Marketing Strategy and SWOT Analysis of LG
What type of an item have you ever purchased from LG Brand? A mobile phone, a computer, or maybe a refrigerator? LG Electronics Inc. has more than 82.000 employees and 110 subsidiaries, market shares in more than 80 countries. The company generated a revenue of approximately 54.4 billion US Dollars in 2018 due to a wide range of electronic products. Are you already eager to know how the company achieved success in the electronics industry? Let’s investigate Marketing Strategies and SWOT Analysis of LG Electronics Inc. below.
First of all, let’s commence with the Mission and Vision Statements of LG.
Mission Statement
We wish to maintain our hard-earned reputation for bringing added value to the lives of consumers. The Mission Statement clearly explains what their fundamental pursuit is in this business sphere. They have a focus on the fame they have achieved through hardships that aimed to bring a new hue to the lives of their customers.
Vision Statement
By providing differentiated customer value, LG Electronics will pursue earth environment preservation, sustainable social advancement, and improve the quality of life for stakeholders. The Vision Statement of LG claims that keeping the environment out of sustainable damage is the priority for them as they are meant to evolve green innovations. They tend to minimize the waste and enhance the efficiency of their goods, promoting the health and safety of employees, customers, and societies as a whole.
Let’s take a look at the branding strategies LG utilizes
To start over let’s have a look at a post from Instagram official account of LG and explore the messages it sends to its followers.
In this post you see, a young female standing near a refrigerator of LG Brand, who claims as an experienced individual that the fridge has everything that she could want in it. Like, it sends a message that the refrigerator corresponds to the standards and needs of customers, mainly the capacity, shelves, preserving quality, and design. There are properly arranged vegetables and fresh products that have been stayed longer in an LG fridge. Thus, one can try to make sure to keep and enjoy healthy fresh food, in aid of LG Brand.
As the brand proposes transformative improvements that ease customers’ life and supports welfare, it tends me to conclude that LG belongs to Magician Brand Archetype.
Desire: to obtain knowledge about the functioning methods of the universe
Goal: to make even inner desires come true
Strategy: to make a vision-purpose and pursue it
Levels of Magician
Level 1: Emergence of fancy and actual guesses and ideas
Level 2: Supernatural power appliance and transformation experience
Level 3: the experience of move in a stream
Level 4: marvel, shift from vision to objectification
The Magician is a good identity for your brand if:
- The produced goods are innovative and transformative
- It is a user-friendly item
- The products are new and synchronized with the actuality and usability
- It is a medium priced one
- It pledges to have positive impact on the customers.
Brand Archetypes. Why do we need them in practice?
Our communication strategy may have multiple messaging approaches. But there is some logic that unifies all these and it is called communication based on the archetypal branding. A company may have many messages, but they do not have something in common. For example “Do everything easily”, “Go ahead and be powerful” or Dig deeper and be experienced”.
These 3 quotes have different goals and bring different subconscious effects. One is about Being a Hero, another is about gaining more experience. These are 2 different directions of messaging and the logics of Brand archetypes bring more uniqueness and clearness here. Just read the book “8 steps to a complete archetypal branding” and you will have more experience in communication based on archetypes.
Brand Archetypes. Why do we need them in practice?
Our communication strategy may have multiple messaging approaches. But there is some logic that unifies all these and it is called communication based on the archetypal branding. A company may have many messages, but they do not have something in common. For example “Do everything easily”, “Go ahead and be powerful” or Dig deeper and be experienced”.
These 3 quotes have different goals and bring different subconscious effects. One is about Being a Hero, another is about gaining more experience. These are 2 different directions of messaging and the logics of Brand archetypes bring more uniqueness and clearness here. Just read the book “8 steps to a complete archetypal branding” and you will have more experience in communication based on archetypes.
Now it’s time to conduct SWOT Analysis of LG Electronics Inc.
Strengths
Great Variety of Electronics: LG Company offers its customers a wide range of goods related to electronics. For example, One can find anything he/she wants to purchase in one brand store, where the focus is on quality.
Wide Distribution Network: LG makes its products available in more than 80 countries in the world, utilizing distribution sources of the partners. In aid of this means, the company has introduced the Glo-Cal Strategy, which means be Global act Local in order to market the goods.
A Top Electronics Manufacturer: LG is one of the top lists of Mobile Manufacturers globally. It has been purchased and rotated by virtue of its simple design, easy to use the opportunity, technologically advanced, and reliable facets.
Sponsorship in Sports and Entertainment.: LG continually enhances its branding visibility through sponsoring sports and lifestyle events, like ICC cricket world cup, Formula one championship, soccer matches, etc. The company recently launched a first-time partnership with the NCAA, teamed with Maple Leaf Sports & Entertainment in a deal that spans the NHL Toronto Maple Leafs, NBA Toronto Raptors, and AHL Toronto Marliese. As the brand is a rapidly growing one, it needs to develop acquisition and emotional interconnectedness with people.
Weaknesses
The lack of Cash Cow: LG Company does not have a constant venture that always has a high demand and sales. In business jargon language, there is no cash cow in the electronics company.
Management skills: By virtue of its extensive market share in white and brown goods, it has not given decent attention and appliance to all the product categories. This causes to lose the market share in TVs and refrigerators’ compared to market leaders.
Demand Forecasting: The LG Electronics Company is not prepared well enough for demand and sales forecasting. They always keep high inventory in many of the products. In other words, they still invest in channels. Nevertheless, this prompts to miss a chance of keeping pace with competitors.
