Marketing White goods in UK

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Marketing White goods in UK

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  • the UK household appliances (white goods) market consists of three sectors: home laundry appliances and dishwashers; cooking appliances; and cooling appliances. The total UK retail market for white goods was valued at £3.53bn in 2009, representing a 2.9% increase on 2007.Electric and gas cookers comprise the most valuable subsector, accounting for 30.1% of the total market value in 2009, with the second-largest subsector being that of washing machines, including washer-dryers. Although the refrigerators subsector does not account for a significantly large share of the total white goods market, it is the fastest-growing subsector, increasing by 32.1% in value between 2007 and 2009.Sales of washing machines, including washer-dryers, have been inhibited by high penetration levels and the credit crunch, as opposed to sales of tumble dryers, which have performed better owing to the fact that there is scope for penetration levels to rise. Dishwasher sales have been boosted by a change in consumer perception, which has moved away from considering these appliances to be a luxury non-essential item. The growing popularity of chilled foods and large larder-style refrigerators has driven sales of refrigerators; however, the popularity of combined fridge-freezers has cannibalized sales of freezers. Mounting interest in cooking has encouraged consumers to buy premium cookers, while price competition within the market has resulted in a fall in the value sales of microwave ovens.Between 2010 and 2015, the tumble dryer subsector is forecast to show the strongest growth, with value sales driven by rising penetration levels and consumers trading up to premium appliances with large capacities and sensors that detect when clothes are dry. In comparison, value sales of microwave ovens are projected to continue to fall as the average price per appliance drops further. Overall, sales of white goods are expected to continue to grow over the forecast period.  
  • The total UK retail market for white goods was valued at £3.53bn in 2009, representing a 2.9% increase on 2007.
  • Electric and gas cookers comprise the most valuable subsector, accounting for 30.1% of the total market value in 2009, with the second-largest subsector being that of washing machines, including washer-dryers. Although the refrigerators subsector does not account for a significantly large share of the total white goods market, it is the fastest-growing subsector, increasing by 32.1% in value between 2007 and 2009.
  • The company (Which company) is a major player in the consumer durable market, and plans to enter the markets in the United Kingdom with its bouquet of offerings. The company plans to produce its products in China, taking advantage of the availability of relatively cheaper labor and other resources used in the production process. These goods would then be shipped to UK, to be sold in the markets.
  • After a long period of recession UK economy is gaining grounds. Gross Domestic Product (GDP) increased 1.1 per cent in the second quarter of 2010, compared with an increase of 0.3 per cent in the previous quarter. Manufacturing made the largest contribution to the growth, where output rose 1.6 per cent. Business investment for the first quarter of 2010 is estimated to be 7.8 per cent higher than the previous quarter but business investment is 7.7 per cent lower than the same period last year.The consumer durable market continued to rise in 2008 but in case of white goods the market was quite steady after 2008 as in 2008 most homes had central heating (95 per cent), a washing machine (96 per cent), a microwave (92 per cent) and a telephone (90 per cent).
  • The UK is one of the largest of the world’s markets and a high standard of living attracts a number of businesses to the country. The retail and service sectors make up a substantial part of business in the UK. Manufacturing also plays a significant part, as does tourism.The UK population was in excess of 61 million in 2009. A substantial proportion of the population lives in cities, the largest of which are London, Birmingham, Liverpool and Manchester, with more than 7.5 million living in the capital city of London only. The density of the population is very high.
  • Three of the key influences upon the life span of consumer durables may be summarized as fitness, functions and fashion. The Products that the company wishes to launch in the UK market are based upon these criteria. All the products are Green products, made up of majority of recyclable material, since the government has initiated a drive to encourage the use of green consumer durables. Also, these products are long lasting and energy efficient. A general increase in the life span of consumer durables would reduce the throughput of energy and materials, resulting in less use of finite resources, lower emissions of pollutants (including greenhouse gases), and a smaller amount of residual waste to dispose of as landfill. The products that the company plans to launch into the Union comprises of the following products.
  • As more and more people in the developed countries like UK are taking up to technology, web becomes a very important media for promotions of New and innovative brands across the United Kingdom. The internet has a penetration of 97% of total population, with UK population spending 25% more time per week on internet than the European average of 24.3 hours per week.
  • Another effective way to promote our products in UK is by sponsoring various Green Initiatives there. Sponsoring the London Green Marathon can help in promoting the type of products that our company is producing. Since these events target a huge number of people, thus sponsoring such an event will provide the much needed exposure that our firm requires.
  • Television advertising still remains the favorite media for advertising. But with ever increasing number of cable channels this media is getting cluttered. Because of this reason Television advertising has to be supported with radio, press, poster and lamp post banners to convey a range of messages.
  • Marketing White goods in UK

