LG Electronics, which launched two new mobile phones, Cookie Fresh (LG GS290) and Cookie Plus (LG GS500v), today is aiming to capture 13 per cent market share for mobile phones in the state this year. The company, which is eyeing 10 per cent market share by the end of December 2010, is also targeting a three-fold increase in revenues this year to Rs 3000 crore from Rs 1000 crore at present.
"Gujarat is a relatively strong market for us. We have already attained 6 per cent market share and expect to exit the year at 13 per cent. Out of the 100 exclusive mobile handset store that we plan to launch, five will be in Gujarat," Sudhin Mathur, Business Head (Mobile Communications) LG Electronics said. The company enjoys six per cent market share in top 35 per cent cities in the estimated Rs 10 crore GSM segment.
The company is planning to launch 44 new models of mobile handsets by the end of this yearm, of which 20 have been launched in various range — from entry level to smart phones and from touch screen to dual-SIM phones. "The youth centric phones launches are expected to add 20 per cent to the company's value turnover, which translates to about Rs 600 crore. The current launches will contribute about 50 per cent to this category. The remaining phones which we plan to launch will mostly be smart phones and dual sim phones," Mathur added.
The company also plans to focus on its after-sale services and claims to serve customers in less than an hour. "At present, we have 620 authorised service centres and more than 300 collection points, where 81 per cent of our customers get service in less than an hour," Mathur claimed. The company aims to spend around Rs 290 crore in marketing activities including advertising, communications, retail marketing and visibility investments.
The company has a stronger presence in the semi urban markets as compared to the metros and occupies the third slot in the Indian handsets market after Nokia and Samsung.
"There are 500 brands in India and the top five brands constitute 85 per cent of the market. We are among the top three brands in India with a stronger presence in the rural and semi-urban markets as compared to the metros with a ratio of 65:35 per cent," Mathur added. The company manufactures 30 per cent of its phones in India at its Pune facility and imports the rest.