WINNING THE NORDIC CONSUMER ELECTRONICS MARKET
Background
LG is the world’s leading producer of flat panel TVs, mobile handsets, air conditioners, front-loading washing machines, LCD monitors and optical storage products. LG has grown remarkably as a successfully managed company throughout the world over the last couple of decades. In the Nordics, LG has turned a non-existing business into a 500 million USD company over the past decade.
A market-spanning transformation is currently underway to inspire each local unit to become even more brand and consumer driven. Although global brand and marketing guidelines exist, each local unit has the right and obligation to ensure that brand and marketing plans are based on solid local market consumer insights
LG’s challenge
Although LG Electronics Nordic has made considerable progress in terms of growth and brand building over the last years, there are certain brand issues that need to be resolved. In order to accelerate profitable growth going forward, LG needs to become a truly consumer and brand driven company.
LG Nordic has a very high brand awareness, but needs to build a more distinct brand position that appeals to the Nordic consumers’ hearts and minds
LG Nordic needs to change an established “value for money” perception to a more premium price position on the Nordic consumer market
LG Nordic needs a concise brand platform as a base for differentiation and to guide all market strategy work
The LynxEye Solution
A strong Brand Strategy for LG Electronics Nordic to be lived internally and loved externally. LynxEye developed a Nordic Brand Strategy for the LG Electronics mother brand as well as the different categories Washing Machines, TV and Mobile. The strategies are based on in-depth consumer understanding of the Nordic Target Group, while maintaining the link to LG’s global brand platform.
Based on qualitative Target Group research, we identified which key attributes LG needs to build and emphasize throughout the marketing mix in order to move the brand toward the desired position. We also discovered “the secret” of how to unlock the heart of the Nordic home electronic consumer. This Core Target Insight should be integrated in all decision making in the future to secure relevance for the Target Group.
The first steps toward implementation of Total Brand Management. An important part of living the brand strategy was to align it internally. As the strategy was relevant and customized for the Nordic consumer market, it created internal pride and emphasized the strengths of the brand. From start, we worked continually with a broad reference group that consisted of members from all different parts of the organization. Both the reference group and the project team participated in identifying gaps and critical actions, relevant to kick-start the implementation and build awareness around it.
Results
LG has in-depth knowledge based on consumer research on the brand’s strengths and weaknesses today, and a clear Brand Strategy that defines how to build a unique and attractive market position on the Nordic market
LG now has an actionable tool to evaluate global innovations, product propositions, market communication and distribution in order to be relevant for the Nordic consumer
LG has a clear process to determine which dimensions and attributes of the Brand Strategy should be emphasized in their Nordic market initiatives
LG did some quick visible changes in the office to communicate the change process, e.g. wall photos communicating the Brand Values, a “wall of fame” with awards that LG has won, a face lift of all conference rooms including new names reflecting key words from the strategy and a large company conference for all employees focusing on the Brand Strategy
LG initiated an internal project lead by HR called “Winning Spirit” – to animate a new way of thinking throughout the organization