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Introduction:
Whirlpool Corporation (“Whirlpool”) is the world’s leading manufacturer of major home
appliances with revenues of $18.9 billion and net earnings of $418 million for the year ended
December 31, 2008. Whirlpool is the leading producer of major home appliances in North
America and Latin America and has a significant presence in markets throughout Europe and
India. Whirlpool received worldwide recognition for accomplishments in a variety of business
and social efforts, including leadership, diversity, innovative product design, business ethics,
social responsibility and community involvement. They conducted their business through four
reportable segments, which they define based on geography. The reportable segments consist
of North America (57% of revenue), Europe (21% of revenue), Latin America (19% of revenue),
and Asia (3% of revenue).
Whirlpool vision:
Every Home… Everywhere… with Pride, Passion and Performance
This vision statement reinforces that every home is their domain, every customer and
customer activity is their opportunity. This vision fuels the passion that they have for
customers, pushing towards to provide innovative solutions to uniquely meet their needs.
Pride... in work and each other
Passion... for creating unmatched customer loyalty for their brands
Performance... that excites and rewards global investors with superior returns
Whirlpool mission:
Everyone, Passionately Creating Loyal Customers for Life
Whirlpool mission defines the focus and what it does differently to create value. Its a company
of people captivated with creating loyal customers. From every job, across every contact, it
builds unmatched customer loyalty…one customer at a time.
Whirlpool values:
The company’s values are constant and define the way that all Whirlpool Corporation
employees are expected to behave and conduct business everywhere in the world.
Respect — Trust one another as individuals and value the capabilities and contributions of each
person.
Integrity — It conducts all aspects of business honorably – ever mindful of the longtime
Whirlpool Corporation belief that there is no right way to do a wrong thing.
Diversity and Inclusion — It maintains the broad diversity of Whirlpool people and ideas.
Diversity honors differences, while inclusion allows everyone to contribute. Together, it creates
value.
Teamwork — It recognizes that pride results in working together to unleash everyone’s
potential, achieving exceptional results.
Spirit of Winning — The company promotes a Whirlpool culture that enables individuals and
teams to reach and take pride in extraordinary results and further inspire the "Spirit of
Winning" in everyone.
Innovation:
Whirlpool Corporation firmly believes innovative thinking comes from everyone,
everywhere. Nearly 10 years ago, they launched a worldwide effort to instill innovation as a
core competency throughout the entire organization. Since then, Whirlpool employees
worldwide have participated in and contributed to innovation-related activities resulting in new
ideas, products and services; thus delivering real value to consumers in ways never before seen
in either the company or the home appliance industry.
Focused on embedding innovation as a core competency, Whirlpool Corporation has
made a long-standing investment to build this competency. This investment includes
redesigning business processes, training thousands of employees, building an innovation
management system and changing the culture of the company.
Innovation attracts consumers to the wide portfolio of brands; Whirlpool Corporation
generated more than $2.5 billion of worldwide revenue from product innovations—well
exceeding projected targets for the year—and the robust pipeline of $4.5 billion will allow for
continued growth over time.
Promising entity of the company :
Whirlpool Corporation is committed in building products that consumers around the
world can rely upon to meet their daily needs. This commitment to quality begins in the
concept stages and continues throughout the lifetime of the appliance. The result of these
efforts is a sustainable and competitive advantage for the company.
Globally, Whirlpool Corporation manufactures products using principles of lean
manufacturing and operational excellence to ensure continuous improvement of processes and
to produce products that meet the company's high-quality standards.
At Whirlpool, there is a constant focus on seeking out new and unique ways to improve
the function, performance and sustainability of their products.
The ring of promise circling the Whirlpool Corporation logo
The ring around the whirlpool logo clearly shows how the company encompasses with a
promising nature in developing a individual customer loyalty with its services .
Building the Corporate Brand:
The Whirlpool corporate brand has a history dating back to 1911. The company has
steadily expanded its product line, revenues, and global footprint for more than five decades,
evident by milestone returns – from $1 billion in 1968, to $2 billion by 1978, to $6 billion by
1989, to the $13 billion reported in 2004. The corporate mission has also remained focused
over time, demonstrated by mantras such as “Unmatched customer loyalty – the core of our
strategy” and “Customer passion and lifelong relationships – the focus of our business.”
The corporate brand has also been built on a long history of design innovation, a safe
and diverse employee environment, customer-centered manufacturing, and a spirit of social
responsibility. In fact, the depth of the company’s commitment to multiple social efforts is
evident by a six-year inclusion of Whirlpool on the “100 Best Corporate Citizens” list published
by Business Ethics Magazine. The company boasts an impressive set of
accomplishments that foster these commitments:
The implementation of Operational Excellence, Whirlpool’s custom version of the Six
Sigma program, improves quality while lowering costs and shortening cycle times. This
program helped Whirlpool leverage its global manufacturing experience to save $175
million in manufacturing costs in its first three years of use.
