Imran Zaki is among few people who have seen revolution in telecom industry of Pakistan from dark ages to the light age. Imran Zaki as Corporate Head of Brand Marketing at LG Electronics; is the custodian of LG whole range of business solutions i.e. home appliances, mobile phones, IT products, and solar power solutions, etc. Technology Times got an opportunity to talk to Imran Zaki; here are his exclusive views about LG brands presence in Pakistan
Brief us about your educational and professional background?
Imran Zaki: I have graduated in business administration from IBA Karachi in 1992. Since then I’m associated with telecom industry in Pakistan. I started my professional career with InstaPhone when it launched mobile services in Pakistan, also worked for Mobilink, and then joined Pakistan Telecommunication Company Limited. I have successfully launched Wateen Telecom in Pakistan, after spending 19 years in telecommunications industry, in 2009 I joined LG Electronics, since then passing through different stages now I’m Corporate Head of Brand Marketing at LG Electronics.
In a broader perspective, my specialization is in marketing, and is, responsible for product promotion, building brands for a particular market by identifying user habits and building strategies to secure market share in competitive market.
What is the market share of LG handsets in Pakistan?
In 2009, market share of LG handsets was around 27 per cent But with the advent of Chinese low price phones and increase in street crimes specially mobile phone snatching, the entire branded mobile market has been affected. Hence, users prefer to keep low cost good looking mobile phones in hands. It is hard time for all electronics companies to survive; LG’s market share presently is about 7 per cent.
What was the reason behind shifting from distributorship to self marketing?
Earlier, LG was working with sole distributorship concept to promote products. Few years ago, we reviewed our policy of sole distributors and took some strategic decisions to broaden our network and increase our sales. That’s the reason we took strategic decision of shifting from distributor to self marketing. More than electronics, LG is about making life good. Our innovations enable you to create memories, pursue passions, and keep in touch with people you love. So to keep our initiative alive, we had to take strategic decision.
After shift how you plan to compete in mobile market?
We studied the market and finally realized that now-a-days people are more interested in dual-SIM handsets. That’s why we re-defined our strategies – focusing more on dual-SIM with long battery time. Our targets are those who are using Chinese mobile phones for dual-SIM and prefer long battery time. We appointed new business partners to promote the mobile phones in urban areas where people prefer to have latest handset at a very nominal price.
What are your strategies to promote LG handsets?
Presently our focus is on establishment of distribution network, retail outlets with after sales services and availability of mobile phones with unique features. We believe in reliable and effective after sales support. We aim to provide after sale support at customer’s door step. To me it do not make sense that if a consumer in Sahiwal needs back-up support then his product is sent to some other city for repair and service. We are targeting to provide services at our each individual customer place and even we are thinking to form mobile sales support units.
What efforts you made to enhance customer care?
As I told earlier that our focus is on entire satisfaction of our customer and in this regard LG have invested heavily because technology is changing rapidly. If we want to cope with the daily changing needs of our valued customer then we have to provide training and information to our team at customer care. Also, to strengthen our contact with customers we have launched centralized call center with a UAN number and a Toll Free number.
You are heading two gigantic divisions of LG (home appliances and mobile phones). Is it not difficult to promote variety of products at a same time?
If you follow a proper system then I don’t think it’s an issue. Of course in start when there was no system, it was really difficult. But now, there are different teams designated for each product portfolio. The products apart from mobile phones are seasonal products. Teams prioritize their strategies according to the needs and requirements of customers. The partners also develop their support strategies according to the segment of the market and customers.
Who are your competitors in home appliances?
Locally and Chinese brands are our main competitors because they offer low price products. The market is divided into three segments and LG is in mid-range. Mid-range means: customers who want product with better quality at affordable price. Some of LG’s products are expensive but better in quality. The Chinese products do not sustain more than a year due to poor quality. Currently, majority of the customers prefer to purchase quality products having multiple features.
How you compete with gray market in home appliances?
There is no doubt that gray market affects a lot. But the share of gray market is rapidly declining because customers have realized that warranty claim of any product purchased from international market is a challenging task. And since LG is providing a complete reliable customer care to its customer including warranties, therefore consumers prefer original LG products rather than any smuggled item.
What steps you are taking to discourage gray market?
We cannot restrict anybody to stop gray marketing. But the influx of gray market has declined because today customer has started comparing market prices. Usually customers ignore international warranty products. The extended warranty by branded products is also discouraging gray market. That’s why the gray market share has declined substantially.
What is the percentage of LG Pakistan share in LG international?
LG international has divided its operations into five regions. Our country falls in Middle East/African (MEA) region. Though Pakistani market is very small, but the share of Pakistani market is significant. It is a developing market and we are working on third party basis so our share of business is limited.
What are LGs CSR activities?
To rehabilitate July 2010 flood victims, we donated over US$40,000 to Prime Minister’s Relief Fund. We ourselves distributed over 7000 blankets in Punjab and NWFP and also put a box at all the customer care centers to send sentiments. We recently partnered with Make-A-Wish Foundation; a foundation established for terminally ill children. It is LG’s global initiative, under this initiative we provide electronic equipments to the foundation, whatever they require.
What alternative energy solutions you offer?
LG’s prime products are consumer electronics but keeping in view the current load shedding scenario, we introduced solar panels – they require one time investment but provide better alternative solution to electricity; other solar products are solar bulbs, and LED lights.
Alternative energy solutions are too expensive. Do you have any lease plan to facilitate customers?
We can definitely negotiate on any such scheme suggested by business partners. The alternative energy solutions prices are negotiated according to customer unique requirements. Recently, LG partnered with Bank Al- Falah offering LCD and Plasma TV to their credit card customers on easy installments. Similarly, we can talk to other institutions to facilitate the customers.
Do you agree that high price is a limitation for promotion of solar products in Pakistan?
Yes. The people are not aware of the importance of the alternative energy solutions. At present, we are not expecting revenues out of solar panel sales. We do not treat them as flagship product because of limited revenues. But I think alternative energy products are the future.
Any comment on Technology Times?
Technology Times has a valuable content to read. The reviews on telecom industry are not only interesting but informative; it plays a good role in spreading science and technological knowledge in the country.
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