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Preface
Acknowledgement
I express my warmest thanks & deep sense of gratitude to the individuals for their generous
help in discussing the project and giving their valuable time in successful completion of this
project. Time to time I got constructive suggestions, guidance and encouragement.
I would like to express my deep thanks to Dr. Arvind Agarwal, President, Arya Group of
Colleges and Prof. M. L. Gupta, Principal, Arya Institute of Engineering & Technology,
Jaipur for extending me the opportunity of presenting the Final year project and providing all
the necessary resources for this purpose.
With much pride and delight I would like to express my sincere thanks to Dr. Manish Jain
(Head of the department) for his excellent guidance and valuable suggestions throughout the
project work. I express heartfelt thanks to Mr. Hitesh Tikyani(Project Guide) for her wonderful
support and for giving me an opportunity to present project report onSUPERVISION AND
BRAND SATISFACTION OF ELECTROLUX PRODUCTS
I also want to give my humble regards to Ms. Padma Sharma, Mr. Pramod Sharma, Ms.
Nisha Goyal, Mr. Anshul Mathur, Ms. Ankita Pareek , Ms. Shavika, Ms. Shivali, Ms. Mona
and Ms. Usha for their valuable support and believe in my work. Without their sustained
interest and encouragement, this work could not have been possible to reach the state of
completion with satisfaction. In fact it is their real devotion to the development work, which
instilled in me, the need of a passionate commitment to pursue this project.
I am also grateful to all my friends for providing critical feedback and support whenever
required. There are times in such projects when the clock beats you time and again and you
run out of energy, you just want to finish it once and forever. Parents made me endure such
times with their unfailing humour and warm wishes.
I regret for any inadvertent omissions.
Name of Student
Class
MBA IV SEM
11MAIXX638
Executive Summary
In order to obtain an esteemed position and moreover maintain this position innovation ideas
are required. The path of replication doesnt give success. In modern era, where customer is
becoming more and more important organization should become more innovative.
There are varieties of factors, which have prompted countries/firms to venture in the global
market:
Government incentives.
But in all these conditions success goes to those companies that matched to the current
environment imperatives and are ready to deliver what people want to buy.
It is my goodness that in such kind of competitive era I joined Electrolux ltd for Project. After
visiting all of the above departments I came to know about the sales and distribution,
marketing.
At the end of my formal introduction to the company and its other departments I have assigned
to work on the project Supervision & Brand Satisfaction of Electrolux Products.
It was learning experience for me. I came in close contact with market trends and learned
about various advantageous things to be achieved in the market.
Company can have competitive edge over its competitors in domestic as well as international
market. It was the best opportunity for me to study such an important subject, which gave me
great industrial exposure and also an introduction to corporate world.
Cover Page
Certificate
Preface
Acknowledgement
Executive Summary
Contents
1. Introduction
1.1 Strategy
10
14
16
17
2.2 Ownership
19
26
35
35
36
40
43
51
4. Our History
54
5. Brands
74
74
80
81
6. Products
83
7. Innovation
90
8. Life Cycle
93
94
10. Material
94
11. Labeling
95
96
97
99
100
100
100
100
102
7
103
104
118
18. Conclusion
120
121
20. Limitations
122
21. Bibliography
123
22. Annexure
124
1. Introduction
Electrolux is a global leader in household appliances and appliances for professional use,
selling more than 40 million products to customers in more than 150 markets every year. The
company focuses on innovations that are thoughtfully designed, based on extensive consumer
insight, to meet the real needs of consumers and professionals.
Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners
and cookers sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and
Frigidaire. In 2008, Electrolux had sales of SEK 105 billion and 55,000 employees.
With revenues of US$ 17 billion in 2003, the Electrolux Group, based out of Sweden sells
products across 150 countries around the world. It has over 77,000 employees worldwide. It
has two business areas, Consumer Durables and Professional Products, both of which include
products for indoor and outdoor use.
Consumer Durables comprise mainly white goods, i.e. refrigerators, freezers, cookers,
dryers, washing machines, dishwashers, room air-conditioners and microwave ovens, as
well as floor care products and garden equipment. The strongest positions are in cookers
and hobs; these product categories are among the most profitable within kitchen
appliances. Approximately half of the Groups sales of kitchen appliances is under the
Electrolux brand.
Professional Products also include products for both indoor and outdoor use. Indoor
Products comprise food-service equipment for hotels, restaurants and institutions, as well
as laundry equipment for apartments, laundry rooms, launderettes, hotels and other
professional users.
With revenues of over US$ 47 million Electrolux India is a subsidiary of the Electrolux Group. It
has products in Air care, Fabric care (Washing machines), Nutrition (Microwave oven) and
Food Care (Refrigerator) segments. Electrolux India today has about 1500 employees, spread
across its three plants and eighteen branch offices. Electrolux currently has three state-oftheart manufacturing facilities in India located at Shahjahanpur (Rajasthan) and Warora
(Maharashtra) producing refrigerators and Butibori (Maharashtra) producing washing
machines. Electrolux has a 11 per cent market share in fridges and a 3 per cent share in
washing machines.
90 years of leading innovations and design
Axel Wenner-Gren, the founding father of Electrolux, established the principles by which the
company still thrives. His dream to improve quality of life has had fundamental impact on
homes around the world. Todays Electrolux, 90 years later, is a global leader in household
appliances and appliances for professional use.
Thinking of you expresses the Electrolux offering: To maintain continuous focus on the
consumer, whether its a question of product development, design, production, marketing,
logistics or service.
1.1 Strategy
Electrolux continues to work intensively on improving profitability. On the basis of a competitive
production system, among others, strong investments in new products for the high-price
segments and a strong Electrolux brand will enable the Group to achieve the long-term goal of
an operating margin of 6%.
Improving operating income in Europe through a better product mix and lower costs.
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All kitchen and laundry appliances launched in North America by Electrolux in 2008 were
developed through the Groups process for product development. These appliances are
differentiated from existing products, as they offer completely new functions and thus position
Electrolux as an innovative brand. They have been designed and developed on the basis of
consumer insight and offer more options, savings in time, higher capacity, greater userfriendliness, and better performance than most other products on the market.
12
At year-end 2008, approximately 150 kitchen and laundry appliances were available at more
than 4,000 retailers throughout North America. The average sales price for an Electroluxbranded product is three times the price for a corresponding Frigidairebranded product.
Largest ever product launch in Europe
The Groups largest-ever product launch in Europe was implemented in 2007. It involved
replacing about 40% of the Electrolux product offering in 36 countries with new built-in
appliances featuring uniform design and innovative functions. The investment has supported
the Electrolux product mix in the complex European market and has supported sales prices.
The launch has also strengthened the Electrolux brand.
14
16
Electrolux aims at implementing strict norms and efficient processes to ensure that all
operations create long-term value for shareholders and other stakeholders. This involves the
maintenance of an efficient organizational structure, systems for internal control and risk
management and transparent internal and external reporting.
COMPASS was initiated during 2008 as a group-wide project. Its aim is to clarify joint
processes and improve their efficiency in order to strengthen control and lower costs.
Transparent information also allows better decision data to be developed.
Electrolux has determined that all of its operations will be undertaken on an environmentally,
17
socially and ethically responsible basis. A proactive approach in this regard reduces risks,
strengthens the brand, increases the motivation of personnel and ensures good relations with
the individuals within the communities with which the Group interacts. Key policies in this
context include the Electrolux Code of Ethics, the Electrolux Workplace Code of Conduct and
the Electrolux Policy on Countering Corruption and Bribery.
Group Management
Group Management includes the President, the six sector heads and the four Group staff
heads.
Business sectors
The six sector heads are members of Group Management and have responsibility for the
income statements and balance sheets of their respective sectors. Within Major Appliances,
the business sectors are geographically defined, while the sectors Professional Products and
Floor Care and Small Appliances are global.
The overall management of the sectors is the responsibility of sector boards, which meet
quarterly. The President is the chairman of all sector boards. The sector board meetings are
attended by the President, the management of the respective sectors and the Chief Financial
Officer. The sector boards are responsible for monitoring on-going operations, establishing
strategies, determining sector budgets and making decisions on major investments.
In the external reporting, the Groups operations are divided into five business sectors.
Operations within Consumer Durables are divided into four geographic business areas:
Europe, North America, Latin America and Asia/Pacific and Rest of world. Professional
Products is the fifth business area.
Governance (the Code), as well as other relevant Swedish and foreign laws and regulations.
This corporate governance report has been drawn up as a part of Electrolux application of the
Code. The report has not been audited by the Groups external auditors. Electrolux does not
report any deviations from the Code in 2008.
2.2 Ownership
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The share capital of AB Electrolux consists of 9,502,275 A-shares and 299,418,033 B-shares,
totalling 308,920,308 shares.
A-shares carry one vote and B-shares one tenth of a vote. Each share has a quota value of
SEK 5.00. In general, 100% of the shares are considered to be free-floating.
By year-end 2008 approximately 66% of the total share capital was owned by Swedish
investors and approximately 34% by foreign shareholders.
For the last few years Electrolux has acquired own shares for the purpose of using these
shares to finance potential company acquisitions and for the Groups incentive programs.
group in the Euroclear-system or (ii) have made public and notified the company that they
have made a written agreement to take - through the coordinated exercise of voting rights - a
common long-term view on the management of the company. The names of the
representatives and the names of the shareholders they represent shall be announced as soon
as they have been appointed.
That if, during the term of office of the nomination committee, one or more of the shareholders
having appointed a representative to the nomination committee no longer is among the four
largest shareholders with regard to the number of votes held, representatives appointed by
these shareholders shall resign and the shareholder or shareholders who then are among the
four largest shareholders with regard to the number of votes held, may appoint their
representatives. Unless there are special circumstances, no changes shall be made in the
composition of the nomination committee if there are only marginal changes in the number of
votes held or if the change occurs later than three months before the Annual General Meeting.
A shareholder that has become one of the four largest shareholders on account of any more
significant change in the number of votes held later than three months before the Annual
General Meeting shall, however, be entitled to appoint a representative who shall be invited to
participate in the committees work. A shareholder who has appointed a representative as
member of the nomination committee has the right to dismiss such member and appoint a new
representative as member of the committee. Changes in the composition of the nomination
committee shall be announced as soon as they have occurred.
