Free Essay

Whirpool India - Distribution Management

In:

Submitted By swatik
Words 1141
Pages 5
WHIRLPOOL INDIA LIMITED

Whirlpool of India Limited (WIL) is an 82.3 per cent subsidiary of Whirlpool Corporation, US, one of the leading global consumer durable players. Whirlpool is among India’s leading home appliances companies. It manufactures and markets refrigerators, washing machines, air-conditioners and microwave ovens. Set up in 1995, Whirlpool India has 2,500 employees, an extensive sales and distribution network, a robust manufacturing and R&D infrastructure. WIL has made substantial investments in India so far.

Whirlpool Corporation is one of the world’s leading manufacturers and marketers of major home appliances, with annual sales of over US$ 12.3 billion, 68,000 employees, 50 manufacturing and technology research centres around the globe. The company manufactures its products in 13 countries and markets them in more than 170 countries under brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Ignis, Laden, Inglis, Brastemp and Consul.

Major player in the home appliances market

Market share

WIL has a market share of 22.8 per cent in the direct cool segment, 17.5 per cent in the frost-free segment, and 14 per cent in the washer segment.

Factors for success

• Aggressive marketing and promotion
Whirlpool India Ltd. has changed its strategy from being a premium-player to a mass-player. Whirlpool has been concentrating on becoming a brand for the mass-market and hence has introduced its products in all price categories. Whirlpool recently announced an alliance with the Italian appliances company Faber Heatkraft to introduce its range of cooking appliances in the Indian market. The products consisting of hobs, chimneys and cooking ranges will be distributed and sold by Faber through WIL’s dealer network and exclusive outlets.

• Taking quality initiatives
Whirlpool India initiated the Six-Sigma programme in 1999 as a quality initiative to transform the organisation to a globally competitive entity. It has helped the organisation streamline operations, improve quality and eliminate defects by increasing customer satisfaction and enhancing its bottom line. Apart from sales and marketing, Whirlpool has extended the Six-sigma initiative to customer focus.

• Wide product portfolio
Whirlpool has a wide product portfolio ranging from air-conditioners to microwaves. Whirlpool has just launched Whitemagic semi-automatic washing machines, which will boost its market share. The washing machines market has been growing at around 14-16 per cent per annum. Among the washing machines, the semi-automatic segment enjoys the largest market where Whirlpool has a significant presence.

Leveraging the India Advantage

• WIL is incubating both technical and managerial talent in India
• WIL offers shared services in India that will undertake development work for Whirlpool Asia
• WIL runs a technical centre for refrigeration in Pune, and for laundry and kitchen aid appliances at Pondicherry
• WIL runs an Export Oriented Unit (EOU) in Pondicherry to manufacture Kitchen Aid products for overseas markets

Infrastructure

Whirlpool has manufacturing facilities at three locations in India to manufacture refrigerators and washing machines. • Whirlpool has set up a Regional Technology Centre (RTC) at Ranjangaon, Pune, which mainly focuses on India as a major manufacturing centre for the Asia- Pacific Region. Whirlpool’s Pune research lab develops refrigerators and air-conditioners for Asia (including China), and Australia. 40 per cent of Whirlpool’s Pune research lab’s resources are devoted to its core research on global projects.

• Whirlpool has set up design centres at Pondicherry to meet the global business needs of the fabric care and small appliance divisions. Whirlpool is exporting refrigerators and washing machines to South Asia, Asia-Pacific, Latin America and West Asia and is the largest exporter of home appliances from India. The manufacturing unit at Pondicherry exports small kitchen appliances under the ‘Kitchen Aid’ brand to the US market. Products under the brand include coffee making machines, coffee grinders and portable ovens.

Future plans

WIL’s future plans are to grow its existing market, continue with its operational and marketing initiatives, continue to innovate, expand its product portfolio and start manufacturing everything in India. WIL plans to make India its biggest manufacturing base in Asia.

Performance of the Company (09-10)

During the year ended March 31, 2010 the sales of the Company, was Rs.2,680 Crores, up by 28%. Profit before tax and extra ordinary items was Rs. 216.61 Crores as compared to corresponding profit of Rs. 95.63 Crores in the previous year.

