Two decades ago, some folk prophesized that we’d have robotic housekeepers and moving sidewalks by now. That obviously hasn’t happened, but a George-and-Judy-Jetson lifestyle may yet be the way of the future, in particular for the tech-savvy and the ultra-rich.
Mississauga, Ont.-based LG Electronics brought Canadians a step closer to a Jetsons reality in April when it introduced the Internet Fridge to 16 Future Shop stores in Ontario. In total, 100 limited edition units will roll out nationally over the next 18 months, bearing a hefty price tag of $12,000 each. The Internet Fridge is the central piece of the appliance manufacturer’s Digital Home Network, which will incorporate introductions of a ‘smart’ microwave, washer, dryer and air conditioner in the next year.
The question, of course, is why folks would want, not to mention need, Internet access on their refrigerators. LG’s corporate marketing manager Steven Preiner believes he has an answer. He says company research indicated that the kitchen is the most trafficked room in the house, while PC usage is normally relegated to a spare room.
‘We thought, why couldn’t we incorporate that functionality to the room where people [assemble] most?’ To further boost its case, LG points to the fact that 16% of North American households already own two computers and that the number is expected to grow to 25% in the next two years, not to mention the prediction among industry experts that there will be 100 million networked households globally by 2005.
The product is described as an ‘advanced communications hub that will allow Canadians to surf the net, leave digital messages, watch TV/movies, download music/entertainment files and organize their lives.’ Specifically, users will be able to contact their fridge via cell phone or computer to access information, like grocery lists or phone numbers stored in its memory, or even to have it turn on the air conditioner or washing machine.
It may seem excessive, but then once upon a time so did the fax machine, points out Preiner.
‘Once you start using it, you see how handy it can be.’ And that is why the bulk of marketing to date has involved PR and in-store demonstrations.
Last month, the firm had one representative in each store to educate shoppers on how it works.
‘Because of the high touch required, to just have it on the floor, wasn’t enough to get consumers engaged,’ explains Preiner. ‘As soon as you have someone there to touch the screen, and get the video function working, it comes to life and you draw a crowd.’ LG is also negotiating a deal to get demos in a major grocery chain, although Preiner wouldn’t name names.
In terms of PR, the fridge has starred on many TV programs over the last month, including Citytv Toronto’s Cityline, and shows airing on Citytv Vancouver and CTV in Calgary. In some cases, it was even used interactively for broadcasts. Adds Preiner: ‘There was a lot of interest from mainstream to tech [media] and the Internet Fridge has been profiled from coast to coast in daily newspapers and TV shows.’
Rounding out the campaign is a print ad by Toronto shop 3H Communications, which is running in The Globe and Mail and will also surface in Canadian shelter magazines. The headline is ‘forward thinking,’ while the copy explains what the fridge is capable of, and drives consumers to www.lg.ca for more details.
According to Preiner, the target is affluent boomers with kids. ‘These consumers are doing a massive renovation or building a new home and they want to integrate the Internet Fridge as part of their smart home concept. Both partners make the decision to format their home with this technology.’
He adds that it’s still too early to determine how Canadians have responded to the new appliance. ‘The Internet Fridge has only been available in Canada for about three and a half weeks and around the world for a few months. Internationally, we have sold a few and without exception purchasers have been early adopters.’
But innovative product launches like the Internet Fridge aren’t necessarily expected to take off; instead they are a part of a larger brand positioning strategy to build LG as a ‘high-end, high-quality and credible’ brand.
This was also the goal of a TV ad from Ogilvy & Mather in Germany that ran in the U.S. last year, featuring a man enjoying the outdoors with his family, who then uses his cell phone to turn on his appliances. A new spot, which will debut in the coming months, will focus on an innovative product in the laundry category, although the creative message is still on the drawing board.
Preiner adds that LG is still a young name in Canada, having been introduced only in May 2001. ‘Because we’re young in the market, getting established isn’t a case of throwing as much media at the market as we can, it’s about positioning. We have the opportunity to build perception of the brand any way we want.’
Being first to the marketplace with the Internet Fridge can help LG achieve its objectives, suggests Brady Gilchrist, VP new technology at Toronto agency Gee Jeffery & Partners, because it can create a ‘perception of innovation.’
He adds: ‘It is always a good idea when you are in the process of building a brand against other competitors who are entrenched.’
The move also enabled LG to get broad media coverage, for instance, from tech magazines that weren’t likely to have profiled home appliances in the past. This will ensure that the company logo will represent ‘innovation’ with consumers going forward, says Gilchrist. ‘It’s one of those take-a-double-take products, so whatever they do, they’ll get attention.’
But Gilchrist is most excited about what this product means for the future. For instance, he says food suppliers and packaged goods companies, plus cookbook publishers and food-related TV programs could get involved by offering recipes for what’s left in a user’s fridge, provided that one day the appliance is able to read its contents. ‘This day is not so close, but it will be eventually,’ says Gilchrist, who adds that ‘80% of the technology we will use at the end of the decade has not been invented yet.’
Now if only the automakers can get our cars to fly.