That the nomination committee shall prepare the below proposals to be submitted to the
Annual General Meeting 2010 for resolution:
a) Proposal regarding Chairman of the General Meeting,
b) Proposal regarding the Board of Directors,
c) Proposal regarding Chairman of the Board of Directors,
d) Proposal regarding Directors fees for each of the Directors as well as remuneration for
committee work,
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register at a prescribed date prior to the meeting and must provide notice of participation in the
manner prescribed. Additional requirements for participation apply to shareholders with
holdings in the form of American Depositary Receipts (ADR) or similar certificates. Holders of
such certificates are advised to contact the ADR depositary bank, the fund manager or the
issuer of the certificate in good time before the meeting in order to obtain additional
information.
Individual shareholders requesting that a specific issue be included in the agenda of a
shareholders meeting can normally request the Electrolux Board to do so in good time prior to
the meeting via an address provided on the Groups website.
Decisions at the meeting are normally taken on the basis of a simple majority. However, as
regards certain issues, the Swedish Companies Act stipulates that proposals must be
approved by shareholders representing a greater share of votes cast and shares represented
at the meeting.
Board Composition
The Electrolux Board of Directors consists of nine members without deputies who are elected
by the Annual General Meeting for a period of one year. Three additional members, with
deputies, are appointed by the Swedish employee organizations, in accordance with Swedish
labor laws.
The AGM elects the Chairman of the Board. Directly after the AGM, the Board holds a meeting
for formal constitution at which the Deputy Chairman of the Board is elected, among other
things. All members of the Board, except for the President, are non executive members. Three
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Main goals
Strategic orientation
24
Important policies
Overall responsibility for establishing an effective system of internal control and risk
management
Discontinuing of the manufacturing of refrigerators in Scandicci, Italy, during the second six
months of 2009, in order to concentrate production in Susegana, Italy.
25
Decision that a so-called green range, consisting of products with high environmental
performance, will be defined and implemented by each sector.
Decision to reduce the number of employees by more than 3,000 worldwide, due to sharp
market decline in demand in November and December.
Overseeing the work of the external auditors, evaluating the external auditors performance
and, if necessary, recommending their replacement
In addition, the Audit Committee is tasked with supporting the Nomination Committee in
preparing proposals to them regarding external auditors and fees. The Audit Committee also
reviews the Groups Internal Audit function, Management Assurance & Special Assignments, in
terms of organization, staffing, budget, plans, results, and reports prepared by this function.
The Audit Committee comprises three Board members, with Peggy Bruzelius as Chairman,
and Caroline Sundewall and Torben Ballegaard Srensen as members. The external auditors
report to the Audit Committee at each ordinary meeting. At least three meetings are held
annually. Additional meetings are held as needed.
The Electrolux process for internal control and risk management related to financial reporting is
designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with applicable
laws and regulations, generally accepted accounting principles and other requirements for
listed companies.
The process is based on the control environment and comprises four main activities: Risk
assessment, control activities, information and communication, and monitoring, as defined in
the framework for internal control issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).
The Board has overall responsibility for establishing an effective system of internal control and
risk management. The Board has determined its working procedures, which include the
allocation of tasks to Board members. The Board has established an Audit Committee, which
assists the Board in overseeing relevant manuals, policies and important accounting principles
applied by the Group in financial reporting, as well as changes in these principles.
Responsibility for maintaining an effective control environment and operating the system for
risk management and internal control of financial reporting is delegated to the President.
Management at various levels has operational responsibility within their respective areas.
The Board of Directors consists of nine members, without deputies, who are elected by the
Annual General Meeting for a period of one year. Three members with deputies are appointed
by the Swedish employee organizations, in accordance of Swedish labor laws.
Marcus Wallenberg
Chairman
Born 1956. B. Sc. of Foreign Service. Elected 2005. Member of the
Electrolux Remuneration Committee.
Board Chairman of SEB, Skandinaviska Enskilda Banken AB and Saab AB. Honorary
Chairman of ICC (International Chamber of Commerce). Deputy Chairman of
Telefonaktiebolaget LM Ericsson. Board Member of Astra Zeneca Plc, Stora Enso Oyj, the
Knut and Alice Wallenberg Foundation and Temasek Holdings Limited.
Previous positions: President and CEO of Investor AB, 19992005. Executive Vice-President
of Investor AB, 19931999.
Holdings in AB Electrolux: 20,000 B-shares. Related party: 1,500 B-shares.
Peggy Bruzelius
Deputy Chairman
Born 1949. M. Econ. Hon. Doc. in Econ. Elected 1996. Chairman of the
Electrolux Audit Committee.
Board Chairman of Lancelot Asset Management AB and Swedish National Agency for Higher
Education. Board Member of Axfood AB, Industry and Commerce Stock Exchange Committee,
Axel Johnson AB, Akzo Nobel nv., Scania AB, Husqvarna AB, Syngenta AG and the
Association of the Stockholm School of Economics.
Previous positions: Executive Vice-President of SEB, Skandinaviska Enskilda Banken AB,
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Hasse Johansson
Born 1949. M. Sc. in Electrical Engineering. Elected 2008. Executive
Vice President and Head of Research and Development of Scania AB,
since 2001.
Previous positions: Founder of Mecel AB (part of Delphi Corporation).
Senior management positions with Delphi Corporation, 1990-2001.
Holdings in AB Electrolux: 0 shares.
John S. Lupo
Born 1946. B.Sc. in Marketing. Elected 2007.
Board Member of Spectrum Brands Inc., Citi Trends Inc. and Cobra Electronics Corp., USA.
Previous positions: Principal of Renaissance Partners, 2000-2008. Executive Vice-President
of Basset Furniture, 19982000. Chief Operating Officer of Wal-Mart International, 19961998.
Senior Vice-President Merchandising of Wal-Mart Stores Inc., 19901996.
Holdings in AB Electrolux: 500 ADR.
Johan Molin
Born 1959. B.Sc. in Econ. Elected 2007. Member of the Electrolux
Remuneration Committee. President and CEO of ASSA ABLOY AB since
2005.
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Board Member of the Association of Swedish Engineering Industries, N Holding AB, Roxtec
AB and the Confederation of Swedish Enterprise.
Previous positions: Joined Electrolux in 1983. Management positions in the Group until
appointed President and CEO.
Holdings in AB Electrolux: 61,597 B-shares, 90,000 options.
Caroline Sundewall
Born 1958. M.B.A. Elected 2005. Member of the Electrolux Audit
Committee. Independent Business consultant since 2001.
Board Member of TeliaSonera AB, Haldex AB, Lifco AB, Pgengruppen AB, Ahlsell AB and the
Association of Exchange-listed Companies.
Previous positions: Business commentator at Finanstidningen, 19992001. Managing editor
of the business desk section at Sydsvenska Dagbladet, 19921999. Business controller at
Ratos AB, 19891992.
Holdings in AB Electrolux through company: 2,000 B-shares.
Torben Ballegaard Srensen
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Born 1951. M.B.A. Elected 2007. Member of the Electrolux Audit Committee.
Board Member of Egmont Fonden, LEGO A/S, Pandora Holding A/S and Monberg-Thorson
A/S, Denmark.
Previous positions: President and CEO of Bang & Olufsen a/s, 2001-2008. Executive VicePresident of LEGO System, 19992001. Divisional Director of LEGO System, 19961999.
Managing Director of CCI Europe, 19881996. Managing Director of AA S Grafik, 19831988.
Holdings in AB Electrolux: 0 shares.
Board Member of SCA AB, Storebrand ASA, Tandberg ASA, Fleming Invest AS, Stokke AS
and Norfolier AS.
Previous positions: President of TeliaSonera Norway, 20012005. President of Midelfart &
Co, 19952001. Leading positions within marketing and sales, 19881995.
Holdings in AB Electrolux through company: 10,000 B-shares.
Employee representatives, members
Ola Bertilsson
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Born 1955. Representative of the Swedish Confederation of Trade Unions. Elected 2006.
Gunilla Brandt
Born 1953. Representative of the Federation of Salaried Employees in
Industry and Services. Elected 2006.
Holdings in AB Electrolux: 0 shares.
Ulf Carlsson
Born 1958. Representative of the Swedish Confederation of Trade
Unions. Elected 2001.
Holdings in AB Electrolux: 0 shares.
Employee representatives, deputy members
Gerd Almlf
Born 1959. Representative of the Federation of Salaried Employees in Industry and Services.
Elected 2007.
Holdings in AB Electrolux: 0 shares.
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Peter Karlsson
Born 1965. Representative of the Swedish Confederation of Trade Unions. Elected 2006.
Holdings in AB Electrolux: 0 shares.
Bengt Liwng
Born 1945. Representative of the Federation of Salaried Employees in
Industry and Services. Elected 2005.
Holdings in AB Electrolux: 0 shares.
Secretary of the Board
Cecilia Vieweg
Born 1955. B. of Law. General Councel of AB Electrolux.
Secretary of the Electrolux Board since 1999.
Holdings in AB Electrolux: 18,827 B-shares, 15,294 options.
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Strberg knows that product innovation is a key to profitable growth as consumers have
demonstrated their willingness to spend more for products that meet their needs and
preferences. He has committed to increase investment in product development from one
percent to about two percent of sales over the coming years. In 2006, Electrolux had increased
investments in product development to 1.8 percent of sales.
Product development based on consumer insight is his passion. During his time as CEO and
head of the floor-care sector, his team developed Electrolux Trilobite, the worlds first
automatic vacuum cleaner. Today, under his Group leadership, a rigorous product creation
process ensures greater precision, shorter lead times and shorter product cycles.
One of the first goals Strberg announced when he became CEO was to establish Electrolux
as a truly global brand. Specifically, he set a goal that two-thirds of the Groups products are to
be sold under the Electrolux name by 2007. One important step in this area was the
appointment of a single global advertising agency that handles brand-building activities. Now,
the number of products being branded or double-branded is almost 50% percent, compared
with 20 percent in 2002. Almost 75 percent of the company's marketing budget is spent on
building the Electrolux brand.
Hans Strberg is the architect of a major restructuring program. In 2004, he announced the
closure of seven factories, with about half of the remaining 27 factories in high cost countries
at risk to be closed or relocated by the end of 2008. In February, 2005, he announced the spinoff of the companys highly profitable outdoor business which was completed by mid-2006.
Strberg, who joined Electrolux in 1983, worked in various staff roles until 1987, when he took
on his first senior management role; global responsibility for dishwashers and laundry
equipment.
