LG ELECTRONICS has signed a deal with Formula One to become its global partner from January, giving the brand access to certain exclusive marketing rights for an undisclosed sum.
Under the multi-year agreement, LG will become official consumer electronics, mobile phone and data processor of Formula One. It will be credited on the official live timing service at Formula One events, including TV graphics.
Chief marketing officer of LG, Irishman Dermot Boden, who is overseeing the sponsorship, said the sport's premium image was in line with what the Korean consumer electronics company was trying to achieve with its brand.
"The announcement reflects the direction LG has been taking for the past year or more in trying to build a marketing-driven organisation focused on building a brand [and] connecting emotionally with our customers," he says.
"We have a target audience of what we call 'uncompromising seekers'. We believe Formula One significantly targets that kind of consumer . . . We think the fit is very exciting. LG's brand . . . [is about] stylish design, smart technology in perfect harmony, developing products that fit consumers' lives. I can't think of a better fit to stylish design and smart technology than Formula One."
Originally from Dublin, Mr Boden is the first chief marketing officer LG has appointed, signalling a change in approach for the brand towards a more consumer-focused image. After a number of years working in Asia with Pfizer, Mr Boden took the role with LG in 2007 and has since worked on the company's marketing strategy.
Recently launched in Ireland, the firm has aggressive expansion plans for the country to compensate for a relatively late entry to the market. Pushing itself as a premium brand at a time of global economic downturn may seem somewhat futile, but Mr Boden is confident it will pay off for the brand in the future.
"We're concerned about the situation and challenges that will undoubtedly exist for us for the . . . future. But we are also very focused on building our brand and taking the time and effort right now to connect with our consumers," says Mr Boden.
"We'll probably be investing a little more than we did in the past year, which I think shows a commitment to building our business even during these challenging times. I think it's quite clear through a historical perspective that companies that invest in these moments, and are willing to take some calculated, prudent risks, are the ones that inevitably come out at the end of the recession into the more positive opportunities in a stronger position."
