...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...
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...Electrolux: The Acquisition and Integration of Zanussi 1) How would you describe the key characteristics of Electrolux and Zanussi in 1983, in terms of strategy, organization, capabilities, and performance? International acquisitions have become an extremely important vehicle for growth for multinational companies. In this case, and because of the particular industry in which Electrolux operated in, the trend of the whole appliance industry was facing a long period of crisis. Although Electrolux was and still is one of the largest manufacturers of white appliances, many other manufacturers were now taking market share away from the Swedish company. For example, Philips and Siemens were now introducing a complete and economic line of brand new appliances. Electrolux's core business was vacuum cleaners and absorption-type refrigerators. Electrolux was and still is the typical Swedish firm, which emphasizes on down to earth management: everyone works and keeps his word and all the information is correct. The firm emphasis on technology and advancement and the middle management is open to advises from the workers. But at the core of Electrolux business strategy was the aggressive plan to expand through acquisitions. First, Electrolux concentrated on acquiring firms in the Scandinavian Area. Then the company continued focusing in purchasing companies that had assets but were not profitable so that they could turn their business around. After making more than 200 acquisitions in 40...
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...Electrolux Case Introduction * In 1912, Electrolux produced the first household vacuum cleaner known as the Lux 1 and in 1925, Electrolux entered the refrigerator market. * In 19151 first household washing machine and 1959 first household dishwasher was introduced. * Acquired over 300 companies from various countries and in 1997, Electrolux began restructuring program to improve its bottom line. * After success in the European markets, Electrolux appliances were introduced in North America in 2004 and Hans Straberg was appointed President and CEO in 2002. * Electrolux is worlds second largest appliance maker behind Whirlpool, 50,000 employees in over 50 countries Product Offerings & Brands * Sells consumer durables (kitchen products, laundry products, floor care products) and professional products (food service equipment, laundry equipment) which are 40 million products in 150 countries. * Through its acquisition strategy in 1980s and 1990s, Electrolux has acquired different brands in global markets with various brands with half of the 40 million products sold under the global Electrolux brand. Strategic Direction * Principle is to offer products and services that consumers prefer, they benefit both the people and the environment which consumers are willing to pay a h9gher price for. * In the premium market category of household appliances * Consumer driven company with the “Thinking of You” slogan shows that they place importance...
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...1.- Las cuestiones a las que se enfrenta Electrolux son estratégicas según las siguientes características: 1. La orientación a largo plazo, porque en los últimos cuatro años han ido solventando los cambios surgidos, gestionando las unidades con malos resultados, trasladar la producción hacia países de bajo coste, producción, logística y compras más eficientes, intensificar la renovación de productos, acceso a la competencia y constituir una fuerte marca global (con la intención de invertir en ella el 2% de las ventas). 2. El alcance de las actividades, Electrolux se centra en los productos de interior, división de productos para el exterior (motores y compresores) y “Hemos desinvertido o cambiado el modelo de negocio para aquellas unidades que podrían considerarse como no esenciales o en las que la rentabilidad era demasiado baja”, como la externalización del aire acondicionado en EEUU. 3. Ventaja competitiva, Electrolux es una marca conocida a nivel global, “nuestros procesos de desarrollo de producto basados en el conocimiento del consumidor reducen el riesgo de decisiones sobre inversión incorrectas”. 4. Ajuste estratégico con el entorno, el ejemplo más claro es la deslocalización que la empresa lleva a cabo, externalizando sus productos a un fabricante en China o cerrando plantas con costes excesivos y abriéndolas en países con niveles de costes más competitivos. Intensificando la renovación de productos, realizando compras más eficientes y reduciendo drásticamente...
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...with Whirlpool and other companies that are changing the global appliance market. While Whirlpool begins more global expansion it faces a new competitor in the U.S. market, Electrolux. Whirlpool also has other troubles on the home front with a multiple lawsuits. As whirlpool deals with these adversities, they are still pushing forward to remain the major home appliance manufacturer; they have launched a new, authentic ad campaign to continue to earn trust here in its home market. Industry The Swedish company, Electrolux, has recently overtaken Whirlpool as the number one appliance supplier in the U.S. Electrolux just finalized a $3.3 billion deal purchasing GE’s appliance department. As seen in the graphic above, with the acquisition of GE, Electrolux has barely overtaken Whirlpool by just 0.9%. Whirlpool still surpasses Electrolux globally however, with $19 billion in annual sales; $3.1 billion dollars more than Electrolux with $15.9 billion. Whirlpool has declined to comment on the new competition which is detailed in the Wall Street Journal article titled “Electrolux to Buy GE Appliances Business for $3.3 Billion.” This article details the deal and its effect on Electrolux and the North American market. Legal/Technological Whirlpool is facing other harsh conditions besides competition from Electrolux. Whirlpool is also a part of two lawsuits. The first is over a plant in Fort Smith, Arkansas. The plant was found to be leaking trichloroethylene or TCE, a carcinogen, into...
