Market Research On Whirlpool

Refrigerators

SUBMITTED BY:

Salil Wadhawan
MBA-IB (2007-2009)
Roll No. : A1802009358

INDUSTRY GUIDE FACULTY GUIDE

Mr. Pradeep Singh Rawat Ms. Seema Sahai

Marketing Delhi Branch Assistant Professor
Whirlpool of India Ltd AIBS

AMITY INTERNATIONAL BUSINESS SCHOOL,

NOIDA AMITY UNIVERSITY – UTTAR
PRADESH
 TO WHOM IT MAY CONCERN

This is to certify that _____________________, a student of Amity

International Business School, Noida, undertook a project on
“___________________” at ________________________
from __________to _____________.

Ms./Mr.________________ has successfully completed the project

under the guidance of Mr./Ms.____________________. She/He is a
sincere and hard-working student with pleasant manners.

We wish all success in her/him future endeavors.

Signature with date

(Name)
(Designation)
(Company Name)

2
 CERTIFICATE OF ORIGIN

This is to certify that Ms./Mr.___________________, a student of Post

Graduate Degree in _____________________, Amity International Business
School, Noida has worked in the ____________________, under the able
guidance and supervision of Mr./Ms._________________________,
designation______________, Company___________________________.
The period for which he/ she was on training was for ______weeks, starting
from ___________to _____________. This Summer Internship report has
the requisite standard for the partial fulfillment the Post Graduate Degree in
International Business. To the best of our knowledge no part of this report
has been reproduced from any other report and the contents are based on
original research.

Signature Signature
(Faculty Guide) (Student)

3
 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide

Mr./Ms.________________, (Designation)________________,
(Company) _________________, for his/her able guidance,
continuous support and cooperation throughout my project,
without which the present work would not have been possible.

I would also like to thank the entire team of

_____________________________, for the constant support and
help in the successful completion of my project.

Also, I am thankful to my faculty guide Prof./Mr./Ms. of my

institute, for his/her continued guidance and invaluable
encouragement.

Signature
(Student)

4
 TABLE OF CONTENTS

CHAPTE SUBJECT PAGE NO.

R NO.
1 EXECUTIVE SUMMARY 6

2 INTRODUCTION 10

3 INDUSTRY PROFILE 14

4 COMPANY PROFILE 19

5 DATA 29

6 FINDINGS & ANALYSIS 46

7 RECOMMENDATIONS 57

8 BIBLIOGRAPHY 61

9 CASE STUDY 63

10 SYNOPSIS 87

5
CHAPTER 1

Executive Summary

6
Whirlpool Corporation is a global manufacturer and marketer of major home appliances.

The company manufactures in 13 countries and markets products in approximately 170

countries under 11 major brand names such as Whirlpool, Maytag Kitchen Aid, Roper,

Estate, Bauknecht, Laden and Ignis.

Whirlpool Corporation entered India in the late ‘80’s and today has grown to become one

of the leading manufacturers and marketers of major home appliances in India. Whirlpool

Corporation entered into a joint venture agreement with TVS group to produce automatic

washers at a plant set up in Pondicherry.  A modest beginning was made to establish the

Whirlpool brand in India.  In 1995 Whirlpool Corporation acquired Kelvinator of India

Limited and entered into the Refrigerator market in India.  In late 1995 majority

ownership was gained in the TVS joint venture and the two entities were merged to form

Whirlpool of India Limited in 1996.

Whirlpool has the distinction of having ISO certification for all its facilities in India. The

refrigerator facility is located at Faridabad and manufactures a complete range of direct

cool refrigerators.  With the infusion of technology, machinery and streamlining the

processes the capacity of this plant was increased from 700,000 to 1,000,000 annually.

Whirlpool’s commitment to the Indian operation has resulted in the setting up of a state-

of-the-art facility for the manufacture of no frost refrigerators at Ranjangaon near Pune.

This facility has set the standards as one of the world’s front runners in environmentally

sensitive eco-friendly manufacturing units.

The washer facility is located at Pondicherry and manufactures both fully automatic and

semi automatic washers.  Constant feedback is taken from the consumers resulting in

products being continuously upgrade in features and in styling. 

7
Products manufactured in the above facilities match Whirlpool’s global standards and are

exported to over 70 countries across the globe.  Whirlpool of India is today India’s largest

exporter of home appliance and has been approved as an Export House.

Thus, in short the history of the company can be stated as below:

1908: The first Automatic washer was launched to public in late 1908, by 1900

Corporation which in 1911 was renamed to Upton Machine Company.

1957: The Company was rechristened as ' The Whirlpool Corporation.'

1958: The Company moved out of country for the first time and invested in Brazilian

appliance market through purchase of equity in Multibras S.A.

1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form Whirlpool Ltd.

1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland,

Netherlands and Belgium

1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC

manufacturing facility of Kelvinator India was also acquired.

1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to

form Whirlpool of India Ltd

1999: Whirlpool of India crossed the milestone of 1 million sales of appliances.

2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white

goods company.

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Vision

Every Home… Everywhere… with Pride, Passion and Performance

Mission

Everyone, Passionately Creating Loyal Customers for Life

Values

Whirlpools values are constant and define the way that all Whirlpool Corporation

employees are expected to behave and conduct business everywhere in the world.

Respect — We must trust one another as individuals and value the capabilities and

contributions of each person.

Integrity — We must conduct all aspects of business honorably – ever mindful of the

longtime Whirlpool Corporation belief that there is no right way to do a wrong thing.

Diversity and Inclusion — We must maintain the broad diversity of Whirlpool people

and ideas. Diversity honors differences, while inclusion allows everyone to contribute.

Together, we create value.

Teamwork — We must recognize that pride results in working together to unleash

everyone’s potential, achieving exceptional results.

Spirit of Winning — We must promote a Whirlpool culture that enables individuals and

teams to reach and take pride in extraordinary results and further inspire the "Spirit of

Winning" in all of us.

9
CHAPTER 2

10
 Introduction

By the way of doing the marketing mix mapping for the Whirlpool, it will provide

necessary market information, competitors marketing mix strategies and accordingly

comparison can be done and which will ultimately help to offer the product with the right

combination of the four Ps and with this Whirlpool can improve their results and

marketing effectiveness in Refrigerators, washing machine and A.C segment”

Consumer durables Industry is growing at a rapid pace. Price Affordability, Product

Awareness and availability have helped the industry players to generate great business.

But doing business in Indian Market is not easy. Continuous improvement in Product

quality and post sales service at affordable price is common to all Consumer durable

manufacturers across Industry. But the company which would introduce innovative

product, with unique technology and provide convenience by satisfying them with

something new would surely attract customers. Whirlpool Appliances which is one of

the largest Home Appliances brand in the world.

There are more worries than just fierce competition for Whirlpool, to get a foothold in an

already crowded market. Other cheap Chinese products have flooded the Indian market

over the last few years, leaving Whirlpool with little chance for a premium positioning.

Trade circles have similar apprehensions, and fighting this image is taking most of

Whirlpool time in India.

Despite this Whirlpool entered the Indian market with a premium line of products, which

prohibited the brand from building a mass appeal. Although, there are so many players in

the market and there is enough space for players like Whirlpool seeing the economy grow

11
at around 8-10%. This calls reevaluation of Whirlpool marketing mix strategies in the

market.

Objectives

As an integral part of the curriculum, all MBA students are required to complete

summer training internship in an industry or organization in two months. It is a great

opportunity for us to prove ourselves.

The main objective is to supplement the student theoretical knowledge with exposure to

the working environment of an organization. The program enhances the students

capabilities to cope up with the uncertainty and challenges, which are the part and parcel

of the organization. The exposure we all will get will benefit us immensely from the

practical point of view.

