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LG Electronics PR Campaign
Tashia L Bramhan
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PR Table of Contents
1.0 Executive Summary ............................................................................................................... 4
2.0 Company Background............................................................................................................ 6
2.1 The External Environment ......................................................................................... 7
2.2 The Industry ............................................................................................................... 8
2.3 The Client................................................................................................................... 9
2.4 The Product, Service or Issue................................................................................... 10
2.5 Promotions ............................................................................................................... 11
2.6 Market Share ............................................................................................................ 12
2.7 The Competition....................................................................................................... 13
2.7.1 Samsung.................................................................................................... 13
2.7.2 Apple......................................................................................................... 14
2.7.3 Whirlpool Corporation.............................................................................. 15
2.8 Resources ................................................................................................................. 16
2.9 SWOT Analysis........................................................................................................ 17
2.9.1 Strengths.................................................................................................... 17
2.9.2 Weaknesses ............................................................................................... 17
2.9.3 Opportunities............................................................................................. 17
2.9.4 Threats....................................................................................................... 17
2.10 Public Profiles .......................................................................................................... 18
3.0 Situation Analysis ................................................................................................................ 19
4.0 Core Problem Statement....................................................................................................... 22
5.0 Key Publics .......................................................................................................................... 24
5.1 Employees ................................................................................................................ 25
5.2 Retailers.................................................................................................................... 25
5.3 Consumers................................................................................................................ 25
6.0 Primary and Secondary Messages........................................................................................ 26
6.1 Employees ................................................................................................................ 27
6.1.1 Primary Message....................................................................................... 27
6.1.2 Secondary Messages ................................................................................. 27
6.2 Retailers.................................................................................................................... 28
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6.2.1 Primary Message....................................................................................... 28
6.2.2 Secondary Messages ................................................................................. 28
6.3 Consumers................................................................................................................ 29
6.3.1 Primary Message....................................................................................... 29
6.3.2 Secondary Messages ................................................................................. 29
7.0 Campaign Goal(s) ................................................................................................................ 30
8.0 Campaign Objectives ........................................................................................................... 32
9.0 Campaign Strategies............................................................................................................. 35
9.1 Employees Strategy.................................................................................................. 36
9.2 Retailers Strategy ..................................................................................................... 36
9.3 Consumers Strategy.................................................................................................. 36
10.0 Public Relations Tactics....................................................................................................... 37
10.1 Employees Tactics.................................................................................................... 38
10.2 Retailers Tactics ....................................................................................................... 38
10.2.1 Press Release............................................................................................. 40
10.3 Consumers Tactics ................................................................................................... 41
11.0 Calendar of PR Activities..................................................................................................... 43
12.0 Budget .................................................................................................................................. 46
13.0 Evaluation Plan .................................................................................................................... 48
13.1 Evaluation Criteria & Tools ...................................................................................... 49
13.2 Objective 1 ............................................................................................................... .49
13.3 Objective 2 ................................................................................................................ 49
13.4 Objective 3 ................................................................................................................ 50
14.0 REFERENCES..................................................................................................................... 51
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1.0 ExecutiveSummary
The Company: LG Electronics, Inc. is an electronics, home appliances and mobile
communications company based out of Seoul, S. Korea with 128 locations globally. The company
was founded by Koo In-Hwoi on October 1, 1958. LG Electronics is better known as a global
leader and technology innovator through the various rewards received each year at the
International CES (Consumer Electronics Show). LGE’s vision simplified is “Great Company,
Great People.” (LGE, 2015). The main direct competitor of LG Electronics also in Seoul, S. Korea
is Samsung.
Campaign Key Elements: Outside of increasing brand positioning for the company as they
currently hold the third position globally, this campaign focuses on lack of customer service
standards in the North American region. Many aspects of customer service revision is discussed
as well as various mock testing events before final implementation of completed program.
Company transparency and progressive communications with customers to resolve issues as they
arise and/or before, is most essential in helping brand positioning from third position to second
and/or first position within a 6-month period. Interactive communications with customers will
prove to be beneficial in realizing customer trust in the product range provided as well as the brand
in general. The North American region fares well in maintaining a 7-year lead for mobile handsets,
but continues to fall short in other areas of products. If a product is bad and customer service is
bad, consumers will turn away from the brand as well as pass their experiences on to others telling
them to avoid the brand. This campaign focuses on fixing customer services in order to reduce the
bad publicity received via word-of-mouth measures as posted via social media platforms.
Total expenditures for this campaign are at a bare minimum of $200,049. Most costs outside of
this amount are internal to resources used within the company because costs are transferred
between departments. The plan ends with evaluation tools and criteria. Various forms of customer
surveys are issued to help with adjusting the plan as needed in an ever-growing world filled with
technology. The usefulness of the company intranet will ensure employee compliance with training
classes taken and results of each type of training. HR is at the core of this campaign as it will be
their responsibility to handle all aspects of campaign research, creation, revisions and
implementation. A separate presentation is included with this campaign to give you an overview
of all aspects of the campaign from beginning to completion.
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2.1 The External Environment
LG Electronics, Inc. (LG) is known as a global leader and technology innovator in consumer
electronics, mobile communications and home appliances. LG was founded by Koo In-Hwoi on
October 1, 1958 in Seoul, S. Korea. The initial name GoldStar was later changed to LG Electronics,
Inc. on January 1, 1995. LG currently employs over 83,000 people who work in one of the many
128 locations worldwide. LG received the Energy Star 2014 Partner of the Year award and 2014
global sales ended at 55.91 billion USD (59.04 trillion KRW). (1LG, 2015)
Either LG’s ability to function can be controlled by external elements or LG takes control through
various marketing functions. "Some external elements can be manipulated by company marketing,
while others require the organization to make adjustments (Root, III., n.d.)." Consumers that
purchase and/or inquire upon LG products are ones who are considered tech-savvy as they are
always looking for the latest and greatest in innovative products. LG has made a promise to
consumers of "enriching lives through technology innovation (2LG, 2015)."
Other components of government, environment, competition and public opinion can all intertwine
within the marketing function or exist separately. Since LG is a global company, government
regulations play a large role in the marketing aspect for the business. Besides the basic patent
filings and environmental regulations like sustainability and disposal of used and new appliances
and other products, LG deals with taxation policies per country and foreign trade regulations. Other
factors involve social welfare policies, general trade policies, government leadership,
environmental protection laws, ecological issues, population demographics, income distribution,
buying trends, ethnic diversity and lifestyle changes, which can all affect the viability of the
success and/or failure of LG Electronics. The components that can truly be manipulated by LG
marketing and PR tactics are those of public opinion and the general consumer. The current public
perception of the company and brand in general is a mixture of distrust over specific products to
that of appreciation for quality products that breaks boundaries through innovative features. The
negative perception can be fixed and/or negated through excellent customer service solutions to
appease complaints that flow to the company.
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2.2 The Industry
LG is comprised of four business divisions within the overall scope of the company. These
divisions are Home Entertainment, Mobile Communications, Home Appliances & Air Solutions
and Vehicle Components.
The main products for each division are as follows:
 Home Entertainment
 TVs
 Audio & Video
 Monitors
 PCs & Accessories
 Commercial Products
 Mobile Communications
 G Series
 Vu: Series
 F Series
 L Series II
 Home Appliance & Air Solution
 Refrigerators
 Washing Machines
 Dishwashers
 Cooking Appliances
 Vacuum cleaners
 Built-in appliances
 Air Conditioners
 Air Purifiers
 Dehumidifiers
 Vehicle Components
 In-vehicle infotainment
 HVAC & motor
 Vehicle engineering (1LG, 2015)
The main industry that LG falls under is the electronics industry. LG manufactures and sells
consumer electronics worldwide. They are currently headquartered in Seoul, South Korea and the
American division is headquartered in Englewood Cliffs, NJ. There is a separate American
headquarters for the mobile division located in San Diego, CA.
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The vision of LG is to “become a worldwide leader in digital – ensuring customer satisfaction
through innovative products and superior service while aiming to rank among the world’s top three
electronics, information and telecommunications firms. On our way, we hold tight to philosophy
of ‘Great Company, Great People,’ underscoring our belief that only great people can create a
great company. LG strives for greatness in what we’ve identified as our three core capabilities:
Product Leadership, Market Leadership, and People Leadership – each strength a key part of
realizing our growth strategies for ‘fast innovation’ and ‘fast growth’ (3LG, 2015).”
The consolidated financial statement for fiscal year 2013 show the following: sales – 58,140
trillion KRW (52,515 billion USD), operating profit – 1,285 trillion KRW (1,160 billion USD),
net profit – 223 billion KRW (201 million USD) and total shareholder’s equity – 12,689 KRW
trillion (11,461 billion USD), (4LG, 2015). Operating profit margin end at 2.2%, which was the
same for fiscal year 2012 and ROE (return on equity) ended at 1.8%, which was a 56% increase
over 2012, which ended at .8%. (4LG, 2015)
2.3 The Client
At LGs formation, the main target market was the Korean market. As the company expanded to
foreign territories, the target market later changed to the emerging global market. LG has split their
four basic business units to compose two separate headquarter bases. One base deals specifically
with mobile communications and corresponding mobile consumer market while the second
headquarter base deals with the remaining three business units. One economic factor that affected
the growth of LG was in 1997 when the foreign exchange crisis hit the nation. The crisis started
with the collapse of the Thai baht. Some of the causes that created a mass crisis in Asian nations
stemmed from "sustaining a fixed exchange rate when it was no longer suitable, allowing too many
short-term capital flows to accumulate with a high degree of currency speculation and lacking
sufficient risk management system at the national level as well as a regional level (ADBI, n.d.)."
LG was able to overcome the economic downfall by restructuring their business and workforce.
The goal was to strengthen their competiveness and focus more on customer-oriented researches
and developments. (LGE, 2008)
LG started out with 300 employees in 1958 in S. Korea to well over 83,000 employees today
globally. Compared to sales figures given earlier under The Industry, sales in the early years are
as follows: sales revenue; 50 million KRW (1959) 45 thousand USD, exportation revenue; 50
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thousand KRW (1962) 45 USD, capital; 10 million KRW (1958) 9 thousand USD and net income;
29 million KRW (1962) 26 thousand USD. (LGE, 2008)
LG has a "Management by Principles" policy that is implemented to enforce "doing business in a
transparent and honest manner (5LG, 2015)." This policy is the code of ethics that must be followed
by those employed and/or connected with LG in terms of management practices. This is also called
Jeong-do Management or in simpler terms The LG Way. The first sentence of the Code of Ethics
states: "We, at LG, share and believe in two key corporate principles - 'Creating value for
customers' and 'Respecting human dignity.'(LGE/COE, n.d.)"
In 2014, LG won 35 awards at the International CES (Consumer Electronics Show). The majority
of the awards won were for their television, smartphone and fitness products introduced for the
year. The awards were received from entities present at the show like TechRadar, Ubergizmo, HD
Guru, Popular Science, Reviewed.com, which was the show's Official Editors' Choice partner and
Digital Trends, the Official Digital Home Partner (6LG, 2014).
Outside of the main headquarters in Korea and the U.S., LG also owns subsidiaries in China, South
& Central America, Middle East, Africa, Europe, North America, Asia and CIS. CIS includes
Russia, Ukraine and Latvia.
2.4 The Product, Service or Issue
LG produces and sells electronic products that include mobile phones, televisions, air conditioners,
refrigerators, washing machines, personal computers and the core components of computers. LG
operates segments that are “strategic business divisions providing products and services. Each
business division operates separately according to unique technologies and marketing strategies
(7LG, 2014).”
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The specific divisions and their product and/or service module are as follows:
Divisions
Home Entertainment (HE)
Mobile Communications (MC)
Home Appliance (HA)
Air Conditioning & Energy Solution (AE)
LG Innotek Co., Ltd. And its subsidiaries
(Innotek)
Other Segments
Products
TV,Monitors, PCs,security devices,audio, video
& others
Mobile communications
Refrigerators, washing machines, microwaves,
vacuum cleaners, water purifier & others
Residential air conditioners, commercial air
conditioners & others
Vehicle components, compressor, motor, display
material, lighting, solar & others (7
LG, 2014)
2.5 Promotions
LG and the brand logo symbolize "the world, future, youth, humanity and technology (this is fully
representative of the L & G inside a circle) (8LG, 2015)." LG also stands for Life's Good which is
the long-standing tagline. LG has two logos. One is the corporate standard logo and the other is a
third version of the logo, which reflects the alignment of the company to new positioning. The
third version is more readily visible in all marketing aspects along with LG packaging, retail signs,
shopping bags and service vehicles. The standard corporate logo is used for all business stationery,
ID badges and corporate signage.