Whirlpool’s commitment to innovation was recognized in 2002 with a National Design
Award for Corporate Achievement from the Smithsonian Institution.
Whirlpool is a six-time winner of the ENERGY STAR Partner of the Year award from the
U.S. Environmental Protection Agency (EPA) and Department of Energy, demonstrating
the company’s commitment to environmental protection.
More than 3,500 Whirlpool employees are involved in a five-year, $25 million
commitment to Habitat for Humanity International. The partnership has provided more
than 65,000 appliances to Habitat homes built in North America. In addition,
Whirlpool has raised over a million dollars to support the fight against breast cancer through
the “Cook for the Cure” program, sponsored by KitchenAid. Over 90 years of history gives
Whirlpool an extremely valuable asset: a corporate brand that communicates innovation,
consumer-driven research and development, and excellence in design and performance.
Injecting these principles into internal and customer-facing business processes enables the
company to invoke a consistent set of emotional responses from consumers including trust,
uniqueness, and most important, loyalty.
Establishing a House of Brands:
Whirlpool offers a wide range of household appliance products, including washing
machines, clothes dryers, refrigerators, freezers, cooking appliances, microwave ovens,
dishwashers and a complete range of built-in appliances. Within these product lines, the
company has also established a portfolio of brands through innovative product design, targeted
marketing, and a spectrum of partnerships with trade customers. This portfolio enables
Whirlpool to offer multiple brands with distinct values in the same product category. A prime
example is the company’s “house of brands” for kitchen appliances:
KitchenAid – an up-market brand serving professional chefs and the “home enthusiast
or entertainer.” Characteristics and features for this brand are geared toward thorough
processing, precision, and accuracy. Branding for KitchenAid appliances includes
taglines such as “innovative products for the well-equipped kitchen,” “more than a
mixer,” and “cater to higher expectations.”
Whirlpool – a mass-market brand serving families and in particular, the “active
balancer” or “super-mom.” Characteristics and features for this brand are geared
toward speed, high capacity, and durability. Branding for Whirlpool appliances includes
taglines such as “cook more,” “style and performance unite,” and “Form. Function.
Unity.”
Roper – a value brand serving cost-conscious consumers who buy based on price.
Characteristics and features for this brand are geared toward simplicity, reliability, and
in particular, affordability. Branding for Roper appliances includes taglines such as
“sensible solutions for your family” and “simple, sturdy, affordable workhorse
appliances.”
Whirlpool’s ability to establish multiple consumer-preferred brand positions within the
same product line represents a corporate investment in the millions of dollars for research,
design, production and marketing. A key success factor has been the creation of emotional links
between the corporate brand, individual brands and consumer reaction. The effect has been
viral and measurable, demonstrated by continuous growth in the pool of “brand ambassadors”
that recommend Whirlpool products, upgrade existing products, and cross purchase products
from other Whirlpool brands.
Whirlpool Brands :
Whirlpool
Strategy execution:
The main strategy of the whirlpool is building strong brands which has a loyal consumer
base. Whirlpool is trying to build trustworthiness of the customer and lead the customer life
easier. Whirlpool mailnly does lot of work contributing in building unmatched levels of loyalty
to their brands through lifelong relationships with the customers.
Whirlpool is committed to create the brand value using various strategies such as
focusing on innovation, cost productivity, product quality and consumer value. Whirlpool
always had a continous effort to improve its global operating platform to ensure the position
of the best-cost and best-quality appliance manufacturer worldwide. The company is
maintaining a strong supply chain to better deliver products in trading customers and
consumers. The benefits of these actions today through a stronger network, increased
efficiencies and timely deliveries.
Now and then, even in the future the whirlpool focus is not simply on producing
products but more on the innovation and customer perception in creating them. Its major
focus is always on maximizing the benefits of their worldwide network of resources, which is
unmatched in the industry. They are creating better, more innovative products that improve
consumers' lives—in and around the home—each and every day. The company is always
committed in being an agile, global consumer products company that creates value through
their brands and innovations. With their compelling and growing brands, fueled with
innovation, the company always attracts and retain loyal customers for life.