The performance of the Company during the year surpassed all its previous milestones of turnover, profit, cash generation, working capital and inventory management. This performance has been achieved by focusing on: • New product launches, • Product mix, • Management, • Effective working capital management and • Cost effective initiatives.

|Particulars |March 31, 2010(Rs. in crores) |March 31, 2009(Rs. in crores) |
|Sales/ Income from operation |2,680.30 |2,094.63 |
|Other income |23.38 |11.15 |
|Profit before interest, depreciation, |264.56 |151.95 |
|extraordinary items and tax | | |
|Interest |8.27 |17.32 |
|Depreciation |39.68 |39.01 |
|Profit before extraordinary items and tax |216.61 |95.63 |
|Net profit for the year |145.02 |70.52 |

Sales & Marketing strategies

The Sales and Marketing approach in 2009-10 was adjusted to changes as they occurred in the external environment. The year started on a cautious note as the gloom of recession was still hovering over the country. The emphasis during this period was on cash and profitability rather than growth, and the focus was on selling a better mix, control on receivables and inventory. Marketing investment during this period was prudent and in line with market growth. However, as the end of the first quarter approached, it was evident that the government’s fiscal stimulus was having a positive impact on business and consumer sentiment, signaling the revival of growth.

Accordingly, the company’s marketing approach changed and the company shifted gear from cautious optimism to aggressive growth manifested by raising volume targets, accelerating the pace of innovation and increasing brand visibility.

Key highlights of Sales & Marketing in 2009-10 were:

➢ Resounding success of WhiteMagic 1-2-3, a fully automatic top load washing machine range launched in 6-7 kg capacity, which grew segment share by 5 percentage points.

➢ Complete revamp of the Semi-Automatic Washing Machine range, including the introduction of a plastic cabinet line-up.

➢ Launch of 35 new Split Air Conditioners marketed under the Mastermind Chrome & Mastermind Aviator and 5 new Window Air Conditioners (Mastermind Deluxe and Royale).

➢ Launch of 8 microwaves in Convection and Grill, marketed as Whirlpool Magicook.

➢ Launch of a new, premium range of 24 Frost Free Refrigerators in capacities from 300L - 480L under Whirlpool Protton, including a unique fully automatic 3-door format.

➢ Conducting two large scale dealer contact programs in September 2009 and March 2010, through which 15,000 dealers were contacted in 130 towns on each occasion.

➢ Conducting Road Shows for refrigerators - branded “Kabhi Dekha Hai Aise Magic” in

Similar Documents

Premium Essay

Haier, Taking a Chinese Company Global

...poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication equipment (“black goods”) into its product mix, with the acquisition of Yellow Mountain electronics. By the end of 1997, over 15 companies were taken over in accordance with the Company’s “Acquisition Strategy”. It was a two step strategy; 1. First acquiring the firms that have potential markets and good products, but , poor performing management 2. Then, introduce its own...

Words: 2352 - Pages: 10

Free Essay

Business Management Analysis

...of Haier for 2005 was RMB 103.4 billion. 1.1 Ownership of The Company According to Financial times, as far as transforming moments in a CEO’s Career, Mr. Zhang Ruimin is the chairman of the Board of Directors and CEO of Haier Group. Mr. Zhang’s current goal is to further enhance Haier’s leadership in Chinese and global markets and strengthen the reputation of Haier’s brand worldwide. In 1984, Zhang Ruimin was appointed as the director of the Qingdao Refrigerator Factory, a small, ailing collectively-owned factory in the Shandong province of China. Under his leadership and unique management philosophy, the company has since grown to become the Haier Group as now to be the China leading’s home appliance brand, and one of the world’s largest home appliances makers with the distribution presence over 100 countries. Mr. Zhang’s management philosophy is a blend of international management principles and Chinese wisdom with innovation and excellence as its cornerstones. It is the driving force behind the motivation and enthusiasm of Haier’s staff over 50,000 employees...