In 1992, Strberg became general manager of the Electrolux floor-care operations at
Vstervik, Sweden, before moving to the U.S. in 1995, where he assumed responsibility for
production and development in the Groups North American white goods operations. Strberg
and his team in North America introduced a front-loading washing machine to the U.S. market,
and today the company has a significant market share with this product.
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In 1998, he became executive vice president and head of the Groups Floor-Care and Light
Appliances sector, and also a member of the Group management team.
Prior to his Electrolux years, Strberg worked at the Swedish Embassy in Washington, D.C as
an assistant to the technical attach.
Strberg was born in 1957 in Sweden. He holds a masters degree in science and engineering
from the Chalmers University of Technology, Gothenburg, Sweden. Strberg is married. He
and his wife have two children.
3.1 Sustainability
We can make a positive contribution to sustainable development both through our operations
and our products.
We are continually working to reduce energy consumption from products and emissions from
factories; working to ensure that our employees and business partners are treated fairly; and
striving to be a good neighbour in the communities in which we operate. In this section, we
describe how we apply the concepts of sustainability and outline how we tackle key issues
affecting our business.
Understanding the concerns of consumers is central to the way we do business. Yet we are
accountable, and strive to be transparent, to many more stakeholders customers,
employees, shareholders and others affected by our operations. Continuous dialogue with
them also helps us anticipate non-financial risks and opportunities.
The Electrolux Code of Ethics comprises rules of conduct for the Group's relations with
employees, shareholders, business partners and other stakeholders.
Elements of the Electrolux Code of Ethics are described in greater detail in the Code of
Conduct, the Policy on Countering Corruption and Bribery, and the Environmental Policy. All of
the above are based on universal standards of business practice, including those of the
International Labour Organization and the OECD Guidelines for Multinational Enterprises.
Codes and policies also reflect the Electrolux commitment to the ten principles of the UN
Global Compact. The Board reviews ethical and sustainability-related policies on an annual
basis. All of the above policies have been endorsed by Group Management.
Human resource-related policies such as the Grandparent Principle and the Recruitment
Policy are designed to ensure fair and transparent hiring practices. The Compensation Policy
defines a consistent approach to remuneration. The purpose of the policy Appointment of
Senior Managers is to ensure that Electrolux appoints the right people to achieve strategic
objectives in line with Group policies. Training of the policy has been conducted throughout the
global Human Resource community. Compliance is followed up annually. Non-compliant units
are requested to have short and long-term action plans in place.
External assurance
This GRI summary report, which is included in the Annual Report, is reviewed by the
companys auditors, PriceWaterhouse Coopers.
Third party assurance of compliance with ISO 14001 is implemented annually at all certified
facilities. In addition, third-party assurance of compliance with the Code of Conduct is
conducted within risk-defined regions. Electrolux operates 20 plants in Asia, Latin America and
Eastern Europe. 13 of these were audited during 2008, nine of which externally audited. In
total, 262 Code of Conduct audits took place among suppliers, six of which were externally
audited.
Training and monitoring
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In order to integrate management procedures throughout the Group, Electrolux runs training
programs covering ISO14001, the Code of Conduct, safety and human resource programs.
These are also supported by internal and third party performance monitoring.
Environmental performance
Group Management has stipulated that an environmental management system is to be
implemented for each business areas entire operation. All manufacturing units with at least 50
employees are mandated to be certified according to ISO 14001. In 2008, 92% of all factories
were certified. Newly acquired units must complete the certification process within three years
after acquisition. Reducing energy use is a Group objective. Sustainability Affairs is
responsible for sharing best practice as well as monitoring performance group-wide. Reduction
targets are implemented, however, primarily through the Electrolux Manufacturing System
(EMS), a global program for implementation of efficient production. In addition, the EMS is
used for monitoring and eliminating waste and increasing safety and quality within production
processes.
Labor practices and human rights
At year-end, the Awareness-Learning-Feedback-Assessment (ALFA) tool was deployed in all
Electrolux business areas to measure how units have progressed relative to the Code of
Conduct and to assess the status of health and safety, as well as related management
practices. Sustainability Affairs provides business areas with feedback and suggestions for
improvements.
A key priority is to ensure that group-wide policies are communicated, with particular focus on
the Code of Ethics and the Code of Conduct.
People vision
The Electrolux People vision is to have an innovative culture with diverse, outstanding
employees that drive change and go beyond in delivering on the Groups strategy and
performance objectives. Human resource policies, leadership programs and an internal
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recruitment tool help to realize the vision. Sustainability is included in induction programs for all
new senior managers.
Health and safety
Individual business areas are responsible for ensuring that health and safety is effectively
managed. Local units are responsible for taking action and reporting data in accordance with
prevailing laws.
At Electrolux factory facilities, health and safety is monitored through the Electrolux
Manufacturing System (EMS). In 2008, safety-performance goals were defined.
Society
The Electrolux public policy agenda is primarily coordinated with industry organizations such
as the European Appliance Industry Association (CECED) and the American Home Appliance
Manufacturers Association (AHAM).
A public policy outcome currently supported by Electrolux in Europe is the creation of market
frameworks that promote purchases of energy-efficient appliances.
Electrolux observes neutrality with regard to political parties and candidates. Neither the
Electrolux name, nor any resources controlled by Group companies may be used to promote
the interests of political parties or candidates.
40
The Code formalizes the principles by which the Group conducts its relations with employees,
shareholders, business partners and others. Electrolux encourages suppliers, sales agents,
consultants and other business partners to adopt these principles.
The Electrolux Group Code of Ethics
The Electrolux Group is committed to conducting its business and pursuing its interests in a
legal and ethical manner. The Groups policy is to be a responsible corporate citizen. Illegal
behavior or actions by Electrolux or any person associated with the Group threaten to
undermine the Groups reputation for honesty and integrity, and will not be tolerated. Electrolux
believes its excellent reputation contributes to business success.
It is the responsibility of employees and management alike to ensure compliance with this
Code of Ethics. Employees are encouraged and expected to report any incidents of noncompliance to relevant internal officers, with the assurance that there will be no retaliation or
other negative consequences for persons reporting in good faith.
Scope of Application
This Code of Ethics outlines both prescriptive and proscriptive ethical standards, which are to
be strictly followed by all employees, officers and Board members of the Electrolux Group, in
all markets and at all times. This Code of Ethics formalizes the principles by which the Group
conducts its relations with employees, shareholders, business partners and other interests.
Electrolux encourages suppliers, sales agents, consultants and other business partners to
adopt these principles.
Legal Compliance
As members of a group with business activities in more than 50 countries around the world,
Group companies are subject to a wide range of legal requirements. All employees, officers
and Board members in the Electrolux Group shall comply in all their business activities with all
41
applicable laws, rules and regulations. In situations where local or national law does not
provide adequate guidance, the Group applies its own policies and procedures. In the event
that local or national law conflicts with the principles contained in this code, the law shall
prevail.
Relations with Business Partners and Customers
The Electrolux Group shall exercise fairness in all dealings with its business partners. The
Group shall not offer customers or potential customers, or any representatives of such entities,
any rewards or benefits in violation of either applicable laws or reasonable and generally
accepted business practices. Customers shall be treated honestly and equitably, and in a
manner that respects their independence.
Accounting and Reporting
All financial transactions by the Electrolux Group must be reported in accordance with
generally accepted accounting practices as set forth in applicable Electrolux accounting
policies, and as provided in local laws and regulations. Accounting records must show the
nature of all transactions in a correct and non-misleading manner. The Group is committed to
ensuring transparency in its financial reporting. The Group has a policy of full, fair and accurate
disclosure to ensure that the market receives timely, comprehensive and understandable
information on an impartial basis. The Electrolux Group Code of Ethics February 11, 2004
Page 2(2)
Conflicts of Interest
For the Group to operate in a fair and open manner, it is important that every employee avoid
any situation or interest which might interfere with his or her judgment regarding his or her
responsibilities to the Group, other employees, customers, suppliers and other partners.
A conflict of interest can arise, for example, where an employee or member of his or her family
(a) has a financial interest that could affect such employees judgment;
(b) gains personal enrichment through access to confidential information; or
42
(c) misuses his or her position in the Group in a way which results in personal gain.
A conflict of interest can also arise when an employee, or a member of his or her family, has a
personal interest, direct or indirect, in any supplier or customer of the Group. If an employee
believes he or she may have a direct or indirect conflict of interest, he or she must disclose
such potential conflict to management. If appropriate, management shall review the matter in
conjunction with Group Legal Affairs.
Political Involvement
The Electrolux Group observes neutrality with regard to political parties and candidates.
Neither the Electrolux name, nor any resources controlled by any Group companies, shall be
used to promote the interests of political parties or candidates.
Environmental Protection
The Electrolux Group strives to ensure that its products, services and production contribute to
sustainable development. To this end, product design aims to reduce adverse environmental
impact throughout the product life cycle, while resource and energy consumption, waste and
pollution are regularly monitored for improvement. The Group takes a proactive approach
regarding environmental legislation, and encourages suppliers to adopt the same
environmental principles as those pursued by Electrolux.
Workplace Practices
All Electrolux Group activities must be conducted with respect for human rights, employee
health and safety, and the well-being of local communities in which the Group operates. No
Group operating unit or employee shall tolerate underage or bonded labor; cultural, ethnic or
gender discrimination; or physical, psychological, sexual or verbal abuse. Wages shall equal or
exceed levels specified by applicable local law, and all employees are free to exercise the right
to form, join or refrain from joining labor unions or other organizations devoted to collective
bargaining.
Responsibility of Managers and Employees
43
Electrolux Group managers are responsible for communication of the letter and intent of this
Code of Ethics within their organizations, and for encouraging employees to reveal behavior
that may be in conflict with these principles. Reports of violations of this Code of Ethics may be
submitted anonymously and confidentially to the chairman of the Electrolux Audit Committee.
There shall be no retaliation or other negative consequences for persons reporting in good
faith. Failure to comply with the provisions of this Code of Ethics can result in disciplinary
action. This Code of Ethics has been adopted by the Electrolux Board of Directors and can
only be amended or waived by the Board. Amendments or waivers (to the extent they apply to
our Chief Executive Officer and/or our Chief Administrative Officer) shall be disclosed
immediately.
child labor
forced labor
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non-discrimination
working hours
compensation
freedom of association
environmental compliance
The Code of Conduct is applicable at all Electrolux locations and compliance is required of
suppliers. To facilitate and support the introduction and monitoring of the Code of Conduct, the
Group has developed ALFA, an electronic communication tool designed to support learning on
the Code requirements, collecting exemplary and best practices and assessing the
performance of operating units with regard to the Code.
