SlideShare a Scribd company logo
1 of 21
• Having six business units
consisting of four major
appliances division, small
appliances division and
professional products division.
• 65% group sales from New
Zealand and Japan
• Markets characterized by low
population growth and high
replacement product sales have
been targeted.
INNOVATIVE
PRODUCTS
PROFITABLE
GROWTH
DEDICATED
EMPLOYEES
OPERATIONAL
EXCELLENCE
Porter’s Generic Strategy is being implemented
of overall cost, differentiation and focus, along
with SWOT Analysis.
This Innovation Triangle is the important part
of Electrolux combining marketing, design and
R&D to ensure faster product development and
reach to the market by customer research.
Same product architecture with different
design helps in modularized design as per the
location.
Strategic emphasis on increasing operational
efficiency, Electrolux has restructured its
production across divisions globally.
Electrolux has shifted
nearly 65% of its
manufacturing from
Western Europe and
Northern America to low
cost region.
Continuous innovation of
existing product to
penetrate existing markets.
MAJOR ACQUISITIONS OF
COMPANIES BY ELECTROLUX
THINKING OF YOU tagline helps build a connection with the customers, the
Ads reflect the same.
ANAYSIS OF THE COMPANIES STRATEGY AND THEIR PLANS
ELECTROLUX’s Vision is to be the best appliance company in the
world as measured by customers, employees and Shareholders
EVALUATE ELECTROLUX’S STRATEGY IN LIGHT
OF ITS VISION AND THE GLOBAL TRENDS IN
THE HOUSEOLD APPLIANCE INDUSTRY
WHAT BENEFITS WILL ELECTROLUX RECEIVE
FROM THE ACQUISITION OF GE APPLIANCES?
HOW DOES IT FIT IN WITH THE STRATEGIC
DIRECTION OF THE GROUP?
WHAT OTHER STRATEGIC OPTIONS CAN
ELECTROLUX PURSUE FOR FUTURE GROWTH TO
ACHIEVE GREATER GLOBAL DOMINANCE?
Benefits by acquiring General Electric
appliance gave Electrolux control over the
Kitchen and Laundry products.
In North-America would mean 90% of the
sales will be with Electrolux and running its
own Logistics and Distribution Network.
48.4% shareholding in Mexican Appliance
Company.
This acquisition would give Electrolux more
financial strength and more global business
around the world.
IF IT FITS WELL WITH ELECTROLUX STRATEGY?
• Experiencing growth with acquisitions as done in the
past.
• Increase in the product list and diversity in
products.
• Start of introduction of products into newer
markets not well versed by the company.
• Increase global reach and operational efficiency
under the companies banner.
• Paving a path to the Vision or the Goal the company
wants to achieve.
• Technological advancements in the company.
FUTURE GROWTH TOWARDS GLOBAL
DOMINANCE
• Targeting emerging markets like India and other
markets with population.
• Being price conscious as per the country or place
selling in.
• Have a strong market research program so as to
know the customers requirement and start working
towards those.
• Market research program on the prices and giving
some offers to attract more customers.
• Improving on marketing channels and create more
awareness towards the brand and highlighting the
specialty of the product.
SUMMARY
• Path to become global leaders.
• Four Pillars of Strategy
• Acquisition and Merger
• Future Plans
DISCLAIMER
Created by Aakash Goyal, MIT Manipal,
during a marketing internship by Prof.
Sameer Mathur, IIM Lucknow

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Marketing Excellence Case Study - Electrolux

