After having successfully made its mark into the entry-level mobile market segment of India, LG electronics is now making its foray towards the higher strata of mobile users with the launch of 'Chocolate'. Zia Askari of DQ Channels spoke with HS Bhatia, National Product Group Head - GSM Mobile Phones, LG Electronics about the company's venture into the high-end segment and how it plans to address the market dynamics

LG has done quite well on the entry-level mobile category. What has prompted the company to move towards the high-end mobile segment with the introduction of 'Chocolate' phones?
Yes, it is true that we have done a great job at the entry-level segment. This is perhaps the biggest reason for us to venture into new segments and replicate our success there. As a policy we first roll out the entry-level handsets and than go for high-end segments of the market. We have implemented the same strategy successfully in other countries as well.

HS Bhatia National Product Group Head - GSM Mobile Phones, LG Electronics

We firmly believe that now is the right time to go for high-end segment in the Indian region and that is why we have timed the launch of 'Chocolate' like this. Today, the Indian market for mobiles has expanded a lot to include not only metros, also B and C class cities as well.

How are you planning to replicate the success in low-end mobile segment in the high-end segment also?
We always look forward to delivering an unforgettable experience for the end customers. We believe that customers look for a combination of style and performance. We are trying to bring these two most important qualities for the end-customer in the form of 'Chocolate'. It is already a big success in Europe and we hope to repeat the same story in India too.

Our Black Label series redefines the designer aesthetics factor in the mobile market. Other manufacturers have launched models that have design as a key attribute, but with the LG Chocolate phone, we have become the first manufacturer to pro-actively design and market a phone based on its visual and emotional appeal. Of course, being LG, the Chocolate phone like all subsequent Black Label products, will have a high standard of technical specification, but its primary appeal is its design, and we believe it will be extremely popular within this country.

What kind of marketing strategy are you devising for the new range? How important a role would the channel community play in your scheme of things?
As this is not a mass-market product, we are in the process of setting up a different channel to push this product into the Indian market. As part of this effort, initially, we would be looking at 15 most important cities of India in order to market these products.

In each of these cities, we would be looking at eight to 10 dealers who have a good reputation in the market and can sell our products well to the end customer. The company is planning to introduce six-eight more variants of the same model under the series in the next three-six months.
Today, LG has a 3.5 percent market share in the GSM mobile segment within India and with this launch the company is expecting to capture about 10 percent of GSM market share in India by 2007. Of course, channel will play a major role in achieving this goal as we move forward.

Today, the mobile phone market is fairly saturated. Do you perceive any advantages for being a late entrant in the high-end segment?
It is true that LG entered the Indian mobile market a bit late but we have done pretty well, so far. All our products have now been well accepted by the consumer and it is this acceptability that has prompted us to provide the high-end range of mobiles for the Indian consumers.
These products are unique in terms of design and style. If we closely look at the market, the consumer is seriously looking at making a style statement when it comes to going in for a mobile. In addition to this, it is our ability to understand the customer in a better way that helps us in delivering better products in the market. Moving forward, we would also be introducing other variants to this product in the Indian market within the next three months.
ZIA ASKARI

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