Workplace requirements
This Code of Conduct is applicable to all locations and units within the Electrolux Group, and
compliance is required of our suppliers. Electrolux units are free to introduce and enforce
stricter standards than required in this Code of Conduct.
General requirements
a. Laws and regulations
All Electrolux Group units, suppliers and subcontractors shall operate in full compliance with
relevant laws and regulations applicable to their operations and employment in the countries in
which they operate. This is the minimum requirement in all sections of this Code of Conduct.
45
Suppliers shall agree to comply with this Code of Conduct. If suppliers use subcontractors for
the production of Electrolux group products, it is the responsibility of the supplier to ensure that
the subcontractor complies with the requirements in this Code of Conduct. On request, the
supplier shall be able to inform Electrolux which subcontractors they use.
Specific requirements
a. Child labor
Child labor is not tolerated in any form. Unless local law stipulates a higher age limit, no person
younger than the age for completing compulsory education or younger than 15 (or 14 where
permitted by ILO convention No. 138) shall be employed. For authorized minors, management
is responsible for providing working conditions, hours of work and wage appropriate for his or
her age and in compliance with applicable local law as a minimum. If a child is found working
at a site where Electrolux products and or components are produced, Electrolux encourages
remediation that does not worsen the childs social situation.
b. Forced labor
Forced or involuntary labor is not tolerated in any form. This includes prison, indentured and
bonded labor, and other forms of working against ones own will or choice
c. Health & safety
All employees shall be provided with a safe and healthy working environment and, when
applicable, safe and healthy residential facilities, with applicable local law as a minimum. The
employer should take appropriate action to prevent workplace accidents or illnesses.
d. Non-discrimination
Electrolux Group recognizes and respects cultural differences. Nevertheless, all employees
shall be treated strictly according to his or her abilities and qualifications in any employment
46
decisions, including but not limited to hiring, advancement, compensation, benefits, training,
layoffs and termination.
e. Harassment and abuse
No employee shall be subject to corporal punishment or to physical, sexual, psychological or
verbal harassment or abuse. Earned wages shall not be deducted as a fine or penalty under
any disciplinary practice unless regulated under a collective bargaining agreement or
recognized under laws.
f. Working hours
Electrolux recognizes the need for a healthy balance between work and free time for all
employees. Unless national regulations require a lesser maximum hours of work, and except
under extraordinary business circumstances, employees shall not, on a regularly scheduled
basis, be required to work a standard work week of more than 48 hours per week or a total
work week of more than 60 hours (including overtime). Except in extraordinary business
circumstances, all workers shall be entitled to at least one day off in every seven-day period.
g. Compensation
Wages, including overtime and benefits, shall equal or exceed the level required by applicable
law.
h. Freedom of association & right to collective bargaining
All employees are free to exercise their legal rights to form, join, or refrain from joining
organizations representing their interests as employees. No employee should be subject to
intimidation or harassment in his or her peaceful exercise of these rights. The employer shall
also respect the employees right to collectively bargain.
i. Environmental compliance
The Electrolux Groups Environmental Policy and Position Statements are valid for all
Electrolux Group units. Suppliers and their subcontractors are expected to comply with the
47
requirements in the position statement Restricted Materials List in addition to local law, and
are encouraged to follow the Electrolux Group Environmental Policy.
Monitoring and compliance
Management is responsible for implementing and informing employees of their rights, duties
and responsibilities under this Code of Conduct. Management is also responsible for
maintaining adequate documentation to demonstrate its and its suppliers compliance. As a
condition of doing business with the Electrolux Group, suppliers must authorize Electrolux and
its designated agents (including third parties) to perform audits, including confidential
employee interviews.
Article 5
The number of shares shall be not less than 300,000,000 and not more than 1,200,000,000.
The shares of the Company may be issued in two series, A and B. For the purposes of voting
at a General Meeting, each share of series A carries one vote and each share of series B
carries one-tenth of a vote.
Shares of series A may be issued up to a maximum number of 1,200,000,000 and shares of
series B up to a maximum number of 1,200,000,000. Shares of series A and series B carry
equal rights to participation in the Companys assets and profit.
Should the Company decide to issue new series A and series B shares by way of a cash issue
or a set-off issue, the holders of series A and series B shares shall have the priority right to
subscribe for new shares of the same series in proportion to their existing shareholdings
(primary preferential right). Shares not subscribed for by primary preferential right shall be
offered to all shareholders (subsidiary preferential right). If the number of shares available for
subscription is insufficient for the subscription made under subsidiary preferential right, the
shares shall be distributed among the subscribers in proportion to their previous shareholdings
and, if this is not possible, by the drawing of lots.
Should the Company decide to issue new shares of only series A or series B by way of a cash
issue or a set-off issue, all shareholders shall have preferential right to subscribe for the new
shares in proportion to their previous shareholdings irrespective of whether they hold series A
or series B shares.
Should the Company decide to issue warrants or convertible bonds by way of a cash issue or
a set-off issue, all shareholders shall have preferential right to subscribe for warrants as if the
issue concerned the shares that may be newly subscribed for pursuant to the warrant and,
respectively, preferential right to subscribe for convertible bonds as if the issue concerned the
shares that the convertible bonds may be converted into.
The above shall not constitute any restriction in the possibility to resolve on a cash issue or a
set-off issue deviating from the shareholders preferential rights.
49
If the share capital is increased by way of a bonus issue, new shares of each series shall be
issued in proportion to the previous number of shares of each series. Previous shares of a
given series shall thereby entitle the holder to receive new shares of the same series. This
shall not constitute any restriction in the possibility to issue new shares of a new series by way
of a bonus issue, following the necessary amendments to the articles of association.
Owners of series A shares shall be entitled to request conversion of series A shares to series B
shares. Such request for conversion, which shall be made in writing and specify the number of
shares to be converted, shall be made to the Company. The Company shall without delay
notify the conversion to the Swedish Companies Registration Office for registration. The
conversion is effected once the registration is completed and it has been noted in the Central
Securities Depository Register.
Article 6
The Board of Directors of the Company shall consist of not less than five and not more than
fifteen members with not more than ten deputy members.
Article 7
For the audit of the Company, one authorized accounting firm or two auditors with two deputy
auditors shall be appointed at the Annual General Meeting.
The Board of Directors is authorized to appoint one or several special auditors to audit such
statements or plans prepared by the Board of Directors in accordance with the Companies Act
(2005:551) in relation to such an issue of shares, warrants or convertibles with provisions on
non-cash consideration or that subscription shall be made against payment through set-off of
claims or other provisions, transfer of own shares against non-cash consideration, reduction of
the share capital or the statutory reserve, merger or division of limited companies.
Article 8
The calendar year shall be the Companys financial year.
Article 9
A notice convening a General Meeting shall be published in the Swedish Official Gazette,
Svenska Dagbladet and Dagens Nyheter.
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Article 10
In order to participate in a General Meeting, a shareholder shall notify the Company not later
than the day stated in the notice convening the meeting before 4 p.m., stating the number of
assistants. This day may not be a Sunday, other public holiday, Saturday, Midsummer Eve,
Christmas Eve or New Years Eve, and may not fall earlier than the fifth weekday before the
meeting.
Article 11
The following matters shall be dealt with at the Annual General Meeting:
election of chairman at the meeting;
preparation and approval of the voting list;
approval of the agenda;
election of two minutes-checkers;
question as to whether the meeting has been properly convened;
presentation of the annual report and the audit report as well as the consolidated accounts
and the group audit report;
resolutions on
a) the adoption of the profit and loss account and the balance sheet as well as the
consolidated profit and loss account and the consolidated balance sheet,
b) the discharge of liability of the directors of the Board and the Managing Director,
c) dispositions in respect of the Companys profit or loss in accordance with the adopted
balance sheet;
resolution on the number of directors and deputy directors;
resolution on the fees for the Board of Directors and, if applicable, the auditor or the auditors;
election of the Board of Directors and, if applicable, auditor or auditors and deputy auditors;
other matters to be dealt with at the General Meeting in accordance with the Swedish
Companies Act.
Article 12
The Companys shares shall be registered in a Central Securities Depository Register under
the Financial Instruments Act (Sw: lagen (1998:1479) om kontofring av finansiella
instrument).
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Our goal is to maximize the use of purchased material and components. This not only reduces
costs, but also reduces waste.
We are stepping up efforts to improve energy use within our own operations, thereby saving
measurable CO2 emissions and operational costs. Electrolux has set a target to cut energy use
by 15% group-wide by year-end 2009, compared to 2005 energy consumption.
Operational environmental concerns include:
Reducing waste;
Transportation;
Designing products with sound material use, high levels of environmental performance and
recyclability.
52
Our primary social-related issues include building a robust and transparent corporate
governance system, health and safety conditions in manufacturing and the supply chain,
improving quality of life through our products and guarding consumer health and safety. Our
community involvement initiatives are primarily conducted on the local level to serve local
needs.
Our people put a face on our name - find out how we strive to create an environment where
our talent can thrive.
Awareness - Learning - Feedback - Assessment (ALFA) is the tool we use to manage our
Code of Conduct, and in part, health and safety in our organization.
If you wish more detailed information on our approach to social-related issues, click on the
subject matter listed under related pages at the right hand side of the screen.
53
Transportation
Forwarding
Warehouseing
We operate both own and leased warehouses to form a complete distribution system reaching
the markets for our customers products. We are part of the Electrolux logistics network and
54
can offer solutions with European or global coverage. Our warehousing and distribution
structure is ISO 9000 certified.
4 Our History
Starting out with a single vacuum cleaner, after 80 years of innovations and acquisitions, The
Electrolux Group today is a global leader in home appliances and appliances for professional
use.
1901
AB Lux, Stockholm, is established. The company launches the Lux lamp - a
kerosene lamp for outdoor use - which proves to be a tremendous sales
success. The lamp is also used in lighthouses all over the world.
1908
Lux moves to a plant at Lilla Essingen in Stockholm. The company
feels the competition from electric lighting and looks for new products.
1910
Elektromekaniska is established in Stockholm.
1912
Collaboration between Lux and Axel Wenner-Gren begins. The first vacuum
cleaner, the Lux 1, is produced at Lilla Essingen. Axel Wenner-Gren
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becomes the agent for Lux in Germany, United Kingdom and France.
Home sales begin in Sweden. The salesmen, who pull the heavy machines through the streets
on hand-carts, must arrange a demonstration time when the housewife can promise that her
husband/breadwinner will be home to approve the investment.
