Market Segmentation of LG

Life is good. For some people, this is just another inspirational quote that does not cross with reality. If we reef away from life mottos, this is the philosophy of the well-known LG. The letters “L” and “G” represent the most famous tagline of the company: “Life’s Good”. LG has turned these letters into a brand lifestyle. They have become a go-to technology company even for the most demanding customers. The company kept floating by adjusting its marketing activity to the ever-changing consumer environment. Not to bore you anymore, we will start discussing the tricks LG uses to maintain their technological dominance.

Segmentation strategies are biographies of ideal buyers…

In the beginning, products come to the market as solutions to customer needs. Thus, the products need to serve their intention well to attract customers. The role of customers in the product development process is huge. Companies need to know their ideal buyers to make sure their marketing activity is spot-on. LG is a brand that nailed this aspect, and the commercial below is an example of that.

The LG commercial features famous filmmaker and Youtuber Zach King. He became popular with making creative and fun animation videos. The signature style is in the interaction with environments. Zach can make entertaining videos on daily situations, and his skills in animating spice up the videos. The main idea is to work with frames and milliseconds to get smooth transitions in a video.

LG chose Zach King as the hero to include his famous transitions and animations in the commercial. The ad immediately starts with Zach-style animation. He turns the regular chair and it instantly becomes a baby chair. Zach then proceeds to look for a baby bottle. This is where the main message of the commercial kicks in.

The whole search process is in fun animation. Instead of opening every drawer, Zach just double knocks the drawer and sees what is inside. Double knock is the motion that LG wants to advertise here. The LG InstaView Fridge has a key feature. There is a glass compartment, which is black and non-invisible by default. However, if we double-knock the glass, it becomes invisible, and the owner can see what is inside the fridge.

LG has utilized a perfect persona and method of presenting the key feature of their new product. By analyzing the commercial, we can conclude that LG targets the segment of the Floaters.

Who are the Floaters?

Lifestyle and Values: Representatives of this segment center their life on family and home. They often spend a lot of time cleaning their homes or cooking at home for their family. Although their limited and low budget does not allow affording anything, they strive to provide the very best.

Home is the absolute center of their world. After every outside activity, they seek to come back to their comfortable home. That is why they take care of the home a lot. Additionally, Floaters consider home the best place to take care of kids and give them a sense of fulfilment.

Initiating work is not typical for them; they rather prefer being told what to do. Floaters respect traditional values, which is why family is of much importance. They usually have big family gatherings. These warm events make them feel better and more connected. Moreover, they try to raise the same family values in their kids.

You might have guessed that Floaters prefer staying at home rather than going out. That is why they do not have an active social life. They do not like sports, and they prefer a peaceful life without adventures and novelty.

Attitude to shopping: They do not care much about themselves and their appearance. This affects their shopping behavior a lot. They buy clothes mostly for comfort and not for style. Besides their preferences, their budget is also a limitation for shopping behavior. Floaters treat their work as merely a job and not as a career. It is just a way of earning money.Representatives of this segment often do not possess large finances and have a narrow choice during shopping.

As you might have already guessed, Floaters are also deal hunters. They budget for every penny and search for special discounts and offers. Most of the time, quantity is the criteria they chase for. That is why the campaigns that offer quantity spark interest in them. Purchasing products of low quality is common for them. Floaters are usually among the last ones to adopt new brands and products.

Other interesting facts about the Floaters:

• TV is the primary source of getting informed. Floaters watch local news, sports broadcasts, police news and series, and TV shows.
• They are not that interested in countrywide news. They mostly prefer following news that directly happens in their surrounding environment.
• Internet is of less interest for Floaters. Computers and gadgets confuse them, and they are very light users of those.
• Floaters are below average radio listeners. This is a surprise because radio is one of the primary sources of getting local news.

LG’s positioning plan reveals the messages they want to deliver…

With such a global name comes great responsibility. LG knows that staying on the top is much harder than reaching it. One of the cornerstones of LG’s global success is its strong brand identity. They have a clear positioning and understanding of what the company stands for.

Even the logo contributes to their positioning well. The famous LG logo resembles a human face, preaching their loyalty to serving humanity. The company positions itself as Delightfully Smart. Earlier in the century, in terms of marketing activity, their focus was to bring smiles to their customers.

