LG is an electronics multinational company in South Korea which deals with electronic goods. The company at first was a national company later turned into an international company. It has come a long way. Are you already intrigued to know how the company has achieved success in the electronic industry? This case study of LG electronics consists of the marketing mix, swot analysis, target audience, and digital presence.
LG is all known as “Life is Good” and “Lucky-Goldstar”. It was founded in 1958 started as a small company that domestically produced consumer and home appliances and 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.
Source – 1000logos.net
Let us look further into the marketing mix of LG.
Marketing Mix of LG
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Product, Price, Place, and Promotion. The wide range of offerings by the LG company are discussed in the products of the LG marketing mix. The company caters to almost all the segments a consumer can think of in electronic products. Let us now have a deeper understanding of it.
LG Product Strategy
LG is making sure that the products are reaching customers with a high brand image and visibility in the market. While entering the new markets each of its businesses is proving a stepping stone to other businesses and safeguards the company’s interest. The company has broadened its product portfolio ranging from vehicle components, air solutions, commercial electronics components, and many more. Let us now have a deeper look at various segments of products offered by LG.
- Microwave Ovens
- Vacuum Cleaners
- Washing machines
- Water Purifiers
- Air conditioners
- Music Systems
- Home Theatre Systems
- BLU Ray Players
- DVD Players
- OLED TV
- LG Smart TV
- Plasma TV
Above, were some of the products offered by LG. The company is also trying to make its products with a much lower carbon footprint which allows it to stand out among the competitors.
LG Pricing Strategy
The pricing strategy of LG consists mainly of products that have a reasonable profit. It has a wide variety of products that caters to the price from low to high. When initially the company had launched its products in India it offered them at a high-price range. but later as it opened its manufacturing units, the prices of the product has decreased which lead to an increase in the sales volume of the company.
It also offers various deals during the festive season to attract customers.
The company has also expanded its reach in rural areas by providing products at much cheaper costs with the intention of increasing their sales volume and revenue.
LG Place & Distribution Strategy
Following is the distribution strategy of LG
The places of distribution for LG are through the local stores. This was the primary strategy of the company. But over time, with the advent of e-commerce we find that the goods are sold through their website and also other e-commerce platforms as well. The products are available throughout the global market. We found out that the company has tied up with other companies’ outlets also. Some of the products also appear on display outlets of other shops. The mobile store outlet also has LG phones. The way they place their products shows that they make sure that all the products are available to the customers.
Marketing Strategy Adopted by LG
The promotional and advertising strategy of LG is as follows:
- The promotional strategy helps you create huge brand awareness about the company by promoting through various channels of communication.
- 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.
- They also offer great deals through this medium which leads to high sales in the market. In the year 2010, the company said it would go aggressive with its marketing campaigns and launch a series of products. The company had taken an initiative to call various famous personalities to advertise their products and one of them is Akshay Kumar in the following sponsored ad:
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 famous 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.
Hence, this covers the entire LG marketing mix. Let’s deep-dive into the SWOT analysis.
LG SWOT Analysis
SWOT Analysis identifies the Strengths, Weaknesses, Opportunities, and Threats of the business which helps us to assist you in making strategic plans & decisions. It also helps you to move in a balanced way throughout your program. Let’s have a look deeper into the swot analysis of LG.
Now, let us have a look at the key performance indicators (KPIs) of the company.
- They have diversified products across the categories which have a huge product line.
- The distribution channel of the company is fast-moving with durable goods available in the global market.
- Through their continuous visibility in the market, they have acquired successful branding efforts.
- It has also been involved in Corporate Social Responsibility (CSR) activities.
- A diverse workforce, including employees which help them carry out new ideas together with a unique approach.
- The company has a long-term presence in the market and has strong brand equity.
- The company is not very active on social media platforms.
- The company does not have a strong online presence in the market.
- A price war between its competitors.
- Due to the change in lifestyle from rural to urban areas, there is an increase in demand for the home appliances market which is growing at a fast rate
- They have various opportunities to launch new products
- Intense rivalry helps LG to make appealing and innovative products in the market.
- The company is accelerating its growth rate by emerging into new markets.
- Due to the advanced technology, it has been evolving and partnering with other leading companies.
- Faces a huge competition in the market.
- Government regulation policies affect the industry.
- Rising raw material costs and therefore shrinking the business operation which makes it less profitable.
- As more and more businesses are entering the market, the demand in the market has fallen.
Therefore the company should minimize its weaknesses and build on its strengths.
LG Target Audience
- It serves customer age groups from 30 – 50 under home appliances and electronics.
- Segmentation of the product is an upper and middle-income group.
- It serves products to customers from all income groups.
- Psychographic segmentation of the market is divided into lifestyle and personality.
- Geographics segmentation of the company includes cities from tier 1 & tier 2.
LG Competitor Analysis on Social Media Advertising Strategy
The primary competitor of LG is Samsung. It must be noted that Samsung is also a South Korean company.
Let’s compare their social media presence on Twitter, Facebook, and Instagram.
Source – LG twitter
Source – Samsung twitter
Source – LG Instagram
Source – Samsung Instagram
Source – LG Facebook
Source – Samsung Facebook
From the above images, as we can see LG has a huge presence on Instagram but their account is not engaging enough as compared to other companies, wherein Samsung has hundreds of thousands of followers on Twitter and Facebook. Thus, there is a tough competition between both companies.
Innovation always grabs the attention of the products, 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 their products are reaching their customers whenever and wherever there is a demand.
This is what LG has succeeded in throughout its advancement. Yet, do you think that the marketing strategies adopted by LG are effective? Do let us know in the comments below.
After reading the blog, do you also want to know how to promote your company and create a huge digital presence? What are you waiting for? Checkout our website and learn such skills to develop your inner digital marketer!