Whirlpool Project Report

Market Research On Whirlpool
Refrigerators

SUBMITTED BY:

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

INDUSTRY GUIDE FACULTY GUIDE

Mr. Pradeep Singh Rawat Ms. Seema Sahai
Marketing Delhi Branch Assistant Professor
Whirlpool of India Ltd AIBS

AMITY INTERNATIONAL BUSINESS SCHOOL,
NOIDA AMITY UNIVERSITY UTTAR
PRADESH

2

TO WHOM IT MAY CONCERN

This is to certify that _____________________, a student of Amity
International Business School, Noida, undertook a project on
___________________ at ________________________
from __________to _____________.

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

We wish all success in her/him future endeavors.

Signature with date
(Name)
(Designation)
(Company Name)

3

CERTIFICATE OF ORIGIN

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

Signature Signature
(Faculty Guide) (Student)

4

ACKNOWLEDGEMENT

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

I would also like to thank the entire team of
_____________________________, for the constant support and
help in the successful completion of my project.

Also, I am thankful to my faculty guide Prof./Mr./Ms. of my
institute, for his/her continued guidance and invaluable
encouragement.

Signature
(Student)

5

TABLE OF CONTENTS

CHAPTER
NO.
SUBJECT PAGE NO.
1 EXECUTIVE SUMMARY 6

2 INTRODUCTION 10
3 INDUSTRY PROFILE 14
4 COMPANY PROFILE 19
5 DATA 29
6 FINDINGS & ANALYSIS 46
7 RECOMMENDATIONS 57
8 BIBLIOGRAPHY 61
9 CASE STUDY 63
10 SYNOPSIS 87

6

CHAPTER 1

7

Executive Summary
Whirlpool Corporation is a global manufacturer and marketer of major home appliances.
The company manufactures in 13 countries and markets products in approximately 170
countries under 11 major brand names such as Whirlpool, Maytag Kitchen Aid, Roper,
Estate, Bauknecht, Laden and Ignis.
Whirlpool Corporation entered India in the late 80s and today has grown to become one
of the leading manufacturers and marketers of major home appliances in India. Whirlpool
Corporation entered into a joint venture agreement with TVS group to produce automatic
washers at a plant set up in Pondicherry. A modest beginning was made to establish the
Whirlpool brand in India. In 1995 Whirlpool Corporation acquired Kelvinator of India
Limited and entered into the Refrigerator market in India. In late 1995 majority
ownership was gained in the TVS joint venture and the two entities were merged to form
Whirlpool of India Limited in 1996.
Whirlpool has the distinction of having ISO certification for all its facilities in India. The
refrigerator facility is located at Faridabad and manufactures a complete range of direct
cool refrigerators. With the infusion of technology, machinery and streamlining the
processes the capacity of this plant was increased from 700,000 to 1,000,000 annually.
Whirlpools commitment to the Indian operation has resulted in the setting up of a state-
of-the-art facility for the manufacture of no frost refrigerators at Ranjangaon near Pune.
This facility has set the standards as one of the worlds front runners in environmentally
sensitive eco-friendly manufacturing units.
The washer facility is located at Pondicherry and manufactures both fully automatic and
semi automatic washers. Constant feedback is taken from the consumers resulting in
products being continuously upgrade in features and in styling.

8

Products manufactured in the above facilities match Whirlpools global standards and are
exported to over 70 countries across the globe. Whirlpool of India is today Indias largest
exporter of home appliance and has been approved as an Export House.
Thus, in short the history of the company can be stated as below:
1908: The first Automatic washer was launched to public in late 1908, by 1900
Corporation which in 1911 was renamed to Upton Machine Company.
1957: The Company was rechristened as ' The Whirlpool Corporation.'
1958: The Company moved out of country for the first time and invested in Brazilian
appliance market through purchase of equity in Multibras S.A.
1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form Whirlpool Ltd.
1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland,
Netherlands and Belgium
1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC
manufacturing facility of Kelvinator India was also acquired.
1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to
form Whirlpool of India Ltd
1999: Whirlpool of India crossed the milestone of 1 million sales of appliances.
2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white
goods company.

9

Vision
Every Home Everywhere with Pride, Passion and Performance
Mission
Everyone, Passionately Creating Loyal Customers for Life
Values
Whirlpools values are constant and define the way that all Whirlpool Corporation
employees are expected to behave and conduct business everywhere in the world.
Respect We must trust one another as individuals and value the capabilities and
contributions of each person.
Integrity We must conduct all aspects of business honorably ever mindful of the
longtime Whirlpool Corporation belief that there is no right way to do a wrong thing.
Diversity and Inclusion We must maintain the broad diversity of Whirlpool people
and ideas. Diversity honors differences, while inclusion allows everyone to contribute.
Together, we create value.
Teamwork We must recognize that pride results in working together to unleash
everyones potential, achieving exceptional results.
Spirit of Winning We must promote a Whirlpool culture that enables individuals and
teams to reach and take pride in extraordinary results and further inspire the "Spirit of
Winning" in all of us.

10

CHAPTER 2

11

Introduction
By the way of doing the marketing mix mapping for the Whirlpool, it will provide
necessary market information, competitors marketing mix strategies and accordingly
comparison can be done and which will ultimately help to offer the product with the right
combination of the four Ps and with this Whirlpool can improve their results and
marketing effectiveness in Refrigerators, washing machine and A.C segment
Consumer durables Industry is growing at a rapid pace. Price Affordability, Product
Awareness and availability have helped the industry players to generate great business.
But doing business in Indian Market is not easy. Continuous improvement in Product
quality and post sales service at affordable price is common to all Consumer durable
manufacturers across Industry. But the company which would introduce innovative
product, with unique technology and provide convenience by satisfying them with
something new would surely attract customers. Whirlpool Appliances which is one of
the largest Home Appliances brand in the world.
There are more worries than just fierce competition for Whirlpool, to get a foothold in an
already crowded market. Other cheap Chinese products have flooded the Indian market
over the last few years, leaving Whirlpool with little chance for a premium positioning.
Trade circles have similar apprehensions, and fighting this image is taking most of
Whirlpool time in India.
Despite this Whirlpool entered the Indian market with a premium line of products, which
prohibited the brand from building a mass appeal. Although, there are so many players in
the market and there is enough space for players like Whirlpool seeing the economy grow

12

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

Objectives
As an integral part of the curriculum, all MBA students are required to complete
summer training internship in an industry or organization in two months. It is a great
opportunity for us to prove ourselves.

The main objective is to supplement the student theoretical knowledge with exposure to
the working environment of an organization. The program enhances the students
capabilities to cope up with the uncertainty and challenges, which are the part and parcel
of the organization. The exposure we all will get will benefit us immensely from the
practical point of view.

For the same, I had an opportunity to do my training in Whirlpool Corporation. I had
chosen to work in the marketing department. It gave me an insight into function of trade
marketing that helped me to learn about the organization. I am thoroughly enriched with
the knowledge and mechanism of working of organization.

All the staff members of Whirlpool Corporation with whom I got an opportunity to
interact were very co-operative and made me very comfortable and accepted me as apart
of their organization. I will always cherish the relationship with all of them. I was always

13

supported with their expert comments and suggestion concerning various aspects of the
project and they guided me to complete this project very diligently.

The aim of this report is to learn some practical knowledge and how to convert our
theoretical work into practical work. In marketing sector, this training is very beneficial
for me because here I have learnt how to interact with the retail shop owners. I have taken
this project very sincerely and I have gained more knowledge from this project.

PRACTICAL KNOWLEDGE GAINED FROM TRAINING

1. HOW THE COMPANY PREPARES ITSELF FOR THE COMPETETION

2. HOW TO SET PRICES FOR DIFFERENT PRODUCTS

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

4. DIFFERENT TAXES WHICH ARE CHARGED

14

CHAPTER 3

15

Industry Profile

Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign
players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.
Today, these players control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing
very fast because of rise in living standards, easy access to consumer finance, and wide
range of choice, as many foreign players are entering in the market
With the increase in income levels, easy availability of finance, increase in consumer
awareness, and introduction of new models, the demand for consumer durables has
increased significantly. Products like washing machines, air conditioners, microwave
ovens, color televisions (CTVs) are no longer considered luxury items. However, there
are still very few players in categories like vacuum cleaners, and dishwashers
Consumer durables sector is characterized by the emergence of MNCs,exchange offers,
discounts, and intense competition. The market share of MNCs in consumer durables
sector is 65%. MNC's major target is the growing middle class of India. MNCs offer
superior technology to the
Consumers whereas the Indian companies compete on the basis of firm grasp of the local
market, their well-acknowledged brands, and hold over wide distribution network.
However, the penetration level of the consumer durables is still low in India.