For the same, I had an opportunity to do my training in Whirlpool Corporation. I had

chosen to work in the marketing department. It gave me an insight into function of trade

marketing that helped me to learn about the organization. I am thoroughly enriched with

the knowledge and mechanism of working of organization.

All the staff members of Whirlpool Corporation with whom I got an opportunity to

interact were very co-operative and made me very comfortable and accepted me as apart

of their organization. I will always cherish the relationship with all of them. I was always

12
supported with their expert comments and suggestion concerning various aspects of the

project and they guided me to complete this project very diligently.

The aim of this report is to learn some practical knowledge and how to convert our

theoretical work into practical work. In marketing sector, this training is very beneficial

for me because here I have learnt how to interact with the retail shop owners. I have taken

this project very sincerely and I have gained more knowledge from this project.

PRACTICAL KNOWLEDGE GAINED FROM TRAINING

1. HOW THE COMPANY PREPARES ITSELF FOR THE COMPETETION

2. HOW TO SET PRICES FOR DIFFERENT PRODUCTS

3. WHAT ALL CONSIDERATIONS HAVE TO BE TAKEN TO SET THE FINAL

PRICE

4. DIFFERENT TAXES WHICH ARE CHARGED

13
CHAPTER 3

14
 Industry Profile

Before the liberalization of the Indian economy, only a few companies like Kelvinator,

Godrej, Allwyn, 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 are entering in the market

With the increase in income levels, easy availability of finance, increase in consumer

awareness, and introduction of new models, the demand for consumer durables has

increased significantly. Products like washing machines, air conditioners, microwave

ovens, color televisions (CTVs) are no longer considered luxury items. However, there

are still very few players in categories like vacuum cleaners, and dishwashers

Consumer durables sector is characterized by the emergence of MNCs,exchange offers,

discounts, and intense competition. The market share of MNCs in consumer durables

sector is 65%. MNC's major target is the growing middle class of India. MNCs offer

superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of the local

market, their well-acknowledged brands, and hold over wide distribution network.

However, the penetration level of the consumer durables is still low in India.

15
 Home Appliance Companies in India

There are many Home Appliance companies in India like Videocon, Voltas, Godrej,

Bluestar, Kenstar etc. Apart from them there are various international companies also that

deal in domestic appliances. Some of these home appliances manufacturers are Samsung,

LG, IFB, Whirlpool, and Kenmore etc. With the arrival of international brands in Indian

market, the competition among rival companies have become stiff, which results in

further improvement in qualities and depreciation in prices of most of the home

appliances in India. Since, a majority of products are electrically operated; the focus is on

such household appliances that are efficient in power consumption.

MAJOR COMPANIES

 Whirlpool

 LG

 Samsung

 Goodrej

 Panasonic

 Hitachi

 Haier

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Industry Growth

17
 SWOT- Industry

Scope

1. In term of purchasing power parity (ppp), India is the 4th largest economy

in the world and overtake Japan in the near future become the 3rd largest.

2. Indian consumer durable market is expected to reach $400 billion by on

2010

3. India has the youngest population amongst the major countries. There are

lots of people in the different income categories nearly the two third

population is below the age of 35 and nearly 50% is below 25.

4. There are 56 million people in middle class, who are earning us$4,400-

US$ 21,800 a year. And there are 6 million rich household in India.

5. The upper-middle and high-income household in urban areas are expected

to grew to 38.2 million in 2007 as against 14.6 million in 2000

Opportunity

1. In India the penetration level of white goods is lower as compared to

other developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e. increase in purchasing power of consumers.

5. Easy availability of finance.

Weaknesses & Threats

1. Higher import duties on row materials.

2. Cheap imports from Singapore, China and from other Asian countries.

18
CHAPTER 4

19
 Company Profile

Whirlpool, right from its inception in 1911 as first commercial manufacturer of

motorized washers to the current market position of being world's number one

manufacturer and marketer of major home appliances, has always set industry milestones

and benchmarks. The parent company is headquartered at Benton Harbor, Michigan,

USA with a global presence in over 170 countries and manufacturing operation in 13

countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate,

Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond

achievable feat of any other in the industry.

Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it

emerged as truly global leader in the1980's. This encouraging trend brought the company

to India in the late 1980s. It forayed into the market under a joint venture with TVS group

and established the first Whirlpool manufacturing facility in Pondicherry.

Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into

Indian refrigerator market as well. The same year also saw acquisition of major share in

TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to

create Indian home appliance leader of the future, Whirlpool India. This expanded the

company's portfolio in the Indian subcontinent to washing machines, refrigerator,

microwave ovens and air conditioners.

Today, Whirlpool is the most recognized brand in home appliances in India and holds a

market share of over 25%. The company owns three state-of-the-art manufacturing

facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups

20
features an infrastructure that is witness of Whirlpool's commitment to consumer interests

and advanced technology.

In the year ending in March '09, the annual turnover of the company for its Indian

enterprise was Rs.1,719 Crores.

The company's brand and image speaks of its commitment to the homemaker from every

aspect of its functioning. It has derived its functioning principles out of an undaunted

partnership with the homemakers and thus a slogan of “You and whirlpool, the world's

best homemaker” dots its promotional campaigns. The products are engineered to suit the

requirements of ‘smart, confident and in-control' homemaker who knows what she wants.

The product range is designed in a way that it employs unique technology and offers

consumer relevant solutions.

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 HISTORY OF WHIRLPOOL

 1911 Louis Upton founded the Upton Machine in this year to produce motor-driven

wringer washers.

 1916 First order of washers was sold to Sears, Roebuck & Co.

 1929 Upton Machine Company merged with Nineteen Hundred Washer Company of

NewYork.

 1948:First 'Whirlpool' brand automatic washer with dual distribution was

introduced. It included two product lines one each was distributed through Sears and

Nineteen Hundred.

 1957: The Company was rechristened as ' The Whirlpool Corporation.'

 1958: the Company moved out of country for the first time and invested in Brazilian

appliance market through purchase of equity in Multibras S.A.

 1968: The Elisha Gray II Research & Engineering Center was completed in Benton

Harbor. In the same year the company's revenues crossed the legendary $1 Billion

mark for the first time.

 1978: Within a decade company doubled its feat of $1 Billion mark and reached the

$2billion revenue level.

 1986: The 'Kitchen Aid' division of Hobart Corporation was purchased.

 1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS

WhirlpoolLtd.

 1989: This was a historic year since the revenues catapulted to heights of over $6

Billion mark. Also, the joint venture with N.V.Philips of Netherlands called

Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.

22
 1991: The Company introduced and committed globally to its Worldwide

Excellence

System, which is a TQM program dedicated to exceeding customer expectations. The

vision to globalize 'Whirlpool Corp'. was realized in the same year.

 1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland,

Netherlands and Belgium

 1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The

DC

manufacturing facility of Kelvinator India was also acquired

 1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together

to form Whirlpool of India Ltd.

 1998: This year gave birth to a new company vision that says, "Every Home

every where with Pride, Passion & Performance."

 1999: Whirlpool of India crossed the milestone of 1 million sales of appliances.

 2002: The ' Whirlpool Strategic Architecture ' was launched as a framework to

achieve the vision. The revenues of Whirlpool Corp. soared to $10.5 Billion.

 2001: Whirlpool India registered profit & sold 1.2 million appliances. It also

achieved the No.1 position in DC & FA.

 2002: The Aircon range was successfully launched and the Whirlpool of India

acquired 6% market share.

 2003: A new mission statement of "Everybody creating loyal customers for life" was

adopted.

 2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white

23
goods company

Company Growth

24
New Product Launches

25
Key Priorities For 2010

26
 SWOT- Company

Strengths

1. The company manufactures in 13 countries on 4 continents namely :-- Canada,

United States, Mexico, Argentina, Brazil, Slovakia, Germany, Sweden, France,

Italy, South Africa, China and India and markets products in more than 170

countries under major Brands (26 including Affiliates) names such as Whirlpool,

Kitchen Aid, Roper, Estate, Bauknects, Ignis, Laden, Inglis, Braotemp, Crolls and

Acros.

