Marketing Management report on Whirpool Green Kitchen

1. GreenKitchen
Case Study
Prepared by:
Imran Khan
Abhishek Kumsi
Ramachandra Pai
Pitch Tavichai
Kitt Thabungkan
Nicholas Thibault
Prepared for:
BMM699 Marketing Management
Brigitte Nicoulaud
Aston Business School

2. 1
TABLE OF CONTENTS
MARKET SITUATION.........................................................................................................................................................2
MARKET ANALYSIS AND FORECAST.........................................................................................................................2
SWOT ANALYSIS........................................................................................................................................................2
STRENGTHS..............................................................................................................................................................2
WEAKNESSES ..........................................................................................................................................................3
OPPORTUNITIES.......................................................................................................................................................3
THREATS..................................................................................................................................................................3
SWOT IMPLICATION...................................................................................................................................................3
TARGET MARKET .............................................................................................................................................................4
TARGET STRATEGY .....................................................................................................................................................4
MARKETING STRATEGY...................................................................................................................................................5
PRE-LAUNCH (3 MONTHS-LAUNCH TIME)..........................................................................................................5
LAUNCH (LAUNCH TIME – 3 MONTHS AFTER)....................................................................................................5
POST-LAUNCH (3 MONTHS AFTER LAUNCH – 6 MONTHS).................................................................................6
MARKETING MIX.........................................................................................................................................................6
SUMMARY..........................................................................................................................................................................6

3. 2
MARKET SITUATION
Whirlpool is a very well-known home appliance brand and one of the domestic product market leaders in the world.
Two aspects of the company have carried it into the new millennium with positive results namely Innovations in
Design and a People Oriented Drive. However, in the past few years there has been a gradual decline in the company
revenues fueled by several factors in the general global economic climate. The rise of competitors, changes in the
consumer mindset and unfavorable international economic scenarios have driven Whirlpool to take measures to rectify
the situation.
This report presents the remedial action, with evidence from our analysis, which should be taken in order to ensure that
Whirlpool utilizes the current trend in the market and benefit by launching GreenKitchen that can meet both current
consumer needs and also capture a larger market share. After the analysis of the data that has been provided by
Whirlpool, the market segment and demographic of the consumers has been distinctly identified and highlighted,
whereby strategies for launching GreenKitchen have been recommended.
MARKET ANALYSIS AND FORECAST
Macro Analysis (PESTLE)
Political: Currently no political factors have been identified in the promotion of a new product which may have direct
or indirect implication on GreenKitchen as a brand.
Economic: The global crisis that hit the market in 2008 had a direct impact on Whirlpool as a company. Consumers
have been more cautious in their spending on home appliances. In addition, while the company has managed to keep the
sales revenue high, the operation costs have increased significantly resulting lower figures in profits.
Social: Consumers’ need to meet the expectations of their peers by visibly and behaviorally providing evidence of their
concern for the environment.
Technological: Advancement in technology and research in alternative energy sources have created a niche market
where there are consumers who possess the awareness and have the need for products that are environmentally viable
and technologically advanced.
Legal: Regulations have been introduced by the government to control the amount of Carbon that is dissipated into the
environment by industries in the entire process from harvesting the raw materials to the end of product life. The
company has to compile with these regulations and could result in some amount of investment in terms of R & D.
Environment: An increased concern in sustainability and efforts being done worldwide in trying to reduce the carbon
footprint along with conservation of energy.
SWOT ANALYSIS
STRENGTHS
 Whirlpool is a strong international brand.
 Whirlpool has the ability to withstand some short-term pain if Greenkitchen takes time to gain market share.
 Whirlpool is currently the only company offering this integrated eco-friendly kitchen as a product.
 Greenkitchen is cheaper over the lifespan of a kitchen.

