IN 2009, "LG Electronics" looking to raise its market share

Cosmina Capalău

Korean company "LG Electronics", operating in the electronics, household appliances and mobile communication markets, eyes keeping and growing its market share, especially for its "key" product categories. According to company officials, the evolution of the company"s major product categories matched the general evolution of the market, and LCD TV sets had the best dynamic this year, along with mobile phones and air conditioning systems.

Concerning the current economic context, officials of "LG Electronics" said that the "evolution of the economic environment has affected the entire IT&C industry to an extent, both on a global and domestic level. The behavior of Romanian consumers has changed due to the uncertainty brought about by the economic financial crisis, as they are now far more cautious when making purchasing decisions and even postponing the purchase of some products". They also said that, "on top of that, 2009 brought with it a pressure of the exchange rate. The economic circumstances only allow short term planning now, and the need for cash-flow caused the company to revise its cost structure".

Aside from increasing market share, another goal of "LG Electronics" for this year is optimization of the product portfolio.

• Fluctuations of the local electronics and household appliances market expected

According to company officials, "the behavior of Romanian consumers has undergone changes due to the uncertainty brought about by the world financial crisis. The consumer is more cautious, and now reviews more carefully the offers on the market. Understanding consumer need is the starting point when it comes to the success of the brand. The rise in sales following campaigns like the one for the mobile phone "LG Cookie" or for the LCD TV set "LH5000" are all supporting the company"s efforts on the local market for this year", officials of "LG Electronics" added. They also said that "the local electronics and household appliances market will see sales fluctuations, with alternating growth and contraction periods, due to several factors".

For 2009, company officials intend to consolidate the brand on the domestic market, by developing a strategy focused on strengthening the connection with the consumers and by investing in the company"s main areas of competence. "Our major goals for this year are developing a competitive advantage by optimizing the product portfolio and preserving competitiveness on the "mid-end" product segment", the officials of "LG Electronics" mentioned. "Furthermore, we will continue to maintain the visibility of our brand. But we will do a reassessment of every channel used in our marketing mix and we will focus towards digital and "in-store" promotion. To this end, we have rethought the presence of our brand at the points where our brand interacts with consumers, because for the most part the decision on purchasing is made in the store. We also intend to elaborate a consumer-focused marketing plan, by differentiating our product offer", "LG Electronics" officials said.