2. Whirlpool is also the principal supplier to Searo, Roebuck and company of many

major home appliances marketed under the Kenmore brand names.

3. Whirlpool Corporation is the world’s leading manufacturer and marketer of

major home appliances.

Weakness

1. Service issues

2. Dealer price margin

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Opportunity

1. In India the penetration level of white goods is lower as compared to other

developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e. increase in purchasing power of consumers.

5. Easy availability of finance.

Threats

1. Increasing competition

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CHAPTER 5

29
 Data

1. Primary Data Collection

 For Product:

Customer survey through use of a structured questionnaire.

 For Price:

Direct meeting with the dealers to know other companies pricing, by collecting and

analyzing prices for customers (MRP) dealers (D.P), direct dealers, and distributors.

 For Place:

Obtaining feedback from the existing dealers of Whirlpool and other consumer electronic

dealers in the Delhi market through direct interviews. To establishing and implementing

processes for obtaining ideas, Information and insights from the dealers regarding the

Whirlpool marketing proposition for refrigerators and washing machine, after that

evaluating the feedback, assessing the benefits and any risks associated with possible

options, and making recommendations towards enhancing the WHIRLPOOL marketing

proposition especially “place” or in other words dealer expansion in Delhi city.

 Promotion:

Observing the number of marketing activities done by the other companies by keeping

the record of activities done by them, and also attending the activities to feel the

difference between the Whirlpool marketing activities.

2. Secondary Data Collection

 Company websites

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  Journals

 Annual reports.

Data Collection-refrigerators (DC )

BRAND SUBBRAN CAPACITY STAR MODEL NO. FEATURES

D
LG dc 200 5 gl-211ntd5 Fastest Ice Making,Cell Fresh Crisper,B
  dc 200 5 gl-211smdg5 Fastest Ice Making,Cup-Deodorizer,op
Fresh Crisper
  dc 200 5 gl-211sadg5 Fastest Ice Making,Cup-Deodorizer,An
Drawer,Cell Fresh Crisper
  dc 230 5 gl-241nm5 Cell Fresh Crisper,Fastest Ice Making
  dc 230 5 gl-241smg5 Cell Fresh Crisper,Fastest Ice Making,C
  dc 230 5 gl-241nt5 Cell Fresh Crisper,Fastest Ice Making,C
  dc 230 5 gl-241sadg5 Cell Fresh Crisper,Fastest Ice Making,A
  dc 270 5 gl-281smg5 Cell Fresh Crisper,Fastest Ice Making,O
  dc 270 5 gl-281nm5 Cell Fresh Crisper,Fastest Ice Making
  dc 215 5 gl-225fdd5 Cell Fresh Crisper,Fastest Ice Making,V
samsung dc 200 5 gl-211nm5 Fastest Ice Making,Cup-Deodorizer,An
  dc 180 4 GL185RP4 Opaque Door Baskets,Glass Veg Tray C
  dc 180 4 GL185tP4 Opaque Door Baskets,Glass Veg Tray C
  dc 185 5 GL-195NM5 Open Door Alarm,Fastest Ice Making,C
  dc 185 5 GL-195Nh5 Open Door Alarm,Fastest Ice Making,C
  dc 185 5 GL-195Np5 Anti Bacteria Gasket,Fastest Ice Makin
  dc 185 5 GL-195Nc5 Anti Bacteria Gasket,Fastest Ice Makin
  dc 185 5 GL-195smdg5 Fastest Ice Making, Open Door Alarm,
Drawer
  dc 185 5 gl 195sadg5 Fastest Ice Making, Open Door Alarm,
Drawer
dc 210 5 ra21bd Stabiliser Free Operation,Rust Resista
SAMSUNG
  dc 190 5 ra19w Stabiliser Free Operation,Rust Resista
  dc 210 5 ra21cd Stabiliser Free Operation,Rust Resista
  dc 190 5 ra19y Stabiliser Free Operation,Rust Resista
  dc 230 5 ra23z Stabiliser Free Operation,Rust Resista
  dc 190 5 ra19fd Stabiliser Free Operation,Fresh Tech,R
  dc 190 5 RA19WBPS1/X Stabiliser-free operation,Fresh kit,wir
TL

31
  dc 190 5 RA19WBLB1/X Stabiliser-free operation,Fresh kit,wir
TL
  dc 210 5 ra21zbux1/xtl Stabiliser-free operation,Fresh kit,wir
stand
  dc 210 5 RA21WBPS1/X Stabiliser Free Operation,Rust Resista
TL
  dc 210 5 RA21WBPR1/X Stabiliser Free Operation,Rust Resista
TL
  dc 210 5 RA21WBLB1/X case veg divider,Stabiliser-free operati
TL gasket,base stand
  dc 230 5 RA23YBMS1/X case veg divider,Stabiliser-free operati
TL gasket,base stand
  dc 230 5 RA23WBPS1/X case veg divider,Stabiliser-free operati
TL gasket,base stand
  dc 230 5 RA23WBLB1/X case veg divider,Stabiliser-free operati
TL gasket,base stand
  dc 185 5 gde-19d4 Stabiliser Free Operation 160 V – 250
GODREJ dc 225 5 23d4 Stabiliser Free Operation 160 V – 250
  dc 173 4 gdn185b Stabiliser Free Operation 160 V – 250
Warranty,100% green
  dc 181 3 gda19d ZOP Technology – 10 Year Rust Free W
Compressor
  dc 300 2 gdd310s ZOP Technology – 10 Year Rust Free W
Compressor
  dc 300 2 gdd310p ZOP Technology – 10 Year Rust Free W
Compressor
  dc 99 3 gdc 110s Zop technology,Glass veg tray cove,ex
  dc 170 3 gdn 180p Adjustable Shelves,Water Dispenser,
  dc 173 4 gdn185c Stabiliser Free Operation 160 V – 250
Warranty,100% green
  dc 173 4 gdn185d Stabiliser Free Operation 160 V – 250
Warranty,100% green
  dc 181 3 gda19b ZOP Technology – 10 Year Rust Free W
Compressor
  dc 181 3 gda19c ZOP Technology – 10 Year Rust Free W
Compressor
  dc 183 5 gde19b1 ZOP Technology – 10 Year Rust Free W
Compressor
  dc 183 5 gde19b2 ZOP Technology – 10 Year Rust Free W
Compressor
  dc 183 5 gde19c2 ZOP Technology – 10 Year Rust Free W
Compressor

32
  dc 221 5 gde23b1 ZOP Technology – 10 Year Rust Free W
Compressor
  dc 221 5 gde23c2 ZOP Technology – 10 Year Rust Free W
Compressor
  dc 250 5 gde26b1 ZOP Technology – 10 Year Rust Free W
Compressor
  dc 250 5 gde26c2 ZOP Technology – 10 Year Rust Free W
Compressor

Data Collection-refrigerators (FF )

S.NO BRAND SUBBRAND CAPACITY STAR MODEL NO. FEATURES

1 LG ff 320 5 GL-338VT5 Green Ion Door Cooling Technol
LG ff 290 5 GL-308va5 Green Ion Door Cooling Technol
LG ff 260 5 GL-278va5 Green Ion Door Cooling Technol
LG ff 559 4 B652ysp Green Ion Door Cooling Technol
LG ff 422 4 GL-478ysx4 Green Ion Door Cooling Technol
LG ff 491 4 gl-548ytx4 Green Ion Door Cooling Technol
LG ff 320 5 gl-338vsx5 Green Ion Door Cooling Technol
LG ff 390 4 gl-408yvqg4 Green Ion Door Cooling Technol
LG ff 350 4 gl-368ytqg4 Green Ion Door Cooling Technol
LG ff 320 5 gl-338va5 Green Ion Door Cooling Technol
LG ff 260 4 gl- Cell Fresh Crisper , Humidity Con
278ves/VA4

