South Korean electronics giant, LG Electronics has locally patnered with Silverbird Cinemas in an experiential marketing strategy worth Kshs 12million (U$160,000) annually to grow its Kenyan mobile phone market share.Silverbird Cinemas operates a network of cinema theatres in premium malls in most Africa’s leading capitals of which in Nairobi they have screens at Nakumatt outlets namely Westgate, The Junction and Prestige. The partnership allows LG Electronics to merchandise its mobile handsets and brand the various venues of Silverbird Cinemas.

“Our partnership with Silverbird Cinemas is driven by consumer insight and not aesthetic purpose”, said George Mudhune, the company’s Regional Marketing Manager. “We encourage Kenyan consumers to take advantge of the opportunity to expereince LG mobile handsets live before making a purchase decision on other brands”, added Mudhune.

The partnership is expected to boost LG Electronics quater one financial results as at 31st March 2010, where it posted a consolidated global sales of Kshs 952 billion (US$11.9 billion) and an operating profit of Kshs 36.9 billion (US$462 million).

A surge in demand for flat panel TVs particulaly LCD,  resulted in sales of Kshs 360 billion (US$4.5 billion) and an operating profit of Kshs 12.7 billion (US$159 million) within the Home Entertainment division. Mudhune said LCD TV shipments increased by 62 percent to 5.2 million units compared to the same period last year.

“Locally, the World Cup, that kicks off in South Africa on June 11, has presented sales opportunities for flat panel TVs as well as supply challenges.”

However, revenue from sale of mobile handsets decreased to 19.4 per cent in what the company attributed to a low season and drop in the price of  mobile phone handsets. The company shipped 27.1 million handsets units globally in quarter one. 

Mudhune said the Home Appliance division sales grew by 8 per cent, Air Conditioning division decreased by 6 per cent while the Business Solutions division increased by 15.4 per cent attributable to a stronger demand for IT products and solid demand in emerging markets.