Research Helps Whirlpool Act Local in Emerging Markets

陳逸庭 王維翰 王家珍 林書敏 周佳萱 廖經倫

Whirlpool 惠而浦 170個國家 47個生產基地 26個研發中心 4個設計中心

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白色家電

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白色家電市場概況

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Describe Whirlpool’s global marketing strategy.

Does Whirlpool use an extension product strategy or an adaption product strategy?

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Whirlpool’s Development outside the USA Whirlpool Emerging Market

Europe

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Whirlpool in Europe Entered the European market in 1989

→ joint venture with Philips

Purchased shares from Philips (appliance part) Development in Europe, Middle East, Africa

→ create different brands

three technology centers in Europe

→Italy (kitchen) & Germany (cleansing)

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Whirlpool in Emerging Markets  First entry in 1954  1990’s Acquired Two main brands

→ mid-line brand Consul (top seller) → premium brand Brastemp (best known)

 Innovative Product line

→ energy efficient

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Whirlpool in Emerging Markets  Entered the market in 1995

→ joint venture with local partners → went sour at first (lack of insight)

 Turning Point: 2001 China joined WTO  Now No3. in market share (No.1 Haier) Introduction

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Whirlpool in Emerging Markets  Entered the market in 1995 → acquired Indian appliance companies → build the brand “Whirlpool”  Manufacturing excellence (factory in India)  Leading brand in India

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Product in Emerging Markets (Washing Machines) Country Price Special Design function

Brazil

China

Lower than 300 USD Innovate a new product “Ideale” *White only *Light Blue, Grey *Four-legged

*Green, Blue, White *Mounted on casters

Smaller capacity, Longer spinning cycle

other

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India

*Greasy removal *Create new demand

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* ”Sari” for delicate fabric settings

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 Extension product strategy “Global Platform”

→ core technology the same

 Adaption product strategy “Entry to Local”

→ joint venture, acquisition, local suppliers

“Adjustment to Product Line” Introduction

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What is the primary reason people buy and own major appliances such as a washing machine ?

Is there a secondary reason as well ?

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 Primary Reason

→Functional reason

 Secondary Reason

→Social Status ex. 地位展現、 擺設、 炫富…

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Summarize the role of market research in whirlpool’s globalization strategy.

What different types of research methodologies does the company use ?

What are the advantages of each methodology described in the case ?

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 Purposes of marketing research

→customer Insight →Differentiation →Forecasting

 Methodologies of marketing research

→ Two-Way Mirror → Focus Group : Brazil

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Two-Way Mirror鏡子觀察法  Advantages

→ Non-Verbal behavior and data

 Disadvantages

→ External appearances only → Slow and expensive

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Focus Group焦點訪談  Advantages

→ Transparent Information → Time-saving

 Disadvantages

→ Minor opinions

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What are the key lessons to be learned from Whirlpool’s experience in emerging markets?

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All starts from a washing machine! ďƒ˜ Product strategyďźš Emphasis on Introductive Product

Washing machine is the stepping stone!

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All starts from a washing machine! ďƒ˜ Why is washing machine?

1. Necessity for households 2. Focus on function 3. Visual impact for living spaces 4. Delegate product of Whirlpool Introduction

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All starts from a washing machine!

Consumers in emerging countries must be persuaded to move beyond washing machine to purchase company’s other appliances.

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Marketing Research doesn’t work?

80% of the time consumer buy either a washer or a dryer, but not together.

One-third of the member of a focus group didn’t like the design.

Chuck Jones

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Marketing Research doesn’t work?

You can’t expect consumers to articulate that leap to the next breakthrough idea.

Chuck Jones

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Marketing Research doesn’t work??

20 percent market share Introduction

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Marketing Research doesn’t work?

80% of the time consumer buy either a washer or a dryer, but not together.

One-third of the member of a focus group didn’t like the design Introduction

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Thanks for Listening!