product which will be pushed heavily is the 84 inch Ultra HD 3D TV. This features LG‘s Cinema 3D technology, which provides a comfortable 3D viewing experience similar to what consumers experience in the theatre.

    “LG Smart TV features LG‘s ‘3D World‘, where users can access blockbuster 3D content. Users can easily browse and navigate through the Smart TV ecosystem using LG‘s four-mode Magic Remote, which has Premium Content, Home Dashboard, Smart Share Plus and voice recognition. The 84 inch Ultra HD 3D TV range is available in the price range of Rs 17, 00,000. The new series hits the Indian market from 1 November.”

    In terms of sales growth being targeted, Gupta said that as per last trend in the festive season the company registered good growth in LED, LCD, Refrigerators and Washing Machines. “Last year we registered 25 per cent growth during festival sales. To ensure the numbers, we have an aggressive marketing strategy with a target investment of Rs 1 billion in flagship product communication.”

    The flagship products will be promoted through 360 degree campaigns. “We will be more innovative in designing our marketing campaigns and will increase visibility through campaigns, in store branding and BTL activations. This will be accompanied by experiential marketing campaigns like the smart idea camp and mallika-e-kitchen.”

    Gupta acknowledges that the slowdown poses challenges. “The penetration level of consumer durables is low and there is a huge potential for growth in India, though we have seen that consumers are postponing purchases of discretionary items in the last six months due to uncertain economic conditions.

    “This has led to a slowdown in durables and electronics market. The same thing has happened in the automobiles and two-wheeler markets. The consumer sentiment is a worrying factor but we are expecting the festival season to lift the spirits in the market.”

  • ‘Our marketing spends will stay flat at Rs 6 bn’ : LG India VP marketing LK Gupta

    ‘Our marketing spends will stay flat at Rs 6 bn’ : LG India VP marketing LK Gupta

     

    A sluggish market and depressed consumer demand is not deterring consumer electronic major LG India to reduce its marketing spend this year. The drive will be to reallocate spends with print seeing a marginal dip. Television will stay flat while digital ad spends will jump 50%.

     

    The South Korean conglomerate will cut back its marketing spend on cricket, from Rs 1 billion in 2011. But it is still bullish on the game and believes addresses a wider consumer base compared to music or Bollywood.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, LG India VP marketing LK Gupta talks about the company‘s thrust in pushing new technology products like 3D and the marketing strategy it is following to drive growth in sales.

     

    Excerpts:

    So far year 2012 has been difficult for LG and the consumer electronics sector. What are the reasons behind this slow growth?
    The market is looking sluggish because consumers are feeling less than confident about the situation – the economy, food and fuel inflation, interest rates and rising prices across categories. So, some consumers are postponing purchases of discretionary high-ticket items. We‘ve still had growth in AC and Appliances this summer while the rest of the industry has struggled.

     

    However, even though it has been a year of challenges so far due to difficult macroeconomic environment like inflation, dollar appreciation and constant hike in input prices, the good news for us is that LG has grown by 15 per cent in its core business of Home Entertainment and Home Appliances. There has been a growth of 30 per cent in Home Appliances business and 25 per cent growth in Flat panel business.

    By when do you see the situation turning around and what corrective measures are being taken by LG?
    This is an industry wide situation and a lot of things at a macro level have to improve. So it’s tough to say by when the situation will turn around. We do expect the festival season in the second half to improve the growth somewhat.

    At this point LG is launching flagship products across categories which will help in strengthening our product leadership via strong marketing campaigns. This includes LED, LCD TV, refrigerators, washing machines, Split ACs and microwave ovens.

     

    We are looking at a 25 per cent growth in sales overall this year.

    Could you talk about the impact of rising input costs due to the declining rupee value and how is it affecting the business?
    Input cost is certainly a concern and rupee depreciation is also alarming due to which prices were hiked across all product categories by 15 per cent in the past year and a half. This was not only in television segment but all categories.

    On a more positive note, there is increasing adoption and acceptance of new technologies like HD and 3D by consumers. How is LG tapping into this with new products?
    LG is expanding the 3D market in a big way with Cinema 3D Smart TV range and is now poised to offer the widest range of 3D entertainment products – 3D LED, 3D Ultra Slim LED, 3D Home theater systems and 3D Blu-ray players.

     

    Technology and design are key factors behind LG Home entertainment products. With our 2012 3D Smart TV line-up, we have been able to take a significant step forward, thanks to a series of new and upgraded 3D features led by the Cinema Screen Design.

