A market leader for the past 30 years, no doubt, it will be a piece of cake for this company to keep its number one spot
It comes as no surprise that CG Electronics holds one trump card when it comes to selling authorised multinational electronic goods in Nepal. This robust division of the Chaudary Group has been a market leader for the last 30 years in the electronics segment and its prized principal is South Korea’s LG Electronics. Being the sole authorised distributor of LG has made this company the number one place to go to for world class home appliances and entertainment systems.
Initially starting out as ‘Lucky Goldstar’ the South Korean parent company rebranded itself into LG, standing for ‘Life is Good’ and since then it has not looked back having grown into one of Korea’s largest multinational companies. CG’s association with LG Electronics has spanned more than 25 years and the LG brand has enjoyed an upward growth trend of 25-30 percent per year over the past five years in Nepal. “The strategic partnership has very strong bonds and has been long lasting,” says CG Electronics Marketing Communications and Brand Management Head, Sanjay Rajbhandary.
With the company devoted to realising the vision of the parent company’s ‘Life’s Good’ motto, the focus has been on putting smile on customers’ faces when they buy LG’s innovative home care and home entertainment products like washing machines, microwave ovens, or high-end dishwashers and advanced TV sets. “We are the market leader in segments like Smart TVs, Refrigerators, Washing Machines and Microwave Ovens,” says National Sales Head Purushottam Bhandari, and about further plans he says the brand will be intensifying PTP (Preferred Trade Partners) shops and Shop-in-Shop concepts across the country.
The brand aims to retain its number one position in the market by making the lives of the people better. Today the dealers’ network of LG has spread to every nook and cranny of the country. “We have more than 300 dealer networks across the country,” informs Rajbhandary, and adds that “many dealers have been with us since the start of our business.”
The most obvious and working strategy that the company uses in terms of brand marketing and communications is its ‘Life’s Good’ tagline. “Today it has reached a stage where our tagline defines our brand,” says Rajbhandary. Coupled with selling technologically superior products this equation has allowed the company to achieve the Holy Grail of Holy Grails- simple market acceptance. “Consumers trust us. They trust the brand LG and that’s how we have built our brands over time with a proper communication strategy and superior products.”
With such product placement already in the minds of potential buyers, the company has the great luxury of being able to focus more on customer care and value addition to the products, not to mention the stringent R & D quality control mechanisms in place at its headquarters. Rajbhandary claims that “Not even a single product goes to the market without proper inspection.”
Similarly as per Global Marketing Strategy, LG has intensified its Brand Shops and PTP Shops across the globe. “In the context of Nepal too, we are expanding our Brand Shops and PTP Shops and Exclusive Dealers’ shops who sell only LG products,“ says Rajbhandary.
LG has categorised its product range two ways. Firstly, home electronics with products like LED TVs, DVDs and music systems, and secondly, home appliances with products like vacuum cleaners, refrigerators, washing machines, microwave ovens, and air-conditions.
“Knowing the consumer’s pulse is always critical; this should always be at the forefront of any management philosophy,” says Bhandari. Customer confidence and quality consistency as well as prompt after sales service (customers can dial a 24 hour toll free number and a technical team will arrive at your doorstep) have always attracted customers to the brand. “We take after sales service as one of our major unique selling points (USP),” shares Bhandari, adding, “The number of complaints after buying our products is very small.”
The brand says it is always ahead in launching new innovative products. Judging market demand, CG has recently launched its Game TV, WebOS Smart TV, Curved UHD TV, OLED TV, Inverter ON Refrigerators and Jet Spray Washing Machines which have, according to Rajbhandary, become the talk of the town.
For the past two years the electronics maker has been prioritising experiential marketing and creating consumer experience zones in its exclusive PTP Shops and activating its brand image on road shows throughout the capital’s different shopping malls and rural and urban centres.
The company believes that, along with the immense range of products on offer for every category of customer group, the aspirations of shoppers, their dreams of owning high quality machines are being fulfilled. “This comes from the brand’s power derived from goodwill and name recognition which we have earned over time; and that is how we have kept our customers happy with our products, our innovations, range, quality and durability,” asserts Rajbhandary.
In its CSR activities, the company has built 100 homes (by LG) for the earthquake victims whose houses were damaged and also a school.
• Logo of CG/LG
• Largest dealer network
• After-sales service
Weakness/Areas to Improve
• Improve products as per the demand of customers
• Customers are user friendly
• Good possibility of electronic brands in Nepali market
• Electronics goods has become a compulsory part of life
• Political instability is a major threat