NEXT GENERATION TOASTER PORTFOLIO PLANNING
COMPANY PROFILE STAND MIXER TO TOASTER KitchenAid, the subsidiary of Whirlpool Corporation, manufactures and markets various home appliances and its electric stand mixer is a well-known product. Since KitchenAid has been acquired in 1986 by the Whirlpool Corporation, the largest appliance maker in the world, KitchenAid has well positioned in the market and expanded their market share.
ALL ABOUT THE CUSTOMER With the efforts of understanding customers, KitchenAid offers meaningful customer-centric offerings; cook for the cure, KitchenAid experience center, and KitchenAid culinary store. This approach not only enhances the company’s vision and legacy, but will be a unique marketing strategy.
The origin of the brand name of KitchenAid was for an electric stand mixer developed by the Hobart Manufacturing Company in 1919. KitchenAid had two marketing strategies; focusing on the quality of the product and providing holistic product experiences via a family product line. KitchenAid wanted to sell the products to the quality conscious dealer, not to those only considering sale volume and low prices. Beyond providing high-end products, the company wanted the customer to engage in various product offerings, coordinated color, the point of purchase, and customer services.
Product Leadership
The way KitchenAid advertised was also strategic. They chose to do TV advertise in 1990s and created a familyoriented television advertising, particularly re-uniting of three generations. This was successful to evoke the customers and well matched to the Gulf war. Later the company started focusing on the design of their product and established the design center in St. Joseph, Michigan, where the product design development and market research were fully committed.
Operational Excellence
Customer Intimacy
MARKET ANALYSIS 1 COMPETITIVE MARKET AND INNOVATION The small kitchen appliance market is very competitive, so the manufacturers incorporates cutting-edge technologies and improves design to appeal customers to maintain market share. In general, kitchen appliances can be classifies into two categories: electrothermal appliances and electromechanical appliances. Electrothermal appliances are the appliances that produce heat by using electricity as the source of power. Electromechanical appliances are the appliances that generate motion to run parts such as motors and blades by using electricity. The toaster falls into the electrothermal appliances category. Having benefits from the company’s R&D department, focusing on finding the end-user’s insights along developing the new technologies is the way to maintain the market share. This enables the company to lunch customer-preferred products.
COMPETITORS They offer their products to the wide range of retailers. Electronic models of the toaster include features such as frozen pastry one-touch function button and LCD indicator lighting.
Their specific sales channels are WalMart and their products are manufactured by Hamilton Beach. Including advanced technology with the affordable toasters, GE offers upscale-looking products.
Their toasters tend to be more expensive than others. The appearances vary along with particular models with the categories. The products are widely available at department stores, specialty stores, and regional outlets.
MARKET ANALYSIS 2
In order to offer continuous customer-preffered toasters, the current small kitchen appliance industry’s innovation trend seems incorporation of the new technology. However, technological development does not fully affect to the market maturity. The next market prediction will be directed weather a company well manages both the technological development and customer segmentation studies.
TOASTER MAKET IS A MATURE INDUSTRY INNOVATION
FOGGY MARKET PREDICTION
CURRENT POSITION
INTRO
GROWTH MATURITY DECLINE
CURRENT PRODUCT OFFERING AFFORDABLE ?
