LG attempts to rebuild ‘credibility’ beginning with £5m ad campaign


Manufacturer to focus on the low- to mid-end of the market to combat sharp decline in market share over the past two years

LG says it needs to rebuild its commercial credibility in the UK after its market share declined “significantly” over the past two years. The company has seen its market share drop from around 10 per cent two years ago to around five per cent today.

LG Electronics UK consumer marketing director Stephen Gater (pictured) told Mobile News the manufacturer had focused on the high-end handset market despite a lack of consumer confidence in its products.

He also admitted sales of its Optimus 3D handset did not match expectations.

To combat this, Gater said LG is looking to focus more on the low- to mid-end of the market to rebuild its credibility among customers and resellers alike.

This will begin with a £5 million above-the-line advertising campaign promoting its new L-Series handsets, which were unveiled at this year’s Mobile World Congress.

Ads will appear on TV, in print and in social media.

LG did unveil a high-end device at MWC, the Optimus 4X HD, but says it will be part of a low-profile attempt to reach out to a small number of consumers.

Gater said: “In the short term we have got to rebuild our commercial credibility and rebuild our consumer engagement.

“Our share has declined pretty significantly, and you have to look back a couple of years to see that as a global business we didn’t cotton on to the smartphone revolution fast enough.

“Our strategy was to focus very heavily on high-tech innovative products whereas actually I don’t think we had the brand credibility in mobile to do that.

“The opportunity for us in the next 12 to 18 months is that we rebuild our business in mobile.”