London : LG Electronics, the world's third-biggest phone maker, may unveil one or two new global sponsorship deals to attract more female clients and build demand for phones, televisions and home appliances.
The partnerships would come in the next two to three years and could involve music, theatre, film, or sports such as tennis, Chief Marketing Officer Dermot Boden said in an interview in London. LG currently sponsors cricket, Formula One auto racing, and US college basketball.
Applications rush
Consumer electronics companies are looking to strengthen brand appeal as Apple builds buzz for products such as the iPad and iPhone. Nokia, the world's largest handset-maker, is pushing application-rich smartphones with advertising in venues including the Paris metro.
LG is also the world's second-largest maker of liquid-crystal-display televisions.
"It would be very interesting to see if there are partnerships that would allow us to connect more easily with women, with mothers," Boden said.
"Over the next two to three years, we'll continue to review our current partnerships, and if need be, look at re-opening them," he said.
While LG is happy with its current sponsorship arrangements and new deals could come in addition to existing ones, "all good things come to an end", Boden added.
LG, founded during South Korea's post-war expansion as GoldStar, has associated itself with prominent sports to develop brand recognition in Europe and North America similar to that enjoyed by Japan's Sony. Together, those regions accounted for about 45 per cent of the Korean company's revenue in 2009.
Last year, the Seoul-based company, which doesn't disclose its marketing budget, signed on as a corporate partner with the US National Collegiate Athletic Association. It's also has been the shirt sponsor for London's Fulham Football Club.
Marketing budget
LG needs to shift marketing spending towards social media and other online venues, Boden said. The company may increase the proportion of marketing spending for digital platforms from between 10 and 15 per cent today to about 25 per cent over the next two years, he said.
LG said in January it plans to introduce about 20 smartphone models this year. The company returned to profit in the first quarter, helped by sales of appliances and high-end televisions.