KTT570OB - 2 Slot 4 Slice Toaster Onyx Black_$99.95
KTT340OB 2 Slot, 2 Slice Toaster, BLK 2-Slot Toaster_$45
KPTT780NP 2-Slice Toaster Pro Line Series_$135
KPTT890OB Pro Line 4-Slice Toaster, Onyx Black_$155
HIGH-END
AMBIGUOUS DISTINCTION KTT340ER 2 Slot, 2 Slice Toaster, Red 2-Slot Toaster_$45
KPTT780OB Pro KPTT780PM Pro Line Line 2-Slice Toaster, 2-Slice Toaster, Pearl Onyx Black_$89 Metalic_$100
KTT570ER 2 ExtraWide Slots 4-Slice Toaster (Red)_$59
5KTT890EBU PRO-LINE SERIES TOASTER - 4-SLICE COBALT BLUE_$289.99
Toaster 4-slice Pro Line, Nickel Pearl_$150
TOASTER OVEN KTT340WH 2 Slot, 2 Slice Toaster, WHT 2-Slot Toaster_$45
Cook for The Cure 2 Slot/2 Slice Toaster KTT340PK_$45
KTT570WH Extra Wide & Long 2-Slot 4-Slice Toaster_$59
KCO111 Toaster Oven, 10”_$79.99
KMTT200ER 2 Slot/2 Slice Toaster Metal in Empire Red_$60
STEADYSELLER
KCO222CS Toaster Oven, Architect Countertop 12”_$99.99
5KTT780E PRO-LINE SERIES 2 SLICE TOASTER FOR 220 VOLTS_$227.99
KC0223CU Convection Counter Top Oven - Contour Silver_$130
KMTT400ER 4 Slot/4 Slice WideSlot Toaster in Empire Red_$95
KMTT200OB 2 Slot/2 Slice Toaster Metal Onyx Black_$69.99
5KTT780EER PRO-LINE SERIES TOASTER 2-SLICE - EMPIRE RED _$229.99
KMTT400OB 4 Slot/4 Slice Wide-Slot Toaster in Onyx Black_$90
OPPORTUNITY SPACE
5KTT780EAC PRO-LINE SERIES TOASTER 2-SLICE - ALMOND CREAM_$229.99
DIGITAL KMTT200SS 2-Slice Metal Toaster (Brushed Stainless Steel)_$53
KMT211CU 2-Slice Toaster, Countour Silver_$49.99
$40.00
KMT223CS Toaster, Architect Digital 2 Slice_$79.99
KMT411OB 4-Slice Toaster, Onyx Black_$69.99
$60.00
KMTT400SS 4-Slice Metal Toaster (Brushed Stainless Steel_$90
4-slice Toaster_$79.99
$80.00
KMT423CU 4-Slice Toaster, Countour Silver_$99.99
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00+
CURRENT PRODUCT OFFERING AFFORDABLE
CORE COMPETENCIES • Even-Heat system • Various product offering
KTT340OB 2 Slot, 2 Slice Toaster, BLK 2-Slot Toaster_$45
KTT570OB - 2 Slot 4 Slice Toaster Onyx Black_$99.95
KPTT780NP 2-Slice Toaster Pro Line Series_$135
KPTT890OB Pro Line 4-Slice Toaster, Onyx Black_$155
HIGH-END
AMBIGUOUS DISTINCTION
PORTFOLIO THEMES • Design Language (sleek/simplicity/modern) • Variety of options
KTT340ER 2 Slot, 2 Slice Toaster, Red 2-Slot Toaster_$45
KPTT780OB Pro KPTT780PM Pro Line Line 2-Slice Toaster, 2-Slice Toaster, Pearl Onyx Black_$89 Metalic_$100
KTT570ER 2 ExtraWide Slots 4-Slice Toaster (Red)_$59
5KTT890EBU PRO-LINE SERIES TOASTER - 4-SLICE COBALT BLUE_$289.99
Toaster 4-slice Pro Line, Nickel Pearl_$150
PORTFOLIO CHARACTERISTICS • Price range ($45 - $229.99) TOASTER OVEN • Materials used (plastic, metal, stainless) • The number of slots and slices (2/4 slots) • Easy dispensing features • Digital capability • Sub-family category • Controllable feature • Social responsibility
KTT340WH 2 Slot, 2 Slice Toaster, WHT 2-Slot Toaster_$45
Cook for The Cure 2 Slot/2 Slice Toaster KTT340PK_$45
KTT570WH Extra Wide & Long 2-Slot 4-Slice Toaster_$59
KCO111 Toaster Oven, 10”_$79.99
KMTT200ER 2 Slot/2 Slice Toaster Metal in Empire Red_$60
STEADYSELLER
KCO222CS Toaster Oven, Architect Countertop 12”_$99.99
5KTT780E PRO-LINE SERIES 2 SLICE TOASTER FOR 220 VOLTS_$227.99
KC0223CU Convection Counter Top Oven - Contour Silver_$130
KMTT400ER 4 Slot/4 Slice WideSlot Toaster in Empire Red_$95
KMTT200OB 2 Slot/2 Slice Toaster Metal Onyx Black_$69.99
KMTT400OB 4 Slot/4 Slice Wide-Slot Toaster in Onyx Black_$90
5KTT780EER PRO-LINE SERIES TOASTER 2-SLICE - EMPIRE RED _$229.99
OPPORTUNITY SPACE
5KTT780EAC PRO-LINE SERIES TOASTER 2-SLICE - ALMOND CREAM_$229.99
DIGITAL KMTT200SS 2-Slice Metal Toaster (Brushed Stainless Steel)_$53
KMT211CU 2-Slice Toaster, Countour Silver_$49.99
$40.00
KMT223CS Toaster, Architect Digital 2 Slice_$79.99
KMT411OB 4-Slice Toaster, Onyx Black_$69.99
$60.00
KMTT400SS 4-Slice Metal Toaster (Brushed Stainless Steel_$90
4-slice Toaster_$79.99
$80.00
KMT423CU 4-Slice Toaster, Countour Silver_$99.99
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00+
