LG Electronics Aims to Be Truly Multinational, Marketing-Driven Company
“LG aims to become the best corporate brand with top-notch marketing capabilities in each of the 140 countries where we currently operate. We want to make it completely unimportant to consumers where LG is headquartered; all that will matter is how they feel about our products,” said Yong Nam, CEO of LG Electronics. “This will be possible only through a deep understanding of what today’s global consumers really want and by making strategic marketing investments. Being alert to consumers’ needs, both practically and emotionally, is critical to survival today, especially as product lifecycles are getting shorter and shorter.”
Elevating Marketing Capabilities
LG aims to separate itself from other major electronics makers both through its unique combination of advanced technology and stylish design as well as advanced marketing practices. To enhance its brand, LG has increased its marketing investment by USD 400 million over 2007. However, LG understands that it will take more than money to win consumers hearts and minds. That’s why LG has also undertaken some unique, aggressive campaigns to increase consumer recognition and understanding of LG’s brand identity as a sophisticated, refreshing brand that sits at the intersection of function and form.
LG’s focus on marketing investment has already begun to yield results. According to research conducted by LG, the company’s brand awareness in the U.S. market has increased from 65 percent in 2005 to 83 percent in 2007. This wider recognition has resulted in improved profits in North America.
Improving Business Portfolio
As part of its efforts to be a highly profitable organization, LG plans to reorganize its business portfolio during the next five years. This includes reorganizing business units and divisions, expanding outsourcing and participating in new businesses such as energy, B2B solutions and healthcare.
Through its reorganization to improve both its growth and profit, LG expects to achieve at least 10 percent sales growth, 6 percent profit margin, 4 times asset turnover ratio and 20 percent ROIC. LG aims to increase its ROIC from 10 percent in 2007 to 15 percent in 2008, with the target for ROIC in 2010 at more than 20 percent.
As cash flow has become one of the most critical elements of a company’s financial structure, LG is focusing on improving its cash flow as well as ROIC.
Global Standard
LG has also enhanced its management structure by appointing Reginald J. Bull as Chief Human Resources Officer (CHO), an Executive Vice President-level position, last week. Mr. Bull will direct all aspects of ensuring LG’s HR policies and systems are up to global standards.
As a part of LG’s efforts to enhance its position as a global brand and boost performance, the company has been filling C-suite positions with non-Korean global leaders who are overseeing marketing, supply chain and procurement. Last year, the company appointed Dermot Boden, formerly of Pfizer, as Chief Marketing Officer (CMO); Thomas K. Linton from IBM as Chief Procurement Officer (CPO); and Didier Chenneveau from Hewlett-Packard as Chief Supply Chain Officer (CSCO).
With these investments and initiatives, LG expects to achieve its business goals - improving both growth and profit - as well as position itself as a truly global brand.
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About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in 114 operations including 82 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 mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems. For more information, please visit www.lge.com.
LG Electronics 개요
LG Electronics Inc., (KSE: 06657.KS) is the leader in consumer electronics and mobile communications. The company has more than 72,000 employees working in 77 subsidiaries and marketing units around the world. LG Electronics is the world’s largest producer of CDMA handsets, residential air conditioners, optical storage devices and home theatre systems. With total revenue of more than USD 35 billion (consolidated USD 45 billion), LG Electronics is comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media. For more information, please visit www.lge.com.
웹사이트: http://www.lge.com
연락처
LG Electronics Global PR, Corporate Communications
media contact: Judy Pae at 이메일 보내기 , phone: 82-2-3777-7144
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2010년 7월 26일 10:31
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