Words: 8738 - Pages: 35

Premium Essay

Report 1

...Progress Report 1 * Which stocks did you invest in during this period? 1. Apple 2. Intel 3. Microsoft 4. International Business Machines 5. General Motors 6. Go Pro 7. AT&T INC. 8. Skyworks solutions 9. Cognizant Technology Solutions 10. CVS Caremark Corporation 11. Merck 12. Home Depot 13. Whirlpool Corporation 14. Vertex Pharmaceuticals Incorporated 15. Tata Motors 16. TreeHouse Foods 17. Amira Nature Foods 18. SAP AG 19. Infosys Sponsored American Deposit Receipt 20. Qualcomm Incorporated. * What are the weights you allocated to each stock and why?   In my stategy, I said that I am going to divide my total money into 4 part, 125,000 each. One for technology stock, one for consumer stocks, one using the value investing strategy and lastly, one for investing in bond. Since the beginning of the trading period I haven’t invested in any Bonds yet because I’m still trying to figure out which one to invest in. So far my weights for ever sector is as follows: Technology stocks (0.5937), Consumer Stocks (0.0217), Value Investing strategy (0.5096). I also calculated the individual weights for every stock against the total. The weights are as follows: Apple – 0.001920. I only bought 10 shares of AAPL because, even though the stock has been doing really good in the market, I’m still quite hesitant about it and I feel like it’s a risky stock...

Words: 4038 - Pages: 17

Premium Essay

Walton Bd

...15 WALTON BANGLADESH Role of Walton Hi-Tech Industry in the Economy of Bangladesh By Group Five An assignment on “Role of Walton Hi-Tech Industry in the Economy of Bangladesh” Prepared to: Professor Dr. Farah Hasin Faculty of School of Business BUS-525 North South University (NSU) Prepared by: Group: Five (Section – 03) SL NO | NAME | ID | 1. | Md. Easir Arafat | 1512679660 | 2. | Md. Asif Morshed Azad | 1513028660 | 3. | Md Owahiduzzaman Bhuiyan | 1512678660 | 4. | Md. Rowshan Ali Khan | 1512716660 | North South University Date of Submission: 17 August, 2015 Table of Content S.L No | Particulars | Page No. | | Executive Summary | 1 | 1. | Company Background | 2 | 1.1 | Walton HIL | 2-3 | 1.2 | Primary industry | 3 | 1.3 | Standard Industrial Classification | 3 | 1.4 | Mission | 3 | 1.5 | Vision | 4 | 2. | Describing the Walton Customer | 4 | 2.1 | Electronics Market in Bangladesh | 4 | 2.2 | International Market of Walton Hi-Tech Industry | 5 | 3. | Major Determinants of Demand of Walton hi-Tech Industry | 6 | 3.1 | Choice of variables...

Words: 5712 - Pages: 23

Premium Essay

Distribution Buisness

...om2010 A Research on ―Purchase Pattern of consumers for Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” In Partial fulfillment of MBA Program of Gujarat University (Batch: 2008-2010) Submited By Priyam Mehta (08059) Umesh Lukhi (08052) Submitted To Prof. Praneti Shah N R institute Of Business Management A GRAND PROJECT REPORT ON ―Purchase Pattern of consumers for Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” IN PARTIAL FULFILLMENT OF TWO YEARS MASTER OF BUSINESS ADMINISTRATION PROGRAMME PROJECT GUIDE Prof. Praneti Shah PREPARED BY Mehta Priyam (08059) Umesh Lukhi (08052) BATCH: 2008-10 N.R. Institute of Business Management Preface Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer...

Words: 23549 - Pages: 95

Premium Essay

Sears

...Merybeth Quiros Module Lecturer: Peter Bell International Business Planning & Marketing MNM41 A Business Strategy Review and a Marketing Review of Sears 1st submission Date Due in: April 19, 2012 Number of pages: 23 Word count :3,281 Table of Contents sEARS bUSINESS STRATEGY REVIEW i Executive Summary 2-3 introduction brief history and background of sears 4 mission & obJECTIVES II evaluation of sears existing mission and objectives 5-6 External analysis IIi Competitors 7 PEST 8-9 Five forces Analysis 10-11 Opportunities & Threats 11 InternaL aNALYSIS iV Strenghts & Weaknesses 12 Financial ratios analysis 13-14 Past and current strategies 15 Sears current strategic position v Sears current strategy Balance Scorecard 16-17 Porter’s Generic strategies 17 rEcommendations vi Objectives and strategic actions 19-21 Evaluation 22- 23 Conclusion 24-26 Bibliography Executive Summary Sears, once the leader of the retail industry, is now facing financial troubles and is relegated to the 10th position in the market (Store org, 2011). Even after the merger with K-Mart, the retail conditions have not seemed to improved, but in fact, Sears Holding’s financial reports continued...

Words: 11357 - Pages: 46