LG promotions and marketing are created and implemented geographically with respect to
subsidiary location. For example in Australia, a current promotion alerts consumers if they
purchase an LG G3 at select retailers over the summer, they will receive a free bonus gift. You are
not told what the gift may be, but are instructed to visit your local LG dealer to find out the deals
on cellular phone handsets as well as learning about the bonus gift. (LGAU, 2015) In this manner,
LG is getting consumers to specific stores as well as pushing sales for the LG G3 product. In the
U.S., the major promotion that is occurring is a contest. LG has collaborated with NCAA® Final
Four® to offer consumers a chance to win 2016 tickets to the games. The grand prize consists of
two tickets to each of the semi-finals and finals games along with hotel accommodations and
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round-trip airfare. There are also first through third prizes that consist of an LG washer and dryer
set, an LG 55" LG UHD TV or an LG mobile phone, which LG reserves the right to choose the
model to present to the winner. The underlying promotion within the actual contest is convincing
consumers that they need LG products for all their game day viewing needs and/or gatherings. "Do
Game Day Right. With great deals on innovative TVs that put you in the middle of the action, plus
sleek appliances that let you store and cook your favorite game-day foods to perfection, LG makes
it easier than ever to kick back, relax and enjoy the game. If you are a person on the go, do not
worry – we have not forgotten about you. To help you keep up with the scores and the biggest
plays of the tournament, we are even offering great deals on your favorite mobile devices,
including the latest tablets and smartphones, so you can cheer on your favorite teams from virtually
anywhere. (9LG, 2015)" This contest may or may not assist with boosting sales in the divisions of
mobile communications, home appliances and home electronics. In viewing past press releases,
there are different news related to the NCAA & LG with hosting recycling events and celebrity
sponsored cooking events.
Each press release is very specific in announcing awards earned collaborations with other entities
for environmental issues and product changes or innovations recently created. LG establishes their
brand to stay in the forefront of the minds of consumers. This type of brand positioning works for
LG yet there is room for improvement as will be explained later.
2.6 Market Share
North America - Smartphone market share
In the 3rd quarter of fiscal year 2014, it has been reported that LG held the highest ever market
share over past years in North America. In the 3rd quarter, market share for North America was
recorded at 16.3 percent for smartphones. This placed LG securely in 3rd place behind Apple and
Samsung respectively. The previous year, LG's market share stood at 7.4 percent for smartphones.
The boost in market share resulted from the introduction of the LG G3 model. "LG sold 16.8
million smartphones in the third quarter, breaking the previous quarter's record of 14.5 million. It
posted 461.3 billion KRW (420 million USD) operating profit in the third-quarter, a 111.8 percent
increase from 2013 (Cho, 2014)."
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S. Korea - Smartphone market share
In July of 2014, LG was reported to have 29 percent of the smartphone market. For the months of
January to April 2014, LG was consistently within the 10 percent range, but once the introduction
of the LG G3 smartphone was made, that percentage rose greatly. LG's main competitor in S.
Korea for smartphones is Samsung, which has held their positioning at a little over 60 percent but
is starting to see a decline in shares. (ZDNet, 2014) Actual sales figures were not included in the
report.
Washing machines - global market share
For seven straight years, LG has been able to maintain the number 1 position in market shares for
washing machines. At the end of 2014, the market share for LG ended at 12.4 percent. In
comparison, their front-loading washing machines finished at 14.7 percent in total washers sold in
the U.S. The success of LG washers stem from the innovative features installed on the machines.
Such as, "LG's 6 motion technology has a touch as delicate as hand washing, helping to reduce
wrinkles and damage to clothes (Clarkson, 2015)." LG's washing machines are seen and perceived
as reliable and durable as well as being highly innovative in technology and machine design.
2.7 The Competition
LG's biggest competitors in globally are Samsung, Apple, and Whirlpool.
2.7.1 Samsung
Just like LG, Samsung started in Seoul, S. Korea. Lee Byung-Chul founded
the company in 1938. Samsung is currently ranked as a top 10 global brand and is recognized as
an industry leader in technology. Samsung operates three core business divisions: Consumer
electronics (CE), Information technology & mobile communications (IM) and Device solutions
(DS). Headquarters are based in Korea and they operate 158 subsidiaries globally, which includes
nine regional headquarters for the CE & IM divisions and five regional headquarters for DS
(Samsung, 2014). Total revenue at the end of the 3rd quarter was recorded as 153,476 billion KRW
(138.9 million USD). The top four selling products for Samsung are mobile, CTV, memory and
DP. All of the major products showed decline in sales as compared to 3rd quarter 2013 results.
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The regions that represented a large percentage of sales in highest sales order, was Americas, Asia
& Africa, China, Europe and Korea for total sales of 1,041,763 KRW unit base of 100 million.
(Samsung, 2014)
They have listed their sales strategy within the report as:
 Expand market leadership based on smart devices
 Provide differentiated value to customers through brand, products and service
 Strengthen operational capabilities for customer/market
 Enhance sales capabilities (Samsung, 2014)
2.7.2 Apple
Apple was founded in 1976 by Steve Jobs and Steven Wozniak at the introduction of
the Apple I in California, U.S.A. Apple started seeing success in computer sales in 1977 with the
introduction of Apple II, which was the first personal computer to come in plastic case, and
included color graphics. Today the company "designs, manufactures, markets mobile
communication and media devices, personal computers, and portable digital music players, and
sells a variety of related software, services, networking solutions, and third-party digital content
and applications (Apple, 2014) The Apple products includes those of iPhone®, iPad®, Mac®,
AppleTV®, iTunes® and iCloud® just to name a few. Apple makes sales to consumers, education,
enterprise and government consumers and small & mid-sized businesses. Apple operates on a
geographic basis. Therefore, geographic segments compared product division like other
competitors divides their business. Each segment operates in a manner to provide products and
services that are similar to the parent operation but adheres to country policies and/or regulations
as far as what can be fully offered. Apple employs a total of 92,600 full-time employees and 4,400
full-time temporary and/or contracted employees.
Sales at the end of fiscal year 2014 were $182,795 (dollar amounts are listed in millions). Net
income was $39,510 (million) and total assets were $231,839 (million). Total shareholders' equity
ended at $111,547 (million). Net sales rose by 7% over the previous 2013 fiscal year. The largest
revenue from net sales stemmed from the iPhone and the iPad respectively. The operating
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segments that showed the greatest net sales were the Americas with $65,232 (million) and Europe
with $40,929 (million).
2.7.3 Whirlpool Corporation
Whirlpool Corporation is the world's leading global manufacturer of
home appliances. They have operations in more than 170 countries and their focus is on consumer
needs, which stimulate their overall growth. They have over 100,000 employees globally with
22,000 of that number in the U.S. alone. They also operate 70 manufacturing and technology
research centers. Whirlpool is the owner of the following known brands: Whirlpool, Jenn-Air,
KitchenAid, Amana and Maytag. They also market several other major brands that are known in
their respective countries. The Whirlpool vision is to have "the best branded consumer
products…in every home around the world (Whirlpool, 2015)."
Whirlpool started as Upton Machine Company in St. Joseph, Michigan in 1911. Lou Upton and
his uncle Emory and brother Fred started the company. They started with the production of motor-
driven wringer washers. Upon first introduction of the washing machines, a problem occurred but
Mr. Upton quickly rectified the situation, which enabled the company to gain a larger customer
base. Demand became greater and later in 1929, the company corroborated with Nineteen Hundred
Washer Company based out of New York. The company later introduced ironers to their product
line and eventually produced the first fully-automatic washer and electric dryer. The company's
name changed to its' current name of Whirlpool Corporation in 1949 to symbolize their signature
brand. (Whirlpool, 2015)
Whirlpool's financials follows a standard calendar year for their operations. At year end of
December 31, 2014 reported net sales was at $19,872 (billion). Operating profit was $1.1 billion
and net earnings were $692 million. Total assets are at $20 billion and total shareholders' equity
ended at $5.7 billion.
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2.8 Resources
To understand the value LG places on their customers, it has been stated that they put in strives to
provide "the best value by reliably supplying products in demand from the customers' perspective,
listening to their feedback and assisting with fast, accurate, and unique service (2LG, 2015)."
Communications with customers are made through various social media platforms as well as
directly through LG's own newsroom website. LG collaborates with local research organizations
that help them analyze lifestyles of customers by region. This collaboration occurs to better product
development based on customer needs.
Prosumer marketing communications is a tool that LG uses to have more customer input
involvement during the development stage of products. For example, a TROMMIZ program had
the participation of 15 homemaker bloggers. These bloggers played the role of liaison between
LGE and its consumers by giving feedback on the usage of the TROMM washing machine. The
bloggers also assisted with product planning and provided valuable online suggestions during the
development stage of the product. (2LG, 2015)
Another resource LG uses for marketing communications with their customers is through
organized events that are announced through press releases and social media platforms. One such
event is the yearly recycling program held in North America where consumers are encouraged to
recycle their old mobile phones to various schools. The schools in turn compete to win a monetary
prize from LG for collecting the most waste in the form of mobile phones. This type of event is
putting into the mind of consumers that LG is a socially responsible company. Also creating a
positive perception of the LG brand, which in turn generates revenue through new and/or existing
customers.
One last resource as previously mentioned to gain and build customer trust is the use of digital
marketing communication. Through the utilization of social media to coincide with digital media
trends, LG focuses on reaching out to their customers and building relationships by
accommodating customers in the various digital channels. Consumers are able to more readily
participate in various campaigns, be a part of loyalty programs and even view videos associated
with the LG brand.
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2.9 SWOT Analysis
2.9.1 Strengths
 LG has been able to maintain the #1 position in market shares for washing machines on a
global level for 7 years.
 Known as a global leader and technology innovator in consumer electronics, mobile
communications and home appliances.
 Return on equity increased by 56% over a 1-year period.
 2014 winner of 35 awards at the International Consumer Electronics Show
 Held highest market share ever for the company in the North America market for mobile
handsets at the end of the 3rd qtr. for FY2014
 Consistently introduces innovative products to the market based on consumer needs and/or
wants that fits trending lifestyles
2.9.2 Weaknesses
 Lackluster customer service as posted on various consumer platforms in regards to
refrigerators purchased in the U.S.
 Unknown future economic conditions that can affect business overall in terms of sales and
revenue
 Changes in tax laws geographically
 Foreign exchange rate policies and changes in exportation regulations
 Consumerism - consumers have less disposable income to cover household needs
 Market saturation of products and price wars of sector specific products between
competitors
2.9.3 Opportunities
 Strengthen customer trust by increasing training efforts for employees to provide better
customer service when complaints are made
 Increase presence and/or change current company perception by being more responsive to
customers
 Increase market share of smartphones sold in the U.S., currently in 3rd place behind
Samsung and Apple
 To make better placement of home appliance stance globally and particularly in the U.S.
by testing and/or re-testing appliances such as refrigerators to ensure that not only are they
fully functional but there are no cosmetic and/or internal defects
 Products that have been tested and been successful in the Korean/Asian market, start
introducing to other regional markets, thus increasing market share and brand positioning
2.9.4 Threats
 Political policies
 Global and/or local economic conditions - recession or depression
 Tax law changes
 Foreign exchange rate
 Decrease in consumerism - consumers having less disposable income
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 Market saturation of products by competitors
 Competitors creating more innovative products which increases their market share
2.10 PublicProfiles
 Consumers concerned with the environment: located in the Palisades (Englewood Cliffs)
area of New Jersey where current U.S. headquarters are located. Concerned with
headquarter remodeling that will taint the current skyline (tree-line view) of the Palisades
(Englewood Cliffs) if tower rises above trees. Influentials are EPA (Environmental
Protection Agency), the National Park Service and mayors of the 6 nearby communities.
 JPMorgan: recently downgraded LG from Overweight to Neutral in terms of stock
valuation. Shareholders are the secondary public as JPMorgan decision and lower value of
stock may cause shareholders to sell their shares of stock and/or potential shareholders may
be more cautious in purchasing. The forecast for stock valuation is bleak as stated by
JPMorgan. (JPM, 2015) This either will benefit LG in the purchase of more shares of stocks
at the lower price or will hurt them if shareholders decide to sell off their stocks because
of the prospective forecast made on future valuation.