16

Home Appliance Companies in India
There are many Home Appliance companies in India like Videocon, Voltas, Godrej,
Bluestar, Kenstar etc. Apart from them there are various international companies also that
deal in domestic appliances. Some of these home appliances manufacturers are Samsung,
LG, IFB, Whirlpool, and Kenmore etc. With the arrival of international brands in Indian
market, the competition among rival companies have become stiff, which results in
further improvement in qualities and depreciation in prices of most of the home
appliances in India. Since, a majority of products are electrically operated; the focus is on
such household appliances that are efficient in power consumption.

MAJOR COMPANIES
Whirlpool
LG
Samsung
Goodrej
Panasonic
Hitachi
Haier

17

Industry Growth

18

SWOT- Industry

Scope
1. In term of purchasing power parity (ppp), India is the 4th largest economy
in the world and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $400 billion by on
2010
3. India has the youngest population amongst the major countries. There are
lots of people in the different income categories nearly the two third
population is below the age of 35 and nearly 50% is below 25.
4. There are 56 million people in middle class, who are earning us$4,400-
US$ 21,800 a year. And there are 6 million rich household in India.
5. The upper-middle and high-income household in urban areas are expected
to grew to 38.2 million in 2007 as against 14.6 million in 2000
Opportunity
1. In India the penetration level of white goods is lower as compared to
other developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Weaknesses & Threats
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian countries.

19

CHAPTER 4

20

Company Profile
Whirlpool, right from its inception in 1911 as first commercial manufacturer of
motorized washers to the current market position of being world's number one
manufacturer and marketer of major home appliances, has always set industry milestones
and benchmarks. The parent company is headquartered at Benton Harbor, Michigan,
USA with a global presence in over 170 countries and manufacturing operation in 13
countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate,
Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond
achievable feat of any other in the industry.
Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it
emerged as truly global leader in the1980's. This encouraging trend brought the company
to India in the late 1980s. It forayed into the market under a joint venture with TVS group
and established the first Whirlpool manufacturing facility in Pondicherry.
Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into
Indian refrigerator market as well. The same year also saw acquisition of major share in
TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to
create Indian home appliance leader of the future, Whirlpool India. This expanded the
company's portfolio in the Indian subcontinent to washing machines, refrigerator,
microwave ovens and air conditioners.
Today, Whirlpool is the most recognized brand in home appliances in India and holds a
market share of over 25%. The company owns three state-of-the-art manufacturing
facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups

21

features an infrastructure that is witness of Whirlpool's commitment to consumer interests
and advanced technology.
In the year ending in March '09, the annual turnover of the company for its Indian
enterprise was Rs.1,719 Crores.
The company's brand and image speaks of its commitment to the homemaker from every
aspect of its functioning. It has derived its functioning principles out of an undaunted
partnership with the homemakers and thus a slogan of You and whirlpool, the world's
best homemaker dots its promotional campaigns. The products are engineered to suit the
requirements of smart, confident and in-control' homemaker who knows what she wants.
The product range is designed in a way that it employs unique technology and offers
consumer relevant solutions.

22

HISTORY OF WHIRLPOOL

1911 Louis Upton founded the Upton Machine in this year to produce motor-driven
wringer washers.
1916 First order of washers was sold to Sears, Roebuck & Co.
1929 Upton Machine Company merged with Nineteen Hundred Washer Company of
NewYork.
1948:First 'Whirlpool' brand automatic washer with dual distribution was
introduced. It included two product lines one each was distributed through Sears and
Nineteen Hundred.
1957: The Company was rechristened as ' The Whirlpool Corporation.'
1958: the Company moved out of country for the first time and invested in Brazilian
appliance market through purchase of equity in Multibras S.A.
1968: The Elisha Gray II Research & Engineering Center was completed in Benton
Harbor. In the same year the company's revenues crossed the legendary $1 Billion
mark for the first time.
1978: Within a decade company doubled its feat of $1 Billion mark and reached the
$2billion revenue level.
1986: The 'Kitchen Aid' division of Hobart Corporation was purchased.
1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS
WhirlpoolLtd.
1989: This was a historic year since the revenues catapulted to heights of over $6
Billion mark. Also, the joint venture with N.V.Philips of Netherlands called
Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.

23

1991: The Company introduced and committed globally to its Worldwide Excellence
System, which is a TQM program dedicated to exceeding customer expectations. The
vision to globalize 'Whirlpool Corp'. was realized in the same year.
1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland,
Netherlands and Belgium
1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC
manufacturing facility of Kelvinator India was also acquired
1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together
to form Whirlpool of India Ltd.
1998: This year gave birth to a new company vision that says, "Every Home
every where with Pride, Passion & Performance."
1999: Whirlpool of India crossed the milestone of 1 million sales of appliances.
2002: The ' Whirlpool Strategic Architecture ' was launched as a framework to
achieve the vision. The revenues of Whirlpool Corp. soared to $10.5 Billion.
2001: Whirlpool India registered profit & sold 1.2 million appliances. It also
achieved the No.1 position in DC & FA.
2002: The Aircon range was successfully launched and the Whirlpool of India
acquired 6% market share.
2003: A new mission statement of "Everybody creating loyal customers for life" was
adopted.
2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white
goods company

24

Company Growth

25

New Product Launches

26

Key Priorities For 2010

27

SWOT- Company

Strengths

1. The company manufactures in 13 countries on 4 continents namely :-- Canada,
United States, Mexico, Argentina, Brazil, Slovakia, Germany, Sweden, France,
Italy, South Africa, China and India and markets products in more than 170
countries under major Brands (26 including Affiliates) names such as Whirlpool,
Kitchen Aid, Roper, Estate, Bauknects, Ignis, Laden, Inglis, Braotemp, Crolls and
Acros.

2. Whirlpool is also the principal supplier to Searo, Roebuck and company of many
major home appliances marketed under the Kenmore brand names.

3. Whirlpool Corporation is the worlds leading manufacturer and marketer of
major home appliances.
Weakness

1. Service issues
2. Dealer price margin

28

Opportunity

1. In India the penetration level of white goods is lower as compared to other
developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Threats

1. Increasing competition

29

CHAPTER 5

30

Data

1. Primary Data Collection
For Product:
Customer survey through use of a structured questionnaire.
For Price:
Direct meeting with the dealers to know other companies pricing, by collecting and
analyzing prices for customers (MRP) dealers (D.P), direct dealers, and distributors.
For Place:
Obtaining feedback from the existing dealers of Whirlpool and other consumer electronic
dealers in the Delhi market through direct interviews. To establishing and implementing
processes for obtaining ideas, Information and insights from the dealers regarding the
Whirlpool marketing proposition for refrigerators and washing machine, after that
evaluating the feedback, assessing the benefits and any risks associated with possible
options, and making recommendations towards enhancing the WHIRLPOOL marketing
proposition especially place or in other words dealer expansion in Delhi city.
Promotion:
Observing the number of marketing activities done by the other companies by keeping
the record of activities done by them, and also attending the activities to feel the
difference between the Whirlpool marketing activities.
2. Secondary Data Collection
Company websites
Journals
Annual reports.

