“LG aims to sweeten its market share with Chocolate”

After having successfully made its mark into the entry-level mobile market
segment of India, LG electronics is now making its foray towards the higher
strata of mobile users with the launch of 'Chocolate'. Zia Askari of DQ
Channels spoke with HS Bhatia, National Product Group Head - GSM Mobile Phones,
LG Electronics about the company's venture into the high-end segment and how
it plans to address the market dynamics

LG has done quite well on the entry-level mobile category. What has
prompted the company to move towards the high-end mobile segment with the
introduction of 'Chocolate' phones?

Yes, it is true that we have done a great job at the entry-level segment. This
is perhaps the biggest reason for us to venture into new segments and replicate
our success there. As a policy we first roll out the entry-level handsets and
than go for high-end segments of the market. We have implemented the same
strategy successfully in other countries as well.

HS Bhatia National Product Group Head - GSM Mobile Phones, LG Electronics

We firmly believe that now is the right time to go for high-end segment in
the Indian region and that is why we have timed the launch of 'Chocolate'
like this. Today, the Indian market for mobiles has expanded a lot to include
not only metros, also B and C class cities as well.

How are you planning to replicate the success in low-end mobile segment in
the high-end segment also?

We always look forward to delivering an unforgettable experience for the end
customers. We believe that customers look for a combination of style and
performance. We are trying to bring these two most important qualities for the
end-customer in the form of 'Chocolate'. It is already a big success in
Europe and we hope to repeat the same story in India too.

Our Black Label series redefines the designer aesthetics factor in the mobile
market. Other manufacturers have launched models that have design as a key
attribute, but with the LG Chocolate phone, we have become the first
manufacturer to pro-actively design and market a phone based on its visual and
emotional appeal. Of course, being LG, the Chocolate phone like all subsequent
Black Label products, will have a high standard of technical specification, but
its primary appeal is its design, and we believe it will be extremely popular
within this country.

What kind of marketing strategy are you devising for the new range? How
important a role would the channel community play in your scheme of things?

As this is not a mass-market product, we are in the process of setting up a
different channel to push this product into the Indian market. As part of this
effort, initially, we would be looking at 15 most important cities of India in
order to market these products.

In each of these cities, we would be looking at eight to 10 dealers who have
a good reputation in the market and can sell our products well to the end
customer. The company is planning to introduce six-eight more variants of the
same model under the series in the next three-six months.

Today, LG has a 3.5 percent market share in the GSM mobile segment within India
and with this launch the company is expecting to capture about 10 percent of GSM
market share in India by 2007. Of course, channel will play a major role in
achieving this goal as we move forward.

Today, the mobile phone market is fairly saturated. Do you perceive any
advantages for being a late entrant in the high-end segment?

It is true that LG entered the Indian mobile market a bit late but we have done
pretty well, so far. All our products have now been well accepted by the
consumer and it is this acceptability that has prompted us to provide the
high-end range of mobiles for the Indian consumers.

These products are unique in terms of design and style. If we closely look at
the market, the consumer is seriously looking at making a style statement when
it comes to going in for a mobile. In addition to this, it is our ability to
understand the customer in a better way that helps us in delivering better
products in the market. Moving forward, we would also be introducing other
variants to this product in the Indian market within the next three months.

ZIA ASKARI