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In a bid to expand the marketplace and boost sales, LG ELECTRONICS Electronics Ltd. identified institutional sales as a focus area in the calendar year 1999. It plans to triple the target turnover to Rs.

a hundred and fifty crores from institutional sales. LG has made its institutional sales approach by discovering and proactively targeting five different sectors to push the LG selection: brand promotions, the welfare segment (factory workers and office staff), government sector, direct users (hospitals, hotels), and the canteen stores departments (CSD) of the armed forces. A definite strategy has become tailored for every of the five segments.

In brand special offers for example , the perceived worth of the goods given because gifts is important, whereas intended for the wellbeing segment aspirational value, ease and easy financing are primary factors. Meanwhile, hotels signify a price sensitive segment requiring specially personalized products. Welfare: In this portion, LG is usually targeting someone base , the aspirational consumer, mostly factory staff , that a lot of companies ignore, but which has considerable clout in terms of generating volumes. This kind of segment will be targeted around the convenience and simple finance system. LG has just tied up with Birla Global Fund Ltd. portion of the Aditya Birla Group, for the purpose. Under the tie-up, LG can unit-wise cover all the Birla companies. This kind of amounts to over two lakh employees. This is certainly a profitable segment, claims LG, due to high hit-rate, out of a potential basic of 1, 000 factory workers, there is a great assured sale of at least 10 to 20 percent. Lodge Segment: From this segment, LG ELECTRONICS is targeting the five-star and middle-level hotels (50 , 128 rooms) by offering customized items. For example , LG ELECTRONICS offers a special , hotel-mode TV’ unit with an auto volume leveler, which ensures that other friends are not annoyed.

Another attraction for resorts is the crickinfo game TELEVISION model that could also prove to be popular and an active option with Internet, video/audio or room service menu facilities. LG ELECTRONICS claims to have sent out mailers to 1, 2 hundred hotels , and bagged at least 100 instructions, besides the , Palace upon Wheels’ luxurious train, to get providing TELEVISION SET sets in it is 52 cabins. Now, LG ELECTRONICS is reading a range of interactive television sets for this portion, offering remote-controlled features just like: the motel menu, community facilities, billing-room service, online video on require, internet, multi-lingual options.

Canteens and the Authorities Sector: “We are perhaps the only firm offering the entire product selection in CSD canteens, inches feels the item manager, of LG. Inside the government sector, which runs through tenders, significant purchases so far included an buy for two hundred TVs for Himachal Tourism bungalows in the State and over 2, 1000 TVs to get primary educational institutions in non-urban areas in Maharashtra. The corporation has a five-member Institutional Sales Division, with each committed exclusively to just one segment.

They have 50 institutional sales dealers and a ring of sales representatives the moment interact with the dealers and conduct demonstrations when needed. It is infrastructure involves 20 mobile phone vans with glass windows to show the product range. These vehicles cover at least 500 km every month in both rural and urban market segments. Questions: (a) Do you think this sort of a field sales team is adequate to funnel the market potential in the Institutional market? (b) Would you recommend focusing on a couple of segments out from the given five? Justify the answer.