samsung case study

 

How does this brand use Digital Marketing in its strategy?

1. 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.
2. 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.

Marketing and advertising campaigns

1. “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. This slogan has been a central theme in many of LG’s advertising campaigns.
2. 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.
3. 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.
4. 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.
5. 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 5 Competitors of LG

1. Samsung: It is one of LG’s primary competitors in various consumer electronics segments, including smartphones, televisions, home appliances, and display technologies.
2. Sony: It is a major competitor in the consumer electronics industry, particularly in segments like televisions, audio equipment, and gaming consoles.
3. Panasonic: It competes with LG in areas such as home appliances, televisions, and other consumer electronics.
4. 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.
5. 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.

Example of a Failed Campaign or Backlash from Viewers

A campaign posted by LG of LG Logo Spotted:

What was the issue?
The issue with the company is they post campaigns but there are very less interactions with the campaigns and they don’t advertise either.

What backlash did the brand face?
The brand is facing backlash because they are not connecting with the trends and market.

What did the brand do in this situation?
The brand is continuing that campaign but there is very little engagement as they have a high number of followers.

LG Electronics is the largest player in the consumer electronics market in India, which is worth Rs 35,000 crore per annum. And now it feels the need to take the brand to the next level. From an aggressive price warrior and technology provider, the brand will henceforth be communicated as a youthful enabler of life enrichment,  and of value-added products.

For almost 10 years after it came to the country in 1997, LG had focused on the mass market. Initially LG’s objective was to create a footprint among the sizeable middle class, and other than its aggressive pricing, there was little to distinguish it from other consumer durable companies operating in India. Its product range choices also reflected the portfolio of its then rivals such as Whirlpool, Videocon, and Onida.

Changing profile of Indian consumer durables market

The Indian consumer durables market of today is very different, redefined primarily by the nimble Korean duo of LG and Samsung. Prior to their entry the consumer durables market in India was largely characterized by restricted product choice, very poor after-sales service, and distribution through limited multi-brand outlets. By the time the new millennium came around, LG and Samsung had started making their presence felt. Their priority was to establish an exclusive chain of company-owned and franchised outlets where consumer connect could be much more meaningful than in many of the poorly staffed multi-brand outlets that existed then. The other area which they felt required urgent attention was a service network which would not only ensure customer satisfaction, convenience, good word-of-mouth, and a favorable disposition towards repeat purchase, but could also become an additional source of revenue for the company. Finally, unlike Onida, Whirlpool, and Videocon which then had presence in limited product lines, the Korean companies expanded their product range to cover both home appliances such as washing machines, refrigerators, and microwave ovens as well as entertainment electronics such as music systems, VCD/DVD players and television sets. They wanted to dominate the entire chain of consumer durables for a household.

Though LG and Samsung were initially perceived as similar in their strategic approach, the latter was much more interested in developing a higher-end product range targeted at the more affluent consumer. Samsung’s vision in this respect reflected a shrewd understanding of the changing profile of the growing prosperity in the Indian consumer market. In fact, LG realized that a  sizeable chunk of consumers over the years had moved up the value chain – a space well captured by rival brands like Samsung and Sony, which are also aggressively competing for market share. This shows up in the fact that LG is trailing Samsung in the LCD television market.

Mind over matter

Research carried out by AC Nielsen has shown, according to LG Electronics Chief Marketing Officer LK Gupta, that people associate LG with quality and reliability. “This is because of our wide presence in the country and our service network. Most households have an LG product now,” adds he. However the brand is not perceived as youthful and trendy.

Despite being the largest player in the consumer electronics market in India, LG now feels the need to take the brand to the next level. So LG is making a concerted effort to redefine itself as a youthful and up-market brand. Rivals like Samsung, Sony and Videocon too have turned aggressive. And India is a key element of LG’s global game plan. At the moment, India accounts for about 6 per cent of LG’s worldwide turnover. LG Electronics India Managing Director M B Shin wants to raise this to at least 10 per cent by 2012. By 2015, India will become the second largest contributor to LG’s revenue after the US and ahead of South Korea. It’s a tough challenge and the brand needs to keep the buzz alive to meet it.

So far LG has been known in India for its home appliances and entertainment electronics products, such as audio and video-based products. The product lines where LG intends to make a big splash in India in 2010 are LCD televisions, and in a departure from its past focus, for mobile phones. For the latter, being able to appeal to youth will be a key determinant of success. LG’s advertising campaigns and its recent products like the Jazz LCD TV sets and Chocolate mobile phones reflect this thinking.

The right match

Shin admits that the average age of the LG consumer is above 30. The brand has low appeal among youth. As far as mobile phones are concerned, youth are attracted by music, gaming and file sharing options. LG’s lack of youth appeal is reflected in its performance in the mobile handsets market. In 2009, LG was able to increase its share from 4 per cent to 6 per cent in the GSM mobile phone market. While Nokia’s share went up from 70 per cent to 71 per cent during the period, Samsung doubled its share from 8 per cent to 16 per cent. All three were helped by the fall in the share of Sony Ericsson and Motorola. But Shin thinks that LG’s lack of contemporariness and up-market image is an issue that can be addressed — the question is whether the market is willing to see it that way.