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WHIRLPOOL ANALYSIS
- 1. FINAL SEMESTER 1PRESENTATION NAME – MANAN KODIA MBA 2 UID- 2019-1905-0001-0025 TOPIC – WHIRLPOOL DISHWASHERS
- 2. SECTOR INFORMATION FMCD goodsare a category of consumer products that do not have to be purchased frequently because they are made to last for an extended period of time (typically more than three years). They are also called durable goods or consumer durables. EXAMPLES OF FMCD GOODS ARE: TELIVISON, REFRIGERATOR, MICROWAVES, WASHING MACHINES, CONSUMER ELECTRONICS, ETC. TYPES OF GOODS IN FMCD INDUSTRY WHITE GOODS BROWN GOODS CONSUMER ELECTRONICS
- 3. WHITE GOODS Refrigerators Washing machines Airconditioner dishwashers BROWN GOODS Microwave/ovens Electronic fans Mixer/grinders Chimneys Consumer electronics Audio/video systems Tv’s & Pc’s Mobiles INDUSTRY SIZE • India is expected to become 5th largest market for FMCD industry by 2025. • The Global market size will increase up to $400 billion in 2022. • Indian appliance and consumer electronics market reached US$ 31.48 billion in 2017. • It is expected to increase at a 9 % CAGR to reach US$ 48.37 billion in 2022.
- 4. 60% 40% Sales URBAN RURAL CONSUMPTION OFFMCD PRODUCTS IN INDIA URBAN VS RURAL MARKET OVERVIEW / GROWTH PATTERN • The size of consumer durables market in India reached US$ 30 billion in 2017.Sales of consumer durables increased 13 % in Q4 FY17, 20 per cent in Q1 FY18 and 16 per cent in Q2 FY18. • Around two third of the total revenue is generated from urban population and rest is generated from rural population. • Godrej group, Whirlpool, Haier, Blue Star and Videocon Industries are few of the major domestic players operating in India consumer durable market.
- 5. CONTRIBUTION OF VARIOUSPRODUCTS TO REVENUE REFRIGERATOR 45% WASHING MACHINES 21% A.C. 9% OTHERS 25% SALES
- 6. REASONS FOR GROWTH GROWING DEMAND OPPORTUNITIESPOLICY SUPPORT INCREASING INVESTMENT
- 7. THREAT OF SUBSTITIUE Technologyadvancements Buyers have huge propensity to substitute BARGAINING POWER OF BUYER’S Use of Internet to get all the information enables customers to be powerful. Buyer’s switching cost is very less BARGAINING POWER OF SUPPLIER’S Product differentiation is very low. By changing the input firms cannot drastically differentiate on price. COMPETITIVE RIVALRY Continuous innovation leads to intense rivalry. Homogeneity in product and low switching cost. THREATS OF NEW ENTRANTS Highly capital intensive. Major players have developed brand equity. Brand loyalty is moderate. PORTER’S FIVE FORCES
- 8. COMPANY INFORMATION Whirlpool isan American multinational fortune 500 company Headquartered in Michigan, USA. Annual revenue $20 billion. Over 100000 employees 70+manufacturing & technological research centers. PRODUCT PORTFOLIO WASHING MACHINE REFRIGERATOR MICROWAVE DISHWASHER AIR CONDITIONER CONSUMER ELECTRONICS
- 9. PRODUCT VARIANT DIMENSIONS/ COLOURS STANDARD SIZE 24*24*35 (BLACK, WHITE, GREY, METALLIC) CUSTOM SIZE 30*24*35 (BLACK, WHITE, GREY, METALLIC) PORTABLE SIZE 18*24*36 (BLACK, WHITE, GREEN, OFF WHITE) PRODUCT SPECIFICATIONS Special Features Any Ware plus silverware basket, Auto Soil Sensor, Sheer Clean wash system Maximum Noise Level 60dB Place Settings Qty 14 Programs Qty 4 Special Programs & Options Normal, rinse, pots and pans, high temperature wash, sani rinse, light/china, NSF certified sanitize option, soak & scour option, heat dry option Control Type Electronic Maximum Start Timer Delay 6 hrs Timer Settings Features start timer delay Safety Features Control lock Sound Package Quiet partner 2 Maximum Noise Level 60dB ENERGY STAR Certified YES Rated current 15A Frequency 60Hz Model DU1055XTVQ Form Factor Freestanding Place Settings Qty 14 Programs Qty 4 Special Programs & Options NSF certified sanitize option, heat dry option, high temperature wash, light/china,