 LG employees: lack sufficient training. Work-life balance is considered non-existent as
stated by current and past employees. Some employees feel segregation and/or career
lacking progression to grow. Influentials consist of upper/middle management and Human
Resource department. HR policies and how they handle employee concerns causes chaos
among employees who feel they are not receiving and/or do not have the necessary tools
to be successful. Peers within a department may influence feelings or conversations in
favor of or against the company or department in which they operate. Uses of social media
to voice complaints can be damaging to the image of the company.
 Various consumer complaints posted on platforms like Consumer Reports and BBB (Better
Business Bureau). Influentials are disgruntled consumers who own various LG products.
Complaints range from defective products to poor customer service.
 Expert product evaluators. Self-influenced. Concerned with performance, durability,
innovativeness and other aspects to issue awards and/or professional reviews to appease
consumer concerns and/or inquiries. Consists of specialists of specific products.
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3.0 Situation Analysis
LG Electronics, Inc. (LG) vision states: "LG Electronics continues to pursue its 21st century vision
of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative
products and superior service while aiming to rank among the world’s top three electronics,
information, and telecommunications firms by 2010.
On our way, we hold tight to a philosophy of “Great Company, Great People,” underscoring our
belief that only great people can create a great company.
LG strives for greatness in what we’ve identified as our three core capabilities: Product Leadership,
Market Leadership, and People Leadership—each strength a key part of realizing our growth
strategies for “fast innovation” and “fast growth”. (LGE, 2015)"
Various consumer, reporting outlets have shown that part of the LG vision, "ensuring customer
satisfaction through…superior service", has not held true in all instances. One major reporting
portal is the BBB (Better Business Bureau). Through this portal, consumers are able to make any
complaints or concerns and then BBB will present that information to the business in question.
Businesses have the opportunity to respond to consumers with some sort of resolution or request
for additional information if needed. All of the responses made by LG in general have all started
in a scripted, generic manner. LG responses are impersonal which causes many consumers to reject
the response given as not being resolved. Customers are also purchasing LG items that have limited
warranties for defects that are only applicable to the first year of owning and registering the product.
There are, however instances of products being defective cosmetically and/or parts of products not
working correctly. Complaints are about technicians that inspect and try to fix products and/or
parts not readily available for repair. Many consumers have waited for weeks to have either product
replaced or repaired. Calls are made to customer service but with little satisfaction being made to
the consumer.
All areas of customer service in the North American sector need to be revised and implemented to
conform to changing consumer needs and cultural differences per region. Employees need
reiteration of the LG Electronics vision on a yearly basis. Mandatory ethics training classes along
with courses in customer service is available to employees. Training can occur at workstations
(employees desk via data feed) if at corporate locations and/or off-site training facilities. Training
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is conducted yearly as consumer behaviorism and company perception continuously changes.
Knowing how to handle various issues that may arise is key to the success of LG earning the #1
spot globally for consumer market share in electronics as well as the #1 position for
telecommunications and information. Carrying out these entities of employee training and constant
internal employee communications between departments will help alleviate or lessen the amount
of negative consumer perception. Taking steps to communicate more effectively and positively
with consumers will re-position the company brand to assist with realizing the full LG vision.
Taking more steps to communicate internally over various aspects of the company goals and
visions along with product development, researches and even issues that have arisen will educate
employees so they know how to handle and respect their customers in an ethical and non-generic
manner.
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4.0 Core Problem Statement
Consumers of the North American region are not receiving superior customer service as stated in
the LG Vision, which causes retail sales associates and past consumers are alerting others to avoid
purchasing LG products.
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5.0 Key Publics
The key publics for this campaign are very specific in terms of establishing and providing superior
customer service as stated within the LG Electronics vision statement. Three key publics have been
chosen for this campaign. They have been selected based on how they relate to the overall scheme
of customer service and being able to provide informative information in both directions.
5.1 Employees
Employees are the most important entity for a business. “An ongoing public relations program is
necessary to maintain employee good will as well as to uphold the company’s image and reputation
among its employees (RFB, 2015).” Employees are crucial as they represent both customers to the
company as well as brand ambassadors in upholding company image (vision).
5.2 Retailers
Retailers are the decision makers of carrying specific brands exclusively or concurrently with other
competitors. With the right persuasion, they are able to assist with product promotion and brand
positioning.
5.3 Consumers
Consumers, as with any business that sells products or provide service, are of the utmost
importance. In public relations, the opportunity is given to be able to educate consumers on a
specific cause and create a negative or positive response towards said cause. PR professionals can
also manipulate consumer thinking or behavior via company image created from public relations
efforts.
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6.1 Employees
Specific employees within the organization of LG Electronics are composed of customer service
representatives, field service technicians & support, management and sales representatives
(whether in retail or business-to-business). These employees have direct interactions with
consumers and other businesses as well as knowing first-hand about specific products and services
offered by the company. Management drives the flow of internal communications, as they are the
leaders of various departments. It is a requirement within the code of ethics that employees are to
be treated fairly and to have a respect for human dignity. The employees are endeavored to keep
customers happy by offering customer service that complies with the company vision. Open
communication is encouraged and being cooperative with colleagues of different departments is
the basis of business sharing within LG Electronics. Well-trained employees in the area of
customer services and field services can boost the LG brand through various measures of product
knowledge and crisis aversion. To make the employees feel more empowered in their
communications with customers, they must feel like they have been given all the necessary tools
for effective customer service. These tools come in the form of yearly trainings on new and/or
updated customer service practices as well as constant internal communications of
interdepartmental information sharing. Interdepartmental information sharing can range from
products ideas and progresses to concerns of possible or current product or service shortfalls.
Recalls, how to handle the flood of calls, social media postings and emails in question of recalls
will place the customer service representative in a front line position of public perception of the
company.
6.1.1 Primary Message
Our employees are committed to you first. Your satisfaction is our satisfaction and that is what
makes us a family.
6.1.2 Secondary Messages
 Employees are well trained in all aspects of customer related services in order to serve you
better. LG's vision states, "Great people can create a great company, (LGE, 2015)."
 We take pride in our products and we take pride in serving you respectfully and properly.
Human dignity is given for both our employees and our customers.
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 There is no such thing as no in our vocabulary within reason, because we want your loyalty
and your respect. There are times when we may have to say no. If we feel a product cannot
be fixed in a timely manner, there will always an alternative. We are willing and capable
of working with you in order to alleviate any misconceptions or concerns in our products
as well in the quality of the services we provide.
6.2 Retailers
Retailers that carry our products range from stand-alone big box stores to stores located within the
vicinity of a mall and/or shopping district area. Our retailers hold exclusive contracts to carry our
range of products and have the wherewithal to promote our brand in order to boost store sales.
Specifically parties within the retail system are the buyers and executives who make the decisions
of choosing brands that will bring business to their store location. A brand that is chosen for
specific retail stores assists with brand positioning for the manufacturer of products to be sold.
Retail location plays a role in what products are to be sold along with customer needs and/or wants
shown for a region. Depending on area of retail establishment along with target market specified,
retailers can be convinced to carry high-end luxury items to mid-range items in terms of price
associated and expected quality of product type. "Retailers must decide on three major product
variables: product assortment, services mix, and store atmosphere. The retailer's product
assortment should match target shoppers' expectations (ZB, 2013)."
6.2.1 Primary Message
The LG brand can be found at a store near you. Expect what you want, where you want. LG is
committed to being everywhere within our customers’ reach.
6.2.2 Secondary Messages
 Brand positioning is important to LG in order to fulfill the vision of "becoming a worldwide
leader in digital - ensuring customer satisfaction through innovative products and superior
service (LGE, 2015)." Without the assistance of retailers carrying the brand in direct
competition with Samsung and other major brands, LG would not be able to rank
themselves as one of the top three brand of electronics, information and
telecommunications.
 LG continues to make strives being great in customer service, product innovation and
relationship building with their customers and other businesses.
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6.3 Consumers
The consumers of LG consist of individuals who are always looking for the latest and greatest in
innovative products. The North American market can help LG become a global brand that is highly
recognized for service and quality of products sold in the region. LG has to be shown as a brand
and company that the North American consumers can trust. Through various social media
platforms, consumers now have a way to be even more vocal and present their concerns,
complaints and/or good tidings to a wider audience of current and potential consumers of the brand.
With how fast the World Wide Web can provide a consumer with information at their fingertips,
they are expecting companies to be just as fast in responding to any information that is posted
and/or sent directly to the company. Earning the trust of consumers and giving them a perception
of superior customer service falls in line with the vision statement that addresses superior service.
6.3.1 Primary Message
The customer deserves the best in product quality along with superior customer service. You are
our voice in terms of brand recognition and positioning against our competitors. You also expect
us to stay true to our vision and to respect your time so that the money you spend is an investment
into your well-being with quality goods for your home and your family.
6.3.2 Secondary Messages
 We listen to our consumers in providing innovative products of the highest quality. Care is
taken in determining new functions in our products and tested to ensure standards are met
and exceeded.
 Our customers always come first and that type of service starts with qualified employees
to assist in every aspect of the consumer decision in purchasing our products. A consumer
should never have to hear the word "no" unless a situation is beyond our control and the
only way to resolve and/or overcome a potential backlash is to use every method to make
our customer happy.
 A happy customer will look beyond any flaws and keep coming back to us for their
products because they know that we stand behind our products by providing the best in
customer service needs.
 Our customers are our family; therefore, you are always treated with the utmost respect
as we listen carefully and create resolutions that fit your needs.
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7.0 CampaignGoals
1. Establish North American customer relationships to increase brand positioning to the #2
spot.
2. Realign North American public perception of LG Electronics in terms of customer service
standards.
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8.0 CampaignObjectives
 Establish/revise customer service training program updated on a yearly basis to coincide
with research related to consumer behaviorism. The program will be implemented in the
North American region within 4 months of the start of the campaign. Consumers change
their shopping behaviors and platforms of communication, as often as technological
updates. Not only do employees need to participate in the training program each year, but
also they need to have an awareness of circumstances surrounding any actions they take
that can harm the company image. Miscommunications and/or unresolved issues result in
a disgruntled consumer. The program shall be a 24-hour training taken over the course of
3 days. Employees that are specifically in customer service via telecommunications, digital
platforms or in-person communications will be required to take an additional 16-hour
supplemental training course. This is to ensure employee reiteration of company overall
vision and goals as well as ensuring that employees adhere to the standard of providing
superior customer service to all.
 Increase consumer trust in the LG brand by 5% in a 3-month period. LG will reach out to
past consumers and ask them to participate in a mock testing environment, whether it is
online, via telephone or in person. The consumer will be offered a $100 gift card incentive
for their participation. Consumer has direction to revive a past personal experience of
reaching out to customer service representatives and posing a compliant and/or concern
with products purchased. The employee(s) approached, will not know that a test (mock) is
occurring. Consumers will give feedback on how a customer service representative
alleviated the situation at hand. Consumers will keep informed that measures are being
taken from their suggestions in improving the LG customer service standards. In this
manner, LG is rebuilding trust by showing that they do care about their customers and not
just about selling products.
 Increase brand positioning and market share to #2 in a 6-month period in all three areas of
telecommunications, electronics and information. (Currently in #3 position in most areas.)
Once consumer trust is re-established through means of employee trainings and consumer
based mock testing of services, LG will be able to reposition themselves, thus selling more
products. Consumers now feel that they have a voice that is heard and will not have a
problem in making future purchases. Company transparency is an important factor of re-
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building trust; therefore, LG will need to show that every effort is being made in training
employees correctly in the area of customer service. When there is an issue with a product,
steps will be taken to alert consumers immediately as well as ensuring enough measures
are taken for a quick and reasonable resolution. There will be no more lag times in waiting
for a live customer service representative, as there will be more customer service reps
staffed to monitor web platforms as well as being available for all telecommunications.
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9.0 CampaignStrategies
Strategies by definition tell what LG Electronics set out to do in order to accomplish all of their
PR objectives. They define the approach of planning to achieve the objectives along with stating
in a general fashion how the objective will be reached. Strategies are a long-term device that does
not undergo frequent changes. Strategies fall in line with the overall brand/company vision and
goal. With strategies in place, LG Electronics will be able to define KPIs (Key Performance
Indicators) necessary to track the overall stability, financial outlook, credibility and other measures
that executives use in order to determine the next direction of brand positioning and/or other focus
for company success.
9.1 EmployeesStrategy
Employees in the North American division, acknowledge training completion via proof of
certificate and testing results to show knowledge of superior customer service. Results are recorded
via intranet and/or at on-site training facility in Roswell, GA.