33
LG ff 260 5 gl-278vs5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 290 5 gl-308vsx5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 320 5 gl-338vsx5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 240 5 gl-255vm5 green Ion Door Cooling Technol
LG ff 240 5 gl-258vt5 green Ion Door Cooling Technol
LG ff 240 5 gl-258va5 green Ion Door Cooling Technol
LG ff 240 5 gl-255vv5 green Ion Door Cooling Technol
LG ff 240 5 gl-255vv5BK green Ion Door Cooling Technol
LG ff 240 5 gl-255va5 Cell Fresh Crisper , Humidity Con
LG ff 240 5 gl-258ve5 Cell Fresh Crisper , Humidity Con
LG ff 240 5 gl-258vs5 Cell Fresh Crisper , Humidity Con
LG ff 260 5 gl-275vv5 Cell Fresh Crisper , Humidity Con
LG ff 260 5 gl-275vv6bk Cell Fresh Crisper , Humidity Con
LG ff 260 5 gl-275va5 Cell Fresh Crisper , Humidity Con
LG ff 260 5 gl-278vt5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 260 5 gl-278va5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 260 5 gl-278ve5 Anti Bacteria Gasket,Freeze 'n' C
LG ff 290 5 gl-305vv5 Cell Fresh Crisper , Humidity Con
LG ff 290 5 gl-305vv5bk Cell Fresh Crisper , Humidity Con
LG ff 290 5 gl-305va5 Cell Fresh Crisper , Humidity Con
LG ff 290 5 gl-308vt5 Cell Fresh Crisper , Humidity Con
LG ff 290 5 gl-308va5 Cell Fresh Crisper , Humidity Con
LG ff 290 5 gl-308ve5 Cell Fresh Crisper , Humidity Con
LG ff 320 5 gl-335vv5 Cell Fresh Crisper , Humidity Con
LG ff 320 5 gl335vv5bk Cell Fresh Crisper , Humidity Con
LG ff 320 5 gl-335va5 Cell Fresh Crisper , Humidity Con
LG ff 320 5 gl-338va5 Cell Fresh Crisper , Humidity Con
LG ff 320 5 gl-338ve5 Cell Fresh Crisper , Humidity Con
LG ff 350 4 gl- Cell Fresh Crisper , Humidity Con
365ymqg4
LG ff 350 4 gl-365yvqg4 Cell Fresh Crisper , Humidity Con
LG ff 350 4 gl-368yvqg4 Cell Fresh Crisper , Humidity Con
LG ff 350 4 gl-368yaqg4 Cell Fresh Crisper , Humidity Con
LG ff 350 4 gl-368ytqg4 Cell Fresh Crisper , Humidity Con
LG ff 350 5 gl-368ysqg5 Cell Fresh Crisper , Humidity Con
LG ff 390 4 gl405ymqg4 Cell Fresh Crisper , Humidity Con
LG ff 390 4 gl405yvqg4 Cell Fresh Crisper , Humidity Con
LG ff 390 4 gl408ytqg4 Cell Fresh Crisper , Humidity Con
LG ff 390 4 gl408ysqg4 Cell Fresh Crisper , Humidity Con
LG ff 422 4 gl478ylq4 Cell Fresh Crisper , Humidity Con
LG ff 422 4 gl478ytqg4 Cell Fresh Crisper , Humidity Con

34
 LG ff 422 4 gl478ytx4 Cell Fresh Crisper , Humidity Con
LG ff 422 4 gl478ysx4 Cell Fresh Crisper , Humidity Con
LG ff 466 4 gl528ylq4 Cell Fresh Crisper , Humidity Con
LG ff 466 4 gl528ytqg4 Cell Fresh Crisper , Humidity Con
LG ff 466 4 gl528ytx4 Cell Fresh Crisper , Humidity Con
LG ff 466 4 gl528ysx4 Cell Fresh Crisper , Humidity Con
LG ff 491 4 gl548ytq4 Cell Fresh Crisper , Humidity Con
LG ff 491 4 gl548ytx4 Cell Fresh Crisper , Humidity Con
LG ff 491 4 gl548ysx4 Cell Fresh Crisper , Humidity Con
LG ff 559 4 gr-b652yls Cell Fresh Crisper , Humidity Con
LG ff 604 4 gr-m712ysq Cell Fresh Crisper , Humidity Con
LG ff 604 4 gr-m712ytq Cell Fresh Crisper , Humidity Con
LG ff 581 gcb217wvq Multi Airflow,Slide out Spill Stop
LG ff 581 gcb217wlq Multi Airflow,Slide out Spill Stop
LG ff 581 gcb127btj Multi Airflow,Slide out Spill Stop
LG ff 567 gcl217fvq Multi Airflow,Slide out Spill Stop
LG ff 567 gcl217wtq Multi Airflow,Slide out Spill Stop
LG ff 567 gcl217btj Multi Airflow,Slide out Spill Stop
LG ff 567 gcl217bpj Multi Airflow,Slide out Spill Stop
LG ff 567 gcp217wvq Multi Airflow,Slide out Spill Stop
LG ff 567 gcp227lgbb Multi Airflow,Slide out Spill Stop
LG ff 567 gcp227lgbw Multi Airflow,Slide out Spill Stop
LG ff 721 grp267btb Multi Airflow,Slide out Spill Stop
LG ff 721 grp267zgb Multi Airflow,Slide out Spill Stop
LG ff 693 grp247jhm Multi Airflow,Slide out Spill Stop
LG ff 795 grg287stw Multi Airflow,Slide out Spill Stop
2 SAMSUNG ff 230 5 rt-24ybms1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 280 5 rt-29zblb Freshness Lamp
SAMSUNG ff 430 4 rt-50mmsm cool curtain system ,multi-flow,
SAMSUNG ff 530 4 rt-63wbsm cool curtain system ,multi-flow,
SAMSUNG ff 375 4 rt-41mcsm1 coolever zone,cool booster,air s
SAMSUNG ff 400 4 rt-45mcsm1 coolever zone,cool booster,air s
SAMSUNG ff 280 5 rt-29zbps cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32zbps1 cool pack in freezer and ref com
SAMSUNG ff 230 5 rt-24ybux1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 230 5 rt-24zbps1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 230 5 rt-24zbpr1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 230 5 rt-24zbcr1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 230 5 rt-24zblb1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 230 5 rt-24ebux1 i-SPIN COOL ,Humidity Control C
SAMSUNG ff 250 5 rt-26ybux1 Air Flow type i-Spin Cool , Insula

