Abstract

The caselet discusses the reasons for the shift of consumer electronics players to the Indian rural market. In this context, it describes the product and promotion strategy employed by LG Electronics India Pvt. Ltd. (LGEIL) for the rural markets. The caselet provides details on the unique distribution structure designed by the LGEIL that consisted of a pyramidal sales structure, with decentralization of decision-making powers. Finally, it mentions the strategies of other consumer electronics companies in the rural segment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Indian consumer electronics market
• Growth of rural markets
• Distribution strategies of Indian consumer appliances companies
• and Territory management in India

Keywords

LG Electronics India Pvt. Ltd. (LGEIL), Consumer Electronics Manufacturers, Francis Kanoi, Rural Markets, Marketing Strategy, Distribution Network, Distribution Strategy, Market Share, Pyramidal Sales Structure, Dealers, Branch Offices, Remote Area Offices (RAO's), Regional Sales Officers (RSO), Territory, V-SAT, Decision Making Powers, Promotional Strategies