9.2 RetailersStrategy
Increase awareness of LGE brand and strength in customer service via extensive usage of social
media and free press releases.
9.3 ConsumersStrategy
Promote LGE as a family company that cares for both their employees and their customers in order
to create a cohesive relationship that is trusting and responsible.
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10.0 PublicRelationsTactics
The tactics of LG Electronics define how the strategy is implemented. Tactics are the planning
portion that reaches a common goal (objective) in order to garner interest by respected parties for
business/brand future and current success. In a general perspective, tactics are the blueprint
necessary to implement a strategy based on an objective.
10.1 EmployeesTactics
 Conduct research over a 2-week period of various CS training programs and take aspects
that relate to the company vision to create a solid and effective program.
 Have HR professionals within LG create and test training program over a 3-week period.
The program is created from prior research conducted. The mock testing will occur with
randomly selected employees over a 1-week period. After testing period, HR will take
results from first draft of program and take suggestions from testing participants in order
to fix any bugs and/or inconsistencies within the program. A second testing is conducted,
this time with different randomly selected employees and consumers given an incentive to
participate. Final views and adjustments are made accordingly. A final mock testing will
be conducted, among executive employees.
 To accommodate various employee schedules, the training program will rollout at various
corporate and satellite locations to ensure that all employees go through the initial training
once. New employees will be required to take the training within 2 months of hiring date.
Front line employees that consist of customer service representatives and field technicians
will be required to take the training on a yearly basis, while the remaining employees will
take a shortened version of the training on yearly a basis as updates to the training program
are made to coincide with changing general consumerism.
10.2 RetailersTactics
 Customer care is shown through ensuring that employees have all the tools necessary to
assist customers with any needs or concerns. It will be shown that communication efforts
with customers are not generic and/or scripted.
 A press release is issued to clarify the steps taken to revamp the training program given to
employees in terms of customer care. The news release will give a detailed explanation on
the creation of the new training program. A mini in-house training video will be released
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to show examples of the changes and some outcomes of the testing process. This will draw
more attention to the LG brand as well as showing transparency ahead of future situations.
We are showing consumers that there is more to LG than electronics by showing what the
employees go through in order to serve them.
 Not many people are aware of LG's press release/newsroom website; therefore, more
emphasis will be placed on using social media to draw more consumers to the website.
This will be accomplished by placing appropriate communications and videos from the
original site to social platforms like Instagram, Twitter, Facebook and even LinkedIn.
LinkedIn will focus more on research and business related video placement while the
remaining sites will appeal to the general consumer of introducing new products and
product function in video format.
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10.2.1 Press Release
Contact: Tashia L. Bramhan
Phone: 803-123-1234
E-mail: info@tlbramhan.com
PRESS RELEASE
FOR IMMEDIATE RELEASE
LG ELECTRONICS,NORTH AMERICAN DIVISION HAS MADE A GRAND REVISION OF
THEIR CUSTOMER SERVICE TRAINING PROGRAM
ROSWELL, GA – May 1, 2015—LG Electronics (LGE) Executive HR representatives have made strides
in revising their past customer service training standards. The team has researched,created and tested the
revised program at great lengths. In order to ensure customer service standards met the needs of their North
American consumers, LGE invited 400 customers to participate in various forms of mock testing of the
new program. Each customer that participated was given the choice of either an Amazon gift card or Visa
gift card valued at $100 USD.
The implementation of the program was given to all employees located in the North American region of all
LGE operations. After successful completion, the program was then implemented to the remaining LGE
regions. The program consists of a 24-hour intensive training taken over a period of 3 days. The best in
customer service practices was borrowed and/or bought from various entities and combined into one
conclusive program for the LGE brand. LGE made sure to obtain rights for ideas that were borrowed and
bought others to become the new sole owner of said program. LGE values their customers and realized in
order to remain competitive against Samsung, Apple and Whirlpool; they needed to place themselves in a
position to offer something that was far better and more reliable than their competitors were. A brief
demonstration of the full program is offered online through the social media platform of YouTube. Search
for LGE 2015 Training Program.
Why is this a big deal for LGE? Well, for the North American region, many consumers started posting
thousands of complaints about customer service and LGE products on platforms like BBB (Better Business
Bureau) and Facebook. Even though an effort was made to respond, the time in which our customers
received a response fell short of expectations. With this injunction, a review of the LGE vision was re-
visited and executives made the determination that a change was needed in order to fulfill the LGE vision.
Part of the vision statement is to provide superior customer service. The North American region fell short
in this very aspect, therefore creating a need for a major overhaul in company transparency and
substantiated customer service standards.
Now LGE can be back in the forefront of consumerism and avoid potential backlash because of new
practices in place that are of benefit to customers. For example, LGE has collaborated with more local
contractors who have also had to take the customer service training as part of their contracts with LGE. In
this manner, LGE can now offer JIT service to appease consumer needs.
ABOUT LGELECTRONICS
LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, mobile
communications and home appliances. Founded by Koo In-Hwoi on October 1, 1958 in Seoul, S. Korea,
LGE employs over 83,000 people. LG received the Energy Star 2014 Partner of the Year award and 2014
global sales ended at 55.91 billion USD (59.04 trillion KRW). (1
LG, 2015)
For more information, contact Tashia L. Bramhan, at info@tlbramhan.com
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10.3 ConsumersTactics
 Create a basis of complete customer care by showing the strength and capabilities of the
North American employees through various means of training programs. Create an
environment of customer comes first that is not scripted or generic in consumer
communications responses.
 As part of the employee training program, establish the "Never say No to customers'" rule.
Whenever a customer calls in with an issue over a purchased product, employees are
instructed to respond in a respectful and caring manner. This means that the word "No"
should never be used unless a fix is unreasonable and therefore replacement of product
and/or refund and product removal is necessary as the final resort.
 The customer will be shown that all measures of resolution have been taken in one phone
call with maximum of two phone calls when repair work is involved. A collaboration with
reputable repair services will be in place in order to respond in a timelier manner. There
will be a JIT (Just in time) service in place that allows customers to acknowledge when
they are available to accept in-home services if needed, and to get a field technician and/or
contracted service members to the home in a shorter period.
 Recruit and train more than enough employees to cover front line communications,
especially in adverse situations that may or may not occur. In this manner, customers will
no longer have extended wait times on automated telecommunications systems, as they
will be able to reach a human respondent within 1-4 minutes max. The e-commerce site
offers instant availability to customers; therefore, the telecommunications system is due
for a major overhaul in order to be compliant with the company vision of superior customer
service. The North American region currently houses the largest number of complaints.
Therefore, recruiting and training more front line employees along with departmental cross
training will benefit the overall bottom line for the business.
 To regain the trust of past consumers who experienced poor customer service, through the
company, some random customers will be selected to participate in mock training efforts.
This testing will be part of the training program created in the first year to ensure customer
service responses and solutions are realized more effectively. This will also alert past
consumers that every effort is being made to change past negatives in to a positive. The
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consensus is that once customers realize that LG truly cares about their customers,
customer loyalty and trust will be earned.
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11.0 Calendarof PR Activities
The calendar and budget for LG Electronics is based upon current and future needs for the overall
success of LGE. Most costs represent little to no costs because of training systems and/or facilities
that are already in place for LGE. The entire plan and budget references the North American
division only as this is the main area of focus to improve upon customer service standards and
concerns. For LGE there is a training academy located in Roswell, GA. This facility opened on
December 11, 2008. The area of focus for training at this facility is engineers, contractors and
technicians. The time has come, because of recent customer complaints within the North American
division, to revise current training standards to include those of the customer service sector within
LGE. The beginning and ongoing process of this training project will be conducted and
implemented by the HR team in North America. Therefore, costs associated with the training
program are internal. Employees within 100 miles of the Roswell, GA training facility will attend
classes at the center. All others will access training courses via intranet resources.
Upon successful reviews via mock testing and initial North American implementation, the training
will then be available to the remaining divisions of LG Electronics to create a new standard of
customer service training globally. We have found it is more cost effective to keep training in-
house instead of outsourcing, as it is less expensive. HR employees and researchers within the
LGE family already receive salaried pay, therefore, extra monies within the budget are not
necessary to conduct the research needed as well as revising and/or adding to the training program
in place for customer service needs.
A revised, training program for customer service is necessary because of the constant complaints
by North American consumers. Customer service training is only given to those employees hired
specifically for customer service but with the overage of complaints, the training is needed by all
employees. Compliance of customer service standards is necessary for all departments within LGE
along with interdepartmental communication. Having all employees cross-trained on customer
service, assists with company image and employee/employer responsibility to the customer.
Following is a matrix of the current training offerings and employees related to trainings taken.
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Current LGE training roadmap (LGE, 2015).
LGE Calendar.xlsx
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12.0 Budget
For comparison purposes, the cost to train approximately 83,000 employees utilizing a training
platform like Quality Training Portal would amount to $4, 067,000 USD. The cost per every 250
employees through QTP is $12,250 USD (QTP, n.d.). To assist in the efforts made by HR, the cost
per employee will be $25. This cost is transferrable internally as it would already be part of
departmental budgets for the fiscal year. The HR cost center would receive all training costs per
employee from other LGE departments. The estimated cost transferrable to HR is $2,150,000,
which also accounts for estimated 3,000 new hires globally.
From the 2014 Final Separate Financial Statement, 4th Quarter, the total for Selling & Marketing
Expenses was 9,505 Billion KRW (8,734 Million USD). Total estimated costs for plan
implementation is $200,049 USD. These costs include $40,000 USD in $100 USD gift certificates
used as an incentive to garner customer participation during the mock testing process of customer
service training and $8,000 USD per 50 jobs posted on Careerbuilder.com. Postings via LinkedIn
are free with Premium membership, which LGE already owns. Press releases, store visitations,
research and revisions are all aspects of the plan that can be obtained with no cost to LGE.
From the $8.7 million USD spent in the previous year for marketing purposes, this PR plan would
only account for 2-3% of overall marketing budget.
LGE Budget.xlsx
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13.1 EvaluationCriteria and Tools
The objectives for LG Electronics have benchmarks that can be used to properly utilize tools
needed for campaign evaluation and progress. The customer service and training issue involves
the North American sector, therefore the benchmark for these two entities are from the Asian sector.
The Asian sector experiences the company vision of providing superior customer service. With
customer service, sales numbers provide a key look into the success of campaigns. A benchmark
of 2 years of sales in the Asian market versus the North American market is needed from the first
half of each fiscal year. We will evaluate the first half of the fiscal year in the North American
sector, to determine whether the training and customer service campaigns have made a difference
in sales versus prior years in their own sector and then compare those numbers to that of the Asian
sector. In order to utilize sales figures correctly, a measure of increase and/or decrease in sales
from previous years is necessary. For example, in year 2014, the North American sector showed
an increase of sales in the 1st month of the year at 2% over year 2013. In year 2015, after campaign
introduction, sales increased at 3.5%, therefore an increase of 1.5% occurred over the previous
2015 sales figures.
13.2 Objective1
Criteria
Training program recreated to adhere to today's consumer and public needs taken by all employees
no later than March 30th on a yearly basis or upon 1st month of employ with the organization.
Tools
Copies of certificate of completion digitally recorded in employee database in order to ensure 100%
participation. Yearly notices sent to employees to remind of training course as well as signed copy
of employee understanding of definition of company vision and current and past goals. Intranet
database will automatically record employees training progress as well as send yearly reminders
when updates are made to the program.
13.3 Objective2
Criteria
Consumer trust in LG brand increases 5% by March 31st.
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Tools
Before campaign, mock trial of new customer service standards will be tested and revised as
needed after consumer survey. Survey is sent through three platforms: email, text message and
standard mail. This is conducted on a yearly basis as employee training is conducted and revised
yearly. Social media tools to count number of posts and/or views on Facebook for LG Electronics
USA and Twitter. Each post/comment online will be tallied and categorized into positive, negative
or neutral points. The previous year comments will be tallied in the same manner to have a
benchmark. Throughout the campaign, a survey will be given via email link each week to gauge
what is working for or against LG. Randomly, chosen respondents will only be given 4 days to
complete the survey in order to have the time needed to evaluate and revise if necessary. It will
also give the research team valuable information needed to assist in other areas of the company as
far as product updates and other customer service concerns.
13.4 Objective3
Criteria
Brand positioning and market share increased to #2 over all sectors/divisions by July 1st.