Going Global with the House:
According to the Fredonia Group, “World demand for major household appliances
(white goods) will reach 367 million units in 2007. The Asia/Pacific, Latin American and
Africa/Mideast regions will grow the fastest based on rising urban populations and per capita
incomes.” As a result of a growth strategy initiated in the mid 1980’s to expand its presence
outside the U.S. market, Whirlpool is in an enviable position to meet the worldwide demand for
household appliances.
A major acquisition in Europe, joint ventures with companies in Mexico and India, and
increased ownership in companies in Canada and Brazil represented the first phase of global
expansion for the company. The early 1990's marked Whirlpool’s expansion in Latin America,
Asia, and greater presence Europe. By 1995, the company established manufacturing and
marketing presence in India, China and the Asia Pacific region. Today, Whirlpool Corporation
boasts the number one market positions in North America and Latin America.
Whirlpool’s global operating platform adds benefits as well as complexities to its house
of brands. On the one hand, the KitchenAid, Whirlpool, and Roper brands leverage worldwide
efficiencies and best practices in product development, engineering, and manufacturing
processes. Each brand also benefits from a well-established corporate brand as it enters new
geographical segments.
On the other hand, the corporation is well aware that Whirlpool’s “Every Home…
Everywhere” mantra must account for the identification and respect of genuine national and
regional differences in customer expectations. Hence, individual brand messaging, positioning,
and imagery must be consistent without compromising geographical uniqueness. Given a
platform that spans 170 countries across North America, Europe, Latin America, and Asia, this
can be a tall order. Hence, Whirlpool’s challenge for the 21st century is to leverage its global
operating platform to increase worldwide market penetration while sustaining innovation,
brand equity, and competitive advantage across its house of brands. With a foundation of
innovative design and development, consistent brand management, and proactive customer
relationship management, Whirlpool has established the groundwork it needs to do so.
GLOBAL CONSUMER DESIGN
This is the face and voice of the creative spirit that lives at the heart of Whirlpool
Corporation a multicultural team of designers, usability experts, anthropologists, behavior
psychologists, color experts and interactive designers.
Whirlpool Corporation's Global Consumer Design Studios are based in four locations -
North America, Mexico, Europe and Asia - reflecting strong connections with the Company’s
global vision “Every Home, Everywhere” and its truly global approach to design. Global
Consumer Design’s four design centers are led from Whirlpool Corporation's headquarters in
Benton Harbor, Michigan in the U.S.
Monterrey: Northern Mexico’s largest city
Benton Harbor: purpose-built facilities at the company headquarters, close to Chicago
Cassinetta: located in Northern Italy, close to Milan, a hub for design and fashion
New Delhi and Shanghai: bridging two of Asia’s centers of gravity
Design acts as an open conduit for influences into the company, and a catalyst for
innovation and cultural change. Taking a “global but local” approach, Global Consumer Design
tests the relevance of its design vision and concepts to reflect local influences and market
diversity. Projects are driven by innovation, yet they are also balanced by understanding
emerging consumer trends, analyzing consumer experience and seeking out “real-life” insights.
Environment responsibility:
“At Whirlpool Corporation, we take our environmental responsibilities very seriously.
Just as we have taken a global approach to our home appliance business, we believe our
world's environmental issues, such as climate change, must be addressed in a similarly
comprehensive way. This is why we continue to develop innovative products that minimize
their impact on the environment while making our consumers' lives easier.”
— Jeff M. Fettig, Chairman and CEO, Whirlpool Corporation
Whirlpool Corporation is an industry leader in developing high-performance appliances
that help conserve the earth's resources and allow homeowners to use resources more
efficiently. They continually strive to understand and manage the environmental effects of their
business, not only by creating new and innovative products that consume less energy and
water, but also by improving our processes and using materials that minimize the impact on the
planet.
