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Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in over 110 operations including 81 subsidiaries around the world. With 2007 global sales of USD 44 billion*, LG is comprised of four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG is the world's leading producer of CDMA/GSM handsets, air conditioners, front-loading washing machines, optical storage products, DVD players, flat panel TVs and home Theater systems.
LG's efforts continue to enhance the global presence of the LG brand and to maximize profitable growth. In particular, LG Electronics will focus on achieving profitable and sustainable growth in the mobile communications and digital display sectors to strengthen its leadership in the IT industry, while at the same time increasing its market share in the home appliance and digital media sectors.
* Before Audit, as of 2007, Unconsolidated
** 2008: 1 USD = 885 KRW; 2007: 1 USD = 929 KRW
Read more at www.lge.com/about/corporate/overview.jsp
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| LG Electronics SA (Pty) Ltd took over control of the marketing and distribution of LG products from the Barlows GoldStar company in March of 1997. This was almost simultaneous with the launch of the LG brand onto the international and South African market to replace GoldStar.
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| On entering the market LGEconducted both consumer and trade surveys to establish the relative positions of the various brands in the market as well as trade perceptions of what deliverables were expected of LG and how competitors were shaping up relative to these expectations.
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The marketing strategy formed as a result was simple
To fast-track consumer and trade awareness of the brand by means of an aggressive advertising campaign
To fast-track consumer demand for LG by means of aggressive brand and product advertising.
To create a positive environment for the trade to stock and sell LG products by means of excellent sales support and incentives.
To provide World-Class technical and after sales support to consumers - against the established background of a very low expectation of good service, and trade
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| The result of these strategies is that consumer unaided awareness of the LG brand has improved dramatically each year. From a lowly 6% in 1997 to over 70% in 2003. This is an astonishing feat when you consider that LG is still considered one of the "new kids on the block".
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| The marketing strategy has now progressed as awareness of the brand has reached maturity. The objective over the next few years is to establish LG as the South African consumer electronics brand of choice, and reinforce their status as a 'National Brand.'
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| The Business |
LG Electronics South Africa has achieved tremendous growth in terms of revenue every year:
1997 : R300m
1998 : R430m
1999 : R621m
2000 : R778m
2001 : R1 106m
2002 : R1 469m
2003 : R1 751m
LGE has three distinct areas of focus; Digital Appliances (DA), Digital Display and Media (DDM), and Telecommunications Equipment and Handsets.
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| Digital Appliance Company |
| The Digital Appliance Company is fast becoming the leader in the global appliance market, already ranking number one in air-conditioners and microwave ovens.
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| The marketing strategy has now progressed as awareness of the brand has reached maturity. The objective over the next few years is to establish LG as the South African consumer electronics brand of choice, and reinforce their status as a 'National Brand.'
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| In 2000, LG Air-Conditioning reached world No. 1 position, and currently enjoy the status of number one sellers in 41 countries,
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| After recording total sales of US$2,2 billion in 2002, LGE plans to aggressively target the premium air-conditioning market to increase sales to US$ 3,5 billion by 2005. This will be achieved with there revolutionary products such as Artcool and Multi-V.
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| LGE recently launched the world's first Digital Home Network. A range of home appliances, including an air-conditioner, which are linked together via a network and operated over the Internet.
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| Digital Display and Media Company |
| DDM provides cutting edge digital products such as Plasma and Liquid Crystal displays as well as rear projection and flat screen monitors. The business also includes Information Technology products such as optical storage devices. In South Africa, LGE is an industry leader in monitors, plasma display panels, optical storage, DVD players and home theatre products.
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| Telecommunication Equipment and Handset Company |
| The business provides total solutions ranging from wired and wireless handsets to telecommunication equipment. LGE recently became the 5th largest manufacturer of cellular handsets in the world. LG Mobile is the newest of the LG businesses to operate in South Africa.
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| After sales service - Number one |
| In addition, trade research shows consistently over time that the number one priority in terms of expectations from suppliers is good after sales and technical service.
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| LGE responded by providing a 'world-class' service which immediately resulted in positive trade perception - as indicated by ranking LGE as providing the best service in the industry consistently from 1997 through to today.
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| LG was the first electronics company to offer free service, a concept which has been mimicked by many competitors.
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