1915
1917
On October 30, 1917, Elektron (In which Axel Wenner.Gren owns a large interest) purchases
all the shares of Elektromekaniska. Wenner-Gren is elected member of the board of
Elektromekaniska and likewise, Sven Carlstedt joins the board of Elektron.
1918
Elektron and Lux sign a cooperative agreement for the following:
Lux is to take over operations of Svenska Elektron, increasing its share capital from SEK 3
million to SEK 4 million.
Svenska Elektron, which had previously bought Elektromekaniska, is to buy 49% of the
shares of AB Lux. Wenner-Gren and Carlstedt are elected to the board of Lux. WennerGren is appointed CEO and Carlstedt is appointed technical director.
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1919
On August 1, an agreement is reached between AB Lux and Svenska Elektron AB (in which
Wenner-Gren is the dominating owner) giving Elektron the sole sales rights to AB Lux vacuum
cleaners. The agreement, which is valid through 1929, obligates Elektron to
buy its vacuum cleaners from Lux and show Lux the manufacturer on all the
vacuum cleaners.
At the Annual General Meeting on August 29, Elektromekaniska AB (wholly
owned by Wenner-Gren-dominated Elektron) changes its name to AB
Electrolux. The new name is a combination of Elektromekaniska and Lux.
1921
Model V is launched. It is regarded as the first step towards an easy to use vacuum cleaner for
ordinary homes. Pay extra close attention to the runners - an invention by Mr Wenner-Gren
himself. They were in use on Electrolux machines well in to the 1960's.
1922
Swedish engineering students, Baltzar von Platen and Carl Munters, from
the Royal Institute of Technology in Stockholm, present a sensational
invention - a machine that produces cold through heat using a new and
brilliant application of the absorption process. The machine can be driven
by electricity, gas or kerosene.
1923
The production of refrigerators based on Platen-Munter's invention begins at a newly formed
company, AB Arctic.
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1925
1926
The first plant for the production of vacuum cleaners outside Sweden is
opened in Berlin, Tempelhof. Axel Wenner-Gren acquires Volta from
Skandinaviska Banken. Axel Wenner-Gren becomes chairman of the board.
1927
Electrolux builds vacuum cleaner plants in Luton, England and Courbevoie, France. These
plants are eventually equipped for the production of refrigerators. Production begins in a
number of countries all over the world.
1928
The share capital in Electrolux is increased ten-fold from six million Swedish kronor to 60
million. The turnover at five plants, some twenty subsidiaries and 250 offices throughout the
world is SEK 70 million.
The Group is consolidated and introduced on the London Stock Exchange (1930 on the
Stockholm Stock Exchange).
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1930
The first built-in refrigerator is launched, a compact product for the kitchenette in the small,
modern apartments of the time. Harry G Faulkner is appointed president.
1931
Vacuum cleaner production begins in Old Greenwich, Connecticut, USA. The first air-cooled
refrigerator is produced. Electrolux presents L1, the first air-cold refrigerator.
1934
Electrolux acquires Volta from Axel Wenner-Gren. The Group now has an alternative to the
home sale of vacuum cleaners and thereby greater market coverage.
1936
Production of vacuum cleaners begins in Australia.
1938
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Streamed products are modern. Of the vacuum cleaners of this decade, the Z30, also
nicknamed ''the Loaf,'' keeps pace with the trend.
1939
Axel Venner-Gren resigns from all his Swedish commitments and moves to the Bahamas. He
is succeeded as Chairman of the Board by Axel F. Enstrm.
1940
World War II paralyzes many Electrolux plants and subsidiary companies. The Group
reorganizes some of its production for employment reasons and produces air filters for the
Swedish defense forces.
At the Motala plant, the reduction in refrigerator production has been compensated by the
production of steel fittings. The manufacture of vacuum cleaners begins in New Zealand.
A new product is launched, the ''Assistent'' food processor. It is to become one of the Group's
biggest sellers in the succeeding years.
1944
Electrolux purchases Bohus Mekaniska Verkstads AB in Gothenburg. The
Group thereby makes an important breakthrough in a new product area industrial washing machines.
Penta - a producer of outboard engines, is purchased. Electrolux already
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owns the producer Archimedes (both companies were sold to Monark-Crescent in 1965).
1948
There is a great demand for small electrical motors. Until now, Electrolux has produced them
at Lilla Essingen alongside vacuum cleaners. Production now moves to a new plant in
Vstervik.
In Germany, operations begin again after the war. Refrigerators are produced in Berlin and
vacuum cleaners in Wilhelmshafen.
Sigurd Nauchoff becomes Chairman of the Board.
1950
Electrolux begins producing vacuum cleaners and floor polishers in So Paolo, Brazil.
1951
The first household washing machine is introduced. Production of steel shelving moves from
Motala to Sffle, the foundations of what will later become Electrolux Constructor. Vacuum
cleaner production begins in Oslo, Norway.
Elon V. Ekman is appointed president.
1953
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1955
The production of floor polishers and refrigerators begins in Buenos Aires,
Argentina. Electrolux shares are listed on the Geneva Stock Exchange.
1956
The first chest freezer is launched-big news in food storage. Axel Wenner-Gren sells his
Electrolux shares to the Wallenberg Group. Group sales pass the half billion kronor mark.
1957
The spelling of the Group's name is changed throughout the world from Elektrolux to
Electrolux.
1958
The Group successfully exports caravan refrigerators to the USA - but the
big rush takes place in 1960s.
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1959
The first dishwasher designed by Electrolux is a benchtop model, the extremely popular ''round
jar.'' The first combined fridge/freezer is produced in the town of Motala, Sweden.
1962
ElektroHelios is acquired for SEK 36 million. This company, which was set up in 1919, has
2,500 employees. The merger gives Electrolux new and important
production units in Mariestad (compressor refrigerators) and Alingss (food
service equipment), among other things. Through the purchase, Electrolux
acquires an extremely important product group: cookers. The capacity of
the central laboratory at Lilla Essingen is almost doubled.
1964
Luxomatic is the first of a new generation of vacuum cleaners with features
such as a cord winder, self-sealing paper dust bags and a dust indicator
that shows when the bag is full. It also becomes a symbol of the strength
and economic strength in particular of the Electrolux Group and its
vacuum cleaner division.
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1965
The Group's turnover passes the billion kronor mark. The long economic boom continues for
the remainder of the year. A decision is made to build a cooker plant in Motala. The sale of
absorption refrigerators rockets.
1967
Hans Werthn becomes president. The restructuring of the divided Western European whitegoods industry begins.
Electrolux takes the initiative on changes in Scandinavia. The company purchases Norwegian
Elektra (cookers), Danish Atlas (refrigerators) followed by Finnish Slev (cookers, sauna units).
Vacuum cleaner production moves from Stockholm to Vstervik.
1968
The minority interest (39%) in Electrolux Corp., USA, is sold to Consolidated Food for almost
SEK 300 million. This deal gives Electrolux the key to future expansion.
Cooker production in Sweden is concentrated in Motala and refrigerator production in
Mariestad. The lawn mower company, Flymo, with a base in both Sweden and England, is
purchased as well as 50% of the cleaning company ASAB.
The Group's head office is moved from the city of Stockholm to the factory premises at Lilla
Essingen.
1969
Electrolux's first subsidiary in the USA, Domestic Sales Corp (absorption refrigerators) is set
up. Subsidiaries are established in Hong Kong to sell the Group products in the Far East.
A large scale face lift takes place for the Electrolux range. The environment begins to occupy a
central position in public debates.
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1971
The commercial cleaning service is established as a result of new company acquisitions. A
face-lift for white goods takes place. There is a trend towards new colors. Caravan
refrigerators (absorption) are booming on the US market.
1973
The office machinery company Facit is acquired - a purchase outside the principal business
sphere of Electrolux. The deal brings with it the production of kitchen and bathroom cabinets
(Ballingslv).
The upswing for the absorption refrigerator technique accelerates. The Group purchases
manufacturers in Luxembourg and Germany (Kreft, Siegas) to meet the demand on the
European market.
1974
It has long been clear that a powerful foothold in the US household
appliance market is essential. The vacuum cleaner producer NUE - National
Union Electric/Eureka - is acquired (today the Eureka Company). This deal
makes Electrolux the world's number one producer of vacuum cleaners. It
also boosts the Group's air conditioning technology research and know-how
resources.
White goods are marketed under the brand names of Enviromental cooker de Luxe, Future
Line and Superstar Electronic.
The commitment to nature conservation products, vacuum systems for the transport and
cleaning of waste water continues. The ORWAK waste compressor is launched.
1975
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Vacuum cleaner capacity is extended still further through the acquisition of the French
company, Paris-Rhne, and the German company, Progress.
1984
The acquisition of the Italian company Zanussi (founded 1916) including its subsidiaries in
Spain, makes Electrolux the unquestioned leader in the European market for household
appliances.
The Zanussi purchase also makes the Group number one in food service equipment. Sales
expansion in the Far East including Oceania: SEK 2 billion.
1985
The white goods sector range of washing machines and tumble driers, and air conditioning is
extended through the purchase of Zanker in Germany and Duo-Therm in the USA.
1986
The third largest white goods company in the USA, White Consolidated Inc., is acquired with
brands such as Frigidaire, Gibson, Kelvinator and White Westinghouse.
The Outdoor Products business area expands following new acquisitions including the US
company, Poulan/Weed Eater. The metal recycling company, Gotthard Nilson, is purchased.
The Group's total annual sales are SEK 53 billion.
1987
Electrolux purchases the first white goods division of the British company, Thorn-EMI, with
brands such as Tricity, Stott Benham and Parkinson Cowan. White goods are also
strengthened by the purchase of Corbro and Domar, Spain's leading companies in this sector.
1988
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The outdoor products business is reinforced through the purchase of American Yard Products
(Yardpro). The Spanish market grows in importance. The refrigerator compressor producer
Unidad Hermtica is acquired. Safety belt operations are expanded in Europe.
1989
The Group's leading position in Europe is reinforced by the acquisition of the German Buderus
Group's manufacturing operations of white goods and food service equipment, including
industrial washing machines.
An agreement is signed with Sharp Corporation on the sale of Electrolux white goods on the
Japanese market. Iron ore mining with the Lamco company, Liberia (previously owned by
Grnges) ceases. The Group winds up its operation in the sterilization and disinfection sectors.