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...7% in May 2012 against 18.3% of Voltas. Samsung retained its third slot in room ACs but its market share has plunged from 14.5% in July 2011 to 10% in May 2012. The drop was a result of it vacating the window AC segment this year; now it is not far behind Japanese brand Panasonic, which has doubled market share to 9.9% in the last 10 months. Even Hitachi increased its market share from 5.2% to 7.3% in the period. Players Brand | Company | Onida | Mirc electronics Limited | Videocon | Videocon International Limited | LG | LG Electronics India Limited | Samsung | Samsung India Electronics Limited | Whirlpool | Whirlpool of India Limited | Godrej | Godrej and Boyce Mfg. Co. Limited | Voltas | Voltas Limited | Electrolux | Electrolux Kelvinator | Blue Star | Blue Star India Limited | Daikin | Daikin Industries Limited | Past Market Share Name of the Company | 2002-03 | 2005-06 | 2007-08 | Blue Star | 14.53 | 16.51 | 17.98 | Voltas | 12.12 | 11.95 | 14.11 | L G Electronics India Pvt. | 13.54 | 18.85 | 13.2 | Samsung India Electronics Pvt. | 3.93 | 7.01 | 6.88 | 2. Washing Machine The Indian washing machine market continues its high growth trajectory, albeit the annual growth rate has come down from 38 percent in FY 2010 to 24 percent in FY 2011. The total market of washing machines in FY 2011 was 4.7 million units. The market is dominated by four players - LG, Samsung, Videocon group, and Whirlpool - with a combined share of 74.6 percent...
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...M17_HOLL6227_05_SE_C17.qxd 5/20/10 4:06 PM Page 641 CASE STUDY IV.3 Dyson Vacuum Cleaner: shifting from domestic to international marketing with the famous bagless vacuum cleaner The Dyson history It is impossible to separate the very British Dyson vacuum cleaner from its very British inventor. Together they are synonymous with innovation and legal battles against established rivals. James Dyson was born in Norfolk in 1947. He studied furniture design and interior design at the Royal College of Art from 1966 to 1970 and his first product, the Sea Truck, was launched while he was still Courtesy of Dyson. studying. Dyson’s foray into developing vacuum cleaner technology happened by chance. In 1978, while renovating his 300-year-old country house, Dyson became frustrated with the poor performance of his conventional vacuum cleaner. Whenever he went to use it, there was poor suction. One day he thought he would find out what was wrong with the design. He noted that the appliance worked by drawing air through the bag to create suction, but when even a fine layer of dust got inside, it clogged its pores, stopping the airflow and suction. In his usual style of seeking solutions from unexpected sources, Dyson noticed how a nearby sawmill used a cyclone – a 30-foot-high cone that spun dust out of the air by centrifugal force – to expel waste. He reasoned that a vacuum cleaner that could separate dust by cyclonic action and spin it out of the ...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS 1 Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed...
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...Business School Lausanne 2011 Dyson Vacuum Cleaner Case study Sargis Sargsyan BSL Table of Contents History……………………………………………………………………………………………………2 Dyson company and world market………………………………………………………3,4 Competitors………………………………………………………………………………………5,6,7 Question1…………………………………………………………………………………………….7,8 Question 2……………………………………………………………………………………………8,9 Question 3………………………………………………………………………………………………9 Conclusion……………………………………………………………………………………………10 Dyson Vacuum Cleaner History Dyson Company is one of the leading companies in vacuum clear industry. The company was founded by James Dyson, who is a furniture and interior designer and his product was launched in 1966, when he was student. In 1985 James Dyson had contracted with a small company in Japan. Than in 1993 Dyson opened a research center and factory in Malmesbury by using the money from the Japanese company and developed dual cyclone vacuum cleaner, which became the fastest selling vacuum cleaner in UK. Fourteen years later Dyson could present its first product in the shop and it also presented in the Science Museum. Dyson started to develop Root 8 Cyclone, which removes more dust by using more cyclones. In 2000 he launched new innovative washing machine and in 2008 the company’s revenue reached around 700 million pound, and much of this came from vacuum cleaners sales, about two third, in outside of local market mainly from US, Australia and Japan. So now Dyson Company is one of the successful vacuum...
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...SAMPLE CASE STUDIES – MARKETING Case Study 1 Marketing and Distribution of Mushroom Sachin and Virag are two enterprising youth. They have passed out from IIM, Bangalore. They thought instead of doing a job, they will launch fresh vegetables in Indian markets. Having learnt of the future conventional foods, they decided to venture into cultivation of mushrooms. Mushrooms are known to be the best alternative food for vegetarians. For Sachin and Virag fund raising was a serious handicap for mass production. However, the first trial batch of mushrooms that they produced was bought by Star Hotel in Bangalore. Further, the hotel placed orders for supply of 20 kgs every day. Now mushroom industry is run by small entrepreneurs, like Sachin and Virag. Another big player M/s Ashtavinayak Mushrooms, equipped with cold storage facility was more interested in the export market. Sachin and Virag have set their sights high. They aim to sell mushrooms in a very big way all over India. Mushrooms have a great market potential and is a perishable food. Questions A. How will you advise Sachin and Virag, as how to increase the consumer awareness about this new food? What would be your suggestions for distribution channel for mushrooms? B. Possible Solutions A. • Consumer awareness can be created by test marketing. Through sales persons and customer response to the product. • • Samples can be distributed in big malls and Variety stores. Awareness can also...
