Exclusive Interview When
Exclusive Interview When It’s All Possible, LG Electronics’ Executive Vice-President and Global Marketing strategy in exclusive interview with IFA International For the occasion of IFA 2013, LG has unveiled the new slogan It’s All Possible, in its efforts to present itself as a lifestyle company rather than a manufacturer. We asked Ki-Wan Kim, executive vice-president and global marketing officer of LG Electronics, what the manufacturer’s goals are with this. Because everything is changing – our lifestyles are always changing – consumers’ expectations are also changing. So as a manufacturer for the full range of consumer electronics products, we feel some responsibility to comply with these expectations. We conducted some consumer insight research and came to the understanding that consumers are always seeking more advanced technologies, with more possibilities from advanced products. Until now, LG’s brand slogan has been Life’s Good. While LG’s brand image is well recognised as being human, warm and accommodating, we came to learn that consumers are expecting something more creative, bold and innovative. With the existing brand identity, it was hard to communicate this with consumers in a satisfactory way. So we are not just replacing existing brand identity, but adding something – some essence – to our brand identity. This is innovation and creativity. It’s challenging, adding something active – something bold – to our existing brand identity. This is not just words or an expression. We are doing this with our products and our services in such a way to communicate with the consumers. In other words, ‘when it’s all possible, then life is good’! The position of LG on the consumer electronics, smartphone and home appliance markets means competing at a very high level in several areas and against key players not only from Korea, but also Japan and China. What are the main attributes of LG that can put you in a leading position in each market? That’s a challenging question. It’s true we cannot just pick up one product, but revenue-wise, TV and Home Appliances are adding to both our top-line and bottom-line. Also we are enjoying good brand image with the digital products. But then there are emerging products like the mobile phone or IT products. For example here at IFA we have announced the G-Pad and also in-car devices. These are growing sectors, so we are investing in them as well. Geographically, the big markets like the USA or Europe are showing flat growth. But emerging markets like Latin America or Africa are still growing; especially African countries. The electrification of a number of areas there is still under way, so the consumers in these places will consequently become very good potential customers. For channels and marketing activities, we are currently putting more efforts into these areas than the mature markets. How important is it to have coordinated communication through sales channels in order to support the ‘pull’ effect of your big advertising campaigns, and how are you doing this? Our goal is always the same: how to satisfy shoppers in the stores together with the dealers. The retail sales people consequently have to know about the technology and products of LG, and we on our side have to know about the shoppers’ behaviour in the stores. Putting both of these factors together, we improve the win rate in the stores. So we are supporting them substantially in this respect. The history of our industry has often shown the importance of a GMO in the success of a manufacturer with an international vocation. Ki-Wan Kim Executive Vice-President and Global Marketing Officer, LG Electronics What is the biggest issue you face in this position? Understanding consumers is the biggest issue. Products and services are just the outcome of this understanding. How quickly and accurately we can identify the consumers needs, and how to quickly and precisely reflect these needs, this is the key factor for success. 28
Exclusive Interview Life’s Good Officer explains his company’s new marketing LG’S FLAGSHIP SMARTPHONE LAUNCHES IN SEPTEMBER LG Electronics is launching its LG G2 flagship smartphone in two of its key markets, the US and Germany, starting in September. Significant hardware features of the LG G2, which was developed based on LG’s research of consumer lifestyles and behaviour, include an intuitive and functional Rear Key, edge-to-edge 5.2-inch full-HD IPS display with minimal bezel and long-lasting 3,000mAh battery. LG G2 will be the first smartphone launching worldwide that incorporates a Qualcomm Snapdragon 800 Processor. Ki-Wan Kim: ‘when it’s all possible, then life is good’ But with several topline companies making good products, what you are doing, as the GMO, is often the key factor to the success of the operation… Our products are the reflection of the consumers. It’s not just a combination of technology and design, but a reflection of the consumer insights that we came to know through consumer research. For instance, the G2 phone – our newest smartphone – it’s not just a technology product, but the combination of all the consumer insights that we have gained in this way. All these ideas come through consumer insights. That’s why we have another slogan: ‘To me, you are perfect… we are learning from you’. The previous way of doing our job was inside out. Now, it’s outside in – in a very modest, humble manner. We are learning from you and we are accommodating what you need. Before, we developed our technology, trying to introduce, or to explain what the benefits and strong points are. Learning from you, this is the big differentiating factor. Still, to me, our competitors look to be somewhat arrogant and with no modesty in their manner. They still keep saying, ‘We are number one’, or ‘We are the best’, or whatever. So what? Our manner is “how to satisfy them”… how to make their lives better. Also our new PR is reflecting this attitude. How important is IFA as a launch pad for your new ideas on a global scale? Traditionally, IFA has always been a very “Understanding consumers is the biggest issue” important global platform for LG. For the dealers, as we approach the big Christmas sales time, we are able to communicate with the dealers. We introduce more new product here than at the CES in January, because for LG, the biggest season is November and Christmas. 30% of our annual revenue comes from November, so we have to satisfy the Christmas shoppers.. Hall 11.2 Stand 101 A world-first: the LG Curved OLED TV. Already available in South Korea, US and Germany, LG’s groundbreaking Curved OLED TV marks the beginning of a new era in home entertainment LG BRINGS CUTTING-EDGE SMART INNOVATIONS TO EUROPE LG Electronics is featuring LG’s Smart Home and Smart Living complete with a full line-up of smart-home appliances at IFA. The company is demonstrating the upgraded smart control and remote monitoring capabilities of its smart refrigerator, washing machine, microwave oven and robotic vacuum cleaner. Visitors to IFA can also view LG’s energy-efficient smart home appliances. With an impressive collection of convenience-enhancing features, LG’s state-of-the-art home products are adding value to the lives of consumers all over the world. www.ifa-international.org IFA International • Saturday 7 th & Sunday 8 th September 2013 29