Whirlpool Corporation focuses its energy and water efficiency efforts on four key areas:
1. Design and development
Focused on creating even more resource-saving appliances as studies show that 93
percent of life-cycle GHG emissions come from in-home use
Whirlpool Corporation manufactures and markets more than 300 ENERGY STAR®-
qualified major appliances in the United States, plus numerous ENERGY STAR®-qualified
appliances in Canada, PROCEL appliances in Brazil and Class-A appliances in Europe
2. Manufacturing
Lessened power plant emissions through low-energy lighting and high-efficiency
equipment
Participated in the EPA's voluntary emissions reductions program
In process of discontinuing the use of volatile organic compound (VOC) paints and
eliminating emissions from their solvents
3. Product distribution
Partnered with Smart Way Transport®, a collaboration between the U.S. Environmental
Protection Agency and the freight industry to increase energy efficiency while reducing
carbon dioxide by 33 to 66 million metric tons and up to 200,000 tons of nitrogen oxide
per year by 2012
Installed electric truck lifts in the United States, resulting in fewer net emissions
4. End-of-life management
Eighty-five to 90 percent of materials (steel and other metals, some plastics) used in
Whirlpool Corporation-produced products can be recycled
Pioneered efforts to safely dispose of ozone-depleting refrigerants
Reuse plastic foam that was previously sent to landfills; it’s now ground up and made
into plastic furniture, food containers, playground equipment and other consumer
products
GLOBAL SCENARIO OF WHIRLPOOL
COUNTRY KEY STATS BRANDS LOCATIONS
NORTH AMERICA -No. 1 position in theindustry -$7.9 billion of sales-$810 million ofoperating profit-Approximately 31,000 employees
United States KitchenAid,Whirlpool,Roper by WhirlpoolCorporation, Estate,GladiatorCanada Inglis,Whirlpool,KitchenAidMexico Whirlpool, Acros,Supermatic, Crolls
Headquarters: Benton Harbor, MIManufacturing Locations:United States Laverne, TN;Findlay, OH; Marion, OH;Greenville, OH; Clyde, OH;Benton Harbor, MI; Evansville, IN; FortSmith, AR; Tulsa, OK; Oxford, MSCanada Montmagny, QCMexico Monterrey
EUROPE- No. 3 position in Western andCentral Europe_ $2.7 billion in 2003 sales_ $124 million in 2003operating profit_ Approximately 14,000 employees
Whirlpool, Bauknecht,Ignis, Polar, Laden inFrance, KIC in SouthAfrica
Operations Center: Comerio, ItalyManufacturing Locations:France AmiensGermany Neunkirchen, SchorndorfItaly Naples, Siena, Cassinetta, TrentoPoland WroclawSlovakia PopradSouth Africa IsithebeSweden Norrköping
ASIA Leader among Westerncompanies, with No. 1 marketposition in India_ $416 million in 2003 sales_ $7 million in 2003 operating profit_ Approximately 5,000 employees
WhirlpoolHeadquarters: Hong Kong, PRCManufacturing Locations:India Faridabad, Pune, PondicherryChina Shanghai, ShundeWhirlpool
Global strategies:
OPERATING REVIEW ON NORTH AMERICA:
Whirlpool North America operations posted a solid performance in 2003, despite
economic uncertainty early in the year and a significant rise in pension costs compared to 2002.
Meeting these challenges with an array of new product introductions and productivity
measures, the region set new records for sales and productivity, while further expanding
consumer demand for the company’s key North American brands, Whirlpool and KitchenAid.
Whirlpool North America operations made considerable head way with several ongoing
initiatives that put customer’s front and centre of all our operations.
Other customer loyalty initiatives, driven by Whirlpool engineers, designers and
marketers, helped produce a number of outstanding products that reached their first full year
of sales in 2003. Among them were: the Whirlpool Duet clothes washer and dryer pair—
Whirlpool brand’s most energy- and water-efficient washer and dryer pair—and the KitchenAid
briva, a unique in-sink dishwasher that supplements the cleaning needs of culinary enthusiasts
and meets the space constraints of small households.
In 2005, KitchenAid introduced the KitchenAid Pro Line series of major and countertop
appliances to consumers who are passionate about cooking. The KitchenAid Pro Line series
products feature distinctive design and professional-level performance, plus personalized
premium services that include dedicated customer service, online recipes and culinary tips. The
Whirlpool Polara refrigerated range—which gives customers the freedom and convenience to
time and cook pre-prepared meals using the range’s innovative cooling and cooking
technologies—also was available nationwide last year. The Whirlpool Polara refrigerated range
is ideal for families with busy daily schedules who still seek the intimacy of sit-down meals. As a
next step, pilot tests are underway to give customers remote control of the Whirlpool Polara
refrigerated range using cell phones.Other competitors in north America like LG, Electrolux
unlike Whirlpool did not focus on the satisfaction of customers but they concentrated on the
branding of their products. This helped to gain the retention of the market share by whirlpool.
These Korean companies like Electrolux and all mainly concentrated on the upgrading of the
technology and more and more innovation only.
OPERATING REVIEW ON EUROPE:
Whirlpool Europe operations turned in strong performance improvement in 2006,
despite challenging economic conditions and weak consumer demand that resulted in the most
significant industry price declines in several years. Revenue of $2.7 billion was up 22 percent.
Customer-focused initiatives and products in key European markets have put Whirlpool Europe
in a strong position to continue growing its business on the continent.