     

    With the 2012 Olympic Games to be broadcast in 3D and more than 30 English and Hindi 3D movies to hit the Indian Cinema theatres, 3D entertainment is set to explode in India at a steady growth of 500 per cent. We are targeting business worth Rs 10 billion from 3D TVs and aim to consolidate our position in the Flat Panel TV segment with 30 per cent market share.

     

    To ensure the numbers we have an aggressive marketing strategy with a target investment of Rs 1 billion in Flagship product communication. This will be accompanied by experiential marketing campaigns.
    ‘This year we will spend slightly less on print and focus more on digital. Our spend on television will be similar to last year. We always look at efficiency for our marketing spends and digital platform is one where we can see good response. We have increased our digital spends by 50 per cent‘

    LED TVs are growing fast in sales. Is this technology superior to LCD TVs?
    The LED segment is growing at a faster pace with 500 per cent year on year growth (2011 versus 2010). The consumer preference is shifting to LED’s as CCFL and LED price gap is reducing. LED is perceived to be the latest, modern and eco-friendly technology. The LED segment contribution in sales was 35 per cent (in value) in 2011 and is targeting around 60 per cent in 2012.

    Will the slowdown affect your marketing spends?
    Our marketing spends will be Rs 6 billion, the same as last year. We are not reducing spends. We are only re-allocating spends to an extent.

     

    A slowdown scenario indicates that fewer consumers are willing to buy in the current time and many consumers, due to the prevailing market mood, start postponing their discretionary purchases.

     

    In such a situation marketing has to be focussed on converting the customers who are willing to buy. Accordingly, marketing spending will focus in the short term on in-store excellence.

     

    Investments will be geared to give consumers a better in-store experience via display, demonstration and branding visibility for flagship products. At the same time, advertising will be more streamlined to deliver higher efficiency within the same budget. This will impact the media choices in print and TV media. Digital media, which plays a very important role in the consumer decision journey of searching and evaluating products, will be given a bigger share to have an early influence on potential customers.

    In terms of LG’s marketing spend how does it split between TV, print, and radio? Will the slowdown force a change in the platforms that you use?
    This year we will spend slightly less on print and focus more on digital. Our spend on television will be similar to last year. We always look at efficiency for our marketing spends and digital platform is one where we can see good response. We have increased our digital spends by 50 per cent.

    Which medium is more impactful in terms of reach and brand recall?
    All mediums have their own role to play. Some work better to create awareness, while others are important to drive consideration and even comparison with other brands.

    But isn‘t it true that when consumers are hesitant companies need to be more aggressive in marketing? Does LG agree with this?
    Yes! We have an aggressive marketing strategy in our flagship product communication so that we achieve our goals within the set budget.

    A couple of years ago LG aimed to change its brand perception from a mass to an aspirational brand. Did this work?
    We have managed to grab a bigger share in categories across the product portfolio. We are leading the market in side by side refrigerator, Front load washing machines, convection microwaves. Our image is much better compared to five years back. This effort to change and improve brand perception, though, is an on-going process. Our products are more modern and more high-tech, which has helped improve brand perception. We have single-handedly carved out a premium LED 3D segment where we sell the most TVs.

    Have any new campaigns been lined up and could you talk about the thrust?
    We have rolled out two campaigns. The first one is for our flagship product LG Cinema 3D smart TV and second is Eco health campaign for Home Appliances. We have started out Home Appliances Above The Line campaign Eco friendly which showcases eco friendly technology in LG HA products.

     

    Simultaneously we announced a digital interactive campaign on Facebook called My Eco Home which will allow Facebook fans around the world to create and share their own personalised, virtual dream homes. An industry first, LG’s My Eco Home Facebook app reflects the company’s effort to interact with today’s customers in new, innovative ways. We also rolled our new TVC for the latest range of Cinema 3D Smart TV. LG Electronics India is betting big on Flat panel category and you will see a 360 degree campaign across to strengthen this portfolio.

    When LG partnered the ICC and then renewed the deal what were the objectives? To what extent have these objectives been met?
    We have a long association being the Global Partners of ICC, promoting cricket among its billions of passionate followers. We are proud to be associated with this great sport and with ICC. Through the global platform provided by ICC events, we will enhance the joys of cricket with our own innovative programmes and campaigns. Lead 11 is one such initiative to celebrate the national spirit by giving platform to our young future generation to lead the Cricket Stars in ICC World Cup.

    What role has the ICC relationship played in giving you leg up on competition?
    The association has helped us in establishing a strong relationship with the consumers. With our unique consumer engagement programmes, we have actively established the brand as a young, sporty today‘s brand.

