Underdog to Icon LAG Electronics started its Journey when the two low scale Korean electronics companies Lucky and Goldwater Joined forces in 1990 and became LAG (Lucky Goldwater). Since then the transformation from ultra-cheap Lucky Goldwater to the LAG brand that it is today has been nothing short of a remarkable Journey. In 1995, Lucky Goldwater purchased the last remaining American-based TV manufacturer, Zenith Electronics. That acquisition provided the impetus for the plan to upgrade the brand, but it would take a number of years to accomplish this.

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From the very beginning of the of TTS operations LAG has taken up unique marketing strategies to change its brand value and brand image and they have been successful in doing so and become the top name for electronic home appliances. LAG have been named the 7th most innovative company in Business Week magazine’s annual ”50 Most Innovative Companies] story. With a circulation of Just under one million and a history dating back to its first issue in 1929, this is a big accolade from a well-known and respected publication.

LEG comprises of: LAG Home entertainment Company, LAG mobile Communications Company, LAG Home appliance Company, LAG air Conditioning Company, LAG Business lotions Company. To begin, LAG made great improvements in terms of their financial performance. It generated noteworthy earnings, increased their market share, and achieved noticeable results in efficient cash management. It also made significant improvements in innovation, constantly demonstrating leadership in introducing a host of new and creative products.

In addition, LAG broke into the ”Global Top 31 as a result of our efforts in every aspect of our operations. It also brought an increased consumer focus to our businesses, stressing the need to understand and solve their robbers and build closer and more strategic relationships with our partners. Besides this, its multi-talented human resources became more globally-oriented, helping it to secure world leadership in each local market it operates in. Finally, it strengthened their brand position and posted extremely positive outcomes.

The brand is fundamental to everything LAG do. It’s a core asset that affects every part of itsbusiness. LAG promises communication without compromise, performance without effort, comfort without waste, solutions without stress and subtly designs its products o enrich customers’ life with breakthrough innovations. LAG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors.

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This structure can helpyou deploy more transparent, value-creating management activities that help increase corporate and shareholder value. The leaders of LAG light the “fire in their bellies,” to get them to feel passion about the company and connect to their visions and thus pave way for it to reach the sky. A standard training method is used here that is maintained in all nations LAG operates. Training characteristics, design factors that affect transfer of training are maintained appropriately.

Succession plans in LAG are carried out by identifying leadership qualities, designating top candidates, retaining key employees and attract high-potentials and can use it in the process of replacing a CEO, LEG is used to refer to the process of replacing a CEO when the position became vacant due to foreseen or unforeseen circumstances. These days, LEG understand the importance of implementing a succession plan for more and more roles across the company-in some cases extending to the larger population (managerial, repressions, and administration).

Succession planning is also an important way to identify, develop, retain and allocate key members of your workforce long before any talent gap occurs. Lag’s initial step was to try to get distribution in higher-end retailers but this effort was stymied by the low-quality “couldn’t be trusted” perception of the product line. A critical decision in the early sass was to seek distribution in stores like Wall-Mart and K-Mart. The company also started paying 30 percent of its sales to distributors instead of the more typical 25 percent.

Another smart move was roving sales staffers at retailers with expanded training and other incentives so that these sales people would be more likely to recommend LAG to buyers and thus overcoming the previous low-image perception. Primed to become no. 1 with unique and differentiated products and sustainable performances is the goal of LAG. This meaner being a company whose products and services are always unique and differentiated, and posting sustainable performances based on its competencies. Innovation is the hallmark of LAG.

It’s what makes it such a special enterprise. Else’s success is based on ”great products and services. To win in the markets going forward, it must deliver unique and creative solutions, combining technologies based on consumer insights with innovative business models and processes, all backed by the diversity of talent we have assembled. LAG exists to enrich the lives of people. This is the core purpose of its product development, reflecting Lag’s guiding principle of creating harmony among people.

To this end, LAG will continue to innovate products and solutions and every aspect of the business. It will become a company that everyone around the world respects and admires for its ability to enrich lives innovate In order to be the ”world’s best at enriching lives through innovation,] LAG must develop in-depth insights into how the consumers want to live their lives, and develop technologies and business models with high future value that speak directly to those insights. Tivoli. In doing so, it will achieve sustainable and consistent growth in our financial results.

Secondly, LAG must learn new ways of being successful, finding new and exciting product and service opportunities before the competition does. Thirdly, it must develop an ”open culture that fosters innovative thinking, creating a irking environment that values and rewards initiative and provides all the employees with opportunities to reach their fullest potential. Fourthly, recognizing that high-level markets cannot be their only business goal, it must deliberate on where growth will come from, and innovate solutions to meet the needs of emerging segments”including consumers in developing countries.

