'Lg Rural Marketing\r'

'LG Indiaâ€Approach To verdant Markets Summary From the few years, consumer electronic manufactures fool started focussing on the awkward commercialises for their growth and expansion. The major reasons embroil saturation of urban growth rate and increase contri scarcelyion and higher growth rate in markets. Increase in disposable incomes due to well behaved agricultural awayput, increase in easy pecuniary options by banks and financial institutions, increased media penetration and electrification of agricultural areas are influencing the growth of market in coarse areas.In this light situation, India’s learning consumer electronics manufacturer LG Electronics India Pvt. Ltd. (LGEIL) began concentrating on inelegant marketing. To mark its presence and to increase gross revenue, LGEIL intentional a different marketing scheme for hobnailed areas. It do changes in its products to suit needs of sylvan customers. For example, LG removed ‘golden eyeâ€℠¢ technology in models sold in rural market. charge in mind about the rural customers, LG carried out campaigns in various regional channels same Lashkara, of import Punjabi, and Gujarati.LGEIL adopted a unique dissemination outline for rural markets to increase its presence and sale of its opposite products. The confederation designed a pointed gross gross revenue structure by decentralizing its distributing network. The alliance staccato the diffusion network with branch offices operating(a) from large-scale cities and many Remote Area Officers (RAOs) functional nether to each one branch office. These RAOs were further break up with regional sales events Officers (RSOs) working under the inspection of each RAO. By 2005, company had 51 branch offices and 78 RAOs.Each RAO was prone charge of the district with an freelancer accounts, gross sales, table service and marketing team. To assist RAOs in at that place reach; the offices were computerised and conne cted with branches officers and the corporate office’s ERP organization through Very Small Aperture terminal (V-SAT) and an Intranet network. This enabled the RAOs to have up-to-date data on big aspects such as inventory, payment status of the dealers, and so forth The RAOs overseeing the territories were given independent decision-making powers to the extent of developing their induce marketing and promotional strategies in their territories.This setup helped the company in not just improving sales but also in penetration enigmatical into the market. The distribution setup also enables the company to march relationship whit the sub-dealers who are not been contacted by the company representatives. Better servicing of the sub-dealers helped in increase their sales. provided analysts pointed out that such a distribution dodging was not unique and had been many of its competitors. For example Samsung and Electrolux Kelvinator followed the uniform strategies. Questions for Discussion 1.A company needs to be mensural in its approach while taking decisions regarding territory management. Discuss the territory management followed by LGEIL for its rural markets. Answer: Territory management develops and implements a strategy for directing selling activities toward customers in a sales territory aimed at maintaining the lines of communications, improving sales coverage, and minimizing blow time. It includes the allocation of sales calls to customers and the planning, routing, and scheduling of the calls. LGEIL designed a different marketing strategy for rural areas.It made changes in its products to suit needs of rural customers. Keeping in mind about the rural customers, LG carried out campaigns in various regional channels like Lashkara, Alpha Punjabi, and Gujarati. The company designed a pyramidal sales structure by decentralizing its distributing network. The company fragmented the distribution network with branch offices operating from big citie s and many Remote Area Officers (RAOs) working under each branch office. These RAOs were further fragmented with Regional Sales Officers (RSOs) working under the supervision of each RAO.Each RAO was given charge of the territory with an independent accounts, sales, servicing and marketing team. To assist RAOs in there endeavour; the offices were computerised and connected with branches officers and the corporate office’s ERP system through Very Small Aperture Terminal (V-SAT) and an Intranet network. This enabled the RAOs to have up-to-date data on important aspects such as inventory, payment status of the dealers, etc. The RAOs overseeing the territories were given independent decision-making powers to the extent of developing their own marketing and promotional strategies in their territories.This setup helped the company in not just improving sales but also in penetration deep into the market. The distribution setup also enables the company to establish relationship whit t he sub-dealers who are not been contacted by the company representatives. Better servicing of the sub-dealers helped in increasing their sales. 2. LGEIL followed a new sales structured to market its products in the rural markets, different from the one apply in urban market. Discuss the advantages and disadvantages of LGEIL’s rural sales structureAnswer: Advantages: †* Better market coverage. * Effective distribution of work load. * Evaluate sales people. * Control on direct and indirect costs. * Optimum utilization of sales time. * Helps manager better control and monitor sales and evaluate programms. Disadvantages: †* Sales achieved through personal relationships * Sale of technical and sophisticated products. * Customers spread over bulky geographic area. * Service expectations and product deliveries is at fourfold places; so geographic division will not help.\r\n'