Winnebago Industries is looking to develop a new eco-friendly Class B RV line to appeal to environmentally conscious customers. They will leverage their understanding of customer needs and preferences to design an RV that meets customer demands while limiting environmental impact. Winnebago aims to target middle-class families in their mid-30s to mid-50s through marketing that promotes the new line's flexibility, comforts, and affordability. Current market trends indicate growing demand for more fuel-efficient and environmentally sustainable RVs. Winnebago must continue delivering high quality products and services to maintain their leadership position amid increased competition in the RV industry.

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Winnebago Ind.
Kenny Zink
Kaplan University GB530
Professor Jerry Haenisch
June 1, 2015

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2.0 Situation Analysis
Winnebago has established themselves in the RV manufacturing market as they rolled out
their first RV in 1966. Now, Winnebago is looking at ways to design and develop a new
extension of their Class B RV line in order to provide a more Eco-Friendly version that will
bring pride to those who drive it because it has less of an impact on the environment. Marketing
and development will be the key to developing the best design and features that are relevant to
the customer as well as the market. The marketing will be influential in promoting the new brand
and make it appealing to Winnebago’s current customer base as well as capturing a new segment
of customers that wouldn’t normally think of buying an RV.
2.1 Market Summary
Winnebago has been in the business long enough to understand the needs of their
customers as well as attributes that they desire most. This information will be leveraged to better
understand how their new design will meet the needs of the customers, how they can serve them
better, and how they can communicate that their ideas are important as well as limiting the
impact they have on the environment in which they operate.
Target Markets
 Recreational
 Family
 Middle Class
 Eco-Friendly
2.1.1 Market Demographics
Geographic’s
 Winnebago’s set geographic target market is the continental 48 states. As this
geographical area is conducive to the users of recreational vehicles particularly in the
Class B category.
 The total targeted population is 9 million users (Recreational Vehicle Industry
Association RVIA, 2015)
Demographics
 Today’s typical RV user is around 48 years of age, married, with an annual household
income of $62,000 (RVIA, 2015)
 The age range for most RV users is in the 35 to 75 years old
 The age range that has seen the most increase in the number of RV users is those 35-54
years old
 More than 11% of households in the 35 to 54 year old age range own an RV
Behavioral Factor’s
 Flexibility and convenience – RV users choose this mode of recreational because they
can go where they want when they want without all the stress and hassle that is associated
with other modes of travel

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 Comfort – The latest and greatest version of RV’s offer many of the same amenities you
will find at home, but while you are on the road or at a campground
 Family Appeal – RV travelers say that traveling in this form helps strengthen family
relationships and communication which is important for their leisure experience
 Affordability – The cost of traveling by RV can be up to 59% less than other modes of
travel according to PKF Consulting making vacations for families more affordable
 Lure of the Outdoors – RV’s allow users to enjoy the outdoors whenever they want with
the comforts of home and some models allow for the use of ATV’s, snowmobiles, and
motorcycles
 Versatility – RV’s are also used for other forms of entertainment like concerts, tailgating
at games, shopping, or other hobbies
2.1.2 Market Needs
Winnebago is looking to diversify its selection of quality made RV’s that are designed
specifically for the average family user. Using more economically and environmentally friendly
materials that will lessen their carbon footprint. Winnebago will also use more recyclable
materials in their production and alternate fuel sources. Winnebago will focus on the following
benefits that are essential to the customer:
 Quality Craftsmanship – Customers want a product that will last for a long time because
they work hard for what they earn and don’t want to just throw money away. They also
want a quality product with a quality price to make their purchase worth the investment.
 Quality Design – They want an RV that is designed with them in mind and don’t want the
slim down version to accommodate their specific budget. They want amenities that are
important to feel comfortable while on the road, but also comfortable on the budget.
 Quality Service – They want to know that when they are out on the road and something
goes wrong that the company is going to do their best to help solve the issue and get them
back out on the open road. The want quick friendly service that helps them feel like they
are a part of a family and not just a number on the bottom line.
2.1.3 Market Trends
Winnebago will distinguish themselves from their competitors by marketing RV’s that
are designed for those who want to go out on the open road without impacting the environment
or losing the home like comfort. The average RV user is not distinguished to one age group or
one specific design, so the domestic market provides significant opportunities to build new users.
The fastest growing segment for RV’s is the more fuel economic brands as gas prices continue to
rise and the average amount of expendable income continues to fall.
Current market trends associated with lessening the impact on the environment have also
called for the changes in RV design to help limit the amount of carbon emissions, carbon
footprint, and a more environmental friendly design. Which is why Winnebago is looking at
incorporating solar panels as an alternate energy source, minimizing the waste of materials
through the use of computer aided design, hardwood optimization to help maximize the yield,
recycling of the sawdust for animal bedding, reuse of side panels for the actual doors where they

