LG Electronics seeks premium image

It hopes the efforts will help to cre¬ate a strong image for LG as a premi¬um brand.

Under its new strategy, the compa¬ny will focus on developing stylish designs and smart technology, market response, abovetheline activities (advertising through main media channels) and supporting dealers, retail partners and talented people.

LG selected 28 highpotential deal¬ers out of its 400 nationwide as its Starz Dealers, who will have responsibility for building strong awareness of its pre¬mium products in local markets.

Those dealers do not have to sell only LG products. At least 30 per cent of products in their shops must be LG products and the rest can be other brands.

LG is allocating Bt25 million for renovating their product displays and marketing support. The company has set up a team especially to oversee per¬formance and to support the dealers, including quarterly meetings.

The company allows the dealers to create their own marketing campaigns and activities that fit consumers' behav¬iour in their local markets.

"There is still huge market poten¬tial for premium products in big cities nationwide that we haven't got into. We are trying to develop valueadded products and become a premium brand, which would also help us to avoid sinking in a price war," said deputy managing director Alongkorn Chujit.

He said the company had started Starz Dealers with its home appliances because the products already had strong awareness in the market. In addition, the category is able to gener¬ate high profit, which will be used for supporting the project.

Also, displays of its home appliances by dealers are also quite prominent compared to other brands.

LG's premium home appliances consist of washing machines, refriger¬ators, microwave ovens and vacuum cleaners.

LG plans to appoint 22 more deal¬ers as Starz Dealers next year and use Starz Dealers to sell its other products in the long run.

Alongkorn said Starz Dealers was implemented as part of LG's global strategy, which has already been imple¬mented in many Southeast Asian coun¬tries.

The company expects the effort to help its image as a premium brand to emerge within five months.

LG achieved sales of Bt1.75 billion in the first half of this year. It expects to achieve the same amount during the rest of this year, representing sales growth of 18 per cent.

The overall homeappliance market (excluding air conditioners) is esti¬mated to grow by 3 per cent this year to Bt18 billion. Of total sales, 75 per cent are contributed by washing machines, 12 per cent by refrigerators, 10 per cent by microwave ovens and 3 per cent by vacuum cleaners.

LG has allocated Bt170 million as its marketing budget for this year for the product group.