31

Data Collection-refrigerators (DC )

BRA
ND
SUB
BRA
ND
CAP
ACI
TY
S
T
A
R
MODE
L NO.
FEATURES M
RP
DP M
OP

LG
dc 200 5 gl-
211nt
d5
Fastest Ice Making,Cell Fresh Crisper,Base
Stand with Drawer,anti bacteria casket
12
15
0
11
65
0
10
00
0
dc 200 5 gl-
211sm
dg5
Fastest Ice Making,Cup-Deodorizer,open
door alarm,Base Stand with Drawer,Cell
Fresh Crisper
12
60
0
12
15
0
10
50
0
dc 200 5 gl-
211sa
dg5
Fastest Ice Making,Cup-Deodorizer,Anti
Bacteria Gasket,Base Stand with
Drawer,Cell Fresh Crisper
13
05
0
12
60
0
11
80
0
dc 230 5 gl-
241n
m5
Cell Fresh Crisper,Fastest Ice Making 13
25
0
12
85
0
11
20
0
dc 230 5 gl-
241sm
g5
Cell Fresh Crisper,Fastest Ice Making,Cell
Fresh Crisper
13
90
0
13
45
0
12
40
0
dc 230 5 gl-
241nt
5
Cell Fresh Crisper,Fastest Ice Making,Cup
- Deodorizer,humidity controller
13
65
0
13
20
0
11
75
0
dc 230 5 gl-
241sa
dg5
Cell Fresh Crisper,Fastest Ice Making,ART
VCM Finish
14
65
0
14
20
0
12
60
0
dc 270 5 gl-
281sm
g5
Cell Fresh Crisper,Fastest Ice
Making,Open Door Alarm
15
20
0
14
65
0
12
47
5
dc 270 5 gl-
281n
m5
Cell Fresh Crisper,Fastest Ice Making 14
70
0
14
20
0
12
10
0
dc 215 5 gl-
225fd
d5
Cell Fresh Crisper,Fastest Ice Making,Vita
Plus
12
65
0
12
10
0
11
00
0
sam
sun
g
dc 200 5 gl-
211n
m5
Fastest Ice Making,Cup-Deodorizer,Anti
Bacteria Gasket
11
60
0
11
10
0
99
50
dc 180 4 GL185
RP4
Opaque Door Baskets,Glass Veg Tray
Cover with Deco
84
50
78
00
71
00
dc 180 4 GL185
tP4
Opaque Door Baskets,Glass Veg Tray
Cover with Deco
85
50
79
00
70
00
dc 185 5 GL-
195N
M5
Open Door Alarm,Fastest Ice Making,Cell
Fresh Crisper
10
20
0
97
00
87
50

32

dc 185 5 GL-
195Nh
5
Open Door Alarm,Fastest Ice Making,Cell
Fresh Crisper
93
00
89
00
81
00
dc 185 5 GL-
195Np
5
Anti Bacteria Gasket,Fastest Ice
Making,Works without Stabilizer
93
50
90
50
81
00
dc 185 5 GL-
195Nc
5
Anti Bacteria Gasket,Fastest Ice
Making,Works without Stabilizer
94
00
90
00
80
00
dc 185 5 GL-
195sm
dg5
Fastest Ice Making, Open Door Alarm,
Toughened Glass Shelves, Base Stand
with Drawer
11
20
0
10
90
0
92
00
dc 185 5 gl
195sa
dg5
Fastest Ice Making, Open Door Alarm,
Toughened Glass Shelves, Base Stand
with Drawer
12
10
0
11
60
0
10
05
0

SA
MS
UN
G
dc 210 5 ra21b
d
Stabiliser Free Operation,Rust Resistant
Body,Fresh Tech
12
65
0
11
70
0
10
79
0
dc 190 5 ra19w Stabiliser Free Operation,Rust Resistant
Body,Fresh Tech
11
70
0
11
15
0
10
39
0
dc 210 5 ra21cd Stabiliser Free Operation,Rust Resistant
Body,Fresh Tech
12
70
0
12
20
0
10
99
0
dc 190 5 ra19y Stabiliser Free Operation,Rust Resistant
Body,Fresh Tech
11
30
0
10
75
0
91
10
dc 230 5 ra23z Stabiliser Free Operation,Rust Resistant
Body,Fresh Tech ,anti-fungal door gasket
14
05
0
13
45
0
11
75
0
dc 190 5 ra19fd Stabiliser Free Operation,Fresh Tech,Rust
Resistant Body
10
99
0
10
20
0
89
00
dc 190 5 RA19
WBPS
1/XTL
Stabiliser-free operation,Fresh kit,wired
shelves
11
70
0
11
15
0
92
90
dc 190 5 RA19
WBLB
1/XTL
shelves
12
40
0
11
30
0
99
90
dc 210 5 ra21zb
ux1/xt
l
shelves,anti-fungal door gasket,base
stand
12
35
0
11
80
0
10
40
0
dc 210 5 RA21
WBPS
Body,Fresh Tech
12
70
12
20
10
90

33

1/XTL 0 0 0
dc 210 5 RA21
WBPR
1/XTL
Body,Fresh Tech
12
70
0
12
20
0
10
99
0
dc 210 5 RA21
WBLB
1/XTL
case veg divider,Stabiliser-free
operation,Fresh kit,wired shelves,anti-
fungal door gasket,base stand
13
10
0
12
60
0
11
10
0
dc 230 5 RA23Y
BMS1/
XTL
13
40
0
12
90
0
11
50
0
dc 230 5 RA23
WBPS
1/XTL
14
35
0
13
65
0
12
60
0
dc 230 5 RA23
WBLB
1/XTL
14
95
0
14
25
0
12
90
0
dc 185 5 gde-
19d4
Stabiliser Free Operation 160 V 250 V 11
18
0
10
48
0
89
00

GO
DRE
J
dc 225 5 23d4 Stabiliser Free Operation 160 V 250 V 12
98
0
12
36
0
11
50
0
dc 173 4 gdn18
5b
Stabiliser Free Operation 160 V 250
V,ZOP Technology 10 Year Rust Free
Warranty,100% green
90
60
84
80
78
00
dc 181 3 gda19
d
ZOP Technology 10 Year Rust Free
Warranty,100% green,High Efficiency
Compressor
96
90
92
20
84
00
dc 300 2 gdd31
0s
Compressor
16
48
0
15
60
0
14
20
0
dc 300 2 gdd31
0p
Compressor
15
87
0
15
07
0
14
30
0
dc 99 3 gdc
110s
Zop technology,Glass veg tray
cove,external thermostat control
79
40
73
40
69
90
dc 170 3 gdn
180p
Adjustable Shelves,Water Dispenser, 87
60
81
80
72
00
dc 173 4 gdn18
5c
Warranty,100% green
92
10
86
30
75
00
dc 173 4 gdn18
5d
Warranty,100% green
94
10
88
30
77
50
dc 181 3 gda19 ZOP Technology 10 Year Rust Free 92 87 75

34

b Warranty,100% green,High Efficiency
Compressor
70 60 00
dc 181 3 gda19
c
Compressor
93
80
89
20
76
50
dc 183 5 gde19
b1
Compressor
97
40
92
50
83
00
dc 183 5 gde19
b2
Compressor
10
05
0
95
80
84
50
dc 183 5 gde19
c2
Compressor
10
61
0
10
13
0
88
90
dc 221 5 gde23
b1
Compressor
11
26
0
10
76
0
94
00
dc 221 5 gde23
c2
Compressor
12
47
0
11
86
0
10
10
0
dc 250 5 gde26
b1
Compressor
13
81
0
13
07
0
11
50
0
dc 250 5 gde26
c2
Compressor
14
60
0
13
84
0
11
65
0

35

Data Collection-refrigerators (FF )

S
.
N
O
BR
AN
D
SU
BB
RA
ND
CA
PA
CIT
Y
S
T
A
R
MO
DEL
NO.
FEATURES M
RP
D
P
M
O
P
1 LG ff 32
0
5 GL-
338
VT5
Green Ion Door Cooling Technology,Cell Fresh
Crisper ,Humidity Controller
24
10
0
22
75
0
20
47
5
LG ff 29
0
5 GL-
308
va5
21
50
0
20
25
0
18
63
0
LG ff 26
0
5 GL-
278
va5
19
42
5
18
15
0
16
70
0
LG ff 55
9
4 B65
2ys
p
56
90
0
52
00
0
46
80
0
LG ff 42
2
4 GL-
478
ysx
4
41
00
0
39
80
0
36
82
0
LG ff 49
1
4 gl-
548
ytx
4
49
05
0
48
55
0
44
75
0
LG ff 32
0
5 gl-
338
vsx
5
25
45
0
25
30
0
24
00
0
LG ff 39
0
4 gl-
408
yvq
g4
31
45
0
30
95
0
18
90
0
LG ff 35
0
4 gl-
368
ytq
g4
27
65
0
27
60
0
25
90
0
LG ff 32
0
5 gl-
338
va5
24
45
0
24
40
0
22
00
0
LG ff 26
0
4 gl-
278
ves
/VA
4
Cell Fresh Crisper , Humidity Controlller , Anti
Bacteria Door,Green Ion Door Cooling
Technology
19
15
0
18
15
0
17
10
0

