LG to Spend $100 Mil. to Promote TV

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Summary

LG Electronics, the third-biggest panel maker in the world(1st : Samsung, 2nd : Sony) decided it invested $100million of its annual marketing expense for strategic "Scarlet" TV and its promotional cost is increasingly rising.
Especially, its investment focused on European country and the goal of sales figure is also bigger than North America. So it prepared the large-scale campaign with a lot of well-known person including an actress Natassia Scarlet Malthe. It wants to raise its brand recognition through her because her ad copy offered no clue of LG.
LG expected the price of LCD TV will be very stable in the 2nd quarter but it worried about Sony’s aggressive price-cut.

Opinion

LG Electronics is a very good company in Korea and its technique is so excellent particularly in a LCD Panel and cell phone making industry. Its market share is high but it can’t impress the world market because it is not in the first place.
Its strategy is very desirable. First, the European market is still very potential as the market is very big and has a high purchase power. There are France, England, Germany, and Italy in Europe, and they are rich. The use of Malthe is also good because she is very famous. The US market get more saturated and more so that the sales goal in Europe is much more than that of US.
Second, it focused on its own image improvement. A variety of campaign can help LG to be the best friendly company in Europe and US. Its scarlet TV released in 80 countries all over the world and it adhered to the advanced production strategy. Therefore, LG can be the luxurious TV maker through these.
In conclusion, LG can make the sales figure of 10million sets in 2008 as well as it image upgrading.

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