Brand Watch: Case Study - LG Electronics

A market leader in consumer electronics, home appliances and mobile communications, LG Electronics places a huge emphasis on events as part of its marketing mix.

They are key to a company that wants consumers to interact with its brand by allowing them to try before they buy. "We have seen our event strategy pick up over the past two years, and while it seems in sharp contrast to a very sluggish macro-economy, it's actually in line with current business conditions where companies are looking to spend business investments in a smart way," explains LG sponsorship and event manager Heather Page. "Events get businesses front and centre with a multitude of prospects and are still one of the most cost-effective ways to maximise resources."

As part of its events portfolio, the electronics firm organises activities ranging from roadshows and retail training programmes to press events and exhibitions. To help achieve these aims, the company works with key agencies including Salt Events and Billington Cartmell. "We see our target audience as people who don't and will not compromise on style and quality," says Page.

Product launches

LG has been in the UK mobile phone market since 2003 and has launched a number of handsets under its Black Label series, with the Secret KF750 being the latest model. It was officially launched at Sketch on 15 May, with a party organised by Salt Events that was attended by 230 guests. "The Black Label series is a flagship device that epitomises the style of the brand and its positioning," reveals LG head of mobile marketing Jeremy Newing.

Salt Events was given a brief to follow the Secret KF750's campaign strapline 'Style at Last'. "It was great to organise the launch party as LG gave us complete creative licence," says director Rachel Waterfield. "The fashion show element incorporated the brand message in a fun and engaging way."

Newing adds that the party was a key relationship-building exercise with the guests, who came from direct purchasing, supplier chains, distributor partners and big retailers. He believes the success of an event is based on relationships built, harnessed and maintained, and says that the Secret KF750 launch was about "delivering a brand experience". This was emphasised by the LG staff members who were on hand at the event, offering guests the chance to try out the handset.

"We use events such as these to show innovative technology and demonstrate in people's hands that our handsets are easy to use," reveals Newing. "The mobile phone is quickly becoming a FMCG commodity, and therefore purchasing is quite a quick decision these days. It is down to us to deliver beyond our consumers' expectations."

Consumer roadshows

LG is working with Billington Cartmell for the first time on a nationwide consumer roadshow for the Secret KF750, which kicked off on 7 June in Reading and ends on 17 August in Dublin. Visitors can try the handset and enter the LG Style Icon competition, which aims to find models who will star in an ad campaign for the phone.

The roadshow is visiting ten regions across the UK and Ireland. Entrants are photographed at each and casting shots displayed on an LG microsite. The public can vote for the top five entrants from every region, and one finalist from each will be chosen by the LG panel to appear on an LG Secret KF750 billboard in their home town.

Those ten hopefuls will enter into a final taking place in September, with one female and one male entrant selected by London Fashion Week talent scout Andrew Tucker and the LG panel. The two finalists will then star in a national LG ad campaign.

"There has been an increase in the number of events we organise as a form of marketing," says Newing. "I've been in the mobile phone industry for ten years and I have learnt that the consumer is key. You need to interact with them directly and grow a meaningful brand relationship."

Salt Events has also launched a consumer roadshow to showcase LG's new KF600 handset. The nationwide campaign started on 13 June in Milton Keynes and will end in Reading on 20 July. Visitors will be able to try out the phone, with promotional staff on hand to explain the KF600's functions. There is also a daily prize draw at each location to win a handset.

The agency was also behind LG's Viewty mobile phone launch that took place from 10 December 2007 to 6 January 2008, and visited five shopping locations including Lakeside in Thurrock, Centre MK in Milton Keynes, the Trafford Centre in Manchester, West Quay in Southampton and Bluewater in Kent.

The roadshow featured a competition with visitors dressing up as film icons and quoting lines from movies, while being filmed by the Viewty's video facility. The videos were uploaded onto a microsite for visitors to view at home. Prizes ranged from handsets to year-long cinema passes.

Page measures the success of an event by taking into account growing attendance, an increase in the amount of time attendees spend at the event, an increase in those who intend to buy, a positive shift in perception and a jump in press coverage. "It is also important to remember that numbers alone are just that - numbers," she says. "To make these numbers a true measurement of success, the data must be analysed and consistent. Year-on-year measurements must also be taken into account to benchmark the results."

Sponsorship

The company is also involved in global and domestic sponsorships, such as being the official mobile handset partner for Arsenal and Fulham football clubs.

It has also sponsored the last two seasons of London Fashion Week, with a third term set to start in September. "We are targeted in our approach with regards to which events we are involved with, and this ensures we communicate our brand identity," says Page.

LG also sponsors sporting events, including the 2008 Powerboat P1 World Championship. "It's great to be part of such a globally recognised and growing sport," says Brian Na, UK president of LG. "This partnership is essential in highlighting our ongoing investment in building awareness of the LG brand. Powerboat F1 is one of the fastest-growing international sports and complements LG's own philosophy of providing exciting, high-end, design-led technology."

This association can also be seen at the International Ski Federation Snowboard World Cup from September to March 2009. As part of the deal LG will sponsor Big Air events, which involves a large ramp similar to a ski slope. These will take place in French, Swedish, Canadian and Russian cities.

"Our participation in this sporting event will help us meet even more people who enjoy our mobile phones, televisions and other high-tech products,"says LG head of global brand marketing Sung-Hun Han.

With a wide range of events promoting LG all year round, consumers are able to connect with the brand in a direct way. "Exhibitions are a great tool to let you be seen across your industry; roadshows enable us to be more targeted for our partners; and a party atmosphere can create a buzz with the media around a product launch. Events are just one piece of the pie, but help us to re-enforce our brand both with consumers and industry peers," Page concludes.

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