35
 Quick Freezing Component, Chil
SAMSUNG ff 250 5 rt-26zbps1 Air Flow type i-Spin Cool , Insula
Quick Freezing Component, Chil
SAMSUNG ff 250 5 rt-26zbpr1 Air Flow type i-Spin Cool , Insula
Quick Freezing Component, Chil
SAMSUNG ff 250 5 rt-26zblb1 Air Flow type i-Spin Cool , Insula
Quick Freezing Component, Chil
SAMSUNG ff 260 5 rt-27ybms1 Cool pack in freezer and ref com
SAMSUNG ff 260 5 rt-27ybux1 Cool pack in freezer and ref com
SAMSUNG ff 260 5 rt-27zbcr1 Cool pack in freezer and ref com
SAMSUNG ff 260 5 rt-27zblb1 Cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29ybms1 cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29ybux1 cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29zbpr1 cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29zbpr1 cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29zbcr1 cool pack in freezer and ref com
SAMSUNG ff 280 5 rt-29zblb1 cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32ybms1 cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32ybux1 cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32zbpr1 cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32zblb1 cool pack in freezer and ref com
SAMSUNG ff 315 5 rt32ebux1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35ybms1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35ybux1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35zbps1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35zbpr1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35zblb1 cool pack in freezer and ref com
SAMSUNG ff 345 5 rt35ebux1 cool pack in freezer and ref com
3 GODREJ ff 330 4 gfe-35dz Silver Shower Technology,Silver
GODREJ ff 294 4 gfe-31dy Silver Shower Technology,Silver
GODREJ ff 271 4 gfe-29dz Silver Shower Technology,Silver
GODREJ ff 231 4 gfe-25ay Silver Shower Technology,Silver
GODREJ ff 280 4 gfe-30dy Silver Shower Technology,Silver
GODREJ ff 350 4 gfe-36dy Silver Shower Technology,Silver
GODREJ ff 250 4 27by Anti-B Technology,Deodorizer
GODREJ ff 270 4 29bz Anti-B Technology,Deodorizer
GODREJ ff 230 4 gfe25ac Having Anti-B technology, Poly B
GODREJ ff 230 4 gfe25ad Having Anti-B technology, Poly B
GODREJ ff 230 4 gfe25az Having Anti-B technology, Poly B
GODREJ ff 230 4 gfe25by Having Anti-B technology, Poly B
GODREJ ff 230 4 gfe25bz Having Anti-B technology, Poly B

36
GODREJ ff 250 4 gfe27by Anti-B Technology,Deodorizer
GODREJ ff 250 4 gfe27bz Anti-B Technology,Deodorizer
GODREJ ff 270 4 gfe29dz Silver Shower Technology,Silver
GODREJ ff 294 4 gfe31dz Silver Shower Technology,Silver
GODREJ ff 330 4 gfe35dy Silver Shower Technology,Silver
GODREJ ff 280 4 gfe30dz Silver Shower Technology,Silver
GODREJ ff 305 4 gfe32dy Silver Shower Technology,Silver
GODREJ ff 305 4 gfe32dz Silver Shower Technology,Silver
GODREJ ff 350 4 gfe36dz Silver Shower Technology,Silver

CHAPTER 6
37
 Findings & Analysis

Preferred brand in the last purchase

38
 Haier
LG 9%
15%

Videocon
8%

Godrej whrilpool
9% 36%

Samsung
23%

Out of people surveyed 36% Whirlpool in their last purchase, and this preference was

mainly for refrigerators. 10% of the people surveyed opted for Godrej, 15% LG & 23%

Samsung.

Factors affecting their preference for preferred brand

39
 40%

35%

30%

25%

20%

15% LG
Samsung
10%
WHRILPOOL
5%

0%
m
e es on ce ice ey
na tur pti en rv on
d ea o flu Se rm
an ctf id
er in fo
Br u up e
od W o lu
pr gr Va
ic al
So

Brand name matters always that’s why most of the companies which was opted by the

customers they preferred because of the brand name the market leaders like LG ,

Samsung is dominating because of their aggressive brand building exercise.

After this service factor comes in the pictures, for each surveyed brand people preference

revolves around two major factor brand image and service. consumer durables represents

lifestyle and if a person wants to purchase any consumer durable item he/she prefers

those products which is already established, or in other worlds which gives them a “proud

to own” feeling. People opted Whirlpool in the attributes like product features, it

represents if the product features of Whirlpool can be communicate suitably, there is

much more potential in the brand itself. This also suggests that Whirlpool needs to push

products before a customer enters inside the store; it will enhance the brand value and

will push the brand sale as well.

40
 Brand Awareness
18

no Yes

82

This shows how much customers are aware of Whirlpool, and in other way what is the

effect of all the marketing exercises, and the communication done so far for the

Whirlpool.82% of the people surveyed were aware of Whirlpool. Marketing strategies for

Whirlpool to enhance their brand awareness and visibility in the market place has been

successful.

41
 Customers had look on Whirlpool product before making the purchase decision?

33
Yes No

77

77% of people surveyed knows about Whirlpool but only 33% of the people surveyed

had look on Whirlpool product before making the purchase decisions, this is surrounded

by many factors like “Place” strategy of Whirlpool, because of unavailability of the brand

in the customers preferred multi brand store, other factor could be their will be dealers

demonization to sell the Whirlpool Products, less effort by the sales intermediaries. 77%

people know but didn’t want to see the products are also showing the uncertainty in the

minds of the customers in their minds.

42
 Aware of that "Whirlpool is the largest home appliances
company in the world?

YES
NO

25% of the people surveyed don’t know the most common strategy adopted by the

Whirlpool to create brand awareness for the brand i.e. Whirlpool is the second largest

appliances in the world. There was several lacking in their marketing communication,

because of that the people who knows about the brand still don’t know about this fact.

There could be other side of this fact that by the way of promoting as a second largest

appliances brand, it automatically promoted the brand which is largest appliances Brand

in the world, because by the way of communicating that Whirlpool is the second largest it

is automatically creating a willingness in the minds of the customers that which is the

largest brand, in the world.

Factors affecting dealers focus on brands

43
 14
12
10
8
6 LG
4
Samsung
2
0 Whirlpool
t y es ct t
or lit vic orGodrej
Eff bi r du p
fit
a
Se o up
les o P r
ls
Sa Pr ale on
a Electrolux
Le
ss erS oti
Aft ro
m
P
d
An
ng
keti
ar
M

From the above bar graph it is showing what the factors which are affecting the dealer

focus towards the brand, no doubt the profitability is the first factor but this other factors

also affect overall focus of the brand .

Like from this market insight it is clearly coming out that in city like Delhi dealers don’t

want to put more effort to sell brand they are happier if the brand it is getting sold itself in

the market. This is clearly evident that despite having good product line, better marketing

support from the LG, still 13 out of the dealers surveyed said that they are focusing on

LG because they don’t want to give much more effort to sell it. It clearly suggests that

now it is time to create the brand awareness, and push products before a customer enters

in to store. Right now the dealers in Delhi city are dealing Whirlpool much more because

of the profitability after sale service.

44
Interested in Whirlpool

Mixed Reaction

Series 1
Negatively Responded

Positevely Responded

0 1 2 3 4 5 6

Visited 32 dealers responded positively for Whirlpool and they can be negotiated for the

dealership, other these 7 dealers gave mixed reaction which can also be converted.

The market insight and factors influencing dealer focus

1. No push sale, no need to push these company products, less sales effort: LG and

SAMSUNG created that kind of image in the minds of the customers, where before

making any purchase decision, customer is more inclined towards the products of these

company, and finally whatever the customer will purchase he/she will definitely have a

look for these companies products before making purchase decision. Less Customer

Complaints, Customer Awareness about the Brands.

2. Profitability and holding cost: Better Volume Sale Which Ultimately Leads to Better

Margins, And Better Bargaining with the Companies. And No blockage of money, stock

gets cleared easily

45
3.Whirlpool is having wide product line in refrigerator category which ultimately gives

more option to select from to customers with this their service support is good and the

customer complaints are also less especially due to home care program of whirlpool .

4.Godrej is giving extra profit margin as compare to other competitors i.e. dealer price

+scheme of 3% + 3% distributors margin+ FOC , and there is enough possibilities of

large sell according to them because of launch of new product line series in appliances

segment. With this the company better support in the form of marketing efforts, recently

company gave 5 A.C display panel stands and other POP material to many dealers.

5. Fair pricing strategies LG and Samsung prices are almost open to everyone are aware

of dealer price and customer price.

6. Samsung Loan Mela and LG No Filing Charges, No Interest Finance Scheme on Air

Conditioners Is Creating Good Response among Customers.