- 10. STRENGTHS Excellent product portfolio, largest manufacturerof consumer durables, deep product line. Huge Revenue $21billion in 2018 Huge human resource 1 lac employees globally. WEAKNESS Stagnancy in total revenue Dependence on US & Asian market Known as follower, not innovator High revenue, but low margin. OPPORTUNITY Entering in small appliances market (mobile, irons) Targeting emerging market (Africa, Asian countries) Increasing depth of product line. THREATS Increasing competition Decreasing margin Mature markets (US, Europe) Threat from Chinese & Korean companies. SWOT ANALYSIS OF WHIRLPOOL
- 11. TARGET MARKET • Consumers/Endusers (including middle& high class) • Hotels& restaurants etc. Government agencies MAJOR COMPETITORS
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- 13. STP ANALYSIS SEGMENTATION TARGETINGPOSITIONING • Demographic Income Occupation • Geographic Tier 1 cities Tier 2 cities Tier 3 cities • Psychographic Life style Personality • Behavioral Value Personality Benefit Sought • MAJORLY FOCUSES ON RICH CLASS & HIGH MIDDLE CLASS • HIGH QUALITY PRODUCTS • TARGETS HEALTH & SAFETY CONSCIOUS CUSTOMERS • SHIFTING TO LOW MIDDLE CLSS SEGMENT (CONSUMER ELECTRONICS) • MAJORLY POSITIONS ITSELF IN HOME MAKING • TARGETS WOMEN IN THEIR ADVERTISMENT • TAG LINE “YOUR MAGIC IS HOME MAKING” • BRINGS A COUPLE IN THEIR ADVERTISMENT
- 14. STRENGTHS • CREATING ANIMAGE • INNOVATIVE PRODUCT • HIGHLY DIFFRENTIATED PRODUCTS WEAKNESS • HIGH PRICE OF PRODUCT • HIGH SERVICE & MAINTAINANCE COST OPPORTUNITY • HUGE MARKET • CURRENT MARKET AT EARLY GROWTH STAGE • NEW LAUNCHES COULD GIVE MORE BENIFITS THREATS • NEW COMPETITORS ENTERING MARKET • RISE IN RAW MATERIAL COST • LOW MARGINS SWOT SWOT ANALYSIS OF DISHWASHERS
- 15. PRODUCT LIFE CYCLE R&D INTRODUCTION GROWTH MATURITY DECLINE •The dishwashers were launched in 1950’s in USA & EUROPE. Although till now also the R&D process is done to make the product more efficient & effective. • Today the dishwashers are in the growth stage in India as well in many other countries, this is because more & more people are getting aware of such products in developing countries. • In western countries dishwashers have reached the maturity level because of long usage as well as high public awareness and high usage. • It is expected that the dishwashers would go on to decline stage in western countries. • In developing countries like African & Asian countries the dishwashers have a long way to go and reach maturity level & further to decline stage.
- 16. BCG MATRIX (ANALYSIS) CASHCOWS STARS QUESTION MARKS DOGS MATURE MARKET LEADERS HIGH REVENUE HIGH ROI HIGH LIQUIDITY HIGH GROWTH RATE EXAMPLE WASHING MACHINES HUGE REVENUE MAXIMUM GROWTH RATE HIGH SCOPE HIGHLY COMPETITIVE RESEARCH CENTRES PROFIT CENTRE EXAMPLE REFRIGERTOR HEAVY INVESTMENT LOW MARKET SHARE HIGH R&D HIGH POTENTIAL SMALL SHARE IN REVENUE INTRO & GROWTH STAGE EXAMPLE FRONT DOOR WASHING MACHINES LOW MARKET SHARE LOW GROWTH LEAST REVENUE LOW PENETRATION COULD BE TURNED TO QUESTION MARKS EXAMPLE COOKING/CLEAN’G APPLIANCES
- 17. Raw Materials: 3440.34cr Power& Fuel: 37.15cr Employee cost: 493.05cr Selling & Admin cost: 69.21cr Miscellaneous expenses: 775.48cr INCREASE IN TOTAL ASSETS (OVER THE YEAR) (2018-19) =346.33cr Cash and Bank Balance =1061.00cr RATIOS PERCENTAGE/TIMES RETURN ON CAPITAL EMPLOYED 29.66% QUICK RATIO 1.01 TIMES CURRENT RATIO 1.60 TIMES DEBTORS TURNOVER 21.77TIMES ASSET TURNOVER 2.74 TIMES RETURN ON ASSETS 10.97% GROSS PROFIT MARGIN GROSS PROFIT / NET SALES * 100 NET PROFIT MARGIN NET PROFIT/SALES * 100 GP MARGIN (2019) = 9.83% NP MARGIN = 7.94% FINANCIAL STATUS
- 18. ORGANISATIONAL STRUCTURE SHAREHOLDERS SALES MARKET RESEARCH H.R. R&D INDUSTRIAL SITUATION LEGAL RESEARCH ENGINEE RING MANUFACT URING FINANCE SECRETARYGENERAL MANAGER BOARDOF DIRECTORS METHODS & MAINT. PPC DESIGN & DEVL. LABOUR RELATIONS WAGES & WELFARE JOB EVALUATION SELECTION & TRAINING TAXES BUDGET CONTROL FUNDING PRODUCTION PLANNING COMPANY LAWS PATENTS ADVERTISING DISTRIBUTIO N &PRICING CUSTOMER SERVICE
- 19. EMPLOYEE RESOURCE GROUP MANUFACTURINGACROSS THE GLOBE WINNING WORKPLACE TRAINING & DEVELPOMENT NEW EMPLOYEE ORIENTATION CLASSROOM LECTURES PROGRAMMED & SELF STRUCTURED ON THE JOB TRAINING ORGANISATIONAL CULTURE EMPLOYEE BENIFITS FINANCIAL HEALTH PHYSICAL HEALTHS TIME OFF / PAID LEAVES DISCOUNTS & PERKS
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