Presented by Neha Ghorad

EPGDM - 1031415011

LARGEST HOME APPLIANCE MAKER IN THE WORLD

Introduction – Whirlpool Corporation• An American multinational Fortune 500 company

• Headquartered in Michigan, USA

• Annual revenue of @ $20 billion

• Over 100,000 employees

• 70+ manufacturing and technology research centres

• Manufacturer and marketer of home appliances– Within U.S.A, Whirlpool has 8 manufacturing facilities at Amana, Iowa,

Tulsa, Oklahoma; Cleveland, Tennessee; Ohio: Clyde, Findlay, Greenville, Marion (and Ottawa, Ohio).

Vision

The Best Branded Consumer Products

in Every Home

Around the World

Mission

Create Demand and

Earn Trust Every day

Values

Respect

Integrity

Diversity & Inclusion

Teamwork

Spirit of Winning

Strategy

Product Leadership

Brand Leadership

Operating Excellence

People Excellence

Company Overview

• Whirlpool's main products are laundry appliances, refrigerators/freezers, cooking appliances, dishwashers, mixers and other small household appliances.

• WHR employs more than 130 industrial designers in four design centres and 3,500 engineers in 26 research centres.

• The design of Whirlpool's highest end products focuses around "6th Sense" technology, which adapts appliances to their surroundings. – For example, "6 Sense" refrigerators adjust conditions to best keep

food fresh, and driers adjust their timing and heat depending on the load size.

Product Portfolio

Refrigerators, Washing Machines, Air Conditioners, Microwave owen, Water purifiers, Built in appliance, Induction cooktop

Company owned brands Marketing Portfolio

• The company owns the following brands:– Whirlpool– Maytag– Kitchen Aid– Jenn-Air– Amana– Gladiator Garage Works– Inglis– Estate– Brastemp– Bauknecht– Indesit– Consul.

Board Of Directors

• Whirlpool Corporation is governed by a board of directors comprised of 11 members, 9 are independent.

• The board’s principles and processes guide the board, which includes internal annual reviews of board practices.

The Executive Committee

• 10-member senior management group is comprised of the chairman

• Chief executive officer (CEO), Jeff Fettig

Global LocationsNorth America

Global LocationsEurope, Middle East & Africa

Global LocationsLATIN AMERICA

Global LocationsASIA

PRODUCT & BRAND LEADERSHIP AWARDS

• 2013 red dot Product Design Award for the Bauknecht BlackLine set of appliances in Europe

• The Bauknecht brand was named Most Innovative Brand of the Year in the major appliances category at the 2013 Plus X Awards, offering products like the impressive LUMiQ refrigerator.

• For the third year in Argentina, Whirlpool brand was named the Most Trusted Brand in refrigerators by Selecciones magazine’s annual Trusted Brands Survey.

• 2013 Harvard Business Review/McKinsey MPrize Innovating Innovation Challenge Winner

• 2012 Silver Edison Best New Product Award – Whirlpool Ace

• Newsweek’s Green Rankings – Ranked No. 299 overall and No. 6 in Consumer Products in 2012 and recognized since list’s inception in 2009. The 2013 list will be release in October.

PEOPLE EXCELLENCE AWARDS• Corporate Responsibility Magazine’s 100 Best Corporate Citizens – Ranked No. 78 in

2014 and included on list 12 out of 15 years.

• DiversityInc’s Top 50 Companies for Diversity – Whirlpool ranked No. 49 on the 2011 list, announced March 3, 2011.

• Fortune Magazine’s Most Admired Companies – Fourth consecutive distinction for Home Equipment/Furnishings.

• 2014 Top Company for Leaders – Ninth in North America and thirteenth globally from Aon Hewitt.

• Outie Awards finalist for Workplace Excellence in 2014.

• 2013 Straight for Equality Workplace Excellence Award from PFLAG (Parents, Families & Friends of Lesbians & Gays).

• 100% on HRC (Human Rights Campaign) rankings every year since inception of the award.

• Ranks Fortune 1000 companies on best places to work for LGBT employees.

• Great Place to Work – Época Negócios magazine (Brazil).

• Best Companies to Work For – Recognized by Você S/A magazine and the Institute of Administration (Brazil).

OPERATING EXCELLENCE AWARDS• Forbes and Reputation Institute Top 25 Most Reputable U.S. Companies –

From 2008 to 2014.

• FTSE4Good Index Series – Recognized since 2001

• Ocean Tomo 300 Patent Index – Ranked in the index since its inception in 2005.

• Melhores e Maiores -Biggest and Best Company in Electronics by Examemagazine (Brazil)

• 10 Most Innovative Organizations by Best Innovator ranking, A.T. Kearney together with Época Negócios magazine (Brazil)

• Melhores da IstoÉ Dinheiro/Best of IstoÉ Dinheiro – Sixth straight win in electronics category from IstoÉ Dinheiro magazine (Brazil)

• 20 Most Sustainable Companies – Third recognition by Exame magazine (Brazil)

• 25 Most Admired Companies – Recognized by human resources professionals inGestão RH magazine (Brazil)

Worldwide Growth–Major Appliances

Worldwide Growth–Small Appliances

Financial Overview• Whirlpool announced an increase in net income of 141 percent to $164

million, or $2.13 per diluted share, compared to $68 million, or $0.91 per diluted share reported during the same period last year. Sales of $4.3 billion increased 20 percent from the $3.6 billion reported in the first quarter of 2009.

• First-quarter operating profit totaled $241 million compared with $166 million in the prior year. Results were favorably impacted by cost reduction and productivity initiatives, increased sales volume and favorable foreign currency effects.

• Whirlpool continues to invest a large percentage of its operating budget on research & development.