    1. 1. MARKETING WHITE GOODS <br /> IN U.K.<br />
    2. 2. 3 SECTORS<br />
    3. 3. Home laundry appliances<br />
    4. 4. and dishwashers<br />
    5. 5. Cooking appliances<br />
    6. 6. COOLING APPLIANCES<br />
    7. 7. Total UK retail market for white goods was valued at <br />£3.53bn <br />2.9 %<br />2009<br />2007<br />
    8. 8. Most Valuable<br />Fastest Growing<br />
    9. 9. Dishwasher sales have been boosted by a change in consumer perception, which has moved away from considering these appliances to be a luxury non-essential item<br />
    10. 10. The growing popularity of chilled foods and large larder-style refrigerators has driven sales of refrigerators; however, the popularity of combined fridge-freezers has cannibalized sales of freezers<br />
    11. 11. Between 2010 and 2015, the tumble dryer subsector is forecast to show the strongest growth<br />
    12. 12. Value sales of microwave ovens are projected to continue to fall<br />
    13. 13. H & W<br />
    14. 14. Produce products in China<br />
    15. 15. Taking advantage of the availability of relatively cheaper labor and other resources used in the production process<br />
    16. 16. Shipped to UK<br />
    17. 17. ECONOMY<br />
    18. 18. RECESSION IN 2008<br />
    19. 19.
    20. 20. UK economy is gaining grounds again<br />
    21. 21. UK is one of the largest of the world’s markets and a high standard of living attracts a number of businesses to the country.<br />
    22. 22. ISSUES FOR MARKETER IN CONSUMER DURABLE MARKET<br />
    23. 23. Major Competitors<br />Beko<br />Bosch<br />Hotpoint<br />IFB<br />INDESIT<br /> LIEBHER<br />Panasonic<br />Samsung<br />Siemens<br />Whirlpool<br />
    24. 24. PRODUCT<br />
    25. 25. CLIMATE CHANGE BILL<br />
    26. 26. 80% cut in the UK's carbon emissions by 2050 (compared to 1990 levels), with an intermediate target of between 26% and 32% by 2020<br /><ul><li>The Bill was passed into law in November 2008 .
    27. 27. With its passing the United Kingdom became the first country in the world to set a long-range and significant carbon reduction target into law, or to create such a legally binding framework</li></li></ul><li>Three of the key influences upon the life span of consumer durables<br />
    28. 28. GREEN PRODUCTS<br />
    29. 29. RECYCLABLE MATERIAL<br />
    30. 30. LONG LASTING<br />
    31. 31. ENERGY EFFICIENT<br />
    32. 32. Washing machines – including washer-dryers.<br />5.6 kg fully automatic model- HNW F1256Q White<br />6.5 kg fully automatic model- HNM F1265J White<br />8 kg Fully automatic model- HNW F1280Q White<br />
    33. 33. Clothes dryers <br />separate tumble dryers (gas or electric), vented or condenser machines; <br />and standalone spin dryers (electric only).<br />
    34. 34. Dishwashers – <br />full-size, slim line or tabletop models.<br />
    35. 35. Single-door refrigerators – <br />larder-style (including large US-style). <br />Also standard, i.e. with icebox.<br />
    36. 36. Fridge-freezers – <br />frost-free and non-frost-free models (including large US-style appliances incorporating features such as ice and water dispensers) both freestanding and those designed to fit under existing units in a built-in kitchen.<br />
    37. 37. Microwaves – <br />compact/solo microwave-only models (oven capacity <27 cubic liters), <br />microwave plus grill (compact or full size), <br />combination ovens combining microwave with grill power or microwave with convection heat (compact and full size).<br />
    38. 38. EXCLUSIVE DISTRIBUTION<br />
    39. 39. Since it is Consumer Durables, producer deliberately wants to limit the number of intermediaries handling their products. This is done to develop a high quality brand image. Exclusive distribution to recognized official distributors can enhance the prestige of the product<br />Exclusive distribution is a policy of granting dealers exclusive rights to distribute in a certain geographical areato gain more control over intermediaries regarding price, credit and promotional policies, greater loyalty and more determined selling of the company’s products.<br />
    40. 40. The Company is also looking at franchise model for promoting its product in the market, wherein the look and feel of the stores can be specified, providing a high quality upper end product image into the minds of the consumer.<br />Internet becoming an increasingly popular place for UK consumers to shop as they can compare prices and get better prices without leaving their homes.<br />The sales force in the stores, which comprises of Sales Executives and the Sales Managers, would also be provided relevant knowledge and expertise, so that they can handle and understand the products and help in increasing the sales.<br />
    41. 41. The Company is looking at projecting itself as a producer of innovative, long lasting and environment friendly green products.. <br />The products would be set 10%-15%, higher than the average prices of the products prevailing in the market, so as to give the company an up market image<br />
    42. 42. PRICING<br />
    43. 43. The range of Washing Machine would start from £ 200 to £ 320<br />The prices of the Fridge Freezer would start from £ 380 to £ 680<br />The range of microwave oven to start from £ 280 to £ 450<br />
    44. 44. Our company in the longer run, would like to provide bundling of goods, and price is accordingly, so as to lure the consumers who are looking for a bargain deal. <br />This strategy of pricing would help to attract the price sensitive consumer, once the brand has established itself as a leading player in the market.<br />
    45. 45. PROMOTION<br />
    46. 46. The internet has a penetration of 97% of total population<br />
    47. 47. UK being a developed market, consumer is educated, and takes a very thought-out decision, after researching for the particular product on various websites, comparing the features, prices and reading the feedbacks. Featuring our products on these consumer websites is essential to increase the visibility of our brand.<br />
    48. 48. <ul><li>platform for the growing brands
    49. 49. provides the mass reach within a short span of time.
    50. 50. It is the medium which is growing at a rate of more than 45%.
    51. 51. So, the brand has to feature on this medium to increase its acceptability and establish itself in the market. </li></li></ul><li><ul><li>Sponsoring various Green Initiatives.
    52. 52. Sponsoring the London Green Marathon can help in promoting the type of products that our company is producing.
    53. 53. Target a huge number of people</li></li></ul><li>Television <br />
    54. 54. With ever increasing number of cable channels this media is getting cluttered<br />
    55. 55. Radio,<br />Press, <br />Poster and <br />Banners <br />to convey a range of messages.<br />
    56. 56. Brand Building initiative :<br />Associating with the municipal authorities, and assisting them in their cleanliness drive<br />
    57. 57. Greener Products, for Greener City<br />

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