LG Reports Placement, Revenue Growth
By Greg Tarr -- TWICE, 1/7/2005
LAS VEGAS -- LG Electronics North America’s president Michael Ahn reported his company saw significant growth in product placement and revenue during 2004, with sales of around $8 billion from the U.S. Canadian and Mexican operations.
Ahn attributed the growth in part to the company’s over $100 million advertising efforts behind its “LG Life’s Good” campaign, and its core competencies in the manufacturing of LCD and plasma display panels.
“Given our strong momentum in the U.S. and elsewhere around the globe, LG is well positioned to be the No. 1 flat-panel producer for the next several years,” Ahn said.
Ahn said LG is committed to being a top-tier player in high-definition television in the United States, particularly in digital cable ready models. He added that LG views North America as “the centerpiece” in its goal of making LG a top three worldwide manufacturer in all of the areas in which it participates by 2010.
LG has also made significant inroads in mobile phones, Ahn said. The company holds the No. 1 market-share position in worldwide CDMA phones, and is building sales through emerging mobile phone technologies.
In information technologies, LG has the No. 1 position in the manufacturing of optical disc drives.
In major appliances, the company is building its market-share position with the introduction of TV refrigerators, and high-end front-loading washers and dryers.
Bob Perry, LG’s A/V products sales VP, said the company more than doubled its number of dealers and business in 2004, while “maintaining strict standards of distribution control.”
Perry said dealers that followed LG’s marketing directives were rewarded for their partnership with rapid replenishment of flat-panel television supplies during unexpectedly strong surges in demand, and with assistance in promotional planning and sales training.
In addition, LG’s rapid rate of product innovation resulted in the company bringing new technologies to market 60 to 90 days faster than its nearest competitor.
“What that allows us to do is tailor products and solutions specifically for retailers and consumers as the market moves,” Perry explained.
Over the last year, Perry said LG more than doubled its internal infrastructure to support dealers, and realistically assured all of its partners that “at the end of the day, LG will do the right thing.”
Today, Perry said LG is a top four player in LCD TV “when you add our two brands together,” and in both plasma and microdisplay rear-projection TV, the company is making significant inroads.
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