Global Market Share – Drying Machines

Total maker shares of Whirlpool Group are 24.3%.

India – A global market• India serves as export hub.

• India is on top of the list of countries for Whirlpool International business

• Whirlpool India makes air conditioners, washing machines, refrigerators, microwave ovens and water purifiers.

• Exports to South Asia, Australia, South-East Asia, the Middle East and Africa are done through made in India which constitute about 10 to 15% of the overall business.

• Whirlpool has one of its global “Centres of Excellence” for design in India to have a deep understanding of consumers and utilise local design and manufacturing capability.

• Also, Whirlpool is the most preferred brand in India, with over 93% consumers showing a preference for the Whirlpool brander in the global marketplace, Jeff Fettig, the chairman and CEO of Whirlpool Corporation

Stock Performance

• Stock shows consistent improvement

• Despite weakness in the North American and European markets, Whirlpool announced an increase in net income of 141%

• This growth is largely due the strong demand for Whirlpool products in Latin America and Asia.

• Unit sales in Latin America and Asia increased by 14.5% and 20.8%, respectively, from 2008 to 2009

• Influence of trade barriers on product marketing

• Influence of culture on product marketing

• Influence of technology on product marketing

• Impact of globalization on International marketing

International Marketing Parameters

Culture–Innovation at workplace• Employees are enrolled in business innovation course

• I-mentors work on quality in the company & facilitate innovation projects

• Intranet portal offer employees a common forum for learning principles of innovation

• By 2007, due to the innovation initiation of company, new products stemming from the innovation areas contributed nearly $2.5 billion in worldwide revenue, and approximately $4 billion of $19 billion in 2008 revenues.

• In 2008, Whirlpool had 61,000 employees and nearly 1,100 volunteer I-mentors worldwide who helped facilitate innovation throughout the business.

Cultural barrier observed in India• The consumer durable market in India is not a

monopoly, also cannot be categorised into a oligopoly

• Availability of many players makes it highly competitive

• In India, due to availability of labour at reasonable rates, traditionally most of the daily household chores are done manually by housewifes or hiring maids

• This affects the sales of products like washing machines, fridges

Technology - Advance, 6th Sense• Whirlpool 6th Sense Live Smart Appliance line-up enhances

appliances with the power of the internet, adding convenience and saving money.

• An all-encompassing app that lets you control all of your appliances from anywhere, and monitors fluctuating energy rates, so you operate your smart appliances when it's most cost-effective.

• Contact via text, email or the 6th Sense Live smartphone app, Whirlpool's smart appliances alert to potential problems.Eg: – A smart dryer that sends an alert when it detects a vent blockage,

preventing a potentially dangerous problem in your home. – A smart refrigerator that texts you if the door is left open for more

than five minutes, preventing unnecessary food spoilage.

Technology Barrier observed in India-1• Not many consumer are interested to know the

current status of the work the machine is doing online.• It just adds another level of un-needed information

availability to the consumer which may be frustrating during the busy hours of work.

• Older generation are not tech savvy users• Also, many do not prefer the linking of accounts for

security reasons• Charges and speed of internet service are limiting

factors for use of such technology in appliances• Internet availability is uncertain• The use of internet is limited to selected few urban

population• Thus, though the technology is path breaking, its less

or limited usage by customers hardly differentiates it with products of other companies

Remedy 1• Company should focus on the type of customers and then

R&D according to geography that may help in getting the desired customer base.

• India- lack of space, high rates electricity, water scarcity

• Integration is hot favourite now-a-days. An appliance having integration of two types of models can become a revolution.

– Eg1. Cloth-Dish washing integration. Waste water from clothes can be simultaneously reused for washing dishes. A lot of water conservation and saving electric consumption will be attraction for consumers.

– Eg2. Portable AC, no need of installation of AC into walls

Technology Barrier observed in India

Consumer durables Market

Primary market Consumers buying the new appliances

Secondary market Consumers buying the spare parts for

repair

Technology Barrier observed in India• Though the market share is considerable for the high

end products, the spare availability is quite low.

• Costly spare parts and service unavailability can lead to the brand name damage

• In India, the consumer market is not having any company having dominant share market, so retaining the customers is prime importance.

• Sometimes the query handling by the service centre of the company are not that good at providing services to customers.

• In experienced staff, lack of training

• The after sales service play a major role in the market of consumer durables for finalisation of product as from the consumer point of view, its highly important.

Remedy• Company Service centres should be monitored periodically• The availability of spare parts should be done• Online tracking for transparency• The price rate for services should be fixed and made

available to customers for reference and cross-checking• Whistle blowing numbers should be created for consumer• Regular training for service centre employees• Incentive plan for good performer• Regular Customer feedback for services enhancement• Improving service, helps in making a good reputation for

brand and trust among the customers. Which is in-line with the company’s vision and mission

Globalisation

• Globalization is viewed as a process of moving jobs to low-wage countries.

• However, whirlpool emhasizes first-rate centers of production and design in various countries

• Its global network, a work in progress, includes microwave ovens engineered in Sweden and made in China for American consumers; stoves designed in America and made in Tulsa, Okla., for American consumers; refrigerators assembled in Brazil and exported to Europe; and top-loading washers made at a sprawling factory in Clyde, Ohio, for American consumers, although some are sold in Mexico.

Globalisation Barrier observed in India• India is export centre for whirlpool

• Exports to South Asia, Australia, South-East Asia, the Middle East and Africa are done through made in India which constitute about 10 to 15% of the overall business

• A lot of the appliances end up in the gray market and the tracking of these products remain tough for the company.

• Results in sales revenue losses

• Loss of customers

Remedy

Product identification should be done and online records should be maintained for tracking the products

To benefit the company inbuilt identification and tracking should be incorporated for keeping a check on the supplies to the gray market