4. 3
 GreenKitchen is high tech.
 Whirlpool is listed on the Dow Jones sustainability index due to heavy investment in CSR and other social
initiatives
 Investment on R & D and emphasis on innovation is excellent
WEAKNESSES
 Greenkitchen is an all-in-one solution; either the consumer buys all appliances or buys none.
 High initial cost.
 May appear as ‘too complicated’ to older or less technologically savvy users
 No/Low awareness of GreenKitchen
 To implement in an old home the entire kitchen would need to be renovated.
OPPORTUNITIES
 Large European marketplace.
 Going green to save the environment continues to be a major public issue.
 Everyone likes to save money.
 Economy could start picking up again, thus leading to new housing starts and people's desire to renovate.
 Predicted growth rate in 2013 is significant.
 Governments supporting the green initiative by offering tax incentives.
 Energy prices continue to rise, leading for people to find alternative solutions.
 Lack of brand loyalty among consumers
THREATS
 European consumers do not necessarily procure kitchen appliances
 Going green and saving the environment is everywhere these days, people may be immune to notices or caring
about the differences.
 Other brands creating a similar appliance system, perhaps one that isn't so reliant on interconnectivity.
 Economic crisis is still affecting the world, especially in Europe where the hardest hit Italy and Spain are 2 of
the largest kitchen appliance markets.
SWOT IMPLICATION
Opportunities Threats
Weakness
With a strong brand image, consumer
approval of efforts made in sustainability and
CSR, Whirlpool should launch the Green
Kitchen taking into consideration consumers’
price and environment sensitivity.
Strengths
Whirlpool has an excellent global network
and this can be better utilized in order to
drive down operation costs while targeting
the market with the message that Green
Kitchen saves 70% of the energy expenses at
the same time contributes to a Greener
environment
Brand awareness of Green Kitchen is still low
and a massive advertising campaign is
mandatory. Investment should be done in
post-sales and warranty due to the fact that a
breakdown in one unit of the kitchen results
in a failure of more than one appliance
Certifications from independent bodies and
promotion of a general awareness about a
product that not only ‘claims’ but also
‘proves’ to be Green

5. 4
TARGET MARKET
GreenKitchen is a new brand which has to find a foothold in the highly competitive European market where the
standards have already been set high by other products which also claim to achieve the same fundamental sustainability
quotient. The table below shows the key target for our product and also the long and short term interests we have in
these segments
Target Segment Short Term Long Term Priority
(1=High)
Dark Green:
These consumers are loyal to eco-friendly and effective products
due to their concern for the environment and the need to display
their point. Upper and Middle class individuals comprise this
segment.
 1
Medium Green:
Affluent young parents who would like to promote the idea of
preserving the earth and promote values of hope & prevention in
their children. They would pay if the product is valuable and easy
to use.
 1
Light Greens:
Emerging middle class dwellers in their 20s. They are highly
price sensitive and would invest in products that are trendy, eco-
chic and fit their value of self-expression and status.
 2
Planet Passionate:
This segment is strongly committed to environment and the
related efforts that need to be done in order to achieve their
purpose. They are recycle enthusiasts and would be ideal segment
for GreenKitchen.
 3
Mainstream Population:
This category of consumers does not fit into any of the
environmental profiles but purchase products because of the
general functionality and possible benefit that could be achieved.
 3
TARGET STRATEGY
Dark Green & Medium Green (Priority 1) [Short-Term Strategy]
Due to the fact that a niche market already exists for our product which is new to the market, targeting this sector would
be the most intelligent choice. Dark Greens would be in an ideal position to look at GreenKitchen and associate their
requirements with it. Additionally Whirlpool’s CSR initiatives would appeal to the Medium Greens and promote them
to buy the product.
Light Green (Priority 2) [Long-Term Strategy]
As the GreenKitchen gains momentum in the existing niche, more segments would be aware of the product and since
the Light Greens would have more confidence in the quality of our brand and it would become a sought after product by
this group of people. In addition the eco-chic design and the trendy exterior of the kitchen would appeal to the aesthetic
and eco-friendly tendencies of the Light Greens.
Planet Passionate & Mainstream Population (Priority 3) [Long-Term Strategy]
Although the Planet Passionate segment commits to environmental friendliness, the success of GreenKitchen may not
be obvious in the beginning due to the low spending potential among this section of consumers. Over a period of time
when GreenKitchen can accommodate the selling price into the capability of this demographic, we can target them as a
long term strategy.The mainstream populace too would have to be targeted in a similar manner.

