13257 Thu, 12/13/2007 - 5:49pm
By Michael Rudnick
ENGLEWOOD CLIFFS, N.J.-- LG Electronics, in a bid to further spark step-up sales, launched its first major U.S. integrated advertising campaign for white goods.
LG kicked off the initial two-month, $20 million phase of its appliances advertising campaign late last month, said John Taylor, vice president of communications at LG Electronics USA. He said that this first phase represents LG's most concentrated U.S. ad spend on appliances so far.
The campaign is based upon a central theme of upgrading appliances with the goal of sparking purchases based on step-up styling and technology rather than to replace appliances that are not functioning properly. LG, as a mass premium white goods player, focuses on this type of step-up sale. This has helped to insulate the company in times of a white goods slowdown due to the ongoing housing slump. Taylor said that the housing slump has actually helped to drive LG's white goods volume, as consumers choose to renovate existing homes with a focus on kitchens rather than buy new homes.
The LG advertising effort keys in on what Taylor called LG's flagship appliance products, its front-load steam laundry pair and its new french-door refrigerator with an external ice and water dispenser. The campaign features a number of humorous consumer fantasies demonstrating what drastic actions they might dream of taking to dispose of or destroy their old major appliances in order to upgrade to an LG product. One such advertisement features an older refrigerator being placed on train tracks.
LG chose to highlight the aforementioned flagship products as front-load laundry and french-door refrigeration are currently the fastest-growing segments of the white goods market from a sales standpoint, Taylor said. "These products are what most people think of when they think of replacing [appliances]," Taylor said, adding that these upgrade decisions are generally based on design and energy efficiency.
The campaign consists of national television advertisements, a print effort concentrating on shelter and lifestyle magazines, and an online component, Taylor said.
The campaign "dovetails with the launch of LG's new premium kitchen," Taylor said. He added that the company plans to ultimately extend the campaign to its entire new kitchen line, including its dual-convection freestanding range, gas range, over-the-range microwave with pull-up door and steam dishwasher. He called the front-load refrigerator and steam laundry pair the "centerpiece of our new kitchen package."
Taylor declined to disclose specifics about the upcoming phases of the major appliances campaign.