1990
1991
The Hungarian white-goods company Lehel is acquired. The ''Low-Energy Refrigerator'' is
launched. It halves energy consumption for the user. Robotic vacuum cleaners from the US
company, Kent, for commercial use in hospitals, airports, etc., are introduced on the US
market. Electrolux sells most of the commercial service business area.
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Hans Werthn resigns as Chairman of the Board. The new chairman and CEO: Anders
Scharp. Leif Johansson is appointed president.
1992
Electrolux buys 10% of AEG's household appliances division with an option on a further 10%.
The Group publishes its environmental policy. Fifty-fifty joint venture with Raufoss Plastal
Components.
1993
Totally CFC-free refrigerators are launched. Gotthard Nilson succeeds in completely recycling
a refrigerator in a closed system. Acquisition of further 10% of AEG's appliances division takes
place, and opening of negotiations to take over remaining shares. Group sales exceed SEK
100 billion.
1994
The Electrolux Group celebrates its 75th anniversary.
1996
Electrolux strengthens its position on the South American market by acquiring the secondlargest white goods manufacturer in Brazil, Refripar, which later becomes Electrolux do Brasil.
1997
The Group begins a two-year restructuring program with the purpose of improving profitability.
Streamlining of Group operations begins, with the divestment of the industrial products sector
and production of sewing machines, agricultural implements and interior decoration equipment.
Michael Treschow is appointed president and CEO.
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1998
The Group continues restructuring, with divestment of operations in recycling, kitchen and
bathroom cabinets, professional cleaning equipment and heavy-duty laundry equipment.
A new brand policy is adopted to focus resources on a smaller number of large and welldefined brands. The core business now comprises Household Appliances, Professional
Appliances and Outdoor Products.
1999
The restructuring program that was started in 1997 is essentially completed. It has involved
personnel cutbacks totalling about 11,000 and the shutdown of 23 plants and 50 warehouses.
Streamlining of the Group continues with the divestment of operations in food and beverage
vending machines, and the major part of the direct sales operation. An agreement is also
reached for the divestment of professional refrigeration equipment.
An agreement is signed with Toshiba of Japan for cooperation in household appliances. The
Group also forms a jointly owned company with Ericsson that develops products and services
for the networked home.
2000
Annual Group sales reached SEK 124 billion. The Group reached its target of an operating
margin of 6.5, which was the highest margin for the Group on an annual basis since 1985, and
a return on equity of at least 15%.
The Group bought back the rights to the Electrolux brand in North America, which was sold in
1968. The Group reached an agreement for acquisition of Email Ltd., Australia's largest
appliance company.
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2001
The Trilobite is launched.
Annual Group sales were SEK 136 billion. The appliance operation in North America reported
a market drop in income as a result of lower volumes and high costs for the start-up of a new
generation of refrigerators.
Higher operating income and margin were reported for major appliances in Europe and in
other markets outside North America, as well as for food-service equipment and laundry
equipment.
Professional Outdoor Products achieved good growth in both sales and income.
2002
Hans Strberg is appointed president and CEO.
Annual group sales were SEK 133 billion. There was a strong growth in income in North
America since problems with the new generation of refrigerators were solved. Also good
performance for major appliances in Europe.
There were a lot of actions taken in 2002, among others:
Electrolux identity.
Group purchasing increased from low-cost countries. Double-branding was initiated with local
brands in a number of countries.
All market communication for Electrolux-branded consumer products in Europe, North America
and most of Asia was assigned to a single advertising agency.
Market shares increased in Europe and US.
The Electrolux Design Lab, was established, as an annual international design competition in
future appliance design and innovation. The Electrolux Design Lab brings together the
creativity of promising design students from around the world to the challenge if meeting the
needs of tomorrows consumers.
2004
The Group launched the Electrolux brand for appliances in North America. The first products
are Electrolux ICON, a high-price range that is sold today by more than 600 dealers.
Electrolux also started to implant new and more efficient methods for measuring how the
Group brands are performing in specific markets.
Electrolux household appliances are honored with six Good Design awards 2004.
The Good Design Awards is organized by the Chicago Athenaeum Museum of Architecture
and Design. The Museum's historic Good Design program was founded in Chicago in 1950 by
Edgar J. Kaufmann, JR. with the participation of some of America's most important designers:
Eero Saarinen, and Charles and Ray Eames, Alexander Girard, George Nelson, Florence
Knoll, Harry Bretoia, Finn Juhl, and Russel Wright.
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2005
Electrolux wins five red dot design awards at the 50th edition of the red dot design award
competition.
A panel of internationally respected design experts judges the red dot awards. The selection
criteria include, among others, the degree of innovation, practicality, quality, symbolic and
emotional content, as well as ergonomics and ecological compatibility.
The award winners were:
Electrolux Favorit dishwasher
Electrolux CaFamosa espresso machine
73
2006
The Electrolux board made a decision to spin off Electrolux Outdoor to its shareholders and
the shares are listed on the Stockholm Stock Exchange. The name is changed to Husqvarna
AB.
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5 Brands
Every brand represents a promise to its market: "buy me and you will get this experience".
Strong brands are trusted brands; they have built a reputation with customers over time by
living up to their promises of quality, innovation and leadership.
We have many strong brands in our portfolio. Our main focus is to continue to build Electrolux,
our biggest and most important brand, known and trusted by both consumers and professional
users around the world. We also have a range of other strong brands for both consumers and
the professional market. Some of these brands have an international reputation, such as AEGElectrolux and Frigidaire. Others are local brands that are mainly known by consumers in a
particular country, or professional brands known by users in a special field, such as Molteni for
professional chefs.
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In the early years, Axel Wenner-Gren, the founder of Electrolux, pioneered the development of
the modern canister-type vacuum cleaner as well as the absorption refrigerator. One of the key
success factors was a deep commitment to engaging with consumers in the home in order to
better understand their needs and opportunities. Today, Electrolux offers an unmatched
selection of appliances for food storage, food preparation, laundry, dish care and home
cleaning. Appliances that range from the attractive and affordable for the first home to the
completely automatic Trilobite vacuum cleaner that cleans your floors all by itself.
All our products and services share the common Electrolux philosophy - to make that extra
effort to find out what people really need and want. And then use that insight to create
thoughtfully designed innovations that provide a better user experience and help make your life
a little bit easier and more enjoyable. That is our way of demonstrating how all the time
"Electrolux is thinking about you" in order to make your life a little easier and more enjoyable.
In some markets, the Electrolux brand has benefited from the strength of local brands with a
long heritage in its home markets.
The brand combines the right balance of simplicity and exclusive design to make household
appliances much more than just a white box. Examples of innovation include the first washing
machine to complete a full cycle in less than 35 minutes and the first inclined front-loading
washing machine. This greatly improves the ergonomics of loading and unloading the wash.
Electrolux Arthur Martin also introduced the soft drum opening on top-loading washing
machine, IZZI, the easiest dishwasher, and a temperature indicator on all of its fridges.
Today, Electrolux-Arthur Martin represents the Electrolux commitment to thoughtful design
innovations that create a superior user experience.
Juno-Electrolux (Germany)
Juno has for many years been a built-in kitchen appliance specialist for people who enjoy
cooking. In 2004, the brand was renamed Juno-Electrolux to signify the connection with
Electrolux.
Juno-Electrolux, the appliance specialist for those who enjoy cooking, offers two ranges of
built-in kitchen appliances. Both are designed for the most demanding of cooks. JunoElectrolux Le Maitre presents professional kitchen elements, where steam cooking is the focal
point of the range. Juno-Electrolux Performance presents cooking appliances at their finest,
combining functional use and up-to-date design with modern functions and ergonomic design.
Both are representatives of our philosophy of thoughtful design innovations, where thinking
that little bit extra about consumers needs and desires create opportunities for exciting and
relevant innovations.
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Rex-Electrolux (Italy)
The Rex brand has for many years been the market leader in kitchen and cleaning household
appliances in Italy. A history of innovative products and distinctive designs are just some of the
reasons why Rex for many years has been able to say that it is Made to be number one.
Rex has reflected the evolution of Italian lifestyles and design since 1933. In 2004, the brand
became Rex-Electrolux to recognize the link to Electrolux. It is a household name in Italy,
synonymous with innovation and design in domestic appliances, and with numerous design
awards as proof of success. In the kitchen, Rex-Electrolux built-in products complement the
typical Italian ambience and interior design developments.
In recent years, Rex-Electrolux has demonstrated how thinking about consumers needs
delivers exciting innovations. Products such as the Jetsy washing machine with its innovative
spray system, as well as a string of dishwashers: Izzi with its unique one-touch controls,
Techna 90 for distinctive off-the-floor kitchen designs and Visi with its revolutionary window and
automatic program, These are just a few of the latest Rex-Electrolux innovations that
demonstrate how thinking that little bit extra about consumers create better solutions.
Rex is the N1brand on the Italian market since 1933 and is famous for its innovation and for
its appliances design, while Electrolux, the swedish brand was born in 1919 and is the world's
N1 choice and as always takes care of the environmental and social themes. "Born to be the
N.1" was saying the historical claim of Rex. "The world's N.1 choice" says the current claim of
the Electrolux Group. The values of the new brand Rex Electrolux are the results of the union
between the identities of two different leaders but complementary. Global culture and
ecological sensibility are combined with an historical tradition of well known technology and
design. These four cardinal points reinforce and confirm the leadership role of the the most
prestigious brands in the italian and global market both.
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The Electrolux branded icon of Chef has a strong Australian culture and heritage that is backed
by the worlds No 1 appliance manufacturer. Chef offers Australian designed and produced
cooking appliances, with the best energy efficiency and performance along with unique design
features for retaining your true individuality.
The Electrolux branded Australian home appliance icon of Chef has a strong Australian culture
and heritage that is backed by the worlds No. 1 choice in kitchen, cleaning and outdoor
appliances. Each product has been developed and refined to include smart appliance features
that increase energy efficiency and performance along with unique design features that retain
your true individuality. The Electrolux product offering includes Australian designed and
produced cooking, refrigeration, dishwasher and air conditioner appliances that are all backed
by Australias biggest after sales network.
Dishlex has been a pioneer in dishwashers, ever since it began producing dishwashers in
Australia in 1948. Since then, around 1.2 million dishwashers have been produced for
Australian and international markets, and in 2003 the brand was backed by Electrolux.
It was the first dishwasher made with an AAA water rating and 6-star energy rating, and today
it continues to pioneer thoughtfully designed innovations based on a real and deep
understanding of consumer needs.