6. 5
MARKETING STRATEGY
GreenKitchen has a competitive advantage which few of the other brands in the market currently possess. Our aim is to
cover Europe with GreenKitchen with in a period of 10 years. The plan and strategy employed for GreenKitchen to enter
the European market is purely based on an action and evaluation approach. Strategically the German market is the most
conducive in current economic times for the launch of GreenKitchen. Based on the performance and market feedback
received in Germany, launches would be addressed in multiple locations all over the European continent. The launching
period of GreenKitchen should be segmented into 3 phases ‘Pre-Launch’, ‘Launch’ and ‘Post-Launch’. The launch will
be implemented in such a way that when GreenKitchen is launched in Germany, the pre-launch is conducted in Italy for
example and when the launch is initiated in Italy, the pre-launch is initiated in Spain. This trend will proceed with a
continuous learning and with specific marketing plans for each country until the whole European market is covered.
During this entire operation, Research and Development will be done continuously to improve on existing models
thereby releasing newer versions which will not only be promoted to new customers, but also diffused into the existing
customer base by means of innovative schemes and promotions.
PRE-LAUNCH (3 MONTHS-LAUNCH TIME)
 Online competitions in social networking and Whirlpool web sites where participants can compete in order to
win a fully fitted GreenKitchen or any other suitable reward.
 Mobile GreenKitchen units and fitted units in model apartments at real estate development sites on a contract
negotiated with the agencies developing them.
 Advertisements involving teasercampaigns in bill boards and also in trendy magazines and media.
 Journalists or scientists funded by Whirlpool who could provide credibility to the GreenKitchen in terms of the
savings in operating costs.
 Simulations in malls and stores where consumers could get a sense of the amount of savings that they could
experience should they decide to implement GreenKitchen in their homes.
Results
 Increased awareness among consumers about the GreenKitchen brand providing additional impetus to the
launch
 Confidence among the segments that the technology used in GreenKitchen is modern and safe
LAUNCH (LAUNCH TIME – 3 MONTHS AFTER)
 A grand launch should be held sending a message that GreenKitchen is a stepping stone into the future.
 TV advertising campaigns should be aired during prime time. In cooking shows, GreenKitchen should be part
of the kitchen that is used and should often be mentioned during the show.
 Health and Lifestyle magazines should provide ample information about GreenKitchen
 A GreenKitchen with all design and premium features included should be placed in major dealerships and
Whirlpool showrooms where the music alters the body light of the kitchen itself making it a very eye-catching
display for customers
 Customers who have installed GreenKitchen can enjoy a fully sponsored party in their homes du ring which
they will show off their new kitchen to their friends and potential customers
 Whirlpool should advertise and promote their investment in CSR. A percentage of revenue earned from
GreenKitchen sales should be invested in socio-economic drives within the local community
Results
 The magnitude and response at the launch should motivate and convince consumers that GreenKitchen is the
kitchen of the future that is available today
 TV campaigns and other media campaigns will also attract more people to visit the stores to have a look at
GreenKitchen increasing potential for sales

7. 6
POST-LAUNCH (3 MONTHS AFTER LAUNCH – 6 MONTHS)
 Post-sales support and warranty services that have been set in place have to be monitored for quality and
continuous learning
 Advertising in multiple media should continue
MARKETING MIX
Product
 GreenKitchen should have a customizable appearance.
The kitchen should be available in multiple colours
and an additional option where in the colour can be
changed on the lighting panels would give an aesthetic
and a chic appearance.
 Get the product certified by EPEAT and ISO14001
 Supply the product to the consumer location in
recyclable boxes. Technicians collect the boxes and
other waste packing materials and bring them back to
the showroom/dealership which should then be sent
back to Whirlpool factory for reuse
 Recyclable materials should also be used in the kitchen
itself which can further reduce the cost of making each
integrated unit
 Multiple models can be built based on the functionality
that we wish to provide the consumer which can be
integrated with an add on unit at a later stage when
required
Price
 The pricing should be competitively placed with other
brands that offer similar features
 Since GreenKitchen would comprise of recycled
components, the pricing can be competitive and can
also be offered in ranges
 The ranges would depend on the type of add-ons
available in each kitchen
 A kitchen with a standard, non-changeable colour
would cost less than a kitchen with the multiple colour
option
 An additional cost would buy the customer a kitchen
that has an iPod deck or any other multimedia plugins
Place
 Online shopping is fast becoming a primary shopping
venue for customers who have become tech savvy and
find it convenient,hence it should be stressed
 Existing showrooms which belong to Whirlpool and
other dealers should have shop space dedicated to
GreenKitchen. The brand should be displayed proudly
and visibly.
 Since the kitchen is sold as a unit, it can be easily
installed during the construction of new homes,
therefore companies that construct gated livings and
similar townships will be targeted
Promotion
 Prior to the launch, conduct online promotion
competitions which can create an awareness of the
imminent arrival of GreenKitchen in the market
 Use lifestyle magazines, cooking channels, family
viewing channels at prime time to advertise
GreenKitchen. The advertisements should stress the
massive reduction in energy expenses once the kitchen
is installed.
 Encourage independent and third party assessors to
validate the eco-friendly and the carbon impact of
GreenKitchen and report in daily prints.
 Provide a clear connection between Whirlpool CSR
investment and couple the PR with GreenKitchen.
Invest money from GreenKitchen sales in social
drives.
 Advertise and provide good after sales support with
SLAs that are achievable, monitor and control these
SLAs on a regular basis.
SUMMARY
Using the proposed marketing strategy would strongly launch GreenKitchen in the European marketplace. From the
analysis we concluded that a new age marketing strategy utilizing the hip factor would create a launch that will get
GreenKitchen noticed everywhere. Although we uncovered some weaknesses, none of them are critical towards
keeping GreenKitchen from becoming a success. Whirlpool is poised to become a major player in Europe when
GreenKitchen launches and conquers Europe.