LG is an electronics-based multinational company established in South Korea that deals in the production of consumer electronic goods. Originally the company was focused on producing radio components but later shifted its focus to the electronics field and established itself as the tech giant it is today.
Wondering how the company managed to shift gears and establish itself as a major player in the industry? This case study on the Marketing Strategy of LG Electronics will help you to understand the entire marketing strategy, along with its marketing mix, target audience, and digital presence.
About LG
LG is short for “Lucky-Goldstar” and was founded by Koo In-Hwoi in 1958, started as a small company that domestically produced consumer and home appliances but later expanded its product line to newer technologies such as mobile phones, home entertainment systems and more which is now is present all over the world.
It is one of the second-largest TV manufacturers in the world. The company is known as a Digital Leader in electronic goods and equipment in this digital era with the company’s progression.
LG Target Audience:
In the competitive landscape of consumer electronics, LG has strategically positioned itself as a go-to business by tailoring its offering to a diverse yet well-defined target audience. LG targets middle to high-income households with its wide variety of home appliances and smartphones.
With its super economical price point and smooth UI/UX, LG has left no space in attracting tech-savvy millennials to busy families and seniors looking for simple yet effective appliances.
Apart from this, LG target audience includes environment-conscious people who are sensitive when it comes to nature by aligning LG marketing strategy with environmental-friendly ideas and concepts.
The company has also been successful in capturing middle to high-income earners who prioritize relying quite heavily on good-quality electronics.
Current News about the brand
- LG unveils QNED 83 series smart TVs in India
- LG launches XBoom series of speakers, Tone Fit TF7 wireless earphones
- India to see LG’s highest sales growth globally this year: MD Hong Ju Jeon
- LG launches webOS-based My View Smart Monitors in India.
User persona
Buyer’s Persona
Name:
James Smith
Place:
New York, USA
Age:
35
Profession:
Marketing Executive
Motivation
- Ease of shopping.
- High-quality home appliances
- Cutting-edge technology
- Energy efficiency and sustainability
Interest & Hobbies
- Reading
- Watching movies and TV shows
- Playing Guitar
- Cooking gourmet meals
- Gardening and indoor plants
- Trekking
Pain Points
- Inconsistent information on social media channels.
- Slow website and customer service response.
- Poor UI/UX of the website.
- Stock Availability.
- Difficulty in finding specific product details
Social Media Presence
- Youtube
LG’s SWOT Analysis
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Wide market presence | No hero product in the portfolio | Strategic alliance within the niche | Hike in production cost |
| Strong distribution channel | Weak management system | Market expansion | Intense competition in the market |
| Diverse portfolio | – | Change in consumer’s lifestyle | Change in consumer’s lifestyle Govt. regulations |
| Active with CSR initiatives | – | – | – |
| High Top-Of-Mind-Awareness (TOMA) | – | – | – |
| Good market share | – | – | – |
| Stellar Brand Image | Cutthroat Competition | – | Economic Uncertainties |
LG Marketing Strategy: LG’s 4 P’s
Product:
LG is a massy brand that aims to target a large segment of people. Starting from a smartphone to major household products like fridges, washing machines, and speakers, they have it all.
LG prices its products based on their consumer’s pocket size. Smartphones by LG are comparatively low compared to ACs, refrigerators, and washing machines. With a wide array of products, the company has positioned itself as a go-to brand for its user base.
Price:
Despite being a big name in the market, products by LG are pocket-friendly and have competitive pricing. The pricing is generally based on the features of the products.
LG also provides financing options for its customers. With all these marketing tactics, LG ensures that they’ve something for everyone and no customer goes without purchasing LG.
Place:
With a stronghold of market and distribution channels, LG has a strong presence in the market. One can easily find LG products at their nearest electronic retail stores, malls, or online marketplaces.
LG aims to deliver a smooth experience to its consumers. By having a good presence, the brand builds robust trust among its users, persuading them to be a customer of the brand.
Promotion:
LG spends exorbitantly when it comes to marketing. LG communicates its brand message with a hint of emotional connection to its viewers. It has also created campaigns that target environment enthusiasts.
The brand uses multiple channels like traditional marketing, digital platforms, and experiential marketing to reach its target audience. With this, the brand leaves no stone unturned to get in touch with its potential users.
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Marketing Strategy Adopted by LG
Here is a list of some of the most popular marketing strategy of LG that I think have really worked well for their company:
Emotional Appeal
LG’s strongest marketing strategy is designing campaigns that connect on an emotional level with the audience through relatable experiences and beautiful visuals. This emotional connection helps build trust and further become loyal to the brand.
Advertising Strategy
The company believes in selling products directly to the customers, hence advertisement here plays a major role. The company has advertised on several channels like TV advertisements, magazines, newspapers, and the internet.
Influencer Marketing
The company’s marketing strategy combines various celebrity endorsements, ad campaigns, and sponsorship of major events to drive high sales and brand visibility in the market. In 2010, the company widened its marketing efforts by launching a series of products and enlisting famous personalities like Akshay Kumar to endorse its new launch, particularly the new LED range from LG.