    How much of your marketing spend goes towards cricket and has this been rising year on year?
    Last year almost Rs 1 billion of our marketing budget was spent on cricket. This number is lower this year since there is a smaller ICC tournament and also we didn’t participate in IPL broadcast advertising this year.

    Why did you stay away from the IPL? 
    This was a wise decision, given the decline in viewership. We felt that under the circumstances this year, the IPL would not have been cost effective given that rates have increased every year. So, our decision was the right one.
    As a platform how does cricket compare to other avenues like music and Bollywood?
    Certainly cricket is a far bigger platform and it addresses a far bigger consumer base as compared to music or Bollywood.
    Will the monies that cricket gets this year from advertising be affected as it requires high expenditure by companies who are fighting a slowdown?
    Not really! In India cricket fortunes swing with Indian team’s fortune. If the team does well, advertisers will continue to invest behind cricket.
    Apart from cricket, which other sports is LG involved with?
    At present LG is associated with cricket and at the global level with Formula 1. In cricket, we like to develop innovative consumer engagement programmes.
  • Marketers should anticipate threats: LK Gupta

    Marketers should anticipate threats: LK Gupta

    MUMBAI: Marketers should look at the new opportunities to grow themselves and should stay ahead of time, these were the thoughts of LG Electronics CMO Laxmikant Gupta, who was speaking at the World Brand Congress (WBC) that is being held in Mumbai.

    He said, “The moment we start thinking that new opportunity is threatening our existing practices, we start forcing ourselves to think of new ideas. When change happens, when new things start happening in the market, our reaction is ‘can I use this technology?‘, ‘how will it help me?‘ When there is an opportunity we go from clutter to the opportunity which ends up becoming a clutter.”

    “Almost all brands are present on Facebook today. Once the consumer clicks on the like button he starts getting brand messages, about products, innovations, services, developments. Everything does have a use by day and expiry date. One has to reinvent ideas. A better way to differentiate when every company has same opportunity, the questions should be how this new opportunity threatens my present practices, my existence,” Gupta added.

    Gupta explained this with an example. He said, “When in early 2000s Apple invented i-pods, it changed the music industry model. I-pod alone contributed to 45 per cent revenue of Apple in first year. Later, in mobile industry, camera handset started struggling. Apple thought that will it be a threat if mobiles with camera start producing music features too. If that happens it will kill i-pod. Then i-phone was launched. Today it makes more than 50 per cent global profit of the mobile industry. With each changing scenario, see how it can affect you today or tomorrow.”

    “No one thought of the demise of Orkut or My space but the launch of Facebook, its applications attracted so many that it eventually killed Orkut and MySpace.com. Spot problems before things get worst. Don‘t wait for the crisis,” he added.
     
    “Youtube as a video channel is bigger than many of the TV channels we used to watch. Also, giving consumer a search is as important as giving her a store, to experience your product. Banner advertising can assure you visibility but does not assure that consumer will walk out with a positive perspective. You need to talk to bloggers or people who can write reviews because that can help consumers have a viewpoint about your product,” he emphasised.

    On the usage of social media Gupta said, “Brands like MTV and LG, are on FB for not just talking about product. The main purpose is to engage consumer in a way that they want to come back to your page, interact with you. You should create general interaction through Facebook instead of creating impression. When we know that people are talking about the brand online one should see whether they are positive or negatives that is being talked about. The positives should be reinforced and negatives should be checked and corrected.”

  • LG to spend Rs 800 mn during World Cup and IPL

    LG to spend Rs 800 mn during World Cup and IPL

    MUMBAI: LG, an ICC partner, plans to spend Rs 700-800 million in marketing over the next three months coinciding with the cricket World Cup and the Indian Premier League (IPL).

    The marketing activities for the World Cup will kick off in a few days time, LG chief marketing officer LK Gupta said.

    The Lead XI initiative, which LG had carried out at other ICC events, will be expanded to include 1000 kids from India, Sri Lanka and Bangladesh. The kids will walk onto the field with their respective teams at the start of their matches at the World Cup and sing the National Anthem.

    “Since the World Cup is taking place in the subcontinent, we are giving a chance to more children to be part of this programme. Earlier 50 children had to be flown. Among other things, we will have a school contact programme. It will also be using radio to spread awareness. Leaflets will be distributed at its stores and other retail outlets.”

    LG will also be launching a range of mobile phones and refrigerators to coincide withe World Cup. It will have promotions for the mobile phones including match tickets.