Communication with Customers
Based on the Brand Identity(BI) strategy of “Enriching Lives through Technology”, LG Electronics is striving to fulfill its promise customers. In addition to listening to the customers through diverse channels, LG Electronics is actively applying the customers’ opinions to product development, service improvement and marketing activities.
STRATEGIC BRAND COMMUNICATION
“Life’s Good” conveys a message that LGE enriches customers’ lives with its products, services and technology, and creates a unique brand identity of LG Electronics. In order to highlight the Company’s dedication to delivering differentiated values that customers truly need and want, LG Electronics has introduced a new Brand Identity redefined from the customers’ perspective. New Brand Identity redefined based on the core value “Delivering values that customers truly need and want,” the new LG brand identity is built on the following concepts: “Customer Value (Inspired, Empowered, and Smiling),” verbal messages translating LG’s own unique emotional values into the language spoken by customers; “Brand Promise (Innovation that makes you SMILE),” the very reason why customers choose LG; and “Brand Vision (Life’s Good),” the ultimate goal and purpose of the LG brand.
Unveiled in August 2013, the new BI introduces the new slogan “It’s All Possible” to convey the values that it stands for, and the newly added “LG Red Circle” to visually support the message. The new BI system is being implemented to all LG brand and product campaigns across the globe to ensure more powerful and consistent customer communications.
In celebration of the 20th anniversary of LG brand name declaration, we established a new brand intent to further strengthen our brand image as “the market-leading innovator.” A brand intent conveys what we aspire to become and what we want our customer to see us as a brand. It consists of functional and emotional attributes, which are clearly defined so that every member of the organization can engage in corporate-wide branding effort with a precise understanding of the brand ideal. According to the brand intent, we will strive to provide customers with something new, beautiful, and convenient through every product and service, and help our customers perceive LG Electronics as progressive, refined and engaging brand providing the best solution to customers. We plan to carefully implement the new brand intent to all business areas including products, marketing, corporate culture, and become an innovative brand that delivers a better life to its customers.
COMMUNICATION FOR PRODUCT DEVELOPMENT
LGE is conducting a thorough market and customer analysis to introduce products that satisfy customer needs. A close study of local customers’ lifestyles and collaboration with local research organizations are also part of our effort to identify customer needs.
Since 2006, LGE has developed a mobile phone that can read books. Together with LG U+(former LG Telecom), LGE has donated a total of 11,500 book-reading mobile phones to visually impaired users by 2013. This product was specially designed for visually impaired users based on the feedback from an advisory committee consigned by the Korea Blind Union. The phone includes the Text To Speech(TTS) feature which converts texts into sound. Moreover, the phone enabled users connect to the “Auto Book Reading Library” operated by the LG Sangnam Library and access over 5,000 digital voice books in such diverse fields as humanities’, culture, science, and arts.
To develop customized TV for senior citizens in care facilities, LGE visited over 100 care facilities for senior citizens and collected various opinions. Long-Term Care TV provides some special features such as enlarged screen size, radio, schedule reminder, reduced surrounding noise, and simpler remote control so that the elderly can easily control the TV without difficulty. In addition, the TV has an automatic detection feature that turns off the TV when no one is watching it. This feature was designed to save the energy for the elderly who often leave the TV on and forget to turn it off.
In 2009, LGE developed an air conditioner model that can prevent dengue fever, one of the most prevalent endemic diseases in the South East Asian region. Dengue fever is a virus-caused disease that is spread by mosquitoes with symptoms including a sudden high fever. Developed through a joint two-year effort with an Indonesian agricultural college, the air conditioner produces ultrasound, repelling mosquitoes or at least preventing them from attacking humans.
