LG shifts marketing focus to premium range

LG Electronics are shifting their home appliance focus from away from commodity products to its high value premium product range in the Middle East, as part of a major marketing strategy shift.

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By  Tim Addington Published  September 8, 2005

LG Electronics are shifting their home appliance focus from away from commodity products to its high value premium product range in the Middle East, as part of a major marketing strategy shift. The Korean firm is hoping to net global sales of US$14 billion by 2007 and become the world’s largest appliance manufacturer. Currently, LG’s premium product market, which includes refrigerators, vacuum cleaners, washing machines and air conditioners, accounts for 20% of its business, with cheaper commodity products at 50%. The company wants to see a 30% share in both categories. “Even though LG has strong brand awareness in the region, the sales of our premium products in the Middle East need a boost,” said David Park, vice president and head of overseas sales and marketing, LG Digital Appliance Company. “The goal of the company is to become the number one brand worldwide in the home appliance sector by 2007 and increase global sales to US$14 billion. “We are focussing our production and marketing efforts on high end products in the appliances market. To keep pace with our growth, we now need to fine tune our marketing strategy and focus on premium products.” LG said it would be working with its channel partners to promote its premium range, as well as developing new products that deliver “high value” to its customers. The company hopes to takes sales away from competitors such as Whirlpool in the United States and Electrolux from Sweden. LG claims it is recording 20% growth in digital appliances in the Middle East every year, and is hoping to achieve overall regional sales of US$2.8 billion this year.

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