Monday, June 02, 2008

LG declares its strategic plan to become a 'Global'company

In a strategic move toward becoming a more ‘global’ company, LG Electronics announced its restructuring plans and entering into new product markets. LG CEO, Yong Nam, said that LG had aimed to be the best corporate brand in each of the 140 markets it operated in and would do so by increasing its marketing expenditure and restructuring business divisions. He further said that they wanted to make it completely unimportant to consumers where LG was located rather focus on how they feel about LG’s products. reports:

LG cited its US$400 million marketing spend increase over 2007, of which $100 million was spent on its recent Scarlet TV launch, as an example of its marketing direction.

The company admitted, though, that money itself would not be enough, hinting it had undertaken “unique, aggressive campaigns” to help increase brand awareness.

Because of its high expenditure in marketing, the company saw an increase in brand awareness in the USA; one of its major markets. LG said that their division restructuring will go on through the next five years. It would also venture into businesses such as, B2B solutions, healthcare, and energy. LG expects that these changes would yield into sales increase by 10%, profit by 6%. To achieve the company’s goal, LG also hired some non-Korean executives.

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emem said...

LG should also consider increasing their brand name in Asia as their marketing technique.

mobile phone reviews said...

LG brand has definitely grown from a low end cheap brand to a high quality brand in the last few years. This has been helped by the quality TV's and mobile phones they manufacturer.