For example, growing consumer demand for the company’s regional portfolio of
refrigeration products was reflected in the strong sales of the Whirlpool Conquest side-by-side
refrigerator. The operation extended its line of popular refrigeration products with the
introduction of the new Whirlpool Symphony frost-free refrigerator, manufactured at the
company’s facilities in Brazil and customized to fit the unique lifestyles and expectations of
customers in Europe.
The region’s efforts to enhance its trade-partner relationships also made significant
headway in 2003. Whirlpool Europe further cemented its strategic partnership with the IKEA
group, a global retailer of home furniture and furnishings. Whirlpool will provide exclusively a
full range of appliances—including built-in appliances—to IKEA regionally and worldwide. The
agreement helps extend the company’s European distribution capability and expand its built-in
business, particularly for cooking products.
The Whirlpool Dreamspace and Bauknecht big clothes washing systems appealed to
customers as well, because of their ease of use, energy efficiency and innovative features. And
the Whirlpool Mini-BI microwave oven received strong consumer interest for its built-in
convenience and style.
OPERATING REVIEW ON ASIA:
The company’s operations in China and India, Whirlpool’s largest regional markets,
continued to make deeper distribution inroads in 2003 into the countryside from each country’s
urban hubs, thanks to enhanced partnerships with key retailers. The company also retained its
No. 1 position in India for refrigeration products. Another success was the Whirlpool White
magic Stain wash, the only clothes washer on the Indian market that can completely remove
common household stains without hand scrubbing. Another unique Whitemagic Stainwash
washer benefit for this Asian market is that it is internationally certified by Woolmark, the
global authority on wool, as safe for the most delicate of fabrics.
Also first to India is the Whirlpool MagiCook 22Gsi with 6th Sense steam function, the
market’s only microwave oven with the capability to steam cook. The oven’s 6thSense fuzzy
logic features take guesswork out of cooking by sensing the temperature and humidity of food
items to establish precise cooking times. These features also permit steaming to prepare many
Indian delicacies and crisping for pizzas and pastries.
Operations in India and China became increasingly important to the company’s overall
global operating platform. India, for example, increased its year-over-year exports by 20
percent and expanded the number of markets to which it exports. Whirlpool China continues to
manufacture the bulk of the company’s microwave ovens for world markets. China also is fast
becoming an integral supply source for the company’s global procurement activities. Whirlpool
Asia expanded its product development capabilities with the opening of three new technology
centers that support regional and global products involving refrigeration, air conditioning and
fabric care. The new centers extend the company’s worldwide network of integrated
technology resources.
Whirlpool Ahead of competitors:
Whirlpool doesn’t take any company as competitor to it. According to the global market
survey there are 3 major competitors LG, VIDEOCON, G.E.
In comparision with the competitors
Whirlpool is always a step ahead in taking the first advantage of innovative
production.
It is always been the one who is in concern with the environmental factors in its
production patterns
Localization of products specific to every lifestyle considering every group as a
unique entity
Building of unmatched customer loyalty
Any of its competitors like L.G, VIDEOCON,G.E have not followed these strategies as
whirlpool did.
Suggestions of the day :
Improvement in the visual perspective of the product ( the outer look of the product) .
Create a premium niche experience for few products which fit into that category.
Design of strategies in grabbing market from the upper middle class.
Conclusion:
Nearly five years ago, Whirlpool Corporation set out on a course to reach the homes and
hearts of customers around the globe. By listening intensely to their customers, understanding
their needs and desires, and creating innovative solutions that meet and exceed those needs,
Whirlpool’s organizations worldwide are building unmatched levels of customer loyalty to the
brands.
“ Its about innovation, eco efficiency and the consumer”
The driving and the major elements the company considers are the
Innovation
Eco friendly in nature
Consumer
In this present world and in this emerging scenarios of business whirlpool has exactly aimed on
the aspects which it has to be.
“Through increased speed to market and international project teams, we’re changing the way
we do business.”
Time being the major concern for any person in the world the company has attained a
beautiful place in establishing a standard of producing products and placing products delivering
them on time when needed
“I make quality products that help people express their personal styles”
Personal belonging toward s anything is a major aspect for a human being in driving
towards it interest in attaining it.so whirlpool has got its uniqueness in producing products
according to lifestyles of individuals.
References:
1. http://www.whirlpoolcorp.com
2. whirlpool annual report 2008.pdf
3. Implementing global marketing strategy.pdf An interview with Whirlpool Corporation
Ilkka A. Ronkainen School of Business, Georgetown University, Washington DC, USA, and Ivan Menezes
Whirlpool Corporation
4. Building a House of Brands: Whirlpool Corporation’s Blueprint for Success.pdf
5. http://en.wikipedia.org/wiki/Whirlpool_Corporation