Tools
Random phone and email surveys will be given to current customers and potential customers who
sign up for notifications of promotions and sales. Statistical analysis provided by a company like
Brand Tool Box will provide information on brand assessment and positioning. One of the analyses
provided is derived importance analysis. This is an analysis that is "performed to determine which
brand attributes are most highly correlated with the overall impression of and satisfaction with the
organization (BTB, n.d.)." Another essential analysis is the factor analysis. This analysis defines
"how the brand attributes are grouped together (BTB, n.d.)." There is as final analysis conducted
that gives insight on brand ranking and helps LG determine the best route in gaining brand
positioning.
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http://www.zainbooks.com/books/marketing/principles-of-marketing_29_retailing.html
ZDNet. (2014, September 1). LG smartphone market share in Korea reaches 30%. Retrieved
from http://www.zdnet.com/article/lg-smartphone-market-share-in-korea-reaches-30/#!

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LG Electronics PR Campaign

  • 1. LG Electronics PR Campaign Tashia L Bramhan
  • 2. 2 PR Table of Contents 1.0 Executive Summary ............................................................................................................... 4 2.0 Company Background............................................................................................................ 6 2.1 The External Environment ......................................................................................... 7 2.2 The Industry ............................................................................................................... 8 2.3 The Client................................................................................................................... 9 2.4 The Product, Service or Issue................................................................................... 10 2.5 Promotions ............................................................................................................... 11 2.6 Market Share ............................................................................................................ 12 2.7 The Competition....................................................................................................... 13 2.7.1 Samsung.................................................................................................... 13 2.7.2 Apple......................................................................................................... 14 2.7.3 Whirlpool Corporation.............................................................................. 15 2.8 Resources ................................................................................................................. 16 2.9 SWOT Analysis........................................................................................................ 17 2.9.1 Strengths.................................................................................................... 17 2.9.2 Weaknesses ............................................................................................... 17 2.9.3 Opportunities............................................................................................. 17 2.9.4 Threats....................................................................................................... 17 2.10 Public Profiles .......................................................................................................... 18 3.0 Situation Analysis ................................................................................................................ 19 4.0 Core Problem Statement....................................................................................................... 22 5.0 Key Publics .......................................................................................................................... 24 5.1 Employees ................................................................................................................ 25 5.2 Retailers.................................................................................................................... 25 5.3 Consumers................................................................................................................ 25 6.0 Primary and Secondary Messages........................................................................................ 26 6.1 Employees ................................................................................................................ 27 6.1.1 Primary Message....................................................................................... 27 6.1.2 Secondary Messages ................................................................................. 27 6.2 Retailers.................................................................................................................... 28
  • 3. 3 6.2.1 Primary Message....................................................................................... 28 6.2.2 Secondary Messages ................................................................................. 28 6.3 Consumers................................................................................................................ 29 6.3.1 Primary Message....................................................................................... 29 6.3.2 Secondary Messages ................................................................................. 29 7.0 Campaign Goal(s) ................................................................................................................ 30 8.0 Campaign Objectives ........................................................................................................... 32 9.0 Campaign Strategies............................................................................................................. 35 9.1 Employees Strategy.................................................................................................. 36 9.2 Retailers Strategy ..................................................................................................... 36 9.3 Consumers Strategy.................................................................................................. 36 10.0 Public Relations Tactics....................................................................................................... 37 10.1 Employees Tactics.................................................................................................... 38 10.2 Retailers Tactics ....................................................................................................... 38 10.2.1 Press Release............................................................................................. 40 10.3 Consumers Tactics ................................................................................................... 41 11.0 Calendar of PR Activities..................................................................................................... 43 12.0 Budget .................................................................................................................................. 46 13.0 Evaluation Plan .................................................................................................................... 48 13.1 Evaluation Criteria & Tools ...................................................................................... 49 13.2 Objective 1 ............................................................................................................... .49 13.3 Objective 2 ................................................................................................................ 49 13.4 Objective 3 ................................................................................................................ 50 14.0 REFERENCES..................................................................................................................... 51
  • 4. 4
  • 5. 5 1.0 ExecutiveSummary The Company: LG Electronics, Inc. is an electronics, home appliances and mobile communications company based out of Seoul, S. Korea with 128 locations globally. The company was founded by Koo In-Hwoi on October 1, 1958. LG Electronics is better known as a global leader and technology innovator through the various rewards received each year at the International CES (Consumer Electronics Show). LGE’s vision simplified is “Great Company, Great People.” (LGE, 2015). The main direct competitor of LG Electronics also in Seoul, S. Korea is Samsung. Campaign Key Elements: Outside of increasing brand positioning for the company as they currently hold the third position globally, this campaign focuses on lack of customer service standards in the North American region. Many aspects of customer service revision is discussed as well as various mock testing events before final implementation of completed program. Company transparency and progressive communications with customers to resolve issues as they arise and/or before, is most essential in helping brand positioning from third position to second and/or first position within a 6-month period. Interactive communications with customers will prove to be beneficial in realizing customer trust in the product range provided as well as the brand in general. The North American region fares well in maintaining a 7-year lead for mobile handsets, but continues to fall short in other areas of products. If a product is bad and customer service is bad, consumers will turn away from the brand as well as pass their experiences on to others telling them to avoid the brand. This campaign focuses on fixing customer services in order to reduce the bad publicity received via word-of-mouth measures as posted via social media platforms. Total expenditures for this campaign are at a bare minimum of $200,049. Most costs outside of this amount are internal to resources used within the company because costs are transferred between departments. The plan ends with evaluation tools and criteria. Various forms of customer surveys are issued to help with adjusting the plan as needed in an ever-growing world filled with technology. The usefulness of the company intranet will ensure employee compliance with training classes taken and results of each type of training. HR is at the core of this campaign as it will be their responsibility to handle all aspects of campaign research, creation, revisions and implementation. A separate presentation is included with this campaign to give you an overview of all aspects of the campaign from beginning to completion.
  • 6. 6
  • 7. 7 2.1 The External Environment LG Electronics, Inc. (LG) is known as a global leader and technology innovator in consumer electronics, mobile communications and home appliances. LG was founded by Koo In-Hwoi on October 1, 1958 in Seoul, S. Korea. The initial name GoldStar was later changed to LG Electronics, Inc. on January 1, 1995. LG currently employs over 83,000 people who work in one of the many 128 locations worldwide. LG received the Energy Star 2014 Partner of the Year award and 2014 global sales ended at 55.91 billion USD (59.04 trillion KRW). (1LG, 2015) Either LG’s ability to function can be controlled by external elements or LG takes control through various marketing functions. "Some external elements can be manipulated by company marketing, while others require the organization to make adjustments (Root, III., n.d.)." Consumers that purchase and/or inquire upon LG products are ones who are considered tech-savvy as they are always looking for the latest and greatest in innovative products. LG has made a promise to consumers of "enriching lives through technology innovation (2LG, 2015)." Other components of government, environment, competition and public opinion can all intertwine within the marketing function or exist separately. Since LG is a global company, government regulations play a large role in the marketing aspect for the business. Besides the basic patent filings and environmental regulations like sustainability and disposal of used and new appliances and other products, LG deals with taxation policies per country and foreign trade regulations. Other factors involve social welfare policies, general trade policies, government leadership, environmental protection laws, ecological issues, population demographics, income distribution, buying trends, ethnic diversity and lifestyle changes, which can all affect the viability of the success and/or failure of LG Electronics. The components that can truly be manipulated by LG marketing and PR tactics are those of public opinion and the general consumer. The current public perception of the company and brand in general is a mixture of distrust over specific products to that of appreciation for quality products that breaks boundaries through innovative features. The negative perception can be fixed and/or negated through excellent customer service solutions to appease complaints that flow to the company.
  • 8. 8 2.2 The Industry LG is comprised of four business divisions within the overall scope of the company. These divisions are Home Entertainment, Mobile Communications, Home Appliances & Air Solutions and Vehicle Components. The main products for each division are as follows:  Home Entertainment  TVs  Audio & Video  Monitors  PCs & Accessories  Commercial Products  Mobile Communications  G Series  Vu: Series  F Series  L Series II  Home Appliance & Air Solution  Refrigerators  Washing Machines  Dishwashers  Cooking Appliances  Vacuum cleaners  Built-in appliances  Air Conditioners  Air Purifiers  Dehumidifiers  Vehicle Components  In-vehicle infotainment  HVAC & motor  Vehicle engineering (1LG, 2015) The main industry that LG falls under is the electronics industry. LG manufactures and sells consumer electronics worldwide. They are currently headquartered in Seoul, South Korea and the American division is headquartered in Englewood Cliffs, NJ. There is a separate American headquarters for the mobile division located in San Diego, CA.
  • 9. 9 The vision of LG is to “become a worldwide leader in digital – ensuring customer satisfaction through innovative products and superior service while aiming to rank among the world’s top three electronics, information and telecommunications firms. On our way, we hold tight to philosophy of ‘Great Company, Great People,’ underscoring our belief that only great people can create a great company. LG strives for greatness in what we’ve identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadership – each strength a key part of realizing our growth strategies for ‘fast innovation’ and ‘fast growth’ (3LG, 2015).” The consolidated financial statement for fiscal year 2013 show the following: sales – 58,140 trillion KRW (52,515 billion USD), operating profit – 1,285 trillion KRW (1,160 billion USD), net profit – 223 billion KRW (201 million USD) and total shareholder’s equity – 12,689 KRW trillion (11,461 billion USD), (4LG, 2015). Operating profit margin end at 2.2%, which was the same for fiscal year 2012 and ROE (return on equity) ended at 1.8%, which was a 56% increase over 2012, which ended at .8%. (4LG, 2015) 2.3 The Client At LGs formation, the main target market was the Korean market. As the company expanded to foreign territories, the target market later changed to the emerging global market. LG has split their four basic business units to compose two separate headquarter bases. One base deals specifically with mobile communications and corresponding mobile consumer market while the second headquarter base deals with the remaining three business units. One economic factor that affected the growth of LG was in 1997 when the foreign exchange crisis hit the nation. The crisis started with the collapse of the Thai baht. Some of the causes that created a mass crisis in Asian nations stemmed from "sustaining a fixed exchange rate when it was no longer suitable, allowing too many short-term capital flows to accumulate with a high degree of currency speculation and lacking sufficient risk management system at the national level as well as a regional level (ADBI, n.d.)." LG was able to overcome the economic downfall by restructuring their business and workforce. The goal was to strengthen their competiveness and focus more on customer-oriented researches and developments. (LGE, 2008) LG started out with 300 employees in 1958 in S. Korea to well over 83,000 employees today globally. Compared to sales figures given earlier under The Industry, sales in the early years are as follows: sales revenue; 50 million KRW (1959) 45 thousand USD, exportation revenue; 50
  • 10. 10 thousand KRW (1962) 45 USD, capital; 10 million KRW (1958) 9 thousand USD and net income; 29 million KRW (1962) 26 thousand USD. (LGE, 2008) LG has a "Management by Principles" policy that is implemented to enforce "doing business in a transparent and honest manner (5LG, 2015)." This policy is the code of ethics that must be followed by those employed and/or connected with LG in terms of management practices. This is also called Jeong-do Management or in simpler terms The LG Way. The first sentence of the Code of Ethics states: "We, at LG, share and believe in two key corporate principles - 'Creating value for customers' and 'Respecting human dignity.'(LGE/COE, n.d.)" In 2014, LG won 35 awards at the International CES (Consumer Electronics Show). The majority of the awards won were for their television, smartphone and fitness products introduced for the year. The awards were received from entities present at the show like TechRadar, Ubergizmo, HD Guru, Popular Science, Reviewed.com, which was the show's Official Editors' Choice partner and Digital Trends, the Official Digital Home Partner (6LG, 2014). Outside of the main headquarters in Korea and the U.S., LG also owns subsidiaries in China, South & Central America, Middle East, Africa, Europe, North America, Asia and CIS. CIS includes Russia, Ukraine and Latvia. 2.4 The Product, Service or Issue LG produces and sells electronic products that include mobile phones, televisions, air conditioners, refrigerators, washing machines, personal computers and the core components of computers. LG operates segments that are “strategic business divisions providing products and services. Each business division operates separately according to unique technologies and marketing strategies (7LG, 2014).”