Kelvinator has forged a reputation in Australia for quality and reliability in refrigeration and air
conditioning since 1932. The brand has been synonymous with Australian ruggedness and for
withstanding our harsh elements to deliver reliable performance year after year.
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In 2003, Kelvinator became backed by Electrolux, the worlds leading appliance maker, and
could tap into its unique bank of consumer knowledge and thoughtful design innovations.
Electrolux-Kelvinator remains Australia's most recognized refrigerator brand, having supplied
more than five million refrigerators over the past 70 years.
Zanussi-Electrolux is a leading brand for domestic kitchen and cleaning appliances. Exported
from Italy since 1946, Zanussi-Electrolux is widely recognized for the quality of its innovative
products and distinctive modern design.
The Zanussi Company began as the small workshop of Antonio Zanussi in 1916. The
enterprising 26-year-old son of a blacksmith in Pordenone in Northeastern Italy began the
business by making home stoves and wood-burning ovens. For Zanussi, innovation has
remained the cornerstone of success. A single glance at the bold design of Zanussi products
and the advanced technology and user-friendly performance of the whole range proves as
much. "Excellence in Design and Innovation" sums up the Zanussi positioning across
international markets.
A number of unique trend-setting products such as the "IZ" washing machine, "Izzi"
dishwasher, and "Live-In" intelligent home unit are just a few of the latest innovations.
Ever since its foundation in 1887 in Germany, AEG has pioneered advanced electrical
engineering in consumer products. In 2004, appliances from AEG became designated "AEGElectrolux" to signify the link with Electrolux. AEG-Electrolux provides excellence in
performance and German design, which is why we say that each appliance is created and
developed to be "Perfekt in Form und Funktion."
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AEG has always been a pioneer. Since its founding by Emil Rathenau in Germany in 1887, it
has been renowned for its electrical engineering of consumer products. AEG was the first
company in the industry to hire a designer to help create and develop its products.
Peter Behrens, the father of functional form in Europe in the early 20th century, profoundly
influenced the company's image - from product design and advertising to the architecture of its
factory buildings.
Today, the essence of the AEG-Electrolux brand is that every one of its household appliances
is "Perfekt in Form und Funktion." The full range of appliances allows consumers to control
household tasks and represent precision, performance, order, confidence and pride.
Throughout Europe, AEG-Electrolux stands for high-quality appliances that combine top
performance with excellent German design. "Perfekt in Form und Funktion" is more than a
slogan. It is a philosophy.
We also offer tailored systems to retirement homes and cafeterias within companies and
institutions. In short, Electrolux offers professional solutions to anyone catering under very
demanding circumstances.
Laundry Systems
With a comprehensive range of equipment including washer extractors, dryers and finishing
equipment, Electrolux Laundry Systems tailors solutions to the specific needs of individual
businesses everything from the laundries of apartment houses, hotels and health care
institutions to commercial laundry operations and coin-operated launderettes. Electrolux
Laundry Systems is dedicated to developing thoughtful innovations that help our customer
satisfy their customers' demands for clean, fresh laundry and linen processed to stringent
standards of sanitation, minimal environmental impact, and economic efficiency.
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For years on the leading edge of food processing equipment with a wide range of high-quality,
long-lasting tools, Dito-Electrolux has now expanded its offer under the Libero line with easyto-use compact solutions for bars, pubs, cafs and cafeterias.
Molteni is the name chosen by the leading chefs in the industry who expect the
ultimate in bespoke cooking facilities.
Since the early 20s, Molteni has created the best professional stoves - the dream of every
great chef. This legend was born in the tradition of ancient craftsmanship, associating an
extreme attention to detail with the quest for strong and noble materials. The workmanship is
geared towards maximum durability and, combined with state-of-the-art technology, gives the
best possible results in every kind of food preparation. Performances are enhanced by design,
which is in line with the latest innovation in ergonomics - taking advantage of space to
maximize control and facilitate action in the kitchen. This is why Molteni stoves are best known
among the world's greatest chefs. Dreamed of, sought after and loved, they have by now
become a legend.
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6 Products
We shall exceed market expectations by developing products with reduced environmental
impact, quality of life improvement for our users, and social and economic benefits to society.
We know there is a market for products with high levels of energy efficiency and low
environmental impact. Our consumers want appliances that are safe, do not contain hazardous
materials, have low noise levels and that are produced under good working conditions.
Our greatest potential to positively influence the environment is to improve energy efficiency
and water use while our products are in operationmore than 80% of their life cycle impact
occurs during use. Electricity used for appliances accounts for approximately 4% of the total
CO2 emissions in Europe. We therefore support appropriate standards for product energy
consumption and strongly advocate the use of energy labelling.
Electrolux was among the first in our industry that lobbied actively for individual responsibility,
since we recognized the correlation between producer responsibility and making products
recyclable.
6.1 Kitchen
Electrolux has drawn on over 85 years experience in commercial and private kitchens to create
a stunning selection of cooking appliances, fridges and dishwashers that are superior in both
style and function.
1. Fridges
Whether you prefer your fridge to be the standout feature in your kitchen, or
discreetly hidden by your kitchen cabinetry, there is a fridge in the Electrolux
range designed with your needs in mind.
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Products marked with this symbol are part of the Electrolux Eco Range. They are designed to
meet our highest standards of energy and water efficiency.
a. Built In Fridge
If youre the type who likes to keep appliances hidden, then the new
built-in fridge and freezer is perfect for you. It fits behind, and
attaches to, kitchen cabinetry, creating a kitchen of absolute
modernist sophistication.
c. Pigeon Pair
Electrolux pigeon pairs are matching single door fridge and freezers, giving
you maximum capacity, and, because they dont have to be positioned
together, absolute flexibility.
d. Slide- By- Slide
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The classically designed Electrolux Top Mount Refrigerator range gives you
an abundance of fresh food storage, as well as an easy access freezer for
everyday use.
The Electrolux Single Door Freezer gives you dedicated frozen food
storage, in a sophisticated, modular design
86
2 Dishwashers
3 Cooking
a. Ovens
This stunning selection of European styled Gallery
and e:line ovens is designed to suit any catering need
or kitchen design, with the latest usable technology,
including IOI which makes your life easier and your
cooking more enjoyable
87
b. Cooktops
Whether you prefer the theatre and tradition of gas, the easy
clean practicality of the ceramic electric cooktop, or the power,
safety and control of induction, there is a Gallery or e:line cooktop
to suit your style and cooking needs.
c. Rangehoods
d. Microwave oven
Fitting seamlessly with the full Gallery range, this 60CM espresso
machine is the most stylish way to enjoy perfect coffee at home.
1 Tumble dryers
Electrolux provides a range of top & front loading washing machines that put you
in control of the laundry.
89
3 Lightweight uprights
Lightweight uprights are easy to manoeuver and easy to store - making them a
convenient alternative to canisters - they are perfect for people living in smaller
households.
7 Innovation
Our products are designed with sustainability in mindto protect health, enhance life quality
and be energy and water-efficient.
90
asthmatics and the elderly. It eliminates 99% of airborne allergens including dust, pollen, pet
hair and odors as well as 95% of harmful bacteria and 85% of viruses. TESAW is an award
system created by the Australian governments and the appliance industry for the most energy
efficient (best in class) star-rated products on the market. 2000 2001 2002 2003 2004 2005
electrolux our approach
wash system and automatic sensors ensure that Electrolux dishwashers use less than 15 liters
of water per load when the auto wash program is selected.
8 Life Cycle
The greatest environmental impact of our applianceson average over 80% occurs during
use, through consumption of energy and water.
A life cycle assessment of a refrigerator shows that more than three-fourths of the total
environmental impact occurs during use, in the form of electricity consumption and related
carbon dioxide emissions.
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Water efficiency also has an impact on energy efficiency. The US EPA states that water
heating accounts for 19 percent of home energy use. If 20% of U.S. homes used high
efficiency clothes washers, national energy savings could be enough to supply the needs of
over one million homes.
A similar analysis of the total life cycle cost shows that electricity expenses exceed the initial
purchase price. The pattern becomes even clearer when we chart life cycle impact and cost of
an average washing machine (see diagram to the right).
For the customer, choosing an appliance with enhanced environmental performance brings
long-term savings. For Electrolux, it means there is a competitive advantage in making
consumers aware of the correlation.
Professional products
What is true for the household user is also true for the professional useronly more so.
Professional appliances are usually used extensively; for at least eight hours a day and often
up to 20 years. As a result, lifetime operating costs often exceed the initial purchase price, and
efficiency represents substantial savings. It is a natural part of business for a professional
customer to calculate an appliance's total life cycle cost. That makes environmental
performance a paramount interest, whether for a hotel chain, a restaurant or shared laundry
facilities in an apartment building
10 Material
An important factor in our choice of materials is to eliminate and avoid adverse health, safety
and environmental impacts.
In order to ensure that the materials going into Electrolux products are sustainable and sound:
Direct material input consists mainly of steel, plastics and components. Material utilization in
production is continually improving, while hazardous waste and waste to land-fill are being
reduced year to year. Look at our annual compilation of material use in Electrolux Material
Balance, accessed to the right of this screen under related files.
All hazardous waste (mainly oils, solvents and other chemicals) is handled according to local
95
regulations.
Electrolux manufacturing is the final phase in a chain of suppliers. To protect the interests of
our consumers and employees, we must have the full picture regarding the substances that go
into the manufacture of our products. Our RML is designed to facilitate this. Chemicals are
primarily used in manufacturing processes; only small quantities of chemicals go into the
manufacture of household appliances, in relation to the total amount of material in the
products.
For more detailed information regarding our material use, review related pages at the right
hand side of the screen.
11 Labeling
Electrolux advocates the use of energy labeling as a market mechanism to reduce energy
consumption.
Electricity used for appliances accounts for approximately 4% of the total CO 2 emissions in
Europe. Labeling is an effective mechanism for raising consumer awareness on the
importance of efficiency and the savings potential that lies with energy-wise products.
Appliance labeling is currently mandatory in EU, Canada, US, Mexico, Japan, Australia, and
China. Voluntary labeling schemes exist in Brazil. In the EU, our appliances comply with the
most stringent Classes A+ and A++ criteria of the European Energy Label.
Energy efficiency levels for qualifying for different European Union energy labeling classes,
such as Class A and Class A++, are defined in product specific directives provided by the EU.
Water use data is increasingly provided on efficiency labels and Australia has introduced a
water efficiency label for six household appliances.