36

LG ff 26
0
5 gl-
278
vs5
Anti Bacteria Gasket,Freeze 'n' Cook
Box,Green Ion Door Cooling,Catechein
Deodrizer,Stabilizer Free
19
65
0
18
65
0
17
30
0
LG ff 29
0
5 gl-
308
vsx
5
22
75
0
21
25
0
19
75
0
LG ff 32
0
5 gl-
338
vsx
5
25
45
0
23
95
0
22
30
0
LG ff 24
0
5 gl-
255
vm
5
green Ion Door Cooling Technology,Cell Fresh
Crisper ,egg cum ice tray,
15
30
0
16
30
0
14
75
0
LG ff 24
0
5 gl-
258
vt5
16
40
0
17
40
0
16
00
0
LG ff 24
0
5 gl-
258
va5
16
60
0
17
60
0
16
20
0
LG ff 24
0
5 gl-
255
vv5
16
45
0
15
95
0
14
50
0
LG ff 24
0
5 gl-
255
vv5
BK
16
65
0
16
15
0
14
65
0
LG ff 24
0
5 gl-
255
va5
Technology
16
80
0
16
30
0
14
80
0
LG ff 24
0
5 gl-
258
ve5
Technology
17
45
0
16
95
0
15
20
0
LG ff 24
0
5 gl-
258
vs5
Technology
17
85
0
17
35
0
15
50
0
LG ff 26
0
5 gl-
275
vv5
Technology
18
10
0
17
50
0
15
60
0
LG ff 26
0
5 gl-
275
vv6
bk
Technology
18
50
0
17
90
0
15
75
0
LG ff 26
0
5 gl-
275
va5
Technology
18
65
0
18
05
0
15
80
0

37

LG ff 26
0
5 gl-
278
vt5
19
10
0
18
50
0
16
35
0
LG ff 26
0
5 gl-
278
va5
19
42
5
18
82
5
16
50
0
LG ff 26
0
5 gl-
278
ve5
19
42
5
18
82
5
16
50
0
LG ff 29
0
5 gl-
305
vv5
Technology
20
30
0
19
50
0
17
47
5
LG ff 29
0
5 gl-
305
vv5
bk
Technology
20
70
0
19
90
0
17
65
0
LG ff 29
0
5 gl-
305
va5
Technology
20
85
0
20
05
0
17
70
0
LG ff 29
0
5 gl-
308
vt5
Technology
21
30
0
20
50
0
18
00
0
LG ff 29
0
5 gl-
308
va5
Technology
21
50
0
20
70
0
18
20
0
LG ff 29
0
5 gl-
308
ve5
Technology
21
50
0
20
70
0
18
20
0
LG ff 32
0
5 gl-
335
vv5
Technology
22
90
0
22
00
0
18
75
0
LG ff 32
0
5 gl3
35v
v5b
k
Technology
23
50
0
22
60
0
19
10
0
LG ff 32
0
5 gl-
335
va5
Technology
23
65
0
22
75
0
19
30
0
LG ff 32
0
5 gl-
338
va5
Technology
24
30
0
23
40
0
19
55
0
LG ff 32
0
5 gl-
338
ve5
Technology
24
30
0
23
40
0
19
55
0
LG ff 35
0
4 gl-
365
29
85
28
35
25
15

38

ym
qg4
Technology 0 0 0
LG ff 35
0
4 gl-
365
yvq
g4
Technology
25
50
0
24
00
0
22
30
0
LG ff 35
0
4 gl-
368
yvq
g4
Technology
26
15
0
24
65
0
22
55
0
LG ff 35
0
4 gl-
368
yaq
g4
Technology
27
10
0
25
60
0
23
00
0
LG ff 35
0
4 gl-
368
ytq
g4
Technology
27
60
0
26
10
0
23
45
0
LG ff 35
0
5 gl-
368
ysq
g5
Technology
28
50
0
27
00
0
23
70
0
LG ff 39
0
4 gl4
05y
mq
g4
Technology
29
85
0
28
35
0
24
35
0
LG ff 39
0
4 gl4
05y
vqg
4
Technology
30
50
0
29
00
0
24
75
0
LG ff 39
0
4 gl4
08y
tqg
4
Technology
32
50
0
31
00
0
27
90
0
LG ff 39
0
4 gl4
08y
sqg
4
Technology
33
50
0
32
00
0
28
45
0
LG ff 42
2
4 gl4
78y
lq4
Technology
36
55
0
35
05
0
32
80
0
LG ff 42
2
4 gl4
78y
tqg
4
Technology
38
00
0
36
50
0
34
00
0
LG ff 42
2
4 gl4
78y
39
55
38
05
35
25

39

tx4 Technology 0 0 0
LG ff 42
2
4 gl4
78y
sx4
Technology
41
00
0
39
50
0
35
60
0
LG ff 46
6
4 gl5
28y
lq4
Technology
41
55
0
40
05
0
36
35
0
LG ff 46
6
4 gl5
28y
tqg
4
Technology
43
00
0
41
50
0
36
90
0
LG ff 46
6
4 gl5
28y
tx4
Technology
45
55
0
44
05
0
40
50
0
LG ff 46
6
4 gl5
28y
sx4
Technology
47
00
0
45
50
0
40
90
0
LG ff 49
1
4 gl5
48y
tq4
Technology
47
00
0
45
50
0
40
90
0
LG ff 49
1
4 gl5
48y
tx4
Technology
48
55
0
47
05
0
44
00
0
LG ff 49
1
4 gl5
48y
sx4
Technology
50
00
0
48
50
0
45
60
0
LG ff 55
9
4 gr-
b65
2yls
Technology
55
00
0
51
00
0
47
00
0
LG ff 60
4
4 gr-
m7
12y
sq
Technology
60
90
0
57
00
0
52
80
0
LG ff 60
4
4 gr-
m7
12y
tq
Technology
60
00
0
56
00
0
53
00
0
LG ff 58
1
gcb
217
wv
q
Multi Airflow,Slide out Spill Stop
Shelves,Snack & dairy corner,Digital Multi
Sensors,Bio Shield,LED display
57
00
0
53
00
0
48
50
0
LG ff 58
1
gcb
217
wlq
60
00
0
56
00
0
52
00
0
LG ff 58
1
gcb
127
61
00
57
00
58
00

40

btj Sensors,Bio Shield,LED display 0 0 0
LG ff 56
7
gcl2
17f
vq
70
00
0
65
00
0
59
45
0
LG ff 56
7
gcl2
17
wtq
75
00
0
70
00
0
64
75
0
LG ff 56
7
gcl2
17b
tj
75
00
0
70
00
0
64
75
0
LG ff 56
7
gcl2
17b
pj
80
00
0
75
00
0
70
35
0
LG ff 56
7
gcp
217
wv
q
90
00
0
80
00
0
75
00
0
LG ff 56
7
gcp
227
lgb
b
11
10
00
10
50
00
99
80
0
LG ff 56
7
gcp
227
lgb
w
11
50
00
11
20
00
10
67
50
LG ff 72
1
grp
267
btb
12
00
00
11
00
00
10
35
00
LG ff 72
1
grp
267
zgb
15
00
00
14
00
00
13
47
00
LG ff 69
3
grp
247
jhm
17
50
00
16
50
00
15
90
00
LG ff 79
5
grg
287
stw
22
50
00
20
50
00
19
78
00
2 SA
MS
UN
G
ff 23
0
5 rt-
24y
bm
s1
i-SPIN COOL ,Humidity Control Crispers 16
00
0
15
15
0
11
30
0
SA
MS
UN
G
ff 28
0
5 rt-
29z
blb
Freshness Lamp 20
75
0
18
75
0
15
90
0
SA ff 43 4 rt- cool curtain system ,multi-flow,Silver Nano 40 36

