UNIVERSITY OF ST. LA SALLE
GRADUATE SCHOOL
SY 2014-2015

MARKETING MANAGEMENT (MBA 208)

A Case Analysis for
Electrolux: Refrigeration and Segmentation

Submitted to:
Jacqueline Felix,PhD

Submitted by:
Johnel Fil Arcipe
Arbe Bertuso
Patricia Bilbao
Justice Marie Canoy
Dixon Cogal

December 20, 2014

I. Executive Summary
Electrolux is a global leader in home appliances and appliances for professional use, selling more than 50 million products to customers in 150 countries every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight. Axel Wenner Gren is the founder of Elektrolux Company which began its operations with the introduction of a new type of vacuum cleaner. In 1912, the world’s first household vacuum was introduced. It was in 1925 when Elektrolux absorption refrigerator was launched. It was invented by Swedish Engineering students from Royal Institue of Technology in Stockholm named Baltzar von Palten and Carl Munters. Wenner-Gren is a marketing genius and it helped him directed its mission to be the major household appliance manufacturer in the world. Elektrolux later changed its named to Electrolux in 1957.
More of Electrolux products succeeded. Electrolux products include refrigerators, dishwashers, washing machines, cookers, air conditioners and small appliances such as vacuum cleaners, all sold under esteemed brands like Electrolux, AEG, Zanussi and Frigidaire. The company trades more than 40 million goods to consumers in more than 150 markets each year. As the company continues its success in the global market it is also experiencing various challenges

II. Statement of the Problem
Electrolux is experiencing ongoing success. It’s a vast market for them because of existing competitors and various challenges present but they continue to meet the demand of its users. Some factors that should be considered by Electrolux in order to sustain despite the emerging markets, changes of technology and unforeseen forces. These factors are presented below: 1. How issues of culture, language, and slang would affect marketing programs for Electrolux refrigerators in international markets? 1. How might religious differences influence the type of refrigerator to be sold as well as its size in international markets? 2. How would topography influence the production and sale of refrigerators by Electrolux? 3. Would there be a refrigerator market for bottom-of-the-pyramid customers? Why or why not? III. Causes of the Problem
Analysis of the Problems * The marketing science of customer behavior principle states that marketers have distinguished types of products that consumers can buy: Convenience purchases, Shopping purchases, and Specialty purchases. It’s the type of customer behavior that is relevant and not the type of product or purchase that matters.

IV. Decision Criteria and Alternative Solutions
1. There are cultural and social factors that heavily influence differences in customer preferences. Behaviors and cultures of consumers should be studied by country and type of behavior in buying. Language will always be a challenge. One cannot use a single language for an international campaign. When it comes to cultural differences, it is always safe to study the behavior of customers when it comes to business dealings, daily living, eating habits (do they like going out on restaurants to eat or have a meal cooked at home), how do they spend weekends and holidays.
2. Religious differences will influence the type of refrigerator to be sold depending on their respective practices and faith. The religious demographics of international markets should be considered thus this will help the marketer offer product choices for each location. http://www.religiouspopulation.com/World/ 3. Before the sale can occur, the company may need to modify a particular product to satisfy buyer tastes or needs in foreign markets. The geographical environment must be considered and this includes topographical challenges and advantages. Challenges apply when there is a necessity for a company to adapt its product to account for geographic and climatic conditions as well as for the availability of resources. Factors such as topography, humidity, and energy costs can affect the performance of a product or even define its use. For example, the cost of petroleum products and the state of a country's infrastructure, may indicate the demand for energy-consuming products.
4. Potential Markets. With ncreased focus on the strongest product categories and brands Electrolux have the following as market segments: Hotel and institutional segments, household entities, global food chains, restaurants, laundry services, and other entities in need of professional cleaning services.
5. “Improving the lives of billions of people at the bottom of the economic pyramid is a noble endeavor. It can also be a lucrative one.” says C.K. Prahlad.

Yes. It is important that companies educate the customer about the significance of their brands. Electrolux Kelvinator for example launched a refrigerator that can keep ice frozen for up to six hours after a power failure which makes it proper to be used in regions plagued by blackouts. Due to the low per capita income of the people at the BOP, affordability is the marketers focus. Micro-selling methods are very effective in these markets as they allow the consumers to afford and try it, become aware of the brand as well as to build a purchase intention among them. V. Recommended Solution, Implementation and Justification