  • 11. 11 The specific divisions and their product and/or service module are as follows: Divisions Home Entertainment (HE) Mobile Communications (MC) Home Appliance (HA) Air Conditioning & Energy Solution (AE) LG Innotek Co., Ltd. And its subsidiaries (Innotek) Other Segments Products TV,Monitors, PCs,security devices,audio, video & others Mobile communications Refrigerators, washing machines, microwaves, vacuum cleaners, water purifier & others Residential air conditioners, commercial air conditioners & others Vehicle components, compressor, motor, display material, lighting, solar & others (7 LG, 2014) 2.5 Promotions LG and the brand logo symbolize "the world, future, youth, humanity and technology (this is fully representative of the L & G inside a circle) (8LG, 2015)." LG also stands for Life's Good which is the long-standing tagline. LG has two logos. One is the corporate standard logo and the other is a third version of the logo, which reflects the alignment of the company to new positioning. The third version is more readily visible in all marketing aspects along with LG packaging, retail signs, shopping bags and service vehicles. The standard corporate logo is used for all business stationery, ID badges and corporate signage. LG promotions and marketing are created and implemented geographically with respect to subsidiary location. For example in Australia, a current promotion alerts consumers if they purchase an LG G3 at select retailers over the summer, they will receive a free bonus gift. You are not told what the gift may be, but are instructed to visit your local LG dealer to find out the deals on cellular phone handsets as well as learning about the bonus gift. (LGAU, 2015) In this manner, LG is getting consumers to specific stores as well as pushing sales for the LG G3 product. In the U.S., the major promotion that is occurring is a contest. LG has collaborated with NCAA® Final Four® to offer consumers a chance to win 2016 tickets to the games. The grand prize consists of two tickets to each of the semi-finals and finals games along with hotel accommodations and
  • 12. 12 round-trip airfare. There are also first through third prizes that consist of an LG washer and dryer set, an LG 55" LG UHD TV or an LG mobile phone, which LG reserves the right to choose the model to present to the winner. The underlying promotion within the actual contest is convincing consumers that they need LG products for all their game day viewing needs and/or gatherings. "Do Game Day Right. With great deals on innovative TVs that put you in the middle of the action, plus sleek appliances that let you store and cook your favorite game-day foods to perfection, LG makes it easier than ever to kick back, relax and enjoy the game. If you are a person on the go, do not worry – we have not forgotten about you. To help you keep up with the scores and the biggest plays of the tournament, we are even offering great deals on your favorite mobile devices, including the latest tablets and smartphones, so you can cheer on your favorite teams from virtually anywhere. (9LG, 2015)" This contest may or may not assist with boosting sales in the divisions of mobile communications, home appliances and home electronics. In viewing past press releases, there are different news related to the NCAA & LG with hosting recycling events and celebrity sponsored cooking events. Each press release is very specific in announcing awards earned collaborations with other entities for environmental issues and product changes or innovations recently created. LG establishes their brand to stay in the forefront of the minds of consumers. This type of brand positioning works for LG yet there is room for improvement as will be explained later. 2.6 Market Share North America - Smartphone market share In the 3rd quarter of fiscal year 2014, it has been reported that LG held the highest ever market share over past years in North America. In the 3rd quarter, market share for North America was recorded at 16.3 percent for smartphones. This placed LG securely in 3rd place behind Apple and Samsung respectively. The previous year, LG's market share stood at 7.4 percent for smartphones. The boost in market share resulted from the introduction of the LG G3 model. "LG sold 16.8 million smartphones in the third quarter, breaking the previous quarter's record of 14.5 million. It posted 461.3 billion KRW (420 million USD) operating profit in the third-quarter, a 111.8 percent increase from 2013 (Cho, 2014)."
  • 13. 13 S. Korea - Smartphone market share In July of 2014, LG was reported to have 29 percent of the smartphone market. For the months of January to April 2014, LG was consistently within the 10 percent range, but once the introduction of the LG G3 smartphone was made, that percentage rose greatly. LG's main competitor in S. Korea for smartphones is Samsung, which has held their positioning at a little over 60 percent but is starting to see a decline in shares. (ZDNet, 2014) Actual sales figures were not included in the report. Washing machines - global market share For seven straight years, LG has been able to maintain the number 1 position in market shares for washing machines. At the end of 2014, the market share for LG ended at 12.4 percent. In comparison, their front-loading washing machines finished at 14.7 percent in total washers sold in the U.S. The success of LG washers stem from the innovative features installed on the machines. Such as, "LG's 6 motion technology has a touch as delicate as hand washing, helping to reduce wrinkles and damage to clothes (Clarkson, 2015)." LG's washing machines are seen and perceived as reliable and durable as well as being highly innovative in technology and machine design. 2.7 The Competition LG's biggest competitors in globally are Samsung, Apple, and Whirlpool. 2.7.1 Samsung Just like LG, Samsung started in Seoul, S. Korea. Lee Byung-Chul founded the company in 1938. Samsung is currently ranked as a top 10 global brand and is recognized as an industry leader in technology. Samsung operates three core business divisions: Consumer electronics (CE), Information technology & mobile communications (IM) and Device solutions (DS). Headquarters are based in Korea and they operate 158 subsidiaries globally, which includes nine regional headquarters for the CE & IM divisions and five regional headquarters for DS (Samsung, 2014). Total revenue at the end of the 3rd quarter was recorded as 153,476 billion KRW (138.9 million USD). The top four selling products for Samsung are mobile, CTV, memory and DP. All of the major products showed decline in sales as compared to 3rd quarter 2013 results.
  • 14. 14 The regions that represented a large percentage of sales in highest sales order, was Americas, Asia & Africa, China, Europe and Korea for total sales of 1,041,763 KRW unit base of 100 million. (Samsung, 2014) They have listed their sales strategy within the report as:  Expand market leadership based on smart devices  Provide differentiated value to customers through brand, products and service  Strengthen operational capabilities for customer/market  Enhance sales capabilities (Samsung, 2014) 2.7.2 Apple Apple was founded in 1976 by Steve Jobs and Steven Wozniak at the introduction of the Apple I in California, U.S.A. Apple started seeing success in computer sales in 1977 with the introduction of Apple II, which was the first personal computer to come in plastic case, and included color graphics. Today the company "designs, manufactures, markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, networking solutions, and third-party digital content and applications (Apple, 2014) The Apple products includes those of iPhone®, iPad®, Mac®, AppleTV®, iTunes® and iCloud® just to name a few. Apple makes sales to consumers, education, enterprise and government consumers and small & mid-sized businesses. Apple operates on a geographic basis. Therefore, geographic segments compared product division like other competitors divides their business. Each segment operates in a manner to provide products and services that are similar to the parent operation but adheres to country policies and/or regulations as far as what can be fully offered. Apple employs a total of 92,600 full-time employees and 4,400 full-time temporary and/or contracted employees. Sales at the end of fiscal year 2014 were $182,795 (dollar amounts are listed in millions). Net income was $39,510 (million) and total assets were $231,839 (million). Total shareholders' equity ended at $111,547 (million). Net sales rose by 7% over the previous 2013 fiscal year. The largest revenue from net sales stemmed from the iPhone and the iPad respectively. The operating
  • 15. 15 segments that showed the greatest net sales were the Americas with $65,232 (million) and Europe with $40,929 (million). 2.7.3 Whirlpool Corporation Whirlpool Corporation is the world's leading global manufacturer of home appliances. They have operations in more than 170 countries and their focus is on consumer needs, which stimulate their overall growth. They have over 100,000 employees globally with 22,000 of that number in the U.S. alone. They also operate 70 manufacturing and technology research centers. Whirlpool is the owner of the following known brands: Whirlpool, Jenn-Air, KitchenAid, Amana and Maytag. They also market several other major brands that are known in their respective countries. The Whirlpool vision is to have "the best branded consumer products…in every home around the world (Whirlpool, 2015)." Whirlpool started as Upton Machine Company in St. Joseph, Michigan in 1911. Lou Upton and his uncle Emory and brother Fred started the company. They started with the production of motor- driven wringer washers. Upon first introduction of the washing machines, a problem occurred but Mr. Upton quickly rectified the situation, which enabled the company to gain a larger customer base. Demand became greater and later in 1929, the company corroborated with Nineteen Hundred Washer Company based out of New York. The company later introduced ironers to their product line and eventually produced the first fully-automatic washer and electric dryer. The company's name changed to its' current name of Whirlpool Corporation in 1949 to symbolize their signature brand. (Whirlpool, 2015) Whirlpool's financials follows a standard calendar year for their operations. At year end of December 31, 2014 reported net sales was at $19,872 (billion). Operating profit was $1.1 billion and net earnings were $692 million. Total assets are at $20 billion and total shareholders' equity ended at $5.7 billion.
  • 16. 16 2.8 Resources To understand the value LG places on their customers, it has been stated that they put in strives to provide "the best value by reliably supplying products in demand from the customers' perspective, listening to their feedback and assisting with fast, accurate, and unique service (2LG, 2015)." Communications with customers are made through various social media platforms as well as directly through LG's own newsroom website. LG collaborates with local research organizations that help them analyze lifestyles of customers by region. This collaboration occurs to better product development based on customer needs. Prosumer marketing communications is a tool that LG uses to have more customer input involvement during the development stage of products. For example, a TROMMIZ program had the participation of 15 homemaker bloggers. These bloggers played the role of liaison between LGE and its consumers by giving feedback on the usage of the TROMM washing machine. The bloggers also assisted with product planning and provided valuable online suggestions during the development stage of the product. (2LG, 2015) Another resource LG uses for marketing communications with their customers is through organized events that are announced through press releases and social media platforms. One such event is the yearly recycling program held in North America where consumers are encouraged to recycle their old mobile phones to various schools. The schools in turn compete to win a monetary prize from LG for collecting the most waste in the form of mobile phones. This type of event is putting into the mind of consumers that LG is a socially responsible company. Also creating a positive perception of the LG brand, which in turn generates revenue through new and/or existing customers. One last resource as previously mentioned to gain and build customer trust is the use of digital marketing communication. Through the utilization of social media to coincide with digital media trends, LG focuses on reaching out to their customers and building relationships by accommodating customers in the various digital channels. Consumers are able to more readily participate in various campaigns, be a part of loyalty programs and even view videos associated with the LG brand.
  • 17. 17 2.9 SWOT Analysis 2.9.1 Strengths  LG has been able to maintain the #1 position in market shares for washing machines on a global level for 7 years.  Known as a global leader and technology innovator in consumer electronics, mobile communications and home appliances.  Return on equity increased by 56% over a 1-year period.  2014 winner of 35 awards at the International Consumer Electronics Show  Held highest market share ever for the company in the North America market for mobile handsets at the end of the 3rd qtr. for FY2014  Consistently introduces innovative products to the market based on consumer needs and/or wants that fits trending lifestyles 2.9.2 Weaknesses  Lackluster customer service as posted on various consumer platforms in regards to refrigerators purchased in the U.S.  Unknown future economic conditions that can affect business overall in terms of sales and revenue  Changes in tax laws geographically  Foreign exchange rate policies and changes in exportation regulations  Consumerism - consumers have less disposable income to cover household needs  Market saturation of products and price wars of sector specific products between competitors 2.9.3 Opportunities  Strengthen customer trust by increasing training efforts for employees to provide better customer service when complaints are made  Increase presence and/or change current company perception by being more responsive to customers  Increase market share of smartphones sold in the U.S., currently in 3rd place behind Samsung and Apple  To make better placement of home appliance stance globally and particularly in the U.S. by testing and/or re-testing appliances such as refrigerators to ensure that not only are they fully functional but there are no cosmetic and/or internal defects  Products that have been tested and been successful in the Korean/Asian market, start introducing to other regional markets, thus increasing market share and brand positioning 2.9.4 Threats  Political policies  Global and/or local economic conditions - recession or depression  Tax law changes  Foreign exchange rate  Decrease in consumerism - consumers having less disposable income
  • 18. 18  Market saturation of products by competitors  Competitors creating more innovative products which increases their market share 2.10 PublicProfiles  Consumers concerned with the environment: located in the Palisades (Englewood Cliffs) area of New Jersey where current U.S. headquarters are located. Concerned with headquarter remodeling that will taint the current skyline (tree-line view) of the Palisades (Englewood Cliffs) if tower rises above trees. Influentials are EPA (Environmental Protection Agency), the National Park Service and mayors of the 6 nearby communities.  JPMorgan: recently downgraded LG from Overweight to Neutral in terms of stock valuation. Shareholders are the secondary public as JPMorgan decision and lower value of stock may cause shareholders to sell their shares of stock and/or potential shareholders may be more cautious in purchasing. The forecast for stock valuation is bleak as stated by JPMorgan. (JPM, 2015) This either will benefit LG in the purchase of more shares of stocks at the lower price or will hurt them if shareholders decide to sell off their stocks because of the prospective forecast made on future valuation.  LG employees: lack sufficient training. Work-life balance is considered non-existent as stated by current and past employees. Some employees feel segregation and/or career lacking progression to grow. Influentials consist of upper/middle management and Human Resource department. HR policies and how they handle employee concerns causes chaos among employees who feel they are not receiving and/or do not have the necessary tools to be successful. Peers within a department may influence feelings or conversations in favor of or against the company or department in which they operate. Uses of social media to voice complaints can be damaging to the image of the company.  Various consumer complaints posted on platforms like Consumer Reports and BBB (Better Business Bureau). Influentials are disgruntled consumers who own various LG products. Complaints range from defective products to poor customer service.  Expert product evaluators. Self-influenced. Concerned with performance, durability, innovativeness and other aspects to issue awards and/or professional reviews to appease consumer concerns and/or inquiries. Consists of specialists of specific products.