CONSUMER SEGMENTATION
The types of people who potentially use new KitchenAid products
COOKING ENTHUSIASTS
EMPTY NESTERS
PROFILE CHARACTERISTIC
• Male or Female • Very devoted to cooking • Having professional jobs • Moderate to high income
• Eating breakfast is a • Both retired or having • Trying to establish family ritual a part-time job or a having breakfast time spouse or a husband altogether as a family • Moderate to high income • Having the steady ritual money source • Moderate to high • Regular fine income restaurant visitors
VALUE CHARACTERISTIC
• Willing to spend big money on purchasing kitchen utensil and appliances • Technology friendly • Conscious on new kitchen appliance trend
• Interested in cooking as a new hobby • High sensitivities on eating healthy food • Enjoy grocery shopping together
• Want quick and simple meal preparation but quality food • Sensitivities on providing breakfast to their student kids • Breakfast is the busiest family time
• Having old good memories on KichenAid products • Meal preparation is always big hassles of the day
• Dishwasher
• Microwaves
• Food producer • Stand Mixer
POSSIBLE • 2 slots and 2 slices KITCHENAID toaster PRODUCTS ALREADY OWNED
SMALL FAMILY (UP TO 4 PEOPLE)
BIG FAMILY (MORE THAN 4 PEOPLE)
COMPETITIVE LANDSCAPE
The onion diagram excercise allows to discover new KitchenAid concepts.
BASIC Among various purposes of the customer’s expectations, producing basic and single-purpose projects would be the way. Even if this has lowtechnologies, it serves purposefully and will be a part of portfolio.
BASIC
Budget: Kitchen gadgets
Generic: Countertop appliances Biodegradable kitchen utensil
Category: Toasters Form: 4 slices toaster
Juicer Coffeemaker
Egg Topper
Single slice of bread in a single slide Toaster oven
Cuisinart / CPT-190 Brushed StainlessSteel 4-Slice Toaster with Countdown Timer_$89.95
Egg Cooker Lemon Reamer
Oster / Inspire 4 Slice Brushed Stainless Toaster OST1057_$59 Kitchenaid / kmtt400ss extra wide 4slice metal toaster_$90
Haier / TST240SS Stainless-Steel LongSlot 4-Slice Digital Toaster_$46.92
Automatic Espresso Machine
Hello kitty toaster
Measuring Cup
ICONIC
kitchenaid mixer 90th anniversary stand mixer
Retro style radio toaster
kitchen knives
Breville / BTA840XL - Die Cast Metal 4-Slice Smart Toaster_$110
Stainless Steel Can Opener
Philips toaster with digital controls_ÂŁ60
Double-layered glass cup
Silicone Oven Mitt
Trapdoor-toaster
Kettle Programmable Crock-Pot
Food Scale
Instant Read Thermometer Electric Knife
ADVANCED
ICONIC One well-designed object has tremendous benefits from business value to brand image. The possible direction would be designing an iconic toaster. ADVANCED Based on the the emergence of technology, the typical cooking experiences will be re-shaped and the technology enables people to have more concise and time saving cooking experience. How might the two-second cooking toaster change our morning ritual?
GOAL OF NEW PORTFOLIO OFFERING REMINISCING PRODUCT LEGACY Customer satisfaction is the big part of KitichenAid’s marketing strategy. Given the tight and saturated market, enhancing their product legacy is the long term company prosperity although it does not generate immediate profits. Regarding this, emerging world trends, aging and recent women veterans, would be the good potential tarket audience to refine their product definitions. GOAL With maintaining their current product offerings, KitchenAid either develops new iconic kitchen appliances and enhances current product experiences so that the company will gain 5% their revenue increases by 2015 and starts leading the market.
EXISTING MARKETS
NEW MARKETS
PORTFOLIO OPTIONS
Generating concepts based on innovation competencies.
EXTEND
INNOVATE
A. WEDDING INDUSTRY CONNECT Wedding preparation can be a such hassle. Providing options for bride-to-be women.
C. LAYERING TOAST TECHNOLOGY The new toasting technology that enables the user to toast layer by later; this might attract installation artists.
