Lg Institutional Sales

In a bid to expand the market and raise barters, LG Electronics Ltd. identified institutional sales as a focus area in the calendar year 1999. It plans to triple the heading turnover to Rs. 150 crores from institutional sales. LG has do its institutional sales dodging by identifying and proactively targeting five different portions to push the LG swear shop promotions the welfare segment (factory workers and spatial relation staff) governing body sector direct users (hospitals, hotels) and the canteen stores departments (CSD) of the armed forces. A distinct strategy has been tailored for all(prenominal) of the five segments.In brand promotions for example, the perceived value of the products given as gifts is important, whereas for the welfare segment aspirational value, convenience and easygoing financing are prime factors. Meanwhile, hotels demonstrate a price sensitive segment requi foretell particular(prenominal)ly customized products. Welfare In this segment, LG is targeting a consumer founding the aspirational consumer, mostly factory staff that most companies ignore, but which has considerable strike in terms of generating volumes. This segment is macrocosm targeted on the convenience and easy finance platform. LG has just tied up with Birla international Finance Ltd. part of the Aditya Birla Group, for the purpose. Under the tie-up, LG provide unit-wise cover all the Birla companies. This amounts to over devil lakh employees. This is a lucrative segment, claims LG, because of the richly hit-rate out of a potential base of 1,000 factory workers, there is an assured sale of at least(prenominal) 10 to 20 percent. Hotel Segment In this segment, LG is targeting the five-star and middle-level hotels (50 one hundred ten rooms) by offering customized products. For example, LG offers a special hotel-mode TV model with an auto volume leveler, which ensures that early(a) guests are not disturbed.Another attraction for hotels is the pla y game TV model that would as well as prove to be popular and an interactional option with Internet, video/audio or room service menu facilities. LG claims to take hold sent out mailers to 1,200 hotels and bagged at least 100 orders, besides the Palace on Wheels luxury train, for providing TV sets in its 52 cabins. Now, LG is reading a come out of synergistic televisions for this segment, offering remote-controlled features like the hotel menu, local anaesthetic facilities, billing-room service, video on demand, internet, multilingual options.Canteens and the organisation Sector We are perhaps the provided partnership offering our entire range of products in CSD canteens, feels the product manager, of LG. In the government sector, which operates through tenders, significant orders so far included an order for 200 TVs for Himachal tourism bungalows in the State and over 2,000 TVs for first schools in rural areas in Maharashtra. The company has a five-member Institutional S ales Division, with each devoted exclusively to one segment.It has 50 institutional sales dealers and a ring of sales representatives when interact with the dealers and conduct demonstrations when needed. Its understructure consists of 20 mobile vans with glass windows to unwrap the product range. These vans cover at least 500 km every calendar month in both rural and urban markets. Questions (a) Do you think such a field sales force is able to harness the market potential in the Institutional market? (b) Would you recommend think on one or both segments out of the given five? give up your answer.