  • 1.
  • 2.
  • 3.
  • 4. • Having six business units consisting of four major appliances division, small appliances division and professional products division. • 65% group sales from New Zealand and Japan • Markets characterized by low population growth and high replacement product sales have been targeted.
  • 5.
  • 7. Porter’s Generic Strategy is being implemented of overall cost, differentiation and focus, along with SWOT Analysis. This Innovation Triangle is the important part of Electrolux combining marketing, design and R&D to ensure faster product development and reach to the market by customer research. Same product architecture with different design helps in modularized design as per the location. Strategic emphasis on increasing operational efficiency, Electrolux has restructured its production across divisions globally.
  • 8. Electrolux has shifted nearly 65% of its manufacturing from Western Europe and Northern America to low cost region. Continuous innovation of existing product to penetrate existing markets.
  • 10.
  • 11. THINKING OF YOU tagline helps build a connection with the customers, the Ads reflect the same.
  • 12. ANAYSIS OF THE COMPANIES STRATEGY AND THEIR PLANS
  • 13. ELECTROLUX’s Vision is to be the best appliance company in the world as measured by customers, employees and Shareholders
  • 14. EVALUATE ELECTROLUX’S STRATEGY IN LIGHT OF ITS VISION AND THE GLOBAL TRENDS IN THE HOUSEOLD APPLIANCE INDUSTRY
  • 15.
  • 16. WHAT BENEFITS WILL ELECTROLUX RECEIVE FROM THE ACQUISITION OF GE APPLIANCES? HOW DOES IT FIT IN WITH THE STRATEGIC DIRECTION OF THE GROUP? WHAT OTHER STRATEGIC OPTIONS CAN ELECTROLUX PURSUE FOR FUTURE GROWTH TO ACHIEVE GREATER GLOBAL DOMINANCE?
  • 17. Benefits by acquiring General Electric appliance gave Electrolux control over the Kitchen and Laundry products. In North-America would mean 90% of the sales will be with Electrolux and running its own Logistics and Distribution Network. 48.4% shareholding in Mexican Appliance Company. This acquisition would give Electrolux more financial strength and more global business around the world.
  • 18. IF IT FITS WELL WITH ELECTROLUX STRATEGY? • Experiencing growth with acquisitions as done in the past. • Increase in the product list and diversity in products. • Start of introduction of products into newer markets not well versed by the company. • Increase global reach and operational efficiency under the companies banner. • Paving a path to the Vision or the Goal the company wants to achieve. • Technological advancements in the company.
  • 19. FUTURE GROWTH TOWARDS GLOBAL DOMINANCE • Targeting emerging markets like India and other markets with population. • Being price conscious as per the country or place selling in. • Have a strong market research program so as to know the customers requirement and start working towards those. • Market research program on the prices and giving some offers to attract more customers. • Improving on marketing channels and create more awareness towards the brand and highlighting the specialty of the product.
  • 20. SUMMARY • Path to become global leaders. • Four Pillars of Strategy • Acquisition and Merger • Future Plans
  • 21. DISCLAIMER Created by Aakash Goyal, MIT Manipal, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow

Editor's Notes

  1. Well today we are going to see a perfect example of marketing excellence and how Electrolux has pursued different strategies to become a world leader in houseold appliances
  2. This Swedish multinational company was Formed by a merger of 2 people AB LUX and Svenska Electron AB headquarters in Stockholm, sweden
  3. From starting by making a vaccumm cleaner the company is ranked 2nd largest in the segment of home appliances.
  4. Its diversity in the field of appliances with 6 business unit, 65% of its group sales comes from New Zealand and Japan, these markets being characterized by low growth population and high replacement product sales shows some kind of strategy to target customer.
  5. So how did the become one of the largest in this market? What were the strategical paths laid down by the company to reach at this level?
  6. The company has always followed 4 pillar strategy by which they abide and which has highly paid of for the company. We will see each strategy and discuss it in detail.
  7. First any technology company survives due to its innovation and markets its products on the basis of this innovation. Porters Generic Strategy was being implemented having 3 points of focus: Overall Cost leadership, Differentiation and focus. This triangle of innovation combining Marketing, R&D and design are based in the basis of this strategy.
  8. Another strategy from the 4 pillars is operational excellence what can be said to be the porters strategy of overall cost leadership. This strategy emphasis on the means of the increasing profits which was done by shifiting its manufacturing to low cost regions. The graph also indicates the cost cutting pattern of the company and how the company has been successful in cutting varies fixed cost every year
  9. Another pillar towards the company future is profitable growth. Electrolux has used porters strategy of differentiation by acquiring many companies around the world doing good in the field of appliances thus increasing its market reach.
  10. Then we get into the last pillar of the strategy which is the sole of the companies the Employees. No company can run without professional and dedicated employees, those who are knowlegable and most importantly they think about the company. Quote.
  11. All this is very well summarized by the tagline THINKING OF YOU helping to build connect with the customers and show that the innovation is done keeping in mind the difficulties faced by the consumers
  12. the company has all these strategies towards reaching a goal by having a vision. How these strategy very implemented by the company we will see that.
  13. To understand the companies strategy the most important thing is to understand companies VISION and what it wants to become. VISIOn
  14. What we will see is how these startegies helped the company set trends in the house old business
  15. 4 Pillars, cost savings, launching specific products, horizontal integration.
  16. These are some questions which will be wandering in the mind of the people related to the moves made by the company.
  17. Considering what benefits the company enjoyed after taking over GE is that Control over their kitchen and laundary products. 90% sales of North America with Electrolux. Increasing more financial strength and increasing global reach
  18. Yes it does: The company has experienced growth in the past with acquisition. Product list will increase. Introduction in newer markets for the company increasing global reach.
  19. Every company should think about the future and maintaining their present.
  20. So here we have discussed about Electrolux overall journey to become where it is today.