LG Electronics hosts the “LG Innovation Festival (InnoFest)” road show to showcase strategic products targeted for the regional market. The annual road show tours major overseas locations to introduce products, technologies, and marketing strategies tailored specifically to the regional markets to major buyers and press members in a festive atmosphere. The 2014 roadshow kicked off in Istanbul in February (for MEA), before visiting Venice in March (for Europe) and Seoul in April (for Asia). The 2014 events featured an expanded range of products in home appliances (refrigerators and washing machines) and consumer electronics (TV, A/V, and smartphone products). At LG Electronics, Region Representatives assume the leadership of business operations in their respective markets, and events like the LG InnoFest serve as an effective global marketing platform. Building on the success of the roadshow, we will continue to expand local-area marketing activities to satisfy customers around the world.
Prosumer Marketing Communication
LGE has been involve prosumer marketing activity that allows consumers to be directly involve in the development stage of products. One main example of this is the TROMMIZ program, in which 15 housewife bloggers participated in the development phase of the TROMM washing machine. By getting involved with product planning, providing online suggestions, and giving feedback after usage, the selected participants act as a bridge between LGE and consumers.
LG Smart TV Lab, a smart TV prosumer group, was comprised of 20 IT professionals and power bloggers invited by LGE, the group is helping the company to develop a smart TV with useful features and applications, testing the product before its release. By actively incorporating LG Smart TV Lab members (endearingly referred to as “consumer engineers”), LGE plans to introduce customer-centric smart TV. The members are also promoting LG Smart TV on their blogs and the LGE website, satisfying curiosity of consumers and sharing useful information based on their first-hand experience with the product.
Customer Insight Marketing Communication
LGE is organizing events and engaging in campaigns with diverse themes and concepts tailored to local customers, improving LGE’s brand image in the global market and contributing to revenue growth.
Sports Sponsorship Communication
LG Electronics believes that sports sponsorship is one of the most effective ways to engage with customers around the world on a more approachable level. We also understand that sports sponsorship is, and should be, a long-term and dedicated commitment to honor the sport and its fans. In 2014, we invited the German professional football club Bayer 04 Leverkusen for the “LG-Bayer 04 Leverkusen Korea Tour 2014.” LG Electronics is the official sponsor of the Bundesliga football club, which is famous among Korean football fans for having the Korean national team member Heung Min Son in the squad. The tour was a great success, attracting huge crowds at every stop. A portion of the proceeds from the tour was donated to the Korean Youth Football Association. We also organized the nation’s first international women’s baseball competition, the LG Cup Women’s International Baseball Tourna- ment, and hosted its inaugural event in August 2014. The tournament is expected to expand the infrastructure and fan base of the sport. As a long time supporter of cricket leagues and official sponsor of the International Cricket Council since 1999, we ran the online campaign “LG 100 Greatest Fans” in celebration of the 2014 ICC World Cup and delighted cricket fans from countries such as India, Australia, and South Africa. In addition, we sponsor Major League Baseball, the U.S. National Collegiate Athletic Association (NCAA), and select LPGA and KLPGA tour professionals in order to reach out to fans of various sports.
Responsible Marketing Communication
In 2009, LGE established and distributed “Code of Conduct” by which employees across the company are expected to abide to create value for stakeholders, including customers, shareholders, suppliers, communities, etc., and is conducting training on its purpose and intent. The LGE Code of Conduct stresses that employees must act with integrity and exhibit the utmost sincerity in the following four areas: responsible marketing, product safety, product standards and protection of customer privacy. In 2011, we amended our Code of Conduct to include clauses on the safety defect reporting system and precautions to take when handling refurbished products, while strengthening relevant clauses to enforce responsible communication with customers.
Digital Marketing Communication
As a response to dramatic changes in digital media trends and resulting shifts in customer needs, LG Electronics employs a wide variety of digital media techniques to customer communications. In addition to offering comprehensive brand and product information at our corporate website (Korea: www.lge.co.kr, Global: www.lg.com), we flexibly implement a wide range of techniques and media (i.e. social media, viral videos, consumer participation campaigns, loyalty programs, etc.) to best accommodate each given digital channel, thus achieving differentiated customer communications and building customer trust in the LG brand.
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