Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. It is more then just a mere marketing challenge. It involves making hard decisions about how a market is shifting and how a firm’s competitors will react. Often these decisions must be made without the benefit of sufficient information, simply because the definition of “volatility” is that change becomes difficult or impossible to predict.
The LG Corp is South Korea’s second largest conglomerate that produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display, LG Telecom and LG Chem in over 80 countries. Since its founding in 1958, LG Electronics has led the way to an ever-more advanced digital era. Along the way, its constantly evolving technological expertise has lent itself to many new products and applied technologies.
Pre 2008 lg electronics marketed itself as an aggressive price warrior durable products company whose sole motive was to provide finest global electronics products at cheap prices wholly decided by the demand of the product. This strategy gave LG a lot of advantages in markets like india and other developing nations where the customers were looking for cheap but durable products. But in 2008 the company saw that only providing cheap competitive products will not be beneficial in the long run as it had already started facing stiff competition from Chinese durable goods manufacturers.
Due to this the company took a flagship decision of repositioning itself and henceforth be communicated as a brand that causes happiness, an enabler of life enrichment. The focus will be on the softer aspects of things. It introduced a new global brand identity: “Stylish design and smart technology, in products that fit our consumer’s lives. ” With this the company tried to create an image or identity in the minds of their target market for its product, brand. It has decided to take on the big players of consumer good market like sony and Samsung.
With the new approach, LG is looking at making the brand quality oriented with a premium positioning, while reinforcing customer care services. Its an experimental repositioning step taken by the company to stimulate the sensory and cognitive senses of the highly developing and changing and ever evolving customers. Some of the steps which the company took were investing more into advertising. For eg. It invested around Rs. 360 crore in india itself on brand communication and brand experience.
It launched many new high end products like Lg infinia, lg scarlet, refrigerators embellished with captivating Swarovski crystals, flower motifs exterior finishes, air conditioners with revolutionary Aero DNA technology which creates a perfect indoor air for us by managing five critical constituents that define air quality. Hence, these products are now marketed as ones which gives the user ultimate comfort , Feast their senses and also become a perfect expression of exquisite art. Also Lg hired new brand ambassadors for this, people who could be associated with their new line of products.
Opposite to the general notion Repositioning or positioning doesn’t jus involve launching new products or executing new marketing strategies. It is about capturing a space in the minds of the consumers. The repositioning of Lg could have gone the either way. It took a huge risk of leaving its original target audience and competing for the higher class market. Lg was profited by the fact that they had already established their selves as a reliable company. They just had to add the x factor to their products and the company’s image. Which they are executing to the perfection.