46
 Comparative product models mapping (DC)

40

35

30

25
No.of models in 175 -190 lts)
20 No.of models in 190-230 ltrs segment
No.of models in full direct cool
15 refridgeraor segment2

10

0
Haier LG Samsung Whrilpool Godrej

47
 Comparative product models mapping (FF)

30

25

20

15 200-235 liters
240 -260 liters
10 275-300 liters
Total no of models in frost free
segment
5

0
l
ier re
j
oo LG ng lu
x
Ha d ilp su tro
Go hr Sa
m
lE ec
W

48
CHAPTER 7

49
 Conclusion and recommendations

1. Whirlpool needs to increase the number of BTL (below the line) activities to

generate common awareness and visibility at grassroots level, because it can

be understood from the figures of their competitors BTL activities that

Whirlpool BTL activities is not up to the that mark in comparison to other

competitors.

2. In Delhi market dealers don’t want to put direct push effort on brands that’s

why unlike other cities market where if a dealer deals in LG they prefer not to

deals with its direct competitor Samsung, but in Gujarat every dealer is having

collection of brands, they want to be ready for everything like whatever

customer demands they can easily find out in their store. Currently Whirlpool

is available with most of the major dealers in Delhi, Whirlpool needs to focus

on those dealers also where it will not face direct competition with LG and

Samsung , a small and dedicated brand dealer will work not only for margins

but they also can see the future opportunities in form of Whirlpool.

3. Good thing about Whirlpool is that they got somehow success in positioning

themselves as a quality brand the customer survey and the dealer’s survey tells

the story about it. People perceived Whirlpool as a good product quality

brand. If this can be associated with better pricing also there will be immense

possibilities for Whirlpool. Need to create a value for money brand image

which can give good product quality at affordable prices.

4. Whirlpool needs to build strong dealer relation in order to provide better

“place” strategies for the brand. Whirlpool lacks in company support factors

50
 and most of the existing dealers in the dealer survey said that. Like most of the

companies are having their regular company dealers meet to get together with

their dealers, Whirlpool lacks needs to do this in order to regain dealer support

5. Service arrangements need to be strengthen, still people thinks that because

the company is having foreign origin and it is new too, if they will purchase

any product they will face service problem in future. Customers in rural areas

are not aware of the service call center facilities and don’t know how do it,

company is not having the service centers also there in those area , customers

passes the complaints to dealers, and dealers to distributors, and finally

distributors has to log this complaints to the call center, which creates

overburden for them.

6. Any one accepts that as a fully fledged brand, Whirlpool can only compete

with the Korean giants LG and Samsung. Product lines and variants in the

refrigerators should be increased to give wider option to choose from to the

customer because the Whirlpool refrigerators could be proved as a benchmark

product for Whirlpool because of its unique differentiation with others.

7. Most of the products are simple in looks, in refrigerators segment even the

logo on refrigerators are not attractive as compare to others.

8. Whirlpool should adopt aggressive marketing strategies to cut down

competition and visibility at market place.

9. Appropriate product knowledge should be given by the company to dealers

and to dealers to create awareness towards quality.

51
 10. Products should be more attractive refrigerators looks very simple and

ordinary especially direct cool refrigerators Entry level Refrigerators can do

better because of price and capacities.

11. Whirlpool has good presence in the market but one thing is also evident that

Whirlpool is present in major counters with LG and Samsung, Whirlpool also

need to focus on those dealers were it will not face direct competition with LG

and Samsung. Competitive strategy should be like this where first Whirlpool

should wipe out smaller brands compare to LG and Samsung because this brand

also have market share larger than Whirlpool, and Whirlpool is not in

competition of LG and Samsung it should target on brands like Godrej , TCL

first, so it can compete the bigger brand later on.

52
CHAPTER 8

53
 Bibliography

 www.whirlpool.com
 www.wikipedia.org
 www.google.com
 www.lgindia.com
 www.samsung.com
 www.godrej.com
 Whirlpool, LG, Samsung etc brochures
 Business today

54
CHAPTER 9

55
 CASE STUDY

WHIRLPOOL: THE FIRST VENTURE INTO INDIA

I. CASE ABSTRACT

Management at Whirlpool concluded that if the company were to be a major player

in the developing global major home appliance industry, it needed a presence in Asia

to compete with the Japanese and Korean manufacturers. Industry projections

suggested that Asia would surpass North American and Europe and represent 40% of

world demand for home appliances by 2004. In 1987, Whirlpool managers thought

that rising incomes and aspirations among India's middle class would generate

substantial demand for home appliances over the next few decades. That same year,

Whirlpool met and signed a joint venture agreement with India's TVS group, for the

purpose of manufacturing automatic washing machines and eventually other

appliances.TVS had begun as a bus service and diversified into auto component

manufacturing and other auto-related businesses. Its most recent (and least

successful) diversification into computer components was also its first into non-

automotive consumer goods.TVS then joined with Whirlpool in forming TWL

because it also wanted to take advantage of future growth in consumer products in

India.

Under the terms of the joint venture agreement, TVS provided day-to-day

operational management, with Whirlpool providing the technical expertise in

automatic washing machines. Unfortunately, TVS knew nothing of either making or

56
 marketing major home appliances, and Whirlpool ignored the fact that the Indian

market had no interest at the time in automatic washing machines! People purchased

either manual washers or semi-automatic twin-tub washers. Fully automatic

machines were affordable only to a tiny segment of the population. TVS' and

Whirlpool's investment of time and money into the development of their first washer

meant that the venture had to sell 5,000 high-priced units per month to reach break-

even. TWL was established as an assembly operation, dependent on components

that were 80-90% externally sourced. TVS' lack of experience with appropriate

suppliers, plus the marginal ability of suppliers to deliver quality parts on time,

caused huge problems in production. TVS also had few connections with appliance

retail distribution outlets. Dealers were not interested in buying products from

single-product firms like TWL when they could deal with companies making a full

range of consumer durables, like Videocom. Even after two years of operations,

only 2,000 to 2,500 units were coming off TWL's assembly line. By 1993, TWL's

equity was reduced to zero, cash flow was weak, and losses were accumulating.

Whirlpool purchased TVS' stock in the joint venture and implemented a turnaround

strategy under the new name of Whirlpool Washers Manufacturing Limited

(WWML).

Whirlpool initiated its Worldwide Excellence Program in the Pondicherry plant to raise

the level of quality and reduce costs. It worked to develop better relations with its

suppliers. Whirlpool replaced TVS managers with its own from the United States but

still had to deal with the TVS corporate culture in the workplace. The reorganized

venture reduced its losses and became profitable. Whirlpool's market share rose from

57
12.9% in 1994 to 17% by the end of 1995. WWML finally made a book profit in 1995

but still had to pay off its accumulated losses of US$50 million. Increasing competition

and price wars were making the targeted 1996 market share of 20.6% difficult to achieve.

Also in 1995, Whirlpool purchased a 51% interest in Delhi-based Kelvinator of India

(KOI), one of India's leading refrigerator makers. Even though KOI had 30%

market share in India, its refrigerators were outdated and the company was

unprofitable. Whirlpool began construction of a US$119 million plant to produce

state-of-the-art refrigerators. This was on top of its investment, totaling US$120

million, in the TVS joint venture and in Kelvinator. The company was also

considering entering the Indian air conditioning market as well as the fast-growing,

Chinese major home appliance market. In the meantime, Whirlpool's erratic

corporate earnings translated into a decline in its per share stock price from $56 in

1993 to $51 in 1996. Whirlpool's plan to become a global appliance manufacturer

appeared to be in difficulty.