The brand was promoting the new LED range from the LG stable on all National multi-mediums, according to a statement by the company, this was the first time the company has associated with any celebrity for endorsing its flat-panel displays.
The company chooses celebrities of the country and they in due course make them the brand ambassador. The reason behind this is that people will directly relate to the products available to them. The company also promotes its products through various sporting events being their sponsors. The company makes sure that the product is in the mind of the customers and therefore they consider the product to buy.
How does this brand use Digital Marketing in its strategy?
- Get ready for a thrilling sports experience with the LG UQ801C UHD Commercial TV. With Bluetooth Surround Ready, immerse yourself in the game and feel like you’re right on the sidelines. This post was done by LG for promoting their new LG UQ801C UHD Commercial TV, by making the customer feel like they are sitting in the Stadium. Presenting its Quality and its viewing experience.
- Win Exciting prizes by simply sharing a picture of the LG logo lurking in the most unique places, using #LGSpotted. This is a marketing technique used by LG to stay in the market and to attract consumers towards it, and free marketing and tagging in multiple posts by this campaign and using the Hashtags #LGSpotted.
- LG also measures the quality of digital marketing performances by analyzing data through various online sites and based on it establishing strategies to increase marketing effectiveness.
Marketing and advertising campaigns
- “Life’s Good” Slogan: LG’s most well-known tagline is “Life’s Good,” which reflects the company’s commitment to making products that enhance the quality of life for consumers. Recently the company took over popular landmarks to kick off its new Life’s Good campaign with a more young-looking visual identity.
- LG OLED TV Campaigns: LG has heavily promoted its OLED TVs with innovative and attention-grabbing advertisements. For example, they have showcased the thinness and picture quality of their OLED displays in ads that feature dramatic and visually stunning scenes.According to fonearena.com, LG has announced its latest lineup of 2024 OLED TVs he company promises an exceptional viewing experience and AI performance, all thanks to LG’s latest AI processor.
LG SIGNATURE OLED M4 and LG OLED G4 TVs are equipped with the new α (Alpha) 11 AI processor, providing a 70% improved graphic performance and a 30% faster processing speed than its predecessor.
- LG Home Appliances: LG has run numerous campaigns highlighting its home appliances, focusing on features such as energy efficiency, smart technology, and convenience. They often showcase products like refrigerators, washing machines, and kitchen appliances in lifestyle settings.
- Mobile Phones: LG has marketed its smartphones, such as the LG G and LG V series, with campaigns that emphasize features like camera quality, unique design, and advanced technology. They have also collaborated with celebrities for endorsement deals in some regions.
- LG Signature Series: LG’s premium line of products under the “Signature” brand has been promoted through campaigns emphasizing sleek design, high-quality materials, and cutting-edge technology.
Top 6 Competitors of LG
- Samsung: It is one of LG’s primary competitors in various consumer electronics segments, including smartphones, televisions, home appliances, and display technologies.
- Sony: It is a major competitor in the consumer electronics industry, particularly in segments like televisions, audio equipment, and gaming consoles.
- Panasonic: It competes with LG in areas such as home appliances, televisions, and other consumer electronics.
- Haier: It is a Chinese company, that competes with LG in the home appliances market, offering a wide range of products such as refrigerators, washing machines, and air conditioners.
- TCL: It is known for its affordable televisions and is a notable competitor in the TV market. They also produce smartphones and other consumer electronics.
- Whirlpool: Whirlpool is an intercontinental home appliance brand present all across the board. This American multinational manufacturer has been ranked 199th by Forbes in the top global companies for its huge employee strength and high market potential leading to high market growth.
FAQs
What is LG’s marketing strategy?
The company’s vision involves creating emotional connections with its customers by using a mix of traditional as well as digital marketing strategies showcasing its products via various channels such as campaigns, TV commercials, social media promotions, and influencer partnerships.
What does the LG logo stand for?
According to the company itself, LG stands for future, youth, humanity, and technology.
What is the revenue of LG?
The worldwide revenue of LG Electronics had been amounted to 63.3 billion dollars in 2023.
What is the market share of LG in India?
According to a report in The Economics Times, LG has 27% shares in television, 21% in AC units, and 31% in refrigerators.
Where are LG products manufactured in India?
LG’s manufacturing unit is located all around the country but its most eco-friendly unit among all the other plants is situated at Greater Noida.
Conclusion
Innovation always grabs the attention of the products, and LG should keep on sustaining itself to be a high-tech groundbreaking in the market. To maintain a competitive advantage over its competitors, LG must maintain its high brand visibility and should ensure that its products reach their customers whenever and wherever there is a demand.
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Thank you for reading this blog, do share your thoughts in the comments section below on this case study.
a very impressive analysis! Looking forward to learning more from you.
Good article, Helped me with my project work
good
🔥 LG’s marketing game is on point! 🚀