2. COMPANY BACKGROUND
Founded by Koo In-Hwoi on Oct 1, 1958 in Seoul, S. Korea
Initial name GoldStar, later changed to LG Electronics, Inc. Jan 1, 1995
Employs over 83,000 employees
2014 global sales ended at 55.91 billion USD
Comprised of 4 business divisions:
Home Entertainment
Mobile Communications
Home Appliance & Air Solution
Vehicle Components
3. CURRENT MARKET SHARE
North America-smartphones-16.3%
South Korea-smartphones-29% (increase of 65% from previous quarter)
Global market share-washing machines-12.4%(U.S.-14.7%)-7 straight years
maintained #1 market position
COMPETITION
4. SWOT ANALYSIS
Strengths:
Global leader & technology innovator in consumer electronics, mobile communications &
home appliances
ROE increased by 56% over 1 year period
Held highest market share in North America for mobile handsets
2014 winner of 35 awards at International Consumer Electronics Show
Weaknesses:
Tax law changes geographically
Changes in foreign exchange rate & exportation regulations
Lackluster customer service in the North American region
Consumerism
5. SWOT ANALYSIS continued….
Opportunities:
Introduce successful products from Korean/Asian market to other regions
Increase brand presence by resolving to change public perception in North America
Threats:
Global economic conditions
Market saturation
Tax law changes
Foreign exchange rate fluctuation
7. CAMPAIGN GOAL
Realign public perception of LGE in differential brand positioning
Create company transparency for customers in North American region
OBJECTIVES
Revise current customer service training to be updated yearly
Increase consumer trust by 5% in 3 months.
Raise brand position to #2 in 6 months.
8. STRATEGIES & TACTICS
Strategy: North American employees receive revised CS training 1st
Tactic:
1. CS research for 2 weeks to revise current program
2. Mock testing of after revision.
3. Implementation of new program North America
4. Implementation of new program remaining LGE regions
Strategy: Promote LGE as family company that cares for employees and consumers
Tactic:
1. Establish “Never say No to customers” rule
2. Issue press release to show CS training revisions and successes
3. Utilize social media extensively
9. STRATEGIES & TACTICS continued….
Strategy: Alleviate North American consumer concerns via measures of revised
customer services to support them
Tactic:
1. Invite past disgruntled consumers to mock testing phase
2. Create JIT with local contractors.
3. Recruit for sufficient CS measures and full coverage
10. BUDGET
Detail Per Item Cost Total Projected Actual Projected
Key Public North American Employees
Strategy North American division employee retraining on customer service.
Tactics Revise in-house training program HR & Research execs to conduct & create $ - $ - $ -
Revise in-house web-based training program for remote locations HR & IT Personnel to create & implement $ - $ - $ -
Internal mock testing HR & sample N.A. employees $ - $ - $ -
External mock testing HR & sample outside N.A. employees $ - $ - $ -
Training program implementation-North America division Internal interdepartmental cost $ 25.00 $ 125,000 $ 150,000
Training program implementation-remaining geographical LGE divisions Internal interdepartmental global cost $ 25.00 $ 1,950,000 $ 2,000,000
Key Public North American Retailers
Strategy Brand re-positioning in North American division
Tactics Make company relatable to retailers via brand promotion and benefits
Communications via cloud link set for retailers No cost $ - $ - $ -
Execute in-store meetings for brand placement and/or display No cost if visiting local retailers per region $ - $ - $ -
Press release via PR Newswire No cost, free to join and outlet to thousands of news platforms $ - $ - $ -
Key Public North American Consumers
Strategy Total LGE brand transparency
Tactics Release specs on "Never Say No" rule to media via Facebook No Cost $ - $ - $ -
Release specs on "Never Say No" rule to media via LinkedIn No Cost $ - $ - $ -
Release specs on "Never Say No" rule to media via PR Newswire No Cost $ - $ - $ -
Establish JIT with local vendors
Clear and concise contract recognizing and agreeing to LGE standards of superior customer service
Securing a contract with an independent contractor is year. Upon evaluation of
performance by customer(s), contract can be renewed on a yearly basis. $ - $ - $ -
Keep database of local contractors verifying time availability and service offered for exact customer match No Cost $ - $ - $ -
Random mock testing of newly established customer service training practices
Selection of past random dissatisfied customers ageeing to assist with test
Email up to 100 customers on testing Cost associated with incentive given for participation in testing $ 100.00 $ 10,000.00 $ 10,000.00
Phone up to 100 customers on testing Cost associated with incentive given for participation in testing $ 100.00 $ 10,000.00 $ 10,000.00
Send letter via tradional mail to 100 customers for customer testing $.49 per 1 ounce letter * 100 customers $ 0.49 $ 49.00 $ 10,049.00
Send text message to 100 customers on testing Cost associated with incentive given for participation in testing $ 100.00 $ 10,000.00 $ 10,000.00
Establish recruitment measures for necessary customer service coverage
Post employment positions via LinkedIn No Cost $ - $ - $ -
Post employment positions via local classified media Careerbuilder online posting-$8,000 per 50 jobs $ 160.00 $ 8,000 $ 160,000
Plan Totals $ 510.49 $ 2,113,049.00 $ 200,049.00
Total cost excludes
interdepartmental costs as
those are moved from all cost
centers to HR .
11. CONCLUSION
In order for LG Electronics to be the global leader & technology innovator in
consumer electronics, mobile communications & home appliances, you must first
concentrate on the capabilities of your employees. You can have the best
products on the market but without “superior” customer service practices in
place, failure comes and/or brand positioning falls to your competitors.
Employees trained in providing the utmost in customer services wins and retains
consumers who will support you through product faults!
Notas do Editor
The major competitors of the LGE brand are Samsung who also started in Seoul, S. Korea, Apple founded by Steve Jobs & Steven Wozniak in 1976 and Whirlpool Corporation founded by Lou Upton & family in 1911.
For consumerism, consumers may have less disposable income to cover household needs which could affect their purchasing habits.
Global economic conditions can either be a recession or depression. Competitors may be creating and/or selling the same type of product you have.
Current customer trust in the LGE brand for the North American region is mixed but mostly there is a lot of complaints floating around. The main area of concern is customer service provided by LGE which currently weakens their hold in the North American region. Rebuilding and/or earning the trust of the public through PR efforts is the main goal of re-establishing the brand in its’ quest for global brand positioning.
The last visual is provided to capture what LGE stands for and what they lack in the North American region.