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MEDIA RATES & LAUNCHING NEW PRODUCTS

CUSTOMERS, CUSTOMERS, CUSTOMERS
A Business 101 Professor famously asked his students, "What's the one thing you need to start a business?" The answers came back, "Capital, distribution, marketing..." And the professor responded, "No. Customers. The rest will follow." At LG Home Products, we believe the key to longterm success is focusing on new products. Products that do new things and could fit in millions of homes, both in the USA and abroad. Watching The Big Idea with Donny Deutsch we are constantly reminded that America is the incubator and marketplace of new ideas. Customers will eventually find and support innovative and affordable products if all marketing channels are systematically pursued. Developing such products into product lines creates efficiency and synergy in bringing them to market, and this is our mission.

RETAIL
In print catalogs, online and in the mall, stores, both virtual and bricks and mortar, are where the shoppers are. "Shelf space" is limited and there is a lot of competition for it. That's why new products really need to stand out. Larger chains prefer to deal with companies that have more than one product, EDI and multiple sales channels. Still the buyers are human beings. They have houses and apartments and shop for them like we do. Show them a new and useful gadget that they can imagine buying and they will respond. Tradeshows are more popular than ever and remain the premier vehicle for reaching retailers.

DIRECT RESPONSE
The DRTV landscape is changing. Stare down a 3Q remnant rate sheet today from a few years back and you'll long for a time machine. Rates are climbing while inventory is shrinking. This will continue to be the state of affairs due to the voracious appetites of the drug companies and the Fortune 500. The drug companies want to reach Boomers who watch a lot of TV. They need longer spots to educate us on symptons and warn us of side-effects. The Fortune 500 is slowly but surely discovering something about DRTV: they don't need a 2:1 MER or a low CPO. A losing campaign for typical DR marketers, for them, can be a great way to buy advertising at a huge discount.

The key players in short-form DR products have struggled to adjust with two methods. One is to aggressively upsell callers from a $20 order to an $80 order and then sell the hot lead off to a club membership. The other is to look for incredibly cheap products that can be made for $1 to $2 and sold for $10 to $20 and get to retail fast.

The elephant in the room, no one is talking about, is that for the decade to come, TV Media rates are going to continue to rise.

INTERNET
As Google's shares march toward $1000, the "free lunch" on PPC advertising is over. The competition and bidding for clicks has become fierce. Again, the Fortune 500 is moving in, plowing millions and soon billions into web advertising. However, the internet is never going to run out of channels and new opportunities arise every year. Blogs, YouTube, MySpace, Viral, Podcasts, RSS, Web 2.0, Social Marketing and broadband video streaming are expanding horizons. Barriers to entry are low and the market remains full of opportunity.

PUBLIC RELATIONS
With hundreds of cable channels and magazines, thousands of newspapers and endless websites, there is a lot of space to be filled with stories. PR remains a vibrant force in marketing. New products that are truly innovative and have a story have more opportunities than ever to get media coverage and get noticed.