Opportunities
Market Development: There are still many locations and subsidiaries that the company can enter and establish its market there. Making goods accessible in more societies will surely nurture the growth rates.
Increase of Portfolio: After making a proper demand forecast, the company can enlarge the wide variety of products in vertex to highly sold ones. Mainly, taking the focus on more advanced quality, opportunity mix, differentiating design, etc. It may also emerge a chance to obtain a comparative or absolute advantage above the keen competitors.
New Pricing Strategy: As LG can produce a new good or a new category of existing items, it can exert flexible pricing strategies. This will ensure their customers’ fairness and attract new clients to generate a new breath of growing sales.
Collaborative Partnership: As the company has always been included in varying partnerships with advanced technological companies, it still has a chance to make further cooperation with different infrastructure corporations. Due to applying this opportunity, both companies will be able to share their experience in fast-developing industries.
Threats: Government Policies: The company can sometimes meet lawsuits that may be unable to rotate the goods adequately. For example, regulations related to solar and energy conservation or liability claims. As in every country, different laws affect the industry significantly and enforce switching to a new innovative source.
Stagnant Urban Demand: LG Company has over-dependence on stagnant urban demand, which is considered to be riskier for the company. The threat to fail in the operations concludes that the growth rate of the stagnant urban market is quite low.
Price War: Other competitive companies in this industry are leading ones in the Korean Market. For example, Samsung, Panasonic, Phillips, Electrolux, etc. can beat the company mainly in the price-sensitive and low-income markets. The cost of raw materials and the labor force that is continuously increasing has adverse effects on the company’s profitability.
Lack of supply of newness: LG Company has no regular supply chain of innovations. The company has many types of electronics with its subcategories, but all of them are reflections of the advanced newness of leading competitors. Furthermore, in producing a new item, there is no regular supply of the good to the existing markets.
Now, let’s discuss the segmentation strategy of LG Electronics.
To do so let’s take a look at a commercial of LG Electronics.
The advertisement displays the emotions and reactions of young people who cherish happy moments, fun, entertainment, and enjoyment. They are looking for every single moment that can make them cheerful and united. They like to live almost every day of their lives without leaving out amusing minutes, as it seems like the final one.
They like taking pictures of those moments. Here are the mobile phones and gadgets of LG products that allow shooting. As they value the easy-to-use features of the goods, quality, design, and fashion, which will go on with their characteristics, they are fond of choosing LG Brand. These facets described above tends me to think that the target segment of LG Electronics Inc. is Carpe Diem.
What do we know about them, their brand usage and adoptions, lifestyle and values, activities, temper?
Lifestyle and Values
Carpe Diems are more than enthusiastic in life dynamism. In general, they live for enjoyment, fun, pleasure, happiness. While seeking these emotions, they quite frequently go out with their friends and squander time together.
They tend to go to more upscale places, as they can afford it. Carpe Diems perceive the idea of being financially independent is the key to freedom, as they appreciate freedom because it seems they can do whatever and whenever they want. This target segment is opting for career advancement via learning or starting a business on their own.
They are risky and adventure-seeking people and are always looking for new challenges in sports, travel driving, etc.
Carpe Diems are spontaneously organized for professional and career life; however, they are more fond of making flexible working hours for themselves than obligating the written ones. People of this target segment pursue new trends of music and body workouts. They often do exercises and eat healthy and organic food.
Furthermore, Carpe Diems listen to radio above the average during their lifetime and use the Internet. However, they are not active TV viewers. They are interested in programs of cars, sports, movies, technology, innovation. The Internet connection is mainly to keep in touch with friends via social media and be aware of the latest news. Sometimes, they take part in quizzes and other like challenges via the Internet.
Brand Usage and Adoption
Carpe Diems are more curious about highly qualified brands. Their standard of living can perceive this they are opting for. In other words, this target segment prefers quality over quantity. As Carpe Diems usually follow the latest trends and values the image of the brand, they are meant to buy fashionable and highly advanced goods to keep up with the pace. The focus is on trends coming from the West.
Besides, they are brand fair. They hardly take into consideration the idea of trying a new brand or store when they are already used to an actual one. Carpe Diems strongly believe in their earlier choices and are unwilling to change decisions related to brand options. Purchasing cheap ones are not their aim but the best one.
The target segment likes to spend money on shopping, as they enjoy the new items they buy. They are always in a daily search for personal satisfaction they can acquire from shopping.
Interesting Facts about Carpe Diems
- They run an extra active lifestyle: mainly partying in trendy pubs, cafes with friends.
- They are curious about cultural and fun events. For example, they like to visit museums or wine cellars.
- They are interested in reading books in their available time. The majority of the books are about sports, biographies, and literacy.
- Like to spend time playing cards.
16 Personalities (why do you need them in your business?)
This is the main secret of the success of LG – Right targeting. Carpe Diems are one of the most powerful and solvent segments in 16 personalities. You also should choose the right target (ideal buyer persona) for your business and in this context, you should research all 16 Personalities, 16 types of clients that you may meet during your daily business and marketing activity. Here is the book “16 Personalities” (e-book version), which includes all these types of clients. This book will give you a key to the heart of your dream client. By recognizing all 16 Personalities, you will easily find a target customer that matches your brand.
To sum up, we conducted SWOT Analysis of LG Brand. Moreover, here are described above applied Marketing Strategies, Brand Archetype, and Target Segment of the company. We hope this blog post gave you the answers of the questions you were seeking. Check out the main page of our Website for more posts like this.