B. SCHOOL CONNECT Proving culinary classes to the local schools: middle and high school focus.
PENETRATE
EXPAND
F. EXPAND THE EXPERIENCE CENTER OFFERINGS More customer-centered offerings.
I. SELF-SENSING TOASTER The new toaster enables to diagnose the quality of the bread for best toasting. J. TOASTER ON THE WALL Toasters that can be hung on the kitchen wall for easy kitchen performances.
H. NEW PRODUCT COLOR OFFERING To provide color additional colors on the existing product line.
EXISTING PRODUCTS
INNOVATE
E
A C
B PENETRATE
D. TWO SECOND TOAST TECHNOLOGY The new toasting technology that enables the user to toast in two second. E. PORTABLE/FOLDABLE TOASTER Invent the toaster for travelers.
G. CELEBRITY ADVERTISEMENT Recall the aging population’s memory of the products by the advertisement by similar-aged celebrities.
EXTEND
NEW PRODUCTS
D
EXPAND
G F H
J I
PORTFOLIO EVALUATION
Scoring concepts by the business framework, and the two highest conceprts would be the KitchenAid recommnedations.
COMPETITIVE ADVANTAGE
MARKET ATTRACTIVENESS
LEVERAGES COMPETENCIES
TECHNICAL FEASIBILITY
FINANCIAL RETURN
TOTAL SCORE
A. WEDDING INDUSTRY CONNECT
STRATEGIC IMPORTANCE
IDEAS
4
4
7
4
9
7
35
EXTEND
INNOVATE
E
A B
C
PENETRATE
EXPAND
D
J
G
B. SCHOOL CONNECT
4
1
1
4
9
4
I
24 F
C. LAYERING TOAST TECHNOLOGY
4
7
9
4
4
1
33
D. TWO SECOND TOAST TECHNOLOGY
1
1
9
4
1
4
20
E. PORTABLE/FOLDABLE TOASTER
1
4
7
4
4
1
25
F. EXPAND THE EXPERIENCE CENTER OFFERINGS
7
7
4
4
7
4
37
G. CELEBRITY ADVERTISEMENT
1
1
7
4
4
4
25
H. NEW PRODUCT COLOR OFFERING
1
1
4
4
9
4
23
I. SELF-SENSING TOASTER
4
4
7
7
4
4
30
J. TOASTER ON THE WALL
4
4
7
7
9
4
35
H
Best ranking ideas The best-ranked idea is to expand the offerings of the experience center; this means that KitchenAid has been successful with their current customer intimacy strategy. In conjunction with this, there are two tied-second option which are investigating a new market and developing a new toaster; however, rethinking the sales channel of the toaster would be more profitable.
RECOMMENDATION 1 EXPAND THE EXPERIENCE CENTER OFFERINGS Creating customer intimacy does not happen immediately; it first requires deep understanding of customers via holistic approaches. With the existing KichenAid’s experience center, KichenAid offers intriguing yet meaningful kitchen experience programs to harden their brand image. For instance, by offering cooking classes for families that different generations live together, they will expect to have stronger emotional bonds. Since the population is rapidly older, the older generations, who already experienced the KichenAid’s products, find this offering compelling enough and are easy to adapt the concept.
Product Leadership
Operational Excellence
Customer Intimacy
COOKING CLASS FOR FAMILY
SHARING EXPERIENCES OF THE OLD GENERATION PRODUCTS
RECOMMENDATION 2 NEW BUSINESS CHANNEL: WEDDING INDUSTRY Given the study result, entering a wedding industry as a new business chaneel, by introducing a new iconic toaster design is the second recommendation.
NEW TOASTER RENDERING SCHEME
With the advanced technologies, sleek and futuristic looking toasters are currently trends; inaddition, almost Kitchenaid competitors produce technology driven products. However, technology does not always evoke one’s mind. Like Philippe Starck Lemon Squeezer, the sculptural yet iconic object has its own value that technology cannot replace. Rather than creating a completely new product line, improving existing products, KPTT780 or 5KTT proline series is strategically approproate. Both categories do not have strong price benefits and distinctive functional and design characteristics. Potential design suggestion is kitchen box with the new toaster design; instead of the new toaster deisgn, the old KitchenAid toaster the bride’s mother used to use can make the wedding kitchen box more meaningful.
bread insert lever
heat controller
on/off switch KPTT780
5KTT PROLINE