  • 19. 19
  • 20. 20 3.0 Situation Analysis LG Electronics, Inc. (LG) vision states: "LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative products and superior service while aiming to rank among the world’s top three electronics, information, and telecommunications firms by 2010. On our way, we hold tight to a philosophy of “Great Company, Great People,” underscoring our belief that only great people can create a great company. LG strives for greatness in what we’ve identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadership—each strength a key part of realizing our growth strategies for “fast innovation” and “fast growth”. (LGE, 2015)" Various consumer, reporting outlets have shown that part of the LG vision, "ensuring customer satisfaction through…superior service", has not held true in all instances. One major reporting portal is the BBB (Better Business Bureau). Through this portal, consumers are able to make any complaints or concerns and then BBB will present that information to the business in question. Businesses have the opportunity to respond to consumers with some sort of resolution or request for additional information if needed. All of the responses made by LG in general have all started in a scripted, generic manner. LG responses are impersonal which causes many consumers to reject the response given as not being resolved. Customers are also purchasing LG items that have limited warranties for defects that are only applicable to the first year of owning and registering the product. There are, however instances of products being defective cosmetically and/or parts of products not working correctly. Complaints are about technicians that inspect and try to fix products and/or parts not readily available for repair. Many consumers have waited for weeks to have either product replaced or repaired. Calls are made to customer service but with little satisfaction being made to the consumer. All areas of customer service in the North American sector need to be revised and implemented to conform to changing consumer needs and cultural differences per region. Employees need reiteration of the LG Electronics vision on a yearly basis. Mandatory ethics training classes along with courses in customer service is available to employees. Training can occur at workstations (employees desk via data feed) if at corporate locations and/or off-site training facilities. Training
  • 21. 21 is conducted yearly as consumer behaviorism and company perception continuously changes. Knowing how to handle various issues that may arise is key to the success of LG earning the #1 spot globally for consumer market share in electronics as well as the #1 position for telecommunications and information. Carrying out these entities of employee training and constant internal employee communications between departments will help alleviate or lessen the amount of negative consumer perception. Taking steps to communicate more effectively and positively with consumers will re-position the company brand to assist with realizing the full LG vision. Taking more steps to communicate internally over various aspects of the company goals and visions along with product development, researches and even issues that have arisen will educate employees so they know how to handle and respect their customers in an ethical and non-generic manner.
  • 22. 22
  • 23. 23 4.0 Core Problem Statement Consumers of the North American region are not receiving superior customer service as stated in the LG Vision, which causes retail sales associates and past consumers are alerting others to avoid purchasing LG products.
  • 24. 24
  • 25. 25 5.0 Key Publics The key publics for this campaign are very specific in terms of establishing and providing superior customer service as stated within the LG Electronics vision statement. Three key publics have been chosen for this campaign. They have been selected based on how they relate to the overall scheme of customer service and being able to provide informative information in both directions. 5.1 Employees Employees are the most important entity for a business. “An ongoing public relations program is necessary to maintain employee good will as well as to uphold the company’s image and reputation among its employees (RFB, 2015).” Employees are crucial as they represent both customers to the company as well as brand ambassadors in upholding company image (vision). 5.2 Retailers Retailers are the decision makers of carrying specific brands exclusively or concurrently with other competitors. With the right persuasion, they are able to assist with product promotion and brand positioning. 5.3 Consumers Consumers, as with any business that sells products or provide service, are of the utmost importance. In public relations, the opportunity is given to be able to educate consumers on a specific cause and create a negative or positive response towards said cause. PR professionals can also manipulate consumer thinking or behavior via company image created from public relations efforts.
  • 26. 26
  • 27. 27 6.1 Employees Specific employees within the organization of LG Electronics are composed of customer service representatives, field service technicians & support, management and sales representatives (whether in retail or business-to-business). These employees have direct interactions with consumers and other businesses as well as knowing first-hand about specific products and services offered by the company. Management drives the flow of internal communications, as they are the leaders of various departments. It is a requirement within the code of ethics that employees are to be treated fairly and to have a respect for human dignity. The employees are endeavored to keep customers happy by offering customer service that complies with the company vision. Open communication is encouraged and being cooperative with colleagues of different departments is the basis of business sharing within LG Electronics. Well-trained employees in the area of customer services and field services can boost the LG brand through various measures of product knowledge and crisis aversion. To make the employees feel more empowered in their communications with customers, they must feel like they have been given all the necessary tools for effective customer service. These tools come in the form of yearly trainings on new and/or updated customer service practices as well as constant internal communications of interdepartmental information sharing. Interdepartmental information sharing can range from products ideas and progresses to concerns of possible or current product or service shortfalls. Recalls, how to handle the flood of calls, social media postings and emails in question of recalls will place the customer service representative in a front line position of public perception of the company. 6.1.1 Primary Message Our employees are committed to you first. Your satisfaction is our satisfaction and that is what makes us a family. 6.1.2 Secondary Messages  Employees are well trained in all aspects of customer related services in order to serve you better. LG's vision states, "Great people can create a great company, (LGE, 2015)."  We take pride in our products and we take pride in serving you respectfully and properly. Human dignity is given for both our employees and our customers.
  • 28. 28  There is no such thing as no in our vocabulary within reason, because we want your loyalty and your respect. There are times when we may have to say no. If we feel a product cannot be fixed in a timely manner, there will always an alternative. We are willing and capable of working with you in order to alleviate any misconceptions or concerns in our products as well in the quality of the services we provide. 6.2 Retailers Retailers that carry our products range from stand-alone big box stores to stores located within the vicinity of a mall and/or shopping district area. Our retailers hold exclusive contracts to carry our range of products and have the wherewithal to promote our brand in order to boost store sales. Specifically parties within the retail system are the buyers and executives who make the decisions of choosing brands that will bring business to their store location. A brand that is chosen for specific retail stores assists with brand positioning for the manufacturer of products to be sold. Retail location plays a role in what products are to be sold along with customer needs and/or wants shown for a region. Depending on area of retail establishment along with target market specified, retailers can be convinced to carry high-end luxury items to mid-range items in terms of price associated and expected quality of product type. "Retailers must decide on three major product variables: product assortment, services mix, and store atmosphere. The retailer's product assortment should match target shoppers' expectations (ZB, 2013)." 6.2.1 Primary Message The LG brand can be found at a store near you. Expect what you want, where you want. LG is committed to being everywhere within our customers’ reach. 6.2.2 Secondary Messages  Brand positioning is important to LG in order to fulfill the vision of "becoming a worldwide leader in digital - ensuring customer satisfaction through innovative products and superior service (LGE, 2015)." Without the assistance of retailers carrying the brand in direct competition with Samsung and other major brands, LG would not be able to rank themselves as one of the top three brand of electronics, information and telecommunications.  LG continues to make strives being great in customer service, product innovation and relationship building with their customers and other businesses.
  • 29. 29 6.3 Consumers The consumers of LG consist of individuals who are always looking for the latest and greatest in innovative products. The North American market can help LG become a global brand that is highly recognized for service and quality of products sold in the region. LG has to be shown as a brand and company that the North American consumers can trust. Through various social media platforms, consumers now have a way to be even more vocal and present their concerns, complaints and/or good tidings to a wider audience of current and potential consumers of the brand. With how fast the World Wide Web can provide a consumer with information at their fingertips, they are expecting companies to be just as fast in responding to any information that is posted and/or sent directly to the company. Earning the trust of consumers and giving them a perception of superior customer service falls in line with the vision statement that addresses superior service. 6.3.1 Primary Message The customer deserves the best in product quality along with superior customer service. You are our voice in terms of brand recognition and positioning against our competitors. You also expect us to stay true to our vision and to respect your time so that the money you spend is an investment into your well-being with quality goods for your home and your family. 6.3.2 Secondary Messages  We listen to our consumers in providing innovative products of the highest quality. Care is taken in determining new functions in our products and tested to ensure standards are met and exceeded.  Our customers always come first and that type of service starts with qualified employees to assist in every aspect of the consumer decision in purchasing our products. A consumer should never have to hear the word "no" unless a situation is beyond our control and the only way to resolve and/or overcome a potential backlash is to use every method to make our customer happy.  A happy customer will look beyond any flaws and keep coming back to us for their products because they know that we stand behind our products by providing the best in customer service needs.  Our customers are our family; therefore, you are always treated with the utmost respect as we listen carefully and create resolutions that fit your needs.
  • 30. 30
  • 31. 31 7.0 CampaignGoals 1. Establish North American customer relationships to increase brand positioning to the #2 spot. 2. Realign North American public perception of LG Electronics in terms of customer service standards.
  • 32. 32
  • 33. 33 8.0 CampaignObjectives  Establish/revise customer service training program updated on a yearly basis to coincide with research related to consumer behaviorism. The program will be implemented in the North American region within 4 months of the start of the campaign. Consumers change their shopping behaviors and platforms of communication, as often as technological updates. Not only do employees need to participate in the training program each year, but also they need to have an awareness of circumstances surrounding any actions they take that can harm the company image. Miscommunications and/or unresolved issues result in a disgruntled consumer. The program shall be a 24-hour training taken over the course of 3 days. Employees that are specifically in customer service via telecommunications, digital platforms or in-person communications will be required to take an additional 16-hour supplemental training course. This is to ensure employee reiteration of company overall vision and goals as well as ensuring that employees adhere to the standard of providing superior customer service to all.  Increase consumer trust in the LG brand by 5% in a 3-month period. LG will reach out to past consumers and ask them to participate in a mock testing environment, whether it is online, via telephone or in person. The consumer will be offered a $100 gift card incentive for their participation. Consumer has direction to revive a past personal experience of reaching out to customer service representatives and posing a compliant and/or concern with products purchased. The employee(s) approached, will not know that a test (mock) is occurring. Consumers will give feedback on how a customer service representative alleviated the situation at hand. Consumers will keep informed that measures are being taken from their suggestions in improving the LG customer service standards. In this manner, LG is rebuilding trust by showing that they do care about their customers and not just about selling products.  Increase brand positioning and market share to #2 in a 6-month period in all three areas of telecommunications, electronics and information. (Currently in #3 position in most areas.) Once consumer trust is re-established through means of employee trainings and consumer based mock testing of services, LG will be able to reposition themselves, thus selling more products. Consumers now feel that they have a voice that is heard and will not have a problem in making future purchases. Company transparency is an important factor of re-
  • 34. 34 building trust; therefore, LG will need to show that every effort is being made in training employees correctly in the area of customer service. When there is an issue with a product, steps will be taken to alert consumers immediately as well as ensuring enough measures are taken for a quick and reasonable resolution. There will be no more lag times in waiting for a live customer service representative, as there will be more customer service reps staffed to monitor web platforms as well as being available for all telecommunications.
  • 35. 35
  • 36. 36 9.0 CampaignStrategies Strategies by definition tell what LG Electronics set out to do in order to accomplish all of their PR objectives. They define the approach of planning to achieve the objectives along with stating in a general fashion how the objective will be reached. Strategies are a long-term device that does not undergo frequent changes. Strategies fall in line with the overall brand/company vision and goal. With strategies in place, LG Electronics will be able to define KPIs (Key Performance Indicators) necessary to track the overall stability, financial outlook, credibility and other measures that executives use in order to determine the next direction of brand positioning and/or other focus for company success. 9.1 EmployeesStrategy Employees in the North American division, acknowledge training completion via proof of certificate and testing results to show knowledge of superior customer service. Results are recorded via intranet and/or at on-site training facility in Roswell, GA. 9.2 RetailersStrategy Increase awareness of LGE brand and strength in customer service via extensive usage of social media and free press releases. 9.3 ConsumersStrategy Promote LGE as a family company that cares for both their employees and their customers in order to create a cohesive relationship that is trusting and responsible.