41

MS
UN
G
0 50
mm
sm
technology 00
0
50
0
SA
MS
UN
G
ff 53
0
4 rt-
63
wbs
m
cool curtain system ,multi-flow,digital display
and control,air shower in freezer
51
00
0
45
00
0
SA
MS
UN
G
ff 37
5
4 rt-
41
mcs
m1
coolever zone,cool booster,air shower,multi
flow
31
00
0
26
30
0
SA
MS
UN
G
ff 40
0
4 rt-
45
mcs
m1
coolever zone,cool booster,air shower,multi
flow,Silver Nano deodoriser
32
00
0
28
50
0
SA
MS
UN
G
ff 28
0
5 rt-
29z
bps
cool pack in freezer and ref compartment,i-
spin cool,twin thermo sensor
20
75
0
18
75
0
17
10
0
SA
MS
UN
G
ff 31
5
5 rt3
2zb
ps1
22
80
0
21
60
0
19
00
0
SA
MS
UN
G
ff 23
0
5 rt-
24y
bux
1
85
0
16
15
0
13
30
0
SA
MS
UN
G
ff 23
0
5 rt-
24z
bps
1
05
0
16
15
0
13
30
0
SA
MS
UN
G
ff 23
0
5 rt-
24z
bpr
1
05
0
16
15
0
13
30
0
SA
MS
UN
G
ff 23
0
5 rt-
24z
bcr
1
25
0
16
35
0
13
50
0
SA
MS
UN
G
ff 23
0
5 rt-
24z
blb
1
25
0
16
35
0
13
50
0
SA
MS
UN
G
ff 23
0
5 rt-
24e
bux
1
15
0
17
25
0
14
50
0

42

SA
MS
UN
G
ff 25
0
5 rt-
26y
bux
1
Air Flow type i-Spin Cool ,
InsulationCyclopentane, Clean Back,
Deodourising Temparature Control Dial,
Quick Freezing Component, Chiller Tray
17
50
0
16
55
0
13
65
0
SA
MS
UN
G
ff 25
0
5 rt-
26z
bps
1
17
40
0
16
45
0
13
60
0
SA
MS
UN
G
ff 25
0
5 rt-
26z
bpr
1
17
40
0
16
45
0
13
60
0
SA
MS
UN
G
ff 25
0
5 rt-
26z
blb
1
17
60
0
16
65
0
13
65
0
SA
MS
UN
G
ff 26
0
5 rt-
27y
bm
s1
Cool pack in freezer and ref
compartment,Unique freshness
lamp,Stabiliser-free operation
16
80
0
15
90
0
12
20
0
SA
MS
UN
G
ff 26
0
5 rt-
27y
bux
1
18
25
0
17
35
0
14
55
0
SA
MS
UN
G
ff 26
0
5 rt-
27z
bcr
1
19
05
0
18
05
0
16
60
0
SA
MS
UN
G
ff 26
0
5 rt-
27z
blb
1
19
05
0
18
05
0
16
60
0
SA
MS
UN
G
ff 28
0
5 rt-
29y
bm
s1
19
15
0
17
75
0
14
90
0
SA
MS
UN
G
ff 28
0
5 rt-
29y
bux
1
19
75
0
18
45
0
16
75
0
SA
MS
UN
G
ff 28
0
5 rt-
29z
bpr
1
20
25
0
18
75
0
16
90
0
SA
MS
UN
ff 28
0
5 rt-
29z
bpr
20
25
0
18
75
0
16
90
0

43

G 1
SA
MS
UN
G
ff 28
0
5 rt-
29z
bcr
1
20
75
0
19
25
0
17
00
0
SA
MS
UN
G
ff 28
0
5 rt-
29z
blb
1
20
75
0
19
25
0
17
00
0
SA
MS
UN
G
ff 31
5
5 rt3
2yb
ms
1
21
40
0
20
30
0
18
20
0
SA
MS
UN
G
ff 31
5
5 rt3
2yb
ux1
22
40
0
21
20
0
18
75
0
SA
MS
UN
G
ff 31
5
5 rt3
2zb
pr1
22
80
0
21
60
0
19
10
0
SA
MS
UN
G
ff 31
5
5 rt3
2zbl
b1
23
10
0
21
90
0
19
45
0
SA
MS
UN
G
ff 31
5
5 rt3
2eb
ux1
23
40
0
22
20
0
19
80
0
SA
MS
UN
G
ff 34
5
5 rt3
5yb
ms
1
24
60
0
23
10
0
20
00
0
SA
MS
UN
G
ff 34
5
5 rt3
5yb
ux1
25
10
0
23
60
0
22
30
0
SA
MS
UN
G
ff 34
5
5 rt3
5zb
ps1
25
50
0
24
00
0
22
55
0
SA
MS
UN
G
ff 34
5
5 rt3
5zb
pr1
25
50
0
24
00
0
22
55
0
SA
MS
ff 34
5
5 rt3
5zbl
25
70
24
20
22
70

44

UN
G
b1 0 0 0
SA
MS
UN
G
ff 34
5
5 rt3
5eb
ux1
27
00
0
25
50
0
22
95
0
3 GO
DR
EJ
ff 33
0
4 gfe-
35d
z
Silver Shower Technology,Silver Fresh
Zone,Aroma Lock,zop technology,polybag
suspender
24
70
0
23
83
6
21
70
0
GO
DR
EJ
ff 29
4
4 gfe-
31d
y
suspender
22
23
0
20
78
6
19
30
0
GO
DR
EJ
ff 27
1
4 gfe-
29d
z
suspender
21
48
0
20
00
2
19
00
0
GO
DR
EJ
ff 23
1
4 gfe-
25a
y
suspender
15
40
0
14
24
5
13
20
0
GO
DR
EJ
ff 28
0
4 gfe-
30d
y
suspender
20
30
0
18
91
8
18
10
0
GO
DR
EJ
ff 35
0
4 gfe-
36d
y
suspender
24
93
0
23
33
6
22
80
0
GO
DR
EJ
ff 25
0
4 27b
y
Anti-B Technology,Deodorizer 17
51
0
16
07
0
15
00
0
GO
DR
EJ
ff 27
0
4 29b
z
08
0
16
22
0
14
20
0
GO
DR
EJ
ff 23
0
4 gfe
25a
c
Having Anti-B technology, Poly Bag
Suspenders,Wire shelves,Cool Shower
Technology,Full length Lamp
14
11
0
13
03
5
10
90
0
GO
DR
EJ
ff 23
0
4 gfe
25a
d
14
71
0
13
58
5
11
15
0
GO
DR
EJ
ff 23
0
4 gfe
25a
z
15
97
0
14
79
5
11
95
0
GO
DR
EJ
ff 23
0
4 gfe
25b
y
16
48
0
15
24
5
12
45
0
GO
DR
EJ
ff 23
0
4 gfe
25b
z
17
05
0
15
79
5
12
50
0
GO ff 25 4 gfe Anti-B Technology,Deodorizer 17 16 13

45

DR
EJ
0 27b
y
51
0
07
0
00
0
GO
DR
EJ
ff 25
0
4 gfe
27b
z
08
0
16
62
0
13
20
0
GO
DR
EJ
ff 27
0
4 gfe
29d
z
suspender
21
48
0
20
00
2
17
75
0
GO
DR
EJ
ff 29
4
4 gfe
31d
z
suspender
23
08
0
21
57
0
18
60
0
GO
DR
EJ
ff 33
0
4 gfe
35d
y
suspender
24
70
0
23
83
6
19
66
0
GO
DR
EJ
ff 28
0
4 gfe
30d
z
suspender
21
77
0
19
70
2
16
89
0
GO
DR
EJ
ff 30
5
4 gfe
32d
y
suspender
21
92
0
20
53
6
18
25
0
GO
DR
EJ
ff 30
5
4 gfe
32d
z
suspender
22
77
0
21
32
0
18
30
0
GO
DR
EJ
ff 35
0
4 gfe
36d
z
suspender
25
70
0
24
12
0
22
40
0

46

CHAPTER 6

47

Findings & Analysis

Preferred brand in the last purchase

Out of people surveyed 36% Whirlpool in their last purchase, and this preference was
mainly for refrigerators. 10% of the people surveyed opted for Godrej, 15% LG & 23%
Samsung.

Haier
7%
whrilpool
36%
Samsung
23%
Godrej
10%
Videocon
9%
LG
15%

48

Factors affecting their preference for preferred brand

Brand name matters always thats why most of the companies which was opted by the
customers they preferred because of the brand name the market leaders like LG ,
Samsung is dominating because of their aggressive brand building exercise.
After this service factor comes in the pictures, for each surveyed brand people preference
revolves around two major factor brand image and service. consumer durables represents
lifestyle and if a person wants to purchase any consumer durable item he/she prefers
those products which is already established, or in other worlds which gives them a proud
to own feeling. People opted Whirlpool in the attributes like product features, it
represents if the product features of Whirlpool can be communicate suitably, there is
much more potential in the brand itself. This also suggests that Whirlpool needs to push
products before a customer enters inside the store; it will enhance the brand value and
will push the brand sale as well.
0%
5%
10%
15%
20%
25%
30%
35%
40%
LG
Samsung
WHRILPOOL

49

This shows how much customers are aware of Whirlpool, and in other way what is the
effect of all the marketing exercises, and the communication done so far for the
Whirlpool.82% of the people surveyed were aware of Whirlpool. Marketing strategies for
Whirlpool to enhance their brand awareness and visibility in the market place has been
successful.