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To boost sales and strengthen its market position, Electrolux India has improved its supply
chain management. Electrolux has implemented Information Technology tools to enable the
monitoring of inventories and there are frequent periodical reviews of status of the supply chain
and logistics network. Electrolux has implemented Cognos business intelligence (BI) for its
sales and supply chain transactional databases in 2000. The sales, marketing and supply
chain departments can pivot online information on sales and inventories. One can drill down to
different levels of products based on technology, colour, capacity and segment customers
based on channel, geography. This information has helped Electrolux in better inventory
management to the branch level, reducing overall inventory of finished goods in the system
and building up a robust channel for serving customers.
In order to rationalise the portfolio of brands, Electrolux has adopted a single brand
strategy. The company has decided to consolidate the entire white goods portfolio under
one umbrella brand, Electrolux. This move has helped the company reap advantages of
economies of scale through lower spends on media & brand building in the long run,
and move towards more profitable, sustainable, focused growth.
To reposition and re-brand itself, Electrolux increased its advertisement spending to 5-6
per cent (of sales) in 2003 from 4-5 per cent (of sales) in 2002, and also introduced new
TV commercials.
Launched Health Nourish Challenge, an initiative that introduces innovation in the home
appliances segment. It has allocated US$ 0.1 million for this initiative. The focus of this
initiative is to provide quality products through life-nourishing appliances and create
value by enhancing product features.
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Electrolux has an innovative product portfolio, which caters to the needs of a wide consumer
base.
Introduced a washing machine that can communicate with its users in two languages
called the Washy Talky.
Introduced worlds first hands-free refrigerator called Oxyaquaswing which has a foot
pedal opening door refrigerator.
Launched frost-free refrigerators equipped with plasma technology, which are equipped
with Plasma Health Guard that can kill bacteria 400 times more effectively and
eliminates odour 10 times more than the conventional deodouriser.
Launched maxiwave microwave ovens which has the 360 degree Maxiwave
technology, which cooks food evenly with 100 per cent uniform cooking.
14 Future Plans
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Electrolux is also planning to move a part of its call-centre activities from North America
to India. It is in the process of sourcing components worth US$ 30 million from Indian
manufacturers. It plans to increase this value to US$ 300 million by 2007.
100
15 Research methodology
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion.
The project was based on the survey plan. The main objective of survey was to collect
appropriate data, which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used in
the context of a research study and it explains why a particular method has been used in the
preference of the other methods
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Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are undertaken in
many circumstances when the researches is interested to know the characteristic of certain
group such as age, sex, education level, occupation or income. A descriptive study may be
necessary in cases when a researcher is interested in knowing the proportion of people in a
given population who have in particular manner, making projections of a certain thing, or
determining the relationship between two or more variables.
The objective of such study is to answer the who, what, when, where and how of the subject
under investigation. There is a general feeling that descriptive studies are factual and very
simple. This is not necessarily true. Descriptive study can be complex, demanding a high
degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher give sufficient thought
to framing research.
Questions and deciding the types of data to be collected and the procedure to be used in this
purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and
Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a
given population. Thus, it may deal with household, dealers, retail stores, or other entities.
Data on a number of characteristics from sample elements are collected and analyzed.
Cross sectional studies are of two types: Field study and Survey. Although the distinction
between them is not clear- cut , there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the
relations and interrelations among variables in a real setting. Such studies are done in live
situations like communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by me. A major
strength of survey research is its wide scope. Detail information can be obtained from a
sample of large population .Besides; it is economical as more information can be collected per
102
unit of cost. In addition, it is obvious that a sample survey needs less time than a census
inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the
major purpose. Descriptive research is description of the state of affairs, as it exists at present.
The main characteristic of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. The methods of research utilized
in descriptive research are survey methods of all kinds including comparative and co relational
methods. The reason for using such needs to be flexile in its approach, but a descriptive study
in contrast tends to be rigid and its approach cannot be changed ever now and then.
103
Pie chart:
This is very useful diagram to represent data , which are divided into a number of categories.
This diagram consists of a circle of divided into a number of sectors, which are proportional to
the values they represent. The total value is represented by the full create. The diagram bar
chart can make comparison among the various components or between a part and a whole of
data.
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Yes
(b)
No
Yes
(b)
No
105
(a)
Yes
(b)
No
38%
yes
no
62%
Interpretation: 38% peoples who doesn`t have any Electrolux product are interested to buy
Electrolux product.
106
Friends
(b)
(c)
Colleagues
Advertisements
9%
21%
15%
A
B
C
D
55%
Interpretation: Maximum 55% people inspired by Visiting Showroom to buy Electrolux product
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Q.5 which factor did you takes into consideration for purchasing our products?
(a)
Quality
(b)
(c)
Brand Image
Economic
14%
10%
61%
15%
A
B
C
D
Interpretation: Company reputation play an important role in purchasing decision. Acc. to our
research 15% people agree with above statement. Purchasing decision respectively effected
product range, location and staff.
Maximum 61% people buy Electrolux product Because of their Quality
108
Yes
(b)
No
31%
YES
NO
69%
109
Yes
(b)
No
22%
YES
NO
78%
Interpretation: 78% Electrolux consumer doesnt have any problem due to easy and eco
friendly technology. Remaining 22% face problem.
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Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
13%
19%
A
B
C
D
33%
35%
Interpretation: Maximum 35% people said that After sales service of the company is Good
and 13% people are unsatisfied with after sales service.
111
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
6%
17%
A
B
C
D
34%
43%
112
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
7%
19%
A
B
C
D
33%
41%
Interpretation: Maximum 41% people says that salesman behavior was good and 7% was
unsatisfied.
113
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
7%
18%
A
B
C
D
34%
41%
Interpretation: 41% people said that dealer service was good but 7% was unsatisfied.
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Free gift
(b)
Lucky Draw
(c)
Exchange offer
(d)
No
27%
31%
A
B
C
D
9%
33%
Interpretation: maximum 33% people received Lucky Draw and 27% didnt receive any offer.
115
Q.13 If the above company was no longer available, and then would you replace it with?
(a)
Videocon
(b)
LG
(c)
Whirlpool
(d)
Others
10%
23%
41%
A
B
C
D
26%
Interpretation: Maximum 41% people said that they would go for Videocon Product if the
above company was no longer available.
116
Q.14 If you are looking to replace the above brand, what are some of the reasons to do so?
(a)
Quality
(b)
(d)
Economic
(e)
Others
5%
24%
56%
3%
A
B
C
D
E
12%
Interpretation: Maximum 56% people are ready to shift their brand due to quality.
117
Yes
(b)
No
24%
YES
NO
76%
Interpretation: 76% people are fully satisfied with the Electrolux Product.
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17 SWOT Analysis
Strengths
In recent years, organized sector has increased its share in the market vis a vis the
unorganized sector.
Number of well established players, with new players entering Good technological
capability
Weaknesses
Opportunities
In India, the penetration level of white goods is lower as compared to other developing
countries.
Rapid urbanization
Consumer power
Multitude of brands across price points - wide variety of choice for customers
Threats
Threat of Substitutes
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18 Conclusion
Before I conclude I would like to share the key learning I derive from this project. These have
been enumerated below as follow:
The sector has been witnessing significant growth in recent years, helped by several drivers
such as the emerging retail boom, real estate and housing demand, greater disposable income
and an overall increase in the level of affluence of a significant section of the population.
The industry is represented by major international and local players such as Whirlpool, Voltas,
Blue Star, Kenstar, Videocon, etc.
The learning specific to this project has been that it provided me with a real exposure to the
field of corporate marketing involving application of theoretical facts to the practical equation.
The experience was indeed an exhaustive marketing experience.
Relationship building is one of the important abilities that play a major role in ones success in
the field of marketing. This project gave me the opportunity to enhance my relationship building
skills.
People have different personalities and attitudes therefore; good communication and
interpersonal & inter personal skills go a long way in convincing even the most stubborn or
skeptical people.
Corporate exposure i.e. interaction with senior management executives of Videocon Industries
Limited.
Gaining an in-depth knowledge about the working of production based companies.
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Dealer desire more advertisement to be done through local newspaper and cable TV
ads. To make consumers aware about the product. Hoarding in major area, mouth
publicity through dealers etc.
In newspaper advertisement should not be space oriented (half a page or full page)
instead the companys logo should be given a major stress.
Distribute the key chains and calendar to increase the popularity of Electrolux Products.
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20 Limitations
Limitations of the project and research conducted are as follows:
The crucial limitation for this study was the TIME, as it was not possible to complete the
study in a shorter span of time.
Most of the respondents did not gave complete information about newspaper even after
convincing them of not belonging from any newspaper.
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21 Bibliography
Schiffman,L.G.(1993), Consumer Behaviour, Prentice Hall International, London.
Assael Henry,(6th edition), Consumer Behaviour and marketing actions, Asian books Private
Ltd.
Lindquist Jay D. (2nd edition), Shopper, Buyer and Consumer Behaviour, Automic Dog
Publishing.
Rao M.S. & Xardel Dominique, (1st edition), Vikas Publishing House Pvt. Ltd.
Website
http://en.wikipedia.org/wiki/consumer_behaviour
http://en.wikipedia.org/wiki/marketing_research
http://www.electrolux.com
http://www.electrolux.co.in
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22 Annexure
Dear Sir/Madam
I am an MBA student and I am doing a project on Supervision & Brand Satisfaction
of Electrolux Products, in Jaipur. I would appreciate if you will please convey your views on
the different questions referred to this regard:
Name :Age
:-
E-Mail:-
Yes
(b)
No
Yes
(b)
No
Yes
(b)
No
Friends
(b)
(c)
Colleagues
Advertisements
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Q.5 which factor did you takes into consideration for purchasing our products?
(a)
Quality
(b)
(c)
Brand Image
Economic
Yes
(b)
No
Yes
(b)
No
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
Excellent
(b)
Good
(c)
Average
(d)
Unsatisfactory
(b)
Good
Excellent
126
(c)
Average
(d)
Unsatisfactory
Free gift
(b)
Lucky Draw
(c)
Exchange offer
(d)
No
Q.13 If the above company was no longer available, and then would you replace it with?
(a)
Videocon
(b)
LG
(c)
Whirlpool
(d)
Others
Q.14 If you are looking to replace the above brand, what are some of the reasons to do so?
(a)
Quality
(b)
(d)
Economic
(e)
Others
Yes
(b)
No
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