Their famous tagline “Life’s Good” is the announcement of their positioning. Since 2013, they have changed their slogan to “It’s all possible”. Let us dig into the reasons for the transition and what messages the two taglines convey.

“Life’s Good” meant that LG is determined to make the lives of customers better. The image of a loyal-to-humanity brand was the primary idea LG wanted to deliver to the public. Moreover, as we already mentioned, Life’s Good coincides with LG initials. In no time, the public started to build the association of LG with “Life’s good”.

On the other hand, the “It’s all possible” tagline emphasizes another crucial strength point of LG. They switched their positioning to more future-oriented. LG tries to deliver the message that they can conquer new horizons with technological advancement. New AI-based and eco-friendly solutions find their usage in their products. Due to those, LG products offer new complex features and consume less power.

Marketing Mix will give us a 360-degree view of LG…

Product.

LG can be proud of its diverse and inclusive product portfolio. Their wide product portfolio can satisfy the ambitions of any customer. Surely, they could not have survived this long without a clear vision for the next step. Moreover, they are pathfinders of the industry. They are a company to look up to when it comes to technological advancement.

Ranging from TVs, PC displays, and smartphones to refrigerators, ovens and washing machines, LG has it all. LG has reached the point that its products earn the trust of customers due to the brand’s reputation. To elaborate, people know that LG would not introduce any product that damages their image. Therefore, they trust the products and serve their intention honorably.

Besides the B2C business, LG is a giant in the B2B segment as well. LG processors, batteries, and screen displays are famous for their usage in the products of famous brands. This proves that LG has established itself as a company strong enough to provide components to its direct competitors.

Price

Pricing strategies are more complex and diverse for global brands like LG. They cannot come up with a pricing strategy and apply it to every market they enter. All markets have their specific preferences and abilities to pay. Thus, if the brand wants to capture the market, they need to have appropriate pricing for the location.

LG could not have expanded if it did not have flexible pricing for every market. Before market penetration, LG decides on the product range and the pricing model that will suit the location. After all, the customers must be able to afford the products for the brand to succeed.

Overall, LG targets the upper-middle and premium classes of customers. Their business model includes the customers that want the best quality at the best price. Fortunately, LG has earned that exact reputation of having the capabilities to develop and provide such products.

Place

Localization is typical for a global brand like LG. They make sure that their product offerings match the local preferences of the customers. Consequently, they adjust the products that they introduce to the markets they enter. For example, LG introduces Cineplus and Sampoorna product range to Indian markets. These lines are more affordable for local customers.

In our technological era, online presence is equally if not more important than physical presence. For a global brand, it is logical to have a global website. The global website itself redirects users to the websites of local or regional websites. The global website carries more of an informational purpose and serves as a connecting hub. Local and regional websites provide an experience that is more diverse to the customers compared to the global website.

Currently, LG is present in more than 150 locations worldwide. Their regional facilities cover the local demands and provide workplaces for tens of thousands of people. LG feels responsible for the global business environment, like a true brand of planet brand.

Promotion

LG wastes no effort in building a strong brand image in the eyes of customers. Their promotional activity is the living proof of that. At some point, LG products might not need any significant introduction. Nevertheless, LG bets on investing in campaigns that touch the emotional sides of consumers.

Campaigns of LG are often stories that have a large involvement of the brand in them. The campaign that we discussed the most during our journey is “Life’s Good”. The campaign does not have the primary intention of introducing a product or a service. They just present the lives of people that have LG around. Sometimes, LG has a turning role in lives.

In one of the campaigns, LG acts like an object of rich spiritual value. The ad shows a girl with the dream to reach the stars. Her mother sells the TV to provide the education her daughter needs to realize her dreams. Later on, when the girl becomes an astronaut, she sends a brand-new LG TV as a gift of gratitude to her mother.

It is out of the question that LG has most of the marketing channels covered for their promotion. TV ads, printed media, social media presence and many more are in the arsenal of the company.

LG has come a long way to becoming a global brand trusted and loved by its customers. Their success is the fruit of their passion for changing the world with their brand. Their rich product portfolio leaves no doubts that they can satisfy the most demanding customers. LG has set the bar high for their competitors. With an accurate segmentation strategy, followed by constant investment in R&D, they have a clear vision of the future. That is it for today; make sure to check out more posts like this on our website.