Company Name- LG
Founder- Koo In-Hwoi
LG is a part of LG Corporation and stands up to its tag line Life’s Good. It is one of the most loved companies across the world and it won’t be wrong to say that on an average almost everybody in the world must have used an LG product once. It is a South Korean multinational and global electronics company headquartered in Yeouido-dong, Seoul, South Korea. It comprises of four business units which includes Home Entertainment, Mobile Communications, Vehicle components, and Home Appliances and Air Solutions. It is the world’s second largest television manufacturer since the year 2008.
How It All Started
Initially, in 1958, LG Electronics was introduced as Gold Star. Gold Star is one of the LG groups merged with Lucky Chemical and LS cable and changes the corporate name to Lucky Gold Star and then finally to LG Electronics. It was established in aftermath of Korean War to provide the rebuilding nation with domestically produced consumer and home appliances. It produced South Korea’s first radios, TVs, refrigerators, washing machine, and air conditioners.
It was founded in 1958, plays a large role in the global consumer electronics industry. The old LG Electronics changes its name to LG EI. The company currently employs over 83,000 people through its 128 operations worldwide. LG Electronics controls 37.9 percent of LG Display with its own Zenith.
LG’s Marketing Strategy and Interesting Reasons behind Its Success
Segmentation of Products
The brand has been segmented based on the product usage like smartphones are mostly used by the tech-savvy millennial/generation while the home appliances are used by families and couples. AC is generally used in urban or semi-urban regions. The company has a wide variety of product portfolio, which makes sure that it has a presence in different segments like it has low end and high-end, mobile phones, AC, TVs and other home appliances which help the company to serve customers from different segments and target groups.
In order to support each of its businesses; the company has broadened its product portfolio ranging from vehicle components, Commercial electronic components, Air solutions, and information display products. The brand has been vocal in communicating the essence of the brand through different mediums such as sponsoring in Cricket World Events, on Awards, on London Fashion Week, etc.
The pricing policy of LG consists of “cost plus fixed mark-up”. It means the policy of pricing consists of the reasonable cost of the product and profit. Every factor is thoroughly analyzed and after evaluating its own costing and the market research the actual price of the product is determined. The company has decided to follow a policy of price competitiveness for the rural areas, in order to reach out to the rural base in every nook and corner. It has decided to increase the volume and reduce the prices for resulting in huge revenues and profits.
LG Electronics serves a worldwide market with five business units in nearly a hundred and ten locations. Its aim is to achieve growth rapidly and it is only possible through globalization. LG has tied up with numerous distributors who are given the responsibility of distributing the products efficiently and timely with a minimum disturbance. In India, it sent vans with company logos to every part of the country in order to capture the market. LG works directly with 46 of its branches in every field of distribution. They follow the policy of stock rotation. LG products are available very easily at all the malls and supermarkets as well as every shopping site.
LG has been ranked 811th in the list of Global 2000 companies in 2017 and 65th in the Forbes magazine list of the world’s most powerful brand. The brand has a market capitalization of $10.2 billion with revenue of $47.72 billion on May 2017. The awards and accolades won by the brand are European High-End TV 2016-2017 for “Best Product” at EISA Awards 2016 and CES Innovation Awards 2017- Honoree.
LG campaign is an award-winning, the full serviced political consulting firm that specializes in the development and implementing creative communications strategies for new generation’s complex issues. The campaigns have a proven track record of helping organizations and candidates successfully overcome the many obstacles to achieving success in today’s high stakes political environment. Some of its campaigns are –
#MosquitoAway is a story campaign launched by LG. The film embodies the emotions of displeasure and indifference to begin with. The campaign shows that LG product has changed their life for good, as advertisements for years have followed this typical ritual. The LG Mosquito Away TV developed based on Indian sight, which uses sound wave technology that reduces mosquito’s ability to detect CO2 exhaled by humans and become inactive and flies away.
Mobile Marketing Campaign
LG Electronics rolls out its latest Mobile marketing campaign, which builds successful launch of the LG Mobile Touch Series. The campaign is showcasing that LG is more focusing on smart technology with stylish design. The campaign will be promoted across multiple channels including print, outdoor and in-store point of sale.
“LG Big Bus” Campaign
LG launches the ‘LG Big Bus’ which hijacked the several peak CBD bus routes across Sydney, Melbourne, and Brisbane. The Big Bus was free to passengers, on board, the customer will experience LG mobile demonstrations and received promotional gift bags.
Innovation always intrigues attention and through these easy and jazzy products the brand is placing itself to be high-tech groundbreaking in the market. The goal of the activities of LG is to provide a captive audience with a significant opportunity to get hands-on experience with the latest LG mobile phone range. It has the confidence that it has a mobile phone, which suits almost everyone. LG gives tough competition to Samsung, Philips, Haier and another top brand due to its ability to have a complete chain of products. If you look at the product range of LG, you will find that it is second to none. With its array of products, it serves for both consumers as well as big corporations.
It serves the consumers in the age group of 30-50 years in home appliances and home entertainment segment and is in the middle/upper-income group. Each of its businesses is establishing as a stepping stone to other businesses and safeguards and so the company’s interest in entering into the new markets. The high brand visibility of LG in the market and its adequate supply in the market ensures that the products are reaching to their customers whenever there is a demand, which is creating a competitive edge over competitors.