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are cut out, recycle 1.5 million pounds of plastic each year. All just a part of our greener and
leaner manufacturing procedures and policies (Winnebago, 2015)
2.1.4 Market Growth
As the economy continues its recovery RV’s have seen an increase in sales which looks
to continue as baby boomers begin to retire. The financial crisis of 2008 hit the industry hard and
there was a significant amount of layoff’s and reductions in production, but 2015 looks to be a
record year as January saw a total of 28,494 units shipped an 11% increase than the same month
in 2014 (RVIA, 2015). Here is what the shipments looked like over the past five years as well as
the percentage change year over year:
 2014 356,735 11.1%
 2013 321,127 12.4%
 2012 285,749 13.3%
 2011 252,300 4.1%
 2010 242,300 46.2%
2.2 SWOT Analysis
The following SWOT analysis captures the strengths and weaknesses inside Winnebago
Industries and the opportunities and threats they face from competition.
2.2.1 Strengths
 Strong, Reputable Brand
 Exceptional Service and Warranty
 Extensive Research and Development Capabilities
2.2.2 Weaknesses
 Overdependence on the U.S. Market
 Economic Conditions and Per Capita Disposable Income
 Limit Distribution Channels
2.2.3 Opportunities
 International Market
 Eco-Friendly RV’s
 Demand for Smaller RV’s
2.2.4 Threats
 High Gasoline Prices
 Increased Competition
 Strict Federal and State Regulations
2.3 Competition
Winnebago’s competition comes from companies like Fleetwood, Artic Fox, Airstream,
and Jayco, but has been successful at stifling the competition by offering the best service and
warranty in the industry. Winnebago has also created a unique computer aided design system

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that allows them to maximize the yield of all their raw products while at the same time
minimizing the waste. They also test all the parts, products, and services to ensure they are the
best in the industry. “The Winnebago Industries commitment to providing high quality, great
value, efficient design and eye-catching style in recreation vehicles remains a driving force for
the company” (Winnebago, 2015). What allows Winnebago to be one of the top RV
manufacturers is that they build everything in house and from scratch and don’t use any after-
market parts in their manufacturing process. Meaning that everything the consumer sees that has
gone into a Winnebago RV was made and manufactured by Winnebago and fro Winnebago. This
allows Winnebago to lower manufacturing costs which in turn lower the price of their products.
2.4 Product Offering
Winnebago Industries Currently offers Several RV Versions:
 Class A RV’s available in both Diesel and Gas versions (Motorhomes).
 Class C Motorhomes which are built with similar design and amenities of the Class A,
but on a much smaller chassis.
 Class B Motorhomes which are the more fuel efficient models built on a van chassis.
 Towables which come in a range of sizes according to the specific floor plan you desire
 There final product is in development which is the Eco-Friendly Class B Motorhome
which will offer style and amenity upgrades to help limit the impact on the environment
as well as alternative fuel energy.
2.5 Keys to Success
Winnebago’s keys to success will be to continue to offer the best products and services
on the market today. Continue to provide the best warranty and service that customer’s expect
during and after the sale. Also, offering the best service and parts warranty in the business. They
will also look at designing and manufacturing the most dependable, reliable, and quality RV’s in
the industry. Winnebago will pride themselves on creating the most efficient and effective
customer service and satisfaction strategy in the industry in order to ensure they capture the
greatest segment of the RV market.
2.6 Critical Issues
As a company that has been in business since 1958 and making their first RV in 1966 the
critical issues for Winnebago are:
 Establishing itself as the market leader in the RV Industry
 Create more efficient and effective distribution channels to help supply their products to
all areas of the U.S. and Canada
 Create and efficient and effective management strategy that will allow Winnebago to
leverage the company in a more productive and profitable direction
 Constantly monitor the effectiveness of those strategies against meeting the needs of the
consumers and remaining one of the best customer service RV manufactures in the
industry

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References:
Recreational Vehicle Industry Association. (2015). RV business indicators. Retrieved from
http://www.rvia.org/?ESID=indicators
Winnebago Industries. (2015). Company profile. Retrieved from
http://winnebagoind.com/company