18
82
Brand Awareness
no
Yes

50

77% of people surveyed knows about Whirlpool but only 33% of the people surveyed
had look on Whirlpool product before making the purchase decisions, this is surrounded
by many factors like Place strategy of Whirlpool, because of unavailability of the brand
in the customers preferred multi brand store, other factor could be their will be dealers
demonization to sell the Whirlpool Products, less effort by the sales intermediaries. 77%
people know but didnt want to see the products are also showing the uncertainty in the
minds of the customers in their minds.

77
33
Customers had look on Whirlpool product before making the purchase
decision?
Yes No

51

25% of the people surveyed dont know the most common strategy adopted by the
Whirlpool to create brand awareness for the brand i.e. Whirlpool is the second largest
appliances in the world. There was several lacking in their marketing communication,
because of that the people who knows about the brand still dont know about this fact.
There could be other side of this fact that by the way of promoting as a second largest
appliances brand, it automatically promoted the brand which is largest appliances Brand
in the world, because by the way of communicating that Whirlpool is the second largest it
is automatically creating a willingness in the minds of the customers that which is the
largest brand, in the world.

Aware of that "Whirlpool is the largest home
appliances company in the world?
YES
NO

52

Factors affecting dealers focus on brands

From the above bar graph it is showing what the factors which are affecting the dealer
focus towards the brand, no doubt the profitability is the first factor but this other factors
also affect overall focus of the brand .
Like from this market insight it is clearly coming out that in city like Delhi dealers dont
want to put more effort to sell brand they are happier if the brand it is getting sold itself in
the market. This is clearly evident that despite having good product line, better marketing
support from the LG, still 13 out of the dealers surveyed said that they are focusing on
LG because they dont want to give much more effort to sell it. It clearly suggests that
now it is time to create the brand awareness, and push products before a customer enters
in to store. Right now the dealers in Delhi city are dealing Whirlpool much more because
of the profitability after sale service.
0
2
4
6
8
10
12
14
Less Sales Effort Profitability After Sale
Services
Product Marketing And
Promotional
support
LG
Samsung
Whirlpool
Godrej
Electrolux

53

Interested in Whirlpool

Visited 32 dealers responded positively for Whirlpool and they can be negotiated for the
dealership, other these 7 dealers gave mixed reaction which can also be converted.

The market insight and factors influencing dealer focus
1. No push sale, no need to push these company products, less sales effort: LG and
SAMSUNG created that kind of image in the minds of the customers, where before
making any purchase decision, customer is more inclined towards the products of these
company, and finally whatever the customer will purchase he/she will definitely have a
look for these companies products before making purchase decision. Less Customer
Complaints, Customer Awareness about the Brands.
2. Profitability and holding cost: Better Volume Sale Which Ultimately Leads to Better
Margins, And Better Bargaining with the Companies. And No blockage of money, stock
gets cleared easily

0 1 2 3 4 5 6
Positevely Responded
Negatively Responded
Mixed Reaction
Series 1

54

3.Whirlpool is having wide product line in refrigerator category which ultimately gives
more option to select from to customers with this their service support is good and the
customer complaints are also less especially due to home care program of whirlpool .

4.Godrej is giving extra profit margin as compare to other competitors i.e. dealer price
+scheme of 3% + 3% distributors margin+ FOC , and there is enough possibilities of
large sell according to them because of launch of new product line series in appliances
segment. With this the company better support in the form of marketing efforts, recently
company gave 5 A.C display panel stands and other POP material to many dealers.

5. Fair pricing strategies LG and Samsung prices are almost open to everyone are aware
of dealer price and customer price.
6. Samsung Loan Mela and LG No Filing Charges, No Interest Finance Scheme on Air
Conditioners Is Creating Good Response among Customers.

55

Comparative product models mapping (DC)

0
5
10
15
20
25
30
35
40
Haier LG Samsung Whrilpool Godrej
No.of models in 175 -190 lts)
No.of models in 190-230 ltrs segment
No.of models in full direct cool
refridgeraor segment2

56

Comparative product models mapping (FF)

0
5
10
15
20
25
30
200-235 liters
240 -260 liters
275-300 liters
Total no of models in frost free
segment

57

CHAPTER 7

58

Conclusion and recommendations

1. Whirlpool needs to increase the number of BTL (below the line) activities to
generate common awareness and visibility at grassroots level, because it can
be understood from the figures of their competitors BTL activities that
Whirlpool BTL activities is not up to the that mark in comparison to other
competitors.
2. In Delhi market dealers dont want to put direct push effort on brands thats
why unlike other cities market where if a dealer deals in LG they prefer not to
deals with its direct competitor Samsung, but in Gujarat every dealer is having
collection of brands, they want to be ready for everything like whatever
customer demands they can easily find out in their store. Currently Whirlpool
is available with most of the major dealers in Delhi, Whirlpool needs to focus
on those dealers also where it will not face direct competition with LG and
Samsung , a small and dedicated brand dealer will work not only for margins
but they also can see the future opportunities in form of Whirlpool.
3. Good thing about Whirlpool is that they got somehow success in positioning
themselves as a quality brand the customer survey and the dealers survey tells
the story about it. People perceived Whirlpool as a good product quality
brand. If this can be associated with better pricing also there will be immense
possibilities for Whirlpool. Need to create a value for money brand image
which can give good product quality at affordable prices.
4. Whirlpool needs to build strong dealer relation in order to provide better
place strategies for the brand. Whirlpool lacks in company support factors

59

and most of the existing dealers in the dealer survey said that. Like most of the
companies are having their regular company dealers meet to get together with
their dealers, Whirlpool lacks needs to do this in order to regain dealer support
5. Service arrangements need to be strengthen, still people thinks that because
the company is having foreign origin and it is new too, if they will purchase
any product they will face service problem in future. Customers in rural areas
are not aware of the service call center facilities and dont know how do it,
company is not having the service centers also there in those area , customers
passes the complaints to dealers, and dealers to distributors, and finally
distributors has to log this complaints to the call center, which creates
overburden for them.
6. Any one accepts that as a fully fledged brand, Whirlpool can only compete
with the Korean giants LG and Samsung. Product lines and variants in the
refrigerators should be increased to give wider option to choose from to the
customer because the Whirlpool refrigerators could be proved as a benchmark
product for Whirlpool because of its unique differentiation with others.
7. Most of the products are simple in looks, in refrigerators segment even the
logo on refrigerators are not attractive as compare to others.
8. Whirlpool should adopt aggressive marketing strategies to cut down
competition and visibility at market place.
9. Appropriate product knowledge should be given by the company to dealers
and to dealers to create awareness towards quality.

60

10. Products should be more attractive refrigerators looks very simple and
ordinary especially direct cool refrigerators Entry level Refrigerators can do
better because of price and capacities.
11. Whirlpool has good presence in the market but one thing is also evident that
Whirlpool is present in major counters with LG and Samsung, Whirlpool also
need to focus on those dealers were it will not face direct competition with LG
and Samsung. Competitive strategy should be like this where first Whirlpool
should wipe out smaller brands compare to LG and Samsung because this brand
also have market share larger than Whirlpool, and Whirlpool is not in
competition of LG and Samsung it should target on brands like Godrej , TCL
first, so it can compete the bigger brand later on.

61

CHAPTER 8

62

Bibliography

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

63

CHAPTER 9

64

CASE STUDY

WHI RLPOOL: THE FI RST VENTURE I NTO I NDI A

I. CASE ABSTRACT

Management at Whirlpool concluded that if the company were to be a major player
in the developing global major home appliance industry, it needed a presence in Asia
to compete with the Japanese and Korean manufacturers. Industry projections
suggested that Asia would surpass North American and Europe and represent 40% of
world demand for home appliances by 2004. In 1987, Whirlpool managers thought
that rising incomes and aspirations among India's middle class would generate
substantial demand for home appliances over the next few decades. That same year,
Whirlpool met and signed a joint venture agreement with India's TVS group, for the
purpose of manufacturing automatic washing machines and eventually other
appliances.TVS had begun as a bus service and diversified into auto component
manufacturing and other auto-related businesses. Its most recent (and least
successful) diversification into computer components was also its first into non-
automotive consumer goods.TVS then joined with Whirlpool in forming TWL
because it also wanted to take advantage of future growth in consumer products in
India.