  • 37. 37
  • 38. 38 10.0 PublicRelationsTactics The tactics of LG Electronics define how the strategy is implemented. Tactics are the planning portion that reaches a common goal (objective) in order to garner interest by respected parties for business/brand future and current success. In a general perspective, tactics are the blueprint necessary to implement a strategy based on an objective. 10.1 EmployeesTactics  Conduct research over a 2-week period of various CS training programs and take aspects that relate to the company vision to create a solid and effective program.  Have HR professionals within LG create and test training program over a 3-week period. The program is created from prior research conducted. The mock testing will occur with randomly selected employees over a 1-week period. After testing period, HR will take results from first draft of program and take suggestions from testing participants in order to fix any bugs and/or inconsistencies within the program. A second testing is conducted, this time with different randomly selected employees and consumers given an incentive to participate. Final views and adjustments are made accordingly. A final mock testing will be conducted, among executive employees.  To accommodate various employee schedules, the training program will rollout at various corporate and satellite locations to ensure that all employees go through the initial training once. New employees will be required to take the training within 2 months of hiring date. Front line employees that consist of customer service representatives and field technicians will be required to take the training on a yearly basis, while the remaining employees will take a shortened version of the training on yearly a basis as updates to the training program are made to coincide with changing general consumerism. 10.2 RetailersTactics  Customer care is shown through ensuring that employees have all the tools necessary to assist customers with any needs or concerns. It will be shown that communication efforts with customers are not generic and/or scripted.  A press release is issued to clarify the steps taken to revamp the training program given to employees in terms of customer care. The news release will give a detailed explanation on the creation of the new training program. A mini in-house training video will be released
  • 39. 39 to show examples of the changes and some outcomes of the testing process. This will draw more attention to the LG brand as well as showing transparency ahead of future situations. We are showing consumers that there is more to LG than electronics by showing what the employees go through in order to serve them.  Not many people are aware of LG's press release/newsroom website; therefore, more emphasis will be placed on using social media to draw more consumers to the website. This will be accomplished by placing appropriate communications and videos from the original site to social platforms like Instagram, Twitter, Facebook and even LinkedIn. LinkedIn will focus more on research and business related video placement while the remaining sites will appeal to the general consumer of introducing new products and product function in video format.
  • 40. 40 10.2.1 Press Release Contact: Tashia L. Bramhan Phone: 803-123-1234 E-mail: info@tlbramhan.com PRESS RELEASE FOR IMMEDIATE RELEASE LG ELECTRONICS,NORTH AMERICAN DIVISION HAS MADE A GRAND REVISION OF THEIR CUSTOMER SERVICE TRAINING PROGRAM ROSWELL, GA – May 1, 2015—LG Electronics (LGE) Executive HR representatives have made strides in revising their past customer service training standards. The team has researched,created and tested the revised program at great lengths. In order to ensure customer service standards met the needs of their North American consumers, LGE invited 400 customers to participate in various forms of mock testing of the new program. Each customer that participated was given the choice of either an Amazon gift card or Visa gift card valued at $100 USD. The implementation of the program was given to all employees located in the North American region of all LGE operations. After successful completion, the program was then implemented to the remaining LGE regions. The program consists of a 24-hour intensive training taken over a period of 3 days. The best in customer service practices was borrowed and/or bought from various entities and combined into one conclusive program for the LGE brand. LGE made sure to obtain rights for ideas that were borrowed and bought others to become the new sole owner of said program. LGE values their customers and realized in order to remain competitive against Samsung, Apple and Whirlpool; they needed to place themselves in a position to offer something that was far better and more reliable than their competitors were. A brief demonstration of the full program is offered online through the social media platform of YouTube. Search for LGE 2015 Training Program. Why is this a big deal for LGE? Well, for the North American region, many consumers started posting thousands of complaints about customer service and LGE products on platforms like BBB (Better Business Bureau) and Facebook. Even though an effort was made to respond, the time in which our customers received a response fell short of expectations. With this injunction, a review of the LGE vision was re- visited and executives made the determination that a change was needed in order to fulfill the LGE vision. Part of the vision statement is to provide superior customer service. The North American region fell short in this very aspect, therefore creating a need for a major overhaul in company transparency and substantiated customer service standards. Now LGE can be back in the forefront of consumerism and avoid potential backlash because of new practices in place that are of benefit to customers. For example, LGE has collaborated with more local contractors who have also had to take the customer service training as part of their contracts with LGE. In this manner, LGE can now offer JIT service to appease consumer needs. ABOUT LGELECTRONICS LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, mobile communications and home appliances. Founded by Koo In-Hwoi on October 1, 1958 in Seoul, S. Korea, LGE employs over 83,000 people. LG received the Energy Star 2014 Partner of the Year award and 2014 global sales ended at 55.91 billion USD (59.04 trillion KRW). (1 LG, 2015) For more information, contact Tashia L. Bramhan, at info@tlbramhan.com
  • 41. 41 10.3 ConsumersTactics  Create a basis of complete customer care by showing the strength and capabilities of the North American employees through various means of training programs. Create an environment of customer comes first that is not scripted or generic in consumer communications responses.  As part of the employee training program, establish the "Never say No to customers'" rule. Whenever a customer calls in with an issue over a purchased product, employees are instructed to respond in a respectful and caring manner. This means that the word "No" should never be used unless a fix is unreasonable and therefore replacement of product and/or refund and product removal is necessary as the final resort.  The customer will be shown that all measures of resolution have been taken in one phone call with maximum of two phone calls when repair work is involved. A collaboration with reputable repair services will be in place in order to respond in a timelier manner. There will be a JIT (Just in time) service in place that allows customers to acknowledge when they are available to accept in-home services if needed, and to get a field technician and/or contracted service members to the home in a shorter period.  Recruit and train more than enough employees to cover front line communications, especially in adverse situations that may or may not occur. In this manner, customers will no longer have extended wait times on automated telecommunications systems, as they will be able to reach a human respondent within 1-4 minutes max. The e-commerce site offers instant availability to customers; therefore, the telecommunications system is due for a major overhaul in order to be compliant with the company vision of superior customer service. The North American region currently houses the largest number of complaints. Therefore, recruiting and training more front line employees along with departmental cross training will benefit the overall bottom line for the business.  To regain the trust of past consumers who experienced poor customer service, through the company, some random customers will be selected to participate in mock training efforts. This testing will be part of the training program created in the first year to ensure customer service responses and solutions are realized more effectively. This will also alert past consumers that every effort is being made to change past negatives in to a positive. The
  • 42. 42 consensus is that once customers realize that LG truly cares about their customers, customer loyalty and trust will be earned.
  • 43. 43
  • 44. 44 11.0 Calendarof PR Activities The calendar and budget for LG Electronics is based upon current and future needs for the overall success of LGE. Most costs represent little to no costs because of training systems and/or facilities that are already in place for LGE. The entire plan and budget references the North American division only as this is the main area of focus to improve upon customer service standards and concerns. For LGE there is a training academy located in Roswell, GA. This facility opened on December 11, 2008. The area of focus for training at this facility is engineers, contractors and technicians. The time has come, because of recent customer complaints within the North American division, to revise current training standards to include those of the customer service sector within LGE. The beginning and ongoing process of this training project will be conducted and implemented by the HR team in North America. Therefore, costs associated with the training program are internal. Employees within 100 miles of the Roswell, GA training facility will attend classes at the center. All others will access training courses via intranet resources. Upon successful reviews via mock testing and initial North American implementation, the training will then be available to the remaining divisions of LG Electronics to create a new standard of customer service training globally. We have found it is more cost effective to keep training in- house instead of outsourcing, as it is less expensive. HR employees and researchers within the LGE family already receive salaried pay, therefore, extra monies within the budget are not necessary to conduct the research needed as well as revising and/or adding to the training program in place for customer service needs. A revised, training program for customer service is necessary because of the constant complaints by North American consumers. Customer service training is only given to those employees hired specifically for customer service but with the overage of complaints, the training is needed by all employees. Compliance of customer service standards is necessary for all departments within LGE along with interdepartmental communication. Having all employees cross-trained on customer service, assists with company image and employee/employer responsibility to the customer. Following is a matrix of the current training offerings and employees related to trainings taken.
  • 45. 45 Current LGE training roadmap (LGE, 2015). LGE Calendar.xlsx
  • 46. 46
  • 47. 47 12.0 Budget For comparison purposes, the cost to train approximately 83,000 employees utilizing a training platform like Quality Training Portal would amount to $4, 067,000 USD. The cost per every 250 employees through QTP is $12,250 USD (QTP, n.d.). To assist in the efforts made by HR, the cost per employee will be $25. This cost is transferrable internally as it would already be part of departmental budgets for the fiscal year. The HR cost center would receive all training costs per employee from other LGE departments. The estimated cost transferrable to HR is $2,150,000, which also accounts for estimated 3,000 new hires globally. From the 2014 Final Separate Financial Statement, 4th Quarter, the total for Selling & Marketing Expenses was 9,505 Billion KRW (8,734 Million USD). Total estimated costs for plan implementation is $200,049 USD. These costs include $40,000 USD in $100 USD gift certificates used as an incentive to garner customer participation during the mock testing process of customer service training and $8,000 USD per 50 jobs posted on Careerbuilder.com. Postings via LinkedIn are free with Premium membership, which LGE already owns. Press releases, store visitations, research and revisions are all aspects of the plan that can be obtained with no cost to LGE. From the $8.7 million USD spent in the previous year for marketing purposes, this PR plan would only account for 2-3% of overall marketing budget. LGE Budget.xlsx
  • 48. 48
  • 49. 49 13.1 EvaluationCriteria and Tools The objectives for LG Electronics have benchmarks that can be used to properly utilize tools needed for campaign evaluation and progress. The customer service and training issue involves the North American sector, therefore the benchmark for these two entities are from the Asian sector. The Asian sector experiences the company vision of providing superior customer service. With customer service, sales numbers provide a key look into the success of campaigns. A benchmark of 2 years of sales in the Asian market versus the North American market is needed from the first half of each fiscal year. We will evaluate the first half of the fiscal year in the North American sector, to determine whether the training and customer service campaigns have made a difference in sales versus prior years in their own sector and then compare those numbers to that of the Asian sector. In order to utilize sales figures correctly, a measure of increase and/or decrease in sales from previous years is necessary. For example, in year 2014, the North American sector showed an increase of sales in the 1st month of the year at 2% over year 2013. In year 2015, after campaign introduction, sales increased at 3.5%, therefore an increase of 1.5% occurred over the previous 2015 sales figures. 13.2 Objective1 Criteria Training program recreated to adhere to today's consumer and public needs taken by all employees no later than March 30th on a yearly basis or upon 1st month of employ with the organization. Tools Copies of certificate of completion digitally recorded in employee database in order to ensure 100% participation. Yearly notices sent to employees to remind of training course as well as signed copy of employee understanding of definition of company vision and current and past goals. Intranet database will automatically record employees training progress as well as send yearly reminders when updates are made to the program. 13.3 Objective2 Criteria Consumer trust in LG brand increases 5% by March 31st.
  • 50. 50 Tools Before campaign, mock trial of new customer service standards will be tested and revised as needed after consumer survey. Survey is sent through three platforms: email, text message and standard mail. This is conducted on a yearly basis as employee training is conducted and revised yearly. Social media tools to count number of posts and/or views on Facebook for LG Electronics USA and Twitter. Each post/comment online will be tallied and categorized into positive, negative or neutral points. The previous year comments will be tallied in the same manner to have a benchmark. Throughout the campaign, a survey will be given via email link each week to gauge what is working for or against LG. Randomly, chosen respondents will only be given 4 days to complete the survey in order to have the time needed to evaluate and revise if necessary. It will also give the research team valuable information needed to assist in other areas of the company as far as product updates and other customer service concerns. 13.4 Objective3 Criteria Brand positioning and market share increased to #2 over all sectors/divisions by July 1st. Tools Random phone and email surveys will be given to current customers and potential customers who sign up for notifications of promotions and sales. Statistical analysis provided by a company like Brand Tool Box will provide information on brand assessment and positioning. One of the analyses provided is derived importance analysis. This is an analysis that is "performed to determine which brand attributes are most highly correlated with the overall impression of and satisfaction with the organization (BTB, n.d.)." Another essential analysis is the factor analysis. This analysis defines "how the brand attributes are grouped together (BTB, n.d.)." There is as final analysis conducted that gives insight on brand ranking and helps LG determine the best route in gaining brand positioning.
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