Decision Date:
June 1996 1995 Sales: $8,347,000,000*
1995 Net Income: $209,000,000*

58
II. CASE ISSUES AND SUBJECTS

Major Home Appliance Industry

Environmental Scanning

Industry Analysis

India

International Growth Strategies

Joint Ventures

Strategic Alliances

Turnaround Strategy

Strategy Formulation

Core Competencies

Core Deficiencies

Distinctive Competencies

SWOT Analysis

Competitive Strategy

Corporate Culture

Evaluation and Control

Vertical Integration vs. Outsourcing

59
III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS

Strategy Formulation Strategy Evaluation

Implementati & Control
on
P St C E Int St Re S
er ra or xt er ra vie tr
fo te po er na te w a
r gi ra na l gi Mis t
m c te l F c sio e
an P G F ac F n& g
ce os ov ac to ac Obj i
tu er to rs to ecti c
re na rs rs ves A
nc lt
e e
r
n
a
ti
v
e
s
1A 1B 2 3 4 5A 5B 6 7 8
O X O O O O X O O

O = Emphasized in Case X = Covered in Case

60
IV. CASE OBJECTIVES

1. To provide an example of a large successful company entering an international market

via a joint venture. Students should be able to identify a number of mistakes that

were made.

2. To illustrate how an industry, major home appliances, can be mature in one part of the

world (North America), approaching maturity in another part of the world (Europe),

and just beginning its growth curve in another part of the world (Asia). Only rarely is

any industry at the same stage of development around the world - the automobile and

tire industries are now global and mature.

3. To show that a company's core (or even distinctive) competencies may not be

transferable to another industry (appliances in TVS' case) or to another part of the

world (India in Whirlpool's case). Both companies were extremely successful in their

own spheres of action but together proved incompetent in a joint venture requiring

new competencies and resources. Both firms' weaknesses became core deficiencies

in this situation.

4. To illustrate how large companies like Whirlpool can learn from its mistakes. Once it

realized that its partner was not offering anything to the joint venture, it moved to

take over control and to transfer to the Indian operation those things in which it was

extremely competent.

61
5. To show the importance of appropriate environmental scanning. Neither Whirlpool nor

TVS really understood what they were getting into. Each assumed that the other

would make up for its own deficiencies.

62
V. DISCUSSION QUESTIONS

1. What are the strengths and weaknesses of Whirlpool's venture in India?

2. What are the opportunities and threats facing Whirlpool's venture in India?

3. What are the strategic factors of Whirlpool's venture in

India?

4a. Does Whirlpool Corporation have any core competencies? If 'yes,' what are they?

4b. Does Whirlpool's venture in India have any core competencies? If 'yes,' what are they? If not, why not?

5a. Does Whirlpool Corporation have a distinctive competency? If 'yes,' what is it?

5b. Does Whirlpool's venture in India have a distinctive competency? If 'yes,' what is it? If not, why not?

6. What did Whirlpool do wrong in entering India?

7. What did Whirlpool do right in entering India?

8. What did TVS do wrong in joining with Whirlpool to make major home appliances in India?

9. What did TVS do right in joining with Whirlpool to make major home appliances in

India?

63
10. What are the pros and cons of Whirlpool’s purchase of Kelvinator of India (KOI)?

11. What did Whirlpool learn (or what should it have learned) from its Indian experience?

12. What should Whirlpool do with its Indian operations?

13. Should Whirlpool enter China? If not, why not? If so, how should it enter China?

64
I. CURRENT SITUATION

A. Current Performance

 WWML finally made operating profit in 1995 after years of losses totaling $US50

million.

 KOI was loosing money when Whirlpool bought it in 1995.

B. Strategic Posture: Implied, but not clearly stated in the case for Indian operations.

1. Mission: Provide major home appliances to the Indian subcontinent and provide

a beachhead for subsequent expansion into the rest of Asia.

2. Objectives:

 To dominate the Indian washing machine and refrigerator markets in terms

of market share.

 To earn a substantial return on investment for Whirlpool Corporation.

 To eventually expand into other major home appliances such as air

conditioners.

3. Strategies: Horizontal growth corporate strategy into Asia

 First unsuccessfully tried joint venture as entry strategy into India. . .

 Followed by turnaround strategy at WWML and now at KOI.

65
  Now using entry strategies of acquisition and green field development.

(Comment: Although these entry strategies are more expensive than joint

ventures, they may be cheaper than the turnaround at WWML.)

4. Policies: Introduce Whirlpool Corporation's management practices into Indian

projects.

II. CORPORATE GOVERNANCE

A. Board of Directors: Whirlpool controls WWML and KOI through its control of

each company's board of directors. No information regarding rest of board

membership.

B. Top Management: Through its control of the boards of directors, Whirlpool is

replacing the top management of WWML and KOI with its own people.

(Comment: Since the past management was responsible for past poor performance,

this makes sense.)

66
 III. EXTERNAL ENVIRONMENT

A. Societal

Opportunities:

 Ability to work more closely with suppliers to reduce supplier bargaining

power and increase quality of parts

 High growth potential of Asian market

 Only 7% of Asian's households own refrigerator; only 2% own washing

machine

 Rapid economic growth of 6-8% annually is spurring per capita income

levels

 Indian major home appliance market is on the verge of a boom growth

period

 Recent easing of restrictions on foreign ownership and investment in India

makes expansion attractive

Threats

 Heavy start-up costs in Asia.

 Increasing competition in Asia, especially India

 Poor infrastructure to support making, selling, and using appliances in India.

 Questionable water purity and availability of electricity.

 Politicians perhaps less tolerant of foreign firms in future.

67
B. Task Environment: Major Home Appliance Industry in India

 Rivalry among competitors is rapidly increasing; price wars are based on short-

term promotions and purchase incentives.

 Threat of new entrants is high. Other major players from Japan, Korea, United

States, and Europe are planning to soon enter either India or China or both.

Must build entry barriers quickly or face greater competitive intensity.

 Threat of substitute products is high. Until infrastructure is built, many people

in less developed parts of India substitute daily shopping for refrigerators,

creeks for washers, sun for dryers, and fires for stoves.

 Bargaining power of suppliers is high for those few firms that can make quality

components.

 Bargaining power of distributors is high for those appliance firms that only

make one or two products.

 Relative power of other stakeholders appears low. Government is allowing

foreign companies to acquire local firms and to build green field plants. It is

doubtful that unions are a problem. Religious norms and values could

negatively affect the importation of some U.S. management practices.

68
 IV. INTERNAL ENVIRONMENT

IFAS (Internal Factor Analysis Summary)

Key Internal Factors Weight Ratin Weighte Comments

g d Score
Strengths:
New management & system .10 4 .40 Needed at KOI

Kelvinator brand .05 4 .20 Well known

New manufacturing facilities .10 4 .40 2 /3 brand new

Parent company's technology .10 5 .50 Excellent

expertise
.15 4 .60 Good & growing
Market share

Weaknesses: .10 3 .30 Improving

Inadequate distribution
.05 2 .10 More money
Larger capital investment: more needed
needed .15 3 .45
Not yet dealt with
KOI's inefficient operation: losses .05 2 .10
Has to license
Lacks simpler technologies .15 3 .45
Getting better
Ignorance of Indian market

TOTAL SCORE 1.00 3.50

69
 C. Resources: WWML and KOI

1. Marketing:

Strengths

 Good market share exists for both WWML and KOI.

 KOI brand is well respected throughout India.

 KOI has established distribution outlets.

Weaknesses

 Whirlpool brand is not well known.

 WWML is still weak in distribution in northern India.

2. Finance:

Strengths

 Whirlpool's Indian operations have access to corporation’s funds.

 WWML is making an operating profit and should pay down losses.

Weaknesses

 KOI is losing money; may take years to turn it around

70
  Decline in Whirlpool stock makes it increasingly difficult for headquarters in

United States to invest more in India, especially given interest in entering

China.

3. Research and Development:

Strengths

 Reasonably good product R&D competence at corporate level

 Excellent process R&D competence at corporate level

Weaknesses

 Corporation still learning how to transfer its technology appropriately to

India

 R&D not connected to needs of Indian market.