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...fridges and freezers, coffee machines, air conditioners, heaters, TVs, recording devices etc. The global market for household appliances can be split into two parts. 1. Mature markets (Western Europe, North America, Japan and Australia/New Zealand) : * Population growth is low. * Sales are dominated by replacement products. * Consumers are more conscious about Green aspects of every product. 2. Growth markets (Africa, the Middle East, Eastern Europe, Latin America, Southeast Asia and China) : * Rapidly rising standards of living. * Growing middle class per capita income. * Higher economic growth. GLOBAL MAJOR HOME APPLIANCE PLAYERS Whirlpool | LG Electronics | Haier | Samsung | Bosch-Simens | Electrolux | MIdea | | Company Overview: Whirlpool Whirlpool (WHR) a US based company ,is one of the world’s leading household appliance manufacturers, which specializes in laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. These household appliances are sold under various brand names, including Whirlpool, Maytag, Kitchen Aid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, and Brastemp. Whirlpool has largest markets share in USA. Under The guidance of CEO Mr. David Whitman, Whirlpool could see the opportunities in growth market and could conclude to control own destiny and shape the very nature of globalisation. * VISION:...
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...Executive Summary The Household Appliance Manufacturing industry felt the pressure in the past five years to 2012 due to the effects of the changing real estate market. Like most producers of household goods, appliance manufacturers watched demand grow during the real estate surge through 2006 and then watched it decline when the housing market weakened. As consumers move into new homes, they will more than likely purchase new appliances. Therefore, activity in the residential real estate market directly affects household appliance manufacturers. As a result of the subprime crisis and housing market collapse, industry revenue has declined at an estimated average annual rate of 6.3% to $15.2 billion in the five years to 2012. Introduction The household appliance industry is an innovative industry depending upon the ever changing market. We take into consideration the five environs of a situation analysis including: competitive, political, social, cultural and economical environment to assess the nature of the industry presently and to predict the direction of the market. We need these set of environs to effectively conduct a long term marketing plan for a company that is thriving in this industry. We will attempt to outline the industry overview, competitive landscape and the products, operation, & technology to further conduct our analysis in a detailed scope of the market. Our perspective will be reflected in our outlined short and long term strategic recommendations...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: 1 WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience ...
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...that produced the popular Tsingtao beer. Haier became a conglomerate electrical home appliance and consumer electronic products company. Its core business was white goods—refrigerators and freezers, ranges, and microwave ovens, dishwashers, and washing machines and dryers—and room air conditioners. Later, it diversified into mobile telephones, television receivers, personal computers, and even financial services and pharmaceuticals. Overall it produced 96 different product lines comprising 15,100 different product specifications. It employed over 35,000 people worldwide. Haier was one of the world’s seven biggest home appliance makers—along with LG (Goldstar) Group and Matsushita headquartered in Asia; Whirlpool and GE in America; and Electrolux and Bosch-Siemens in Europe. Haier was widely regarded as China’s “Most...
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...ISTANBUL TECHNICAL UNIVERSITY INSTITUTE OF SOCIAL SCIENCE [pic] MARKETING MANAGEMENT Elif Karaosmanoğlu Assignment 1 SEGMENTATION AND POSITIONING WHITE GOODS INDUSTRY Submitted by: OSMAN ÖZEN 401111024 Table of Contents 1 White Goods Industry 3 2 Brands in White Goods Industry 3 3 Marketing Objectives 3 4 The Brands of BSH 3 5 Segmentation & Targeting & Positioning 3 5.1 Segmentation 3 5.2 Target Market 3 5.3 Positioning 3 5.3.1 BOSCH 3 5.3.2 SIEMENS 3 5.3.3 GAGGENAU 3 5.3.4 PROFİLO 3 6 References 3 White Goods Industry The home appliances sector showed a strong recovery in 2010. Driven by increasing consumer confidence and the recovery of real estate construction, the market for large domestic appliances grew by 8% bringing the market to a total of 5.4 million appliances. All major appliance categories with the exception of the solo cookers showed a significant growth. Refrigerator sales increased by 11%, dishwashers sales grew by 7% and washing machine sales increased by 8%. Oven sales was the only category which declined by 4%. Driers, which is a new growth area, increased by 19%. Large home appliances, produced in Turkey, managed to increase by 12% year-on-year reaching 18.4 million units. Roughly 75%, 13.7 million units, were exported, which reflects an increase of 9% year-on year. With this volume Turkey became the biggest white goods appliances producing country in Europe. [1] Brands in White Goods...
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