SALES AND MARKETING / MARKETING

  LG OZ Looks To Rich Parent To Bail Them Out

By David Richards | Wednesday | 2008-04-16

LG Electronics claims that it has achieved record sales and profits globally in the first quarter of 2008 however LG Australia it appears is suffering across several categories including display with the local subsidary now looking for an injection of marketing capital from their profit rich parent Company who last night reported a 2000% increase on the bottom line.

Attempts by ChannelNews to talk to senior LG management about the Australian operation  has been stone walled with PR minders demanding a list of questions and David Brand their new marketing director refusing to return several calls.
During the past 6 months several senior executives have quit the Company with one former senior executive saying it is more "Life's Hard" than Life's Good" a LG Australia.


In recent months LG Australia has replaced their Marketing Director and several senior product managers. Insiders at research groups such as GFK have told ChannelNews that LG Australia is suffering with Samsung taking market share away from LG in several categories.


One category that has been successful for LG has been mobile phones with several carriers now pushing the LG brand.
In the display market where LG Electronics said recently that it could not rule out the possibility that an aggressive pricing strategy by Sony could eventually impact them the Company has seen market share in Australia slide across both plasma and LCD TV's.


Recently the Company hired Warren Kim into their display division and Michael Doyle from Hitachi to beef up their management team with insiders telling CN that right now things are looking grim for the Company.

 

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