4. Operations and Logistics:

Strengths

 Turnaround at WWML shows that operations is a strength of Whirlpool,

which is being transferred appropriately.

 Output at WWML doubled to 64,000 units in 1994 and is rising to 120,000

units in 1995 with only modest increase in workforce.

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Weaknesses

 KOI's inability to earn profit as market leader in refrigerator sales suggests

inefficient manufacturing and distribution.

 Poor distribution for WWML is being rectified.

 Relationships with suppliers are improving.

5. Human Resource Management:

Strengths

 Streamlined hierarchies of management at WWML with cross-functional

work teams

 WES used to clarify job responsibilities

 Sales force placed on incentive system

Weaknesses

 KOI must still be dealt with. HRM likely to be fairly poor.

6. Information Systems:

Strengths

 Seem to be introducing information system to track progress

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Weaknesses

 Likely that IS at KOI needs a lot of work before it can be integrated into the

rest of the Indian operations

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 V. ANALYSIS OF STRATEGIC FACTORS

Key Strategic Factors Weigh Rating Weighte Duratio Comments

t d n
Score S I
L

Forming closer relationship .05 4 .20 X Getting better

with suppliers (O)

Expanding sales in India (O) .10 4 .40 X X X Key to

success
Make other appliances (O) .10 2 .20 X
Investment
Weak infrastructure to .05 3 .15 X high
support appliances (T)
Getting better
Increasing competition (T) .15 4 .60 X X X

New management & system .10 4 .40 X X Getting

(S) tougher
.05 3 .15 X X
Kelvinator brand (S) Key to profits
.10 4 .40 X X X
Market share (S) Short-term
.10 3 .30 X X X value
Inadequate distribution (W)
.10 2 .20 X X Key to
KOI's inefficient operation success
(W) .10 2 .20 X X X
Getting better
Knowledge of Indian market
(W) Must fix now!

Must improve!
TOTAL SCORES 1.00 3.20

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VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY

A. Strategic Alternatives (for operations in India)

1. Retrenchment: Cut back on investments in India in order to put more emphasis on

China. Sell off KOI's operations and form a joint venture with KOI's buyer for

the new refrigerator plant in Pune

Pros:

 Stops cash flow into India so cash can be used elsewhere.

 Eliminates a costly turnaround of KOI.

 Forming a joint venture for the new refrigerator plant keeps Whirlpool in the

refrigerator business.

 WWML has been turned around and should be able to grow using its own

cash flow.

Cons:

 Lack of multiple appliance products may make it increasingly difficult to sell

washing machines to India's distributors.

 Lack of significant growth could cause investor pressure to completely pull

out of India.

 Investment is just starting to pay off.

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  Retrenchment makes it difficult to make and market appliances in nearby

countries.

 It sends a bad signal to appliance industry that Whirlpool is not a serious

global competitor. Will make it difficult to successfully enter and grow other

parts of Asia, such as China.

2. Stability: Keep all current operations, but add no new ones (kill air conditioner

idea). WWML grows using internal cash flow. Implement turnaround at KOI

and use new plant to make refrigerators.

Pros:

 Allows time to turn KOI around and to solidify WWML's turnaround.

 Keeps additional investment in India in check until KOI is turned around and

new refrigerator operation begins to pay for itself.

 Allows Whirlpool to turn its full attention to entering China.

Cons:

 Lack of growth at a time when the appliance market is undergoing rapid

growth will make it difficult to achieve Whirlpool's goal of dominating the

major home appliance market in India.

 It may hurt relations with distributors who may soon demand a full line of

appliances from any one supplier (similar to situation in United States) and

thus cut into sales growth.

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  Stability allows competitors opportunity to move ahead and take away

markets that could have been Whirlpool's.

3. Growth: Push ahead with expansion of WWML and KOI. Use joint ventures to

move into other major home appliances such as air conditioners, stoves, and

microwaves. Expand WWML to add clothes dryers.

Pros:

 Growth enables Whirlpool's India operations to grow with the market, with a

good chance of dominating while others are focusing on China.

 WWML's new profitable position may enable it to grow out of its own cash

flow.

 KOI may be easier to turn around given Whirlpool's success with its joint

venture with TVS.

 Expansion now will enable Whirlpool to move into related appliances and

gain bargaining power with its suppliers and distributors, thus boosting sales

and cutting costs at a time when competition is increasing.

Cons:

 Growth is likely to be very costly. Will seriously cut into Whirlpool's funds to

enter China.

 KOI may be very expensive to turn around - similar to Maytag's problems

with turning around its Hoover UK operations.

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  Whirlpool seems unable to successfully adapt its technology to less developed

nations. Question whether Indian market is interested in the new refrigerator.

 China is hot now and should be emphasized over India.

B. Recommended Strategy

Recommend Stability Strategy: Keep all current operations but add no new ones

(kill air conditioner idea). WWML grows using internal cash flow. Implement

turnaround at KOI and use new plant to make refrigerators. This choice allows the

parent corporation sufficient time to consider and implement a good entry strategy for

China. For the time being, washers and refrigerators are the key appliances for India

and contiguous countries. Import other appliances or purchase them from

competitors in order to have a full line for distributors. Continue emphasizing quality

and cost reduction for competitive advantage. Develop policies to support this

emphasis.

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CHAPTER 10

79
 Market Research on Whirlpool
Refrigerators
Whirlpool Corporation

Student’s Name: Salil Wadhawan

Industry Guide:
Mr. Pradeep Singh Rawat
Faculty Guide: Ms. Seema Sahai

OBJECTIVE OF THE STUDY:

 To study brand awareness for Whirlpool in the market place.
 To Study Whirlpool competitors marketing mix strategies, and then comparative
mapping with other major appliances players in the market, finding loopholes and
building effective marketing mix strategy for Whirlpool in Refrigerator.
 To analyze right strategic direction for Whirlpool firstly by the way of studying current
image of the brand “Whirlpool”, secondly through market mix mapping.”

It gives valuable inputs regard to difference that the brand is dealing with their competitors. Like
if LG, SAMSUNG, GODREJ, ELECTROLUX are present in a segment, satisfying same
customer need, what is the difference in terms of product offering, technology of the products,
pricing strategies of the competitors. This is also suggests competitors direct monetary pricing
benefits to distribution intermediaries, i.e. distributors, direct dealers, dealers, and finally to the
customers. Which clearly identifies the different requirements that customers look to be satisfied
and at what prices. These different requirements can then be used to develop the alternative
strategies that need to be implemented, to better access the segments and tune the product offers
to suit the customer requirements and to the level of competition.

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Findings:
 Whirlpool needs to increase the number of BTL (below the line) activities to generate

common awareness and visibility at grassroots level, because it can be understood from

the figures of their competitors BTL activities that Whirlpool BTL activities is not up to

the that mark in comparison to other competitors.

 In Delhi market dealers don’t want to put direct push effort on brands that’s why unlike

other cities market where if a dealer deals in LG they prefer not to deals with its direct

competitor Samsung, but in Gujarat every dealer is having collection of brands, they want

to be ready for everything like whatever customer demands they can easily find out in

their store. Currently Whirlpool is available with most of the major dealers in Delhi,

Whirlpool needs to focus on those dealers also where it will not face direct competition

with LG and Samsung , a small and dedicated brand dealer will work not only for

margins but they also can see the future opportunities in form of Whirlpool.

Conclusion:
Whirlpool has good presence in the market but one thing is also evident that Whirlpool is present

in major counters with LG and Samsung, Whirlpool also need to focus on those dealers were it

will not face direct competition with LG and Samsung. Competitive strategy should be like this

where first Whirlpool should wipe out smaller brands compare to LG and Samsung because this

brand also have market share larger than Whirlpool, and Whirlpool is not in competition of LG

and Samsung it should target on brands like Godrej , TCL first, so it can compete the bigger

brand later on.

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