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"As an organisation, we have to grow our market share, and we see an increased focus on independent dealers as the way to achieve this. We want to develop our premium brand status, and to do that we need to work more closely with the indies." James Atkins, Marketing Manager, Brown Goods Division, LG UK
The past six months have seen LG building the foundations to move to the next stage in the UK market, with particular emphasis on independent retailers.
James Atkins, marketing manager for brown goods at LG, explains: “Historically we've been very dominant within the multiples sector – any manufacturer that's trying to grow its brand in an established market has to do so through volume, which is what we've done.
“We now consider ourselves to be a premium brand, so we are looking at utilising the independent sector, as we are fully aware that these are the guys that can 'make' a brand”.
Indie activity
Only recently, LG has expanded its sales team for the independents from three people to nine, while last year also saw the launch of the LG Training Academy. This initiative, which is set to continue in 2007, was essentially a roadshow, which travelled round the country twice last year, calling at six different locations each time. LG also now has an eight-strong bespoke training team for brown goods, with their primary focus on independent dealers, explains James.
Hot products
So, what products will LG be introducing in 2007 to strengthen its emphasis on the independent channel?
“This year we will be focusing on what we call 'Blue Ocean' products. This means forgetting about what the competitors are doing and focusing on the market, ie what is right for the customers. Examples of this type of product include the Apple iPod, and the TomTom, which both unlocked certain markets and made them their own”, says James.
In 2007, the product highlights from LG will be its DVR TV, which will be equipped with a 160GB hard drive, along with two digital tuners and an analogue tuner, and its Super Multi Blue high def disc player, previewed at the Consumer Electronics Show in Las Vegas.
James comments: “It's important to remember that the Super Multi Blue is a Blu-ray player first and foremost, with the capability to play HD-DVD discs. This is intended to serve as an interim solution to the so-called 'format war', as it allows consumers to buy with confidence. The high def disc player market is very underdeveloped, as people are sitting back not knowing which format to buy into. This product takes away that worry for them”.
Full HD?
One issue which LG intends to address this year is the confusion between the terms 'HD-ready' and 'Full HD'. James comments: “As a company, we don't endorse the term 'Full HD', as it implies that 'HD-ready' products are not 'complete'.
“We consider Full HD to be the next step. It's not for everybody – it's a niche sector of the market for those who are seriously thinking of buying a Blu-ray or HD-DVD player. For those that want to watch Sky HD [which is broadcast in 720p], HD-ready TVs are perfectly suitable”.
James concludes with a plea for feedback from the retailers: “We're not experts, and from time to time we will get things wrong. However, we're fully committed to getting things right, so we would welcome any feedback from the independents, whether positive or negative, that can help us achieve this”.
This means forgetting about what the competitors are doing and focusing on the market, ie what is right for the customers
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