Under the terms of the joint venture agreement, TVS provided day-to-day
operational management, with Whirlpool providing the technical expertise in
automatic washing machines. Unfortunately, TVS knew nothing of either making or

65

marketing major home appliances, and Whirlpool ignored the fact that the Indian
market had no interest at the time in automatic washing machines! People purchased
either manual washers or semi-automatic twin-tub washers. Fully automatic
machines were affordable only to a tiny segment of the population. TVS' and
Whirlpool's investment of time and money into the development of their first washer
meant that the venture had to sell 5,000 high-priced units per month to reach break-
even. TWL was established as an assembly operation, dependent on components
that were 80-90% externally sourced. TVS' lack of experience with appropriate
suppliers, plus the marginal ability of suppliers to deliver quality parts on time,
caused huge problems in production. TVS also had few connections with appliance
retail distribution outlets. Dealers were not interested in buying products from
single-product firms like TWL when they could deal with companies making a full
range of consumer durables, like Videocom. Even after two years of operations,
only 2,000 to 2,500 units were coming off TWL's assembly line. By 1993, TWL's
equity was reduced to zero, cash flow was weak, and losses were accumulating.
Whirlpool purchased TVS' stock in the joint venture and implemented a turnaround
strategy under the new name of Whirlpool Washers Manufacturing Limited
(WWML).
Whirlpool initiated its Worldwide Excellence Program in the Pondicherry plant to raise
the level of quality and reduce costs. It worked to develop better relations with its
suppliers. Whirlpool replaced TVS managers with its own from the United States but
still had to deal with the TVS corporate culture in the workplace. The reorganized
venture reduced its losses and became profitable. Whirlpool's market share rose from

66

12.9% in 1994 to 17% by the end of 1995. WWML finally made a book profit in 1995
but still had to pay off its accumulated losses of US$50 million. Increasing competition
and price wars were making the targeted 1996 market share of 20.6% difficult to achieve.

Also in 1995, Whirlpool purchased a 51% interest in Delhi-based Kelvinator of India
(KOI), one of India's leading refrigerator makers. Even though KOI had 30%
market share in India, its refrigerators were outdated and the company was
unprofitable. Whirlpool began construction of a US$119 million plant to produce
state-of-the-art refrigerators. This was on top of its investment, totaling US$120
million, in the TVS joint venture and in Kelvinator. The company was also
considering entering the Indian air conditioning market as well as the fast-growing,
Chinese major home appliance market. In the meantime, Whirlpool's erratic
corporate earnings translated into a decline in its per share stock price from $56 in
1993 to $51 in 1996. Whirlpool's plan to become a global appliance manufacturer
appeared to be in difficulty.

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

67

II. CASE ISSUES AND SUBJECTS

Major Home Appliance Industry
Environmental Scanning
Industry Analysis
India
International Growth Strategies
Joint Ventures
Strategic Alliances
Turnaround Strategy
Strategy Formulation
Core Competencies
Core Deficiencies
Distinctive Competencies
SWOT Analysis
Competitive Strategy
Corporate Culture
Evaluation and Control
Vertical Integration vs. Outsourcing

68

III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS

Strategy Formulation
Strategy
Implementati
on
Evaluation
& Control
P
er
fo
r
m
an
ce
St
ra
te
gi
c
P
os
tu
re
C
or
po
ra
te
G
ov
er
na
nc
e
E
xt
er
na
l
F
ac
to
rs
Int
er
na
l
F
ac
to
rs
St
ra
te
gi
c
F
ac
to
rs
Re
vie
w
Mis
sio
n &
Obj
ecti
ves
S
tr
a
t
e
g
i
c
A
lt
e
r
n
a
ti
v
e
s

1A 1B 2 3 4 5A 5B 6 7 8
O X O O O O X O O

O = Emphasized in Case X = Covered in Case

69

IV. CASE OBJECTIVES

1. To provide an example of a large successful company entering an international market
via a joint venture. Students should be able to identify a number of mistakes that
were made.

2. To illustrate how an industry, major home appliances, can be mature in one part of the
world (North America), approaching maturity in another part of the world (Europe),
and just beginning its growth curve in another part of the world (Asia). Only rarely is
any industry at the same stage of development around the world - the automobile and
tire industries are now global and mature.

3. To show that a company's core (or even distinctive) competencies may not be
transferable to another industry (appliances in TVS' case) or to another part of the
world (India in Whirlpool's case). Both companies were extremely successful in their
own spheres of action but together proved incompetent in a joint venture requiring
new competencies and resources. Both firms' weaknesses became core deficiencies
in this situation.

4. To illustrate how large companies like Whirlpool can learn from its mistakes. Once it
realized that its partner was not offering anything to the joint venture, it moved to
take over control and to transfer to the Indian operation those things in which it was
extremely competent.

70

5. To show the importance of appropriate environmental scanning. Neither Whirlpool nor
TVS really understood what they were getting into. Each assumed that the other
would make up for its own deficiencies.

71

V. DISCUSSION QUESTIONS

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

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

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

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

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

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

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

6. What did Whirlpool do wrong in entering India?

7. What did Whirlpool do right in entering India?

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

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

72

10. What are the pros and cons of Whirlpools purchase of Kelvinator of India (KOI)?

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

12. What should Whirlpool do with its Indian operations?

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

73

I. CURRENT SITUATION

A. Current Performance
WWML finally made operating profit in 1995 after years of losses totaling
$US50 million.
KOI was loosing money when Whirlpool bought it in 1995.
B. Strategic Posture: Implied, but not clearly stated in the case for Indian operations.

1. Mission: Provide major home appliances to the Indian subcontinent and provide
a beachhead for subsequent expansion into the rest of Asia.

2. Objectives:
To dominate the Indian washing machine and refrigerator markets in terms
of market share.
To earn a substantial return on investment for Whirlpool Corporation.
To eventually expand into other major home appliances such as air
conditioners.

3. Strategies: Horizontal growth corporate strategy into Asia
First unsuccessfully tried joint venture as entry strategy into India. . .
Followed by turnaround strategy at WWML and now at KOI.

74

Now using entry strategies of acquisition and green field development.
(Comment: Although these entry strategies are more expensive than joint
ventures, they may be cheaper than the turnaround at WWML.)

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

II. CORPORATE GOVERNANCE

A. Board of Directors: Whirlpool controls WWML and KOI through its control of
each company's board of directors. No information regarding rest of board
membership.

B. Top Management: Through its control of the boards of directors, Whirlpool is
replacing the top management of WWML and KOI with its own people.
(Comment: Since the past management was responsible for past poor performance,
this makes sense.)

75

III. EXTERNAL ENVIRONMENT

A. Societal

Opportunities:
Ability to work more closely with suppliers to reduce supplier bargaining
power and increase quality of parts
High growth potential of Asian market
Only 7% of Asian's households own refrigerator; only 2% own washing
machine
Rapid economic growth of 6-8% annually is spurring per capita income
levels
Indian major home appliance market is on the verge of a boom growth
period
Recent easing of restrictions on foreign ownership and investment in India
makes expansion attractive
Threats
Heavy start-up costs in Asia.
Increasing competition in Asia, especially India
Poor infrastructure to support making, selling, and using appliances in India.
Questionable water purity and availability of electricity.
Politicians perhaps less tolerant of foreign firms in future.

76

B. Task Environment: Major Home Appliance Industry in India

Rivalry among competitors is rapidly increasing; price wars are based on short-
term promotions and purchase incentives.
Threat of new entrants is high. Other major players from Japan, Korea, United
States, and Europe are planning to soon enter either India or China or both.
Must build entry barriers quickly or face greater competitive intensity.
Threat of substitute products is high. Until infrastructure is built, many people
in less developed parts of India substitute daily shopping for refrigerators,
creeks for washers, sun for dryers, and fires for stoves.
Bargaining power of suppliers is high for those few firms that can make quality
components.
Bargaining power of distributors is high for those appliance firms that only
make one or two products.
Relative power of other stakeholders appears low. Government is allowing
foreign companies to acquire local firms and to build green field plants. It is
doubtful that unions are a problem. Religious norms and values could
negatively affect the importation of some U.S. management practices.

