LG Marketing Strategy – Marketing Strategy of LG: The Korean conglomerate that is popularly called Lucky-GoldStar and has a presence in 100 countries across the globe with its subsidiaries like Zenith, LG Chemicals, LG Innotek, LG Electronics, ZKW group (premium automotive lighting company) and many more.
The company is involved in products that include mobile phones as well as data technology Electronics, electronic items for homes as well as companies, power generation, engineering, telecommunications, and more.
It is the first OLED display with 8K resolution (88 inches) in the year 2018 U-C LED, which was created through Innotek (2017) has its highest output in the world. These are just a few of the latest accomplishments of Innotek.
LG At A Glance – Marketing Strategy of LG
Company : LG
CEO: Kwon Bong-seok
Founder: Koo In-Hwoi
Year founded: October 1958, Yeonji-dong, Busan, South Korea
Headquarters: LG Twin Tower 128, Yeouido-dong, Yeongdeungpo District, Seoul, South Korea
Annual Revenue: ₩63.3 trillion
Profit | Net income: ₩2.0 trillion
Number of employees : 75,000+
Products & Services: LED TVs, Air Conditioners, Washing Machines, Refrigerators, Monitors, wearable devices, solar modules, smart appliances and, formerly, smartphones.
Competitors: Apple | Philips | Samsung | Electrolux | Panasonic | Sony | Whirlpool | Toshiba | Bosch
LG Fun Facts: The company was founded in 1958 with the name “GoldStar”. It was created after the Korean War, and its main purpose was to push the country forward with domestically-made electronics. They were the first company to make Korean radios, TVs, refrigerators, washing machines and air conditioners.
Marketing Strategy of LG
LG’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of LG? Let us discuss.
Marketing Strategy of LG – Segmentation, Targeting, Positioning
It is a brand that is segmented by product’s use, such as smartphones are used most by generation Y, the tech-savvy millennials, and household appliances are utilized by married couples mainly, AC is used in urban or semi-urban zones.
The company can be present in such a wide array of products portfolio and therefore, it ensures that it is present across different categories, for instance, it has low-end and top-quality cellphones, TVs, ACs, and various other Home appliances that help the company serve customers of different categories and the different target segments.
Since 2014, the business has changed the slogan that was Life’s Better to “It’s possible to be anything” which highlights the continuous technological innovation in the products offered by the company and becoming digitally advanced through providing artificially-based solutions that are environmentally friendly and consume less energy.
LG Mission Statement
“To maintain the hard-earned reputation for bringing added value to lives of consumers”
LG Vision Statement
“To become the market-leading company with broad market recognition”
“It’s all possible”
LG Marketing Strategy – Competitive Advantage
so support all of its business lines, the company has diversified its product range to include Air solutions, components for vehicles Commercial electronics components, and information display items.
It has also been active in expressing the nature of the brand using various channels, including sponsorship of Cricket World events, German Bundesliga club Bayer 04 Leverkusen and sponsoring ICC awards, and working as a technology partner in Formula one race during 2009-2013, London fashion week, etc.
LG Marketing Strategy – BCG Matrix
The business segments that reportable the company is involved in include mobile communications, vehicle elements, appliances for home and air solutions, and business-to-business solutions.
Air and Home Appliances and Home entertainment had revenue of 17.3 billion and $16.9 billion, which represents around 31% and 30% of the total revenue. Other businesses make the amount of 10.5 billion (Mobile communications) as well as the equivalent of $ 3.1 billion (Vehicle Components) and $ 7.5 billion for B2B solutions.
In the end, they have a robust product line-up, a higher revenue share, and a growth potential in the new marketplaces for the segments of Home appliances and Air solutions as well as Home Entertainment, it ranks high on the BCG matrix, and the rest are left with a one to watch out for.
Marketing Strategy of LG – Distribution Strategy
LG group is involved in the appliances and electronics industry and makes its products accessible to the marketplace through local and national distributors like Redington, and Ingram Micro.
LG employs more than 222000 people (Domestic 137000, and overseas 85000) across the globe, of which 83000 of them are working to support LG’s electronic business. This huge workforce helps the company to distribute the products through its system of distributors, wholesalers as well as its own sales staff for the company’s selling, e-commerce sites, and retailers that are authorized.
LG Marketing Strategy – Brand equity
LG was placed at 811 811 in the ranking of Global 2000 companies (2017) and 65 in the top spot according to Forbes magazine’s list of the world’s most influential brands (2012). The Bank has a Market Capitalization of 10.2 billion as of May 2017, with revenue in the range of $47.72 billion.
Some of the accolades and awards that the brand has won are European High-End TV 2016-2017 “Best Product” at the EISA Awards 2016, CES Innovation Awards 2017 Honoree.
LG Marketing Strategy – Competitive Analysis
With the prominent brand image on the marketplace shelves, visibility on the shelf, and sufficient supply on the market LG is ensuring that the product is reaching customers wherever there is a need through its broad coverage, which gives it an edge over its competitors.
Furthermore, each of the companies is providing a stepping stone for other businesses and protects the interests of the company when it enters the market of tomorrow.
It is competing with companies like Voltas, Philips, Panasonic, Samsung, Haier, IFB, and many more.
Marketing Strategy of LG – Market Analysis
The presence of diverse industries, trade protectionism among developed and developing nations, global uncertainties regarding the exchange rate, the rise in interest rates, and the emergence of artificial intelligence in electronic products and trade collaboration between nations are just a few of the factors that affect the market or industry in which LG is operating.
LG is constantly working on market research and development as it expands its offerings of premium smartphones category GenCool ACs featuring dual inverter technology. It is also strengthening its B2B operations and stepping into new markets in the vicinity of more than 100 countries around the world.
LG Marketing Strategy – Customer Analysis
With its variety of goods that cater to both the consumer and large corporations, the company can meet market requirements.
For consumers who shop at retail, It serves customers within the 30-50 years old in the home appliance and entertainment segments and is located in the middle of upper-middle-income brackets. In the mobile communication segment, the customers are in the group of 15 and above. The company serves customers of every income bracket through an assortment of items.
For corporations, it provides customized solutions for MNCs, government agencies, and institutions in the business sector including security systems, vehicle components information technology, etc.
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