Last, but not least, LAG must increase their competitiveness. This includes leadership in technologies, backed by smart, speedy, and flexible approaches and a deep-seated confidence in everything it do. When LAG Electronics removed the ”Circulating Investment Structures of its affiliated companies (through the launch of a holding company system’), this enabled the holding company to take full charge of investments. Consequently, LAG Electronics has been able to focus on its own businesses while increasing the overall value of the increasing managerial transparency.

Through a responsible management system comprising of the CEO of LAG Electronics and a Board of Directors, they are taking huge steps in strengthening their competitiveness at both the domestic and international level, in order to maximize corporate and shareholder value. The next building block was consumer advertising. With a motto – consumers are the inspiration for everything we do – LAG is being recognized for their innovations not only in their products, but also within the company structure.

LAG adopted Panasonic “Ideas for Life” and Sonny’s “Like No Other” themes and created the “Life’s Good” motto with obvious connection to the company logo, LAG. To personalize the brand, LAG created a “Cheery Face” transformation of its LAG logo. Since then LAG has become one of the leading electronics home appliances company worldwide and this transformation has also changed the marketing strategy of LAG. Yet the core strategy has always remained the same, being unique and remaining one step ahead of the competition.

LAG keeps up with the demands of its customers by introducing new and innovative products to its different market segments as well as constantly modifying their already existing products according to the latest customer demands and market trends. Transformation of the brand image has prompted LAG to expand its market horizon to a high end target market catering to their luxurious demands while retaining their core customers of the mid income target group. Lag’s new strategy aims to focus on the premium segment of the market that fetches greater margins as opposed to volumes.

The company claims this will benefit its consumers, channel partners and stakeholders as it focuses on products that drive rapid growth and lead in their brand category to create value for customers. Market studies indicate the demand for luxury consumer goods in the Middle East is flourishing as a result of the high income and quality concerned consumers with increased purchasing power. LAG enjoys high brand recognition in the region, it is the second most recognized electronics brand with 55. % unaided brand awareness which represents high purchasing probability for its premium products.

To succeed in its premium marketing efforts, LAG concentrates on staying ahead of the technology curve and develop products that deliver high value to consumers. LAG has also taken up a new channel marketing strategy to reward its distributors and build on its channel successes in the region. Sustaining one market price in all stores, maintaining a price gap with main competitors to retain a premium image, unique promotions for target customers are some of the features of this channel initiative. Over the last year LAG have restructured their centralization of purchases, saving over $2 billion from its annual $30 billion shopping bill. Ђ”Innovation could bring sustainable savings, says Thomas Linton, a 20-year IBM (MOM) veteran purchasing manager who became Lag’s first-ever chief procurement officer in 2008. As it is stated, LAG promises communication without compromise, performance without effort, comfort without waste, solutions without stress and subtly designs its products to enrich customers’ life with breakthrough innovations. 2009 was a very challenging year for all companies. However, in spite of difficult economic conditions and an increasingly competitive environment, LAG weathered the storms and achieved excellent results. Also focuses on internal marketing by providing its employees with different types of benefits and by providing a healthy and friendly work environment. LAG also trains its employees and educates them on the LAG way of life and the LAG values turning each and every LAG employee into LAG brand ambassadors. LAG also makes an effort to contribute to the preservation the environment in its own way. LAG has introduced a line of greener, more CEO friendly products. With the association of long time business partner Energy Star, LAG has been successful in achieving superior energy efficient products and reducing green house gas emission from its products.

This has taken the LAG brand value to the next level giving them a competitive advantage in the fiend of electronic home appliances boosting its sales and revenue. The Journey LAG has embarked upon since the beginning has been a truly remarkable one. It has always upheld its values and prioritize customer satisfaction above everything else and making the life good. Paired with a unique and effective marketing strategy, LAG as always thought ahead of its time and ascended to the top of the electronics market establishing the fact “Thinking ahead is being ahead. Questions for Discussion 1. What triggered Lag’s decision to focus on more high end products? 2. How has the marketing strategy of LAG evolved over time? 3. What are Lag’s core marketing strategies? 4. How is contributing to the environment helping LAG to attain competitive advantage? References: 1 . Http://www. Lag. Com/in/corporate-information 2. Http://www. Highfalutin. Com/marketing/2012/04/gags-brilliant-marketing-strategy 3. Http://www. Inform. Mom/66915. HTML Answers to The Discussion Questions 1 . What triggered Lag’s decision to focus on more high end products?

