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Case Study Of Whirlpool
Transcript of Case Study Of Whirlpool
MASTER OF BUSINESS ECONOMICS
LECTURER: DR. CAROL TEO BOON CHUI Thank You For
Your Attention Case 6-2 Whirlpool's Introduction Globalization makes changes Global financial crisis affect revenues in North American and Europe
Latin America and Asia--
About 40% of revenues are overseas
Number three position in Europe Research Helps Whirlpool Keep
Its Cool at Home, Act Local
in Emerging Markets Challenges In Europe, more than 200 brands and 170 factories.
An influx of products from low-cost producers in Central and Eastern Europe. Q1.Describe Whirlpool’s global marketing strategy. Does Whirlpool use an extension product strategy or an adaption product strategy? Cut cost & bring margins up
Sales organizations in 17 separate countries--->4 regional sales offices
Warehouses 30--->16 (5 or 6)
Reduced 40% suppliers Adaptation Product Strategy Adaptation Product Strategy
Specific needs of developing market
Example: Brazil, India, China Brazil "Ideale" -The world’s least expensive automatic washer
Spin cycle takes longer; clothes come out damper
Sit high on four legs
Yellow start button/ blue lettering
Only available in white India More color option- Green, blue, white
The setting for delicate fabrics is
Mounted on casters China White is undesirable light blue and gray
"heavy-duty wash cycle” “grease removal” Q2 What is the primary reason people buy and own major appliances such as a washing machine? Is there a secondary reason as well? Create a more convenient living environment
Prove and show what they got
A symbol of higher quality of life
Follow the trend , fashion Market
Research Listen to Customers Combine old strategy
to new market Why Market Research? Difference
Countries Forecasting Focus Group Research A group of people formed together to collect information from customers and make a discussion from them.
-collected economic data
-made visits to representative low-income households. Advantages Disadvantages Focus Group Research Data transfer transparently
Opinions formed quickly
Time saving Few opinions could not represent all the opinions Observation How customers interact with the machine by observation and record every movement. Example:
-Engineers and designers will stand behind a two-way mirror and watch how a volunteer use the machine (refrigerator), and all the movement will be recorded.
-Then, the engineers and designers will try to improve or create appliances with a distinctive look and feel. Advantages Disadvantages Observation Collecting non-verbal behavior and data right away Only external appearance
Slow and expensive Survey Research China:
-1990, entered China market via joint venture
-Strategy: “T-4” *This strategy quickly went sour
*Less of insights into Chinese customers
*American know-how did not fit in this market
*Not enough market research about this new market Duet:
-Whirlpool made a research before launch.
-80% of the consumer would buy either a washer or a dryer, but not both together. 1/3 of the customers do not like the design.
-“Whirlpool needs to lead customers, and tells them they need.”
-Earn 20% market share Survey Research Ideal design team learned from this research: form matters
Ideal -Switch from the wash cycle to the spin cycle without shifting gears
-These were not critical issues for most customers -What they really want:
*Easier to clean the floor (Ideal sits on 4 legs) Q4 What are the key lessons to be learned from Whirlpool’s experience in emerging markets? *Adapt to local preferences
*Propose contingency policy
*Market research before entering aggressively a market
*Discovering needs / trends / habit of a population
*Adapt to the country traditions White Goods Refrigerators, Stoves,
Dryers, Microwave ovens. History 1911
Louis and Emory Upton founded the Upton Machine Company on November 11, 1911.
Changed name to Whirlpool to celebrate core product.
Established first toll-free service line.
Announced global green house gas reduction target.
Acquired Maytag resulting in aligned organization enabling Whirlpool to supply to trade customer more efficiently
100th anniversary Survey Research SMALL QUIZ 1
What methods did Whirlpool use to enter a new market? Answer 1:
Focus group, Observation, Survey research SMALL QUIZ 2
What did Whirlpool do to fit the India market? Answer 2:
More colors, Button for delicate fabric labeled "Sari", Casters. SMALL QUIZ 3
How old is Whirlpool today? Answer 3:
102 years old. Q&A Whirlpool Brands Today WHIRLPOOL'S SALES WHAT IS WHIRLPOOL?