LG Electronics Eyes 3 Shops

LG Electronics USA, a subsidiary of the Korean conglomerate LG Group, will choose among three agencies in a review of its estimated $10 million ad account.
The company manufactures televisions, VCRs, camcorders and other consumer products, many under the Goldstar brand.
C.K. Lee, director of sales support and advertising at the Englewood Cliffs, N.J.-based client, said last week that incumbent Giacalone & Wood of Hopatcong, N.J., was one of three shops involved in the review. He declined to identify the others.
“We want to spend a little more [on advertising] for 1998,” Lee said when asked what had sparked the review. He did not elaborate. Lee said the final decision on a shop would be made by corporate officials in Korea.
G&W’s last work for the client was a print ad touting Phenom, the client’s hand-held computer. It was headlined, “The perfect balance of power.” The ad carried the theme, “We put people first.”
D’Arcy Masius Benton & Bowles, New York, handles corporate image advertising for the client’s ultimate parent company, LG Group.
LG Electronics USA is owned by LG Electronics, which in turn is a unit of LG Group. The parent is South Korea’s third-largest chaebol, or industrial group, behind Samsung and Hyundai. LG Group’s economic activity accounts for 10 percent of the country’s gross national product.
The company has recently been restructuring, merging some subsidiaries, selling others and transferring employees to growing businesses.
Formerly Lucky-Goldstar, LG Group acquired 58 percent of U.S. television maker Zenith in 1995, giving LG a 14 percent share of the category.
LG Group spent $13 million on ads last year in the U.S., according to Competitive Media Reporting. About $10 million of that was spent on its electronics subsidiaries and brands.
–with Sloane Lucas