Whirpool Case Study: Nawfal Sentissi BUSS 442: International Marketing 10/14/2017

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Whirpool Case study

Nawfal Sentissi
BUSS 442 : International Marketing
10/14/2017
 Whirlpool is an appliance company based in Michigan and considered the
number 1 appliance company worldwide.
 The company sells more than $18 billion worth of refrigerators, stoves,
washing machines, dryers, and microwave ovens.
 They are known for offering a variety of product in different price ranges
Whirlpool as a global brand

 The global economic crisis affected the company’s sales.


 In Europe, Whirlpool had to face a competitive market with over 200 brands
 In the 1990s, Whirlpool tried to expand into Japan and the developing
countries in Asia and Latin America but it was a failure due to a lack of
market research.
 Whirlpool had to cut costs by closing over 30 warehouses and outsourcing
some of its departments.
Whirlpool as a global brand

 The company understood that a global market segmentation approach was


the key to increase their sales.
 Whirlpool started analyzing customer’s behaviors and needs to help design
different products customized differently in different parts of the world.
 In Europe, studies showed that 80% of customers either purchase a washer or
a dryer but never both.
 Whirlpool took a market differentiation approach and created a product
called, Duet, that combines both a washer and a dryer in the same machine.
This product was successful and had a 20% market share.
 Before entering the market of a developing country such as Brazil, Whirlpool’s
market research data showed that 1/3 of the Brazilian households have a low
income and that a washer or any other appliance machine is considered as a
luxury and not a need.
 As a response, The company invested $30 million to develop the world’s least
expensive washer, The Ideale.
 Researches also showed that Brazilian housewives like to wash floors
underneath furniture so they designed the Ideale on a high platform sitting on
four legs. It is only available in white in Brazil as white is associated with
cleanliness.
 In India, market research showed that people also care about the design of
the machine, so they gave the Ideale a rounded design that comes in green
and blue.
 The Ideale was also customized in China according to customers needs. An
option called “ grease removal “ was added due to the simple reason that
many Chinese use bicycles for daily transportation
 Whirlpool came with the idea that appliance can be furniture too, so they
designed a high end expensive fridge with a luxurious design for high-income
households
Conclusion

 Whirlpool marketing strategy was successful causing the sales to increase and
bringing back the company’s reputation as a leading appliance company.
 The company adopted a successful adaptation strategy by realizing that each
market required a certain set of specifications.

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