INTERNATIONAL BUSINESS

Slogans and a 'Cheery Face': Michael Ahn on Rebranding LG

PRESENTED BY
POOJA BIST 201006 HEMANT GHODKE 201016 MANALI KUMBHOJKAR 201026 DHIRAJ PATIL 201036 TUKARAM RUPNOOR 201046 NIRAJ VASANI 201056

History of LG

History of LG

1958 Founded as GoldStar. 1960's Produces Korea's first radios, TVs, refrigerators, washing machines, and air conditioners. 1995 Renamed LG Electronics Acquires USbased Zenith. 1998 Develops world's first 60-inch plasma TV.

History of LG

2002 Under LG Holding Company system, separates into LG Electronics and LG Corporation. 2008 Introduces new global brand identity: "Stylish design and smart technology, in products that fit their consumer's lives." Posted No.1 spot in US frontloading washers in 5 consecutive quarters.

History of LG

2010 Unveiled the worlds first and fastest dual-core smart phone, LG OPTIMUS 2X . Unveiled the worlds first full LED 3D TV.

Michael Ahn

Michael Ahn aka Myeong Kyu is president and CEO of LG Electronics North America Headquarters. Was promoted to the position of CEO in 2004 when company realigned its business structure in single, consolidated business structure. Is known for his straight forward management style and intense focus on customer relations. His experience includes executive vice president for LG Digital Appliance company, president of LG Electronics German subsidiary, senior vice president of engineering, manufacturing, quality and service for LGs Zenith subsidiary and head of LGs US OEM operations.

Is active in industry affairs, serving on the Board of Governors of Electronic Industries Alliance and as a lecturer on international marketing at Korea and Yonsei Universities. An avid golfer, he stays with his wife in New Jersey. Under his leadership LG Electronics goal in North America is to enable intelligent networking of digital products that will make consumers lives better and deliver on the promise of LGs Lifes Good marketing theme.

TRANSFORMATION OF LG

Patience was the quality that served LG Electronics during its transformation in 10 years. Branding effort for LG Electronics North America was carried out by Michael Ahn. After 4 decades of marketing low cost products under Goldstar name LG tried to go upscale as the re christened LG brand.

Constraints

Executives on manufacturing side were pushing for higher factory volumes. Retailers refused to carry LG products for following two reasons: Lack of track record Low customer awareness Reluctant company executives.

The Change

Regional Retailers targeted were P.C.Richards in New York and New Jersey area, Frys in California, Hhgregg in mid south. Firm flew CEOs of these smaller companies and their wives to Korea to know more about LG.

Steps towards the Change:

Extensive advertising Print and television ads In store promotions Online branding Lifes good slogan Sponsorship of popular sporting and entertainment events Premium quality customer service Bringing innovative products to market Agreement to pay 30% of the sales to distributors.

Contd

Sales staffers trained at major retailers. Incentives provided to the employees so that they would recommend LG to the customers. Avoiding path of least resistance.

What is Path of Least Resistance?

Selling through high volume. Mass market retailers such as Wallmart, Kmart and Sams club. It would please manufacturing plant managers in Korea.

The LOGO
Symbol consists of two elements: LG logo in grey Stylized image of human face in red color DESIGN Circle symbolizes globe. Image of smiling face conveys friendliness and approachability Overall symbol represents world, future, youth, humanity and technology.

The LOGO

ONE EYE Goal oriented, focused and confident UPPER RIGHT HAND SPACE Intentionally left blank and asymmetric which represents LGs creativity and adaptability to changes. COLORS Red- Friendliness, commitment to be the best Grey- Technology and Reliability

Examples:

Selling of front loading washers to the Americans. Less than a decade ago they were only 5% of US market. Introducing bright color schemes. Most American washing machines were situated in laundry rooms which lacked color schemes. So selling colors like cherry red and navy blue became easier.

Contd

Steam dryers to reduce wrinkles. Washing machine with higher temperature cycles to aid germ sensitive customers with asthma or other allergies. 6 Motion technology designed to attack stains without damaging clothing.

Results:

Reduction in service time from 7.9% to 4.4% Reduction in waiting time from 85 secs to 20 secs. Annual revenues increased by 20% every year doubling from $5.6 billion to $13 billion. Ranked 4th in a survey on Breakaway brands in Forbes magazine behind Clif Bars, Facebook and BlackBerry.

LG ELECTRONICS REPOSITIONS 71-INCH FULL HD PLASMA:

ENHANCED PICTURE QUALITY Clear Filter Pro" technology CONNECTIVITY, PLAYABILITY, FLEXIBLITY

INNOVATIVE STYLE AND DESIGN

LG Plasma TV:

Marketing Strategy Of LG:

Study of competitive set, consumers, and buying habits of the audience "Pucker Up New York" campaign, Focus on Premium Segment Products.

Latest Technology

Marketing Strategy Of LG:

Channel Marketing
CRM Program Called Diamond Club