Mans: The strategy of LAG was the transformation of the brand image has prompted LAG to expand its market horizon to a high end target market catering to their luxurious demands while retaining their core customers of the mid income target group. Because of this strategy LAG gave focus on more high end products. 2. How has the marketing strategy of LAG evolved over time? Mans: At the beginning of the time LAG tried to make a motto to create a positive image in the market. To do it LAG adopted Panasonic “Ideas for Life” and Sonny’s “Like No Other” themes and created the “Life’s Good” motto with obvious connection to the company logo, LAG.

To personalize the brand, LAG created a “Cheery Face” transformation of its LAG logo. Then LAG develop a new strategy. Its aims to focus on the premium segment of the market that fetches greater margins as opposed to volumes. The company claims this will benefit its consumers, channel partners and stakeholders as it focuses on products that drive rapid growth and lead in their brand category to create value for customers. To succeed in its premium marketing reduces that deliver high value to consumers. LAG has also taken up a new channel marketing strategy to reward its distributors and build on its channel successes in the region.

Sustaining one market price in all stores, maintaining a price gap with main competitors to retain a premium image, unique promotions for target customers are some of the features of this channel initiative. 3. What are Lag’s core marketing strategies? Mans: A core marketing strategy is a statement that communicates the predominant reason to buy to a specific target market. It is a critical starting point for long term success. Any effective marketing strategy has a specific focus. The strategy must give the company direction in utilizing its available resources as effectively as possible for reaching the desired audience.

LAG has focused on developing some core strategies which are a) Internal marketing strategy: Internal marketing is a meaner of involving staff at all levels in effective marketing programmers by enabling them to understand their role within the marketing process. It consists of training and staff development, effective internal communications and integration schemes, designed to enhance knowledge and understanding of the overall marketing orientation within the organization. Here, LAG focuses on internal marketing by providing its employees with different types of benefits and by providing a healthy and friendly work environment.

It also trains its employees and educates them on the LAG way of life and the LAG values turning each and every LAG employee into LAG brand ambassadors. B) Channel marketing strategy: Channel marketing is the directing of promotional efforts at specific links or levels (distributor, wholesaler, retailer) in a channel of distribution. It s used to describe the method that controls the flow of goods and services from the manufacturer to the end-user. Here in this case, LAG Company started paying 30 percent of its sales to distributors instead of the more typical 25 percent.

It also provided sales staffers at retailers with expanded training and other incentives so overcoming the previous low-image perception. C) Environmental marketing strategy: Environmental marketing is the marketing of products that are presumed to be environmentally safe. It meaner the promotional activities aimed at taking advantage of the changing consumer attitudes toward a brand. These changes are increasingly being influenced by a firm’s policies and practices that affect the quality of the environment, and reflect the level of its concern for the community.

LAG made an effort to contribute to the preservation the environment in its own way. LAG has introduced a line of greener, more CEO friendly products. With the association of long time business partner Energy Star, LAG has been successful in achieving superior energy efficient products and reducing green house gas emission from its products. This has taken the LAG brand value to the next level giving them a competitive advantage in the field of electronic home appliances boosting its sales and revenue.

In sphere of time the strategies of LAG Company has changed gradually yet the core strategy has always remained the same, being unique and remaining one step ahead of the competition. 4. How is contributing to the environment helping LAG to attain competitive advantage? Mans: Competitive advantage is what enables a business organization to thrive. It is the objective of strategy. It is the combination of elements environment, earning economic rents in the process. To have a competitive advantage, a company must create an edge over its competitors.

In the aggressive business world, especially in today’s economy, every advantage counts to establish business in the top of the industry. LAG Company is attaining competitive advantage by contributing to the environment. Lag’s Green Initiative benefits both the environment and customers. The objective of LAG Company is to minimize the environmental impact on the whole value chain while enriching lives. With the association of long time business partner Energy Star, LAG has been successful in achieving superior energy efficient products and reducing green house gas emission from its products.

Customers, especially environmentally conscious customers are willing to pay higher costs for products that are healthier, more sustainable or energy efficient ” kind of like the early adopters who pay the highest prices for the newest electronics. But high-volume business success is accomplished when greener products achieve a price comparable to more familiar products that aren’t as green. They don’t have to be the lowest cost ” Just competitive. This initiative has taken the LAG brand value to the next level making them better, smarter and more profitable than its other competitors and thus giving them a competitive advantage.

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