77

IV. INTERNAL ENVIRONMENT

IFAS (Internal Factor Analysis Summary)

Key Internal Factors Weight Ratin
g
Weighte
d Score
Comments
Strengths:
New management & system

Kelvinator brand

New manufacturing facilities

Parent company's technology
expertise

Market share

Weaknesses:
Inadequate distribution

Larger capital investment: more
needed

KOI's inefficient operation: losses

Lacks simpler technologies

Ignorance of Indian market

.10

.05

.10

.10

.15

.10

.05

.15

.05

.15

4

4

4

5

4

3

2

3

2

3

.40

.20

.40

.50

.60

.30

.10

.45

.10

.45

Needed at KOI

Well known

2 /3 brand new

Excellent

Good & growing

Improving

More money
needed

Not yet dealt with

Has to license

Getting better
TOTAL SCORE 1.00 3.50

78

C. Resources: WWML and KOI

1. Marketing:

Strengths
Good market share exists for both WWML and KOI.
KOI brand is well respected throughout India.
KOI has established distribution outlets.

Weaknesses
Whirlpool brand is not well known.
WWML is still weak in distribution in northern India.

2. Finance:

Strengths
Whirlpool's Indian operations have access to corporations funds.
WWML is making an operating profit and should pay down losses.

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

79

Decline in Whirlpool stock makes it increasingly difficult for headquarters
in United States to invest more in India, especially given interest in entering
China.

3. Research and Development:

Strengths
Reasonably good product R&D competence at corporate level
Excellent process R&D competence at corporate level

Weaknesses
Corporation still learning how to transfer its technology appropriately to
India
R&D not connected to needs of Indian market.

4. Operations and Logistics:

Strengths
Turnaround at WWML shows that operations is a strength of Whirlpool,
which is being transferred appropriately.
Output at WWML doubled to 64,000 units in 1994 and is rising to 120,000
units in 1995 with only modest increase in workforce.

80

Weaknesses
KOI's inability to earn profit as market leader in refrigerator sales suggests
inefficient manufacturing and distribution.
Poor distribution for WWML is being rectified.
Relationships with suppliers are improving.

5. Human Resource Management:

Strengths
Streamlined hierarchies of management at WWML with cross-functional
work teams
WES used to clarify job responsibilities
Sales force placed on incentive system

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

6. Information Systems:

Strengths
Seem to be introducing information system to track progress

81

Weaknesses
Likely that IS at KOI needs a lot of work before it can be integrated into the
rest of the Indian operations

82

V. ANALYSIS OF STRATEGIC FACTORS

Key Strategic Factors Weigh
t
Rating Weighte
d
Score
Duratio
n
S I
L
Comments

Forming closer relationship
with suppliers (O)

Expanding sales in India (O)

Make other appliances (O)

Weak infrastructure to
support appliances (T)

Increasing competition (T)

New management & system
(S)

Kelvinator brand (S)

Market share (S)

Inadequate distribution (W)

KOI's inefficient operation
(W)

Knowledge of Indian market
(W)

.05

.10

.10

.05

.15

.10

.05

.10

.10

.10

.10

4

4

2

3

4

4

3

4

3

2

2

.20

.40

.20

.15

.60

.40

.15

.40

.30

.20

.20

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Getting better

Key to
success

Investment
high

Getting better

Getting
tougher

Key to profits

Short-term
value

Key to
success

Getting better

Must fix now!

Must improve!
TOTAL SCORES 1.00 3.20

83

VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY

A. Strategic Alternatives (for operations in India)

1. Retrenchment: Cut back on investments in India in order to put more emphasis on
China. Sell off KOI's operations and form a joint venture with KOI's buyer for
the new refrigerator plant in Pune

Pros:
Stops cash flow into India so cash can be used elsewhere.
Eliminates a costly turnaround of KOI.
Forming a joint venture for the new refrigerator plant keeps Whirlpool in the
refrigerator business.
WWML has been turned around and should be able to grow using its own
cash flow.

Cons:
Lack of multiple appliance products may make it increasingly difficult to sell
washing machines to India's distributors.
Lack of significant growth could cause investor pressure to completely pull
out of India.
Investment is just starting to pay off.

84

Retrenchment makes it difficult to make and market appliances in nearby
countries.
It sends a bad signal to appliance industry that Whirlpool is not a serious
global competitor. Will make it difficult to successfully enter and grow other
parts of Asia, such as China.

2. Stability: Keep all current operations, but add no new ones (kill air conditioner
idea). WWML grows using internal cash flow. Implement turnaround at KOI
and use new plant to make refrigerators.

Pros:
Allows time to turn KOI around and to solidify WWML's turnaround.
Keeps additional investment in India in check until KOI is turned around and
new refrigerator operation begins to pay for itself.
Allows Whirlpool to turn its full attention to entering China.

Cons:
Lack of growth at a time when the appliance market is undergoing rapid
growth will make it difficult to achieve Whirlpool's goal of dominating the
major home appliance market in India.
It may hurt relations with distributors who may soon demand a full line of
appliances from any one supplier (similar to situation in United States) and
thus cut into sales growth.

85

Stability allows competitors opportunity to move ahead and take away
markets that could have been Whirlpool's.

3. Growth: Push ahead with expansion of WWML and KOI. Use joint ventures to
move into other major home appliances such as air conditioners, stoves, and
microwaves. Expand WWML to add clothes dryers.

Pros:
Growth enables Whirlpool's India operations to grow with the market, with a
good chance of dominating while others are focusing on China.
WWML's new profitable position may enable it to grow out of its own cash
flow.
KOI may be easier to turn around given Whirlpool's success with its joint
venture with TVS.
Expansion now will enable Whirlpool to move into related appliances and
gain bargaining power with its suppliers and distributors, thus boosting sales
and cutting costs at a time when competition is increasing.

Cons:
Growth is likely to be very costly. Will seriously cut into Whirlpool's funds to
enter China.
KOI may be very expensive to turn around - similar to Maytag's problems
with turning around its Hoover UK operations.

86

Whirlpool seems unable to successfully adapt its technology to less developed
nations. Question whether Indian market is interested in the new refrigerator.
China is hot now and should be emphasized over India.

B. Recommended Strategy

Recommend Stability Strategy: Keep all current operations but add no new ones
(kill air conditioner idea). WWML grows using internal cash flow. Implement
turnaround at KOI and use new plant to make refrigerators. This choice allows the
parent corporation sufficient time to consider and implement a good entry strategy for
China. For the time being, washers and refrigerators are the key appliances for India
and contiguous countries. Import other appliances or purchase them from
competitors in order to have a full line for distributors. Continue emphasizing quality
and cost reduction for competitive advantage. Develop policies to support this
emphasis.

87

CHAPTER 10

88

Market Research on Whirlpool
Refrigerators

Students Name: Salil Wadhawan
Industry Guide:
Mr. Pradeep Singh Rawat
Faculty Guide: Ms. Seema Sahai

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

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

Whirlpool Corporation

Students Name: Salil Wadhawan

Industry Guide: Mr.Pradeep Singh Rawat

Faculty Guide: Ms.Seema Sahai

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Findings:
Whirlpool needs to increase the number of BTL (below the line) activities to generate
common awareness and visibility at grassroots level, because it can be understood from
the figures of their competitors BTL activities that Whirlpool BTL activities is not up to
the that mark in comparison to other competitors.
In Delhi market dealers dont want to put direct push effort on brands thats why unlike
other cities market where if a dealer deals in LG they prefer not to deals with its direct
competitor Samsung, but in Gujarat every dealer is having collection of brands, they want
to be ready for everything like whatever customer demands they can easily find out in
their store. Currently Whirlpool is available with most of the major dealers in Delhi,
Whirlpool needs to focus on those dealers also where it will not face direct competition
with LG and Samsung , a small and dedicated brand dealer will work not only for
margins but they also can see the future opportunities in form of Whirlpool.

Conclusion:
Whirlpool has good presence in the market but one thing is also evident that Whirlpool is present
in major counters with LG and Samsung, Whirlpool also need to focus on those dealers were it
will not face direct competition with LG and Samsung. Competitive strategy should be like this
where first Whirlpool should wipe out smaller brands compare to LG and Samsung because this
brand also have market share larger than Whirlpool, and Whirlpool is not in competition of LG
and Samsung it should target on brands like Godrej , TCL first, so it can compete the bigger
brand later on.

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