LG INDIA – DIRECT SELLING MICROWAVE OVENS

The caselet focuses on the direct marketing initiatives undertaken by LG Electronics India Pvt. Ltd. (LGEIL) to promote its range of microwave ovens. The caselet describes the use of home demonstrations and product customization, according to the needs of the target segment, as a means to build awareness for microwaves. It also throws light on similar moves adopted by Samsung Electronics. Finally, the case explores the importance of market research to understand consumer buying behavior.
Issues:
» Role of direct marketing as a marketing communication tool
» Understanding consumer buying behavior through market research

Introduction
LG Electronics India Pvt. Ltd. (LGEIL), the home appliances and consumer electronics major, was established in 1997 as a wholly owned subsidiary of LG Electronics headquartered in South Korea. LGEIL has manufacturing facilities at Noida and Maharashtra, and manufactures color televisions, washing machines, air-conditioners, vacuum cleaners, refrigerators, microwave ovens (MWO’s), etc. It is one of the most eco-friendly LG facilities in the world.
LGEIL was a trendsetter in promoting its products to the consumers through the platform of health. Its advertising campaigns focused on the health aspect. The color television segment highlighted the ‘Golden Eye’ technology that reduced strain on the eye while watching television. The air-conditioners’ campaign emphasized the ‘Plasma healthy air system’ that gave pure and fresh air, keeping pollution at bay. The MWO’s are promoted via the ‘healthy wave’ system.

Questions for Discussion:
Enumerate the reasons for LG opting for the direct marketing route to promote microwave ovens.
Many companies in the consumer electronics segment have begun to focus on the ‘health’ platform in their advertising campaigns for their products to attract consumers’ attention. In such a situation, how could LG differentiate itself from the clutter through the use of various other marketing communications elements?