MARKETING WHITE GOODS IN U.K.

3 SECTORS

Home laundry appliances

and dishwashers

Cooking appliances

COOLING APPLIANCES

2.9 %

2007

2009

Total UK retail market for white goods was valued at

£3.53bn

Electric Gas and Cooker

Washing Machine &

Washer Dryer

RefrigeratorFastest Growing

Most Valuable

Dishwasher sales have been boosted by a change in consumer perception, which has moved away from considering these appliances to be a luxury non-essential item

The growing popularity of chilled foods and large larder-style refrigerators has driven sales of refrigerators; however, the popularity of combined fridge-freezers has cannibalized sales of freezers

Between 2010 and 2015, the tumble dryer subsector is forecast to show the strongest growth

Value sales of microwave ovens are projected to continue to fall

H & W

Produce products in China

Taking advantage of the availability of relatively cheaper labor and other resources used in the production process

Shipped to UK

ECONOMY

RECESSION IN 2008

UK economy is gaining grounds again

UK is one of the largest of the world’s markets and a high standard of living attracts a number of businesses to the country.

ISSUES FOR MARKETER IN CONSUMER DURABLE MARKET

When replacing white goods, the key concern for consumers is reducing future

household bills

More ‘intelligent’ technology that makes cooking and household chores easier and produces better results is

being incorporated into appliances.

The multichannel combination of website and stores needs to be developed so both inject more

excitement and put more emphasis on ‘showcasing’ products.

Retailers should communicate with those consumers who wait for the sales by sending

them information about the best upcoming deals or inviting them to preview events.

Building and retaining brand trust is crucial in the white goods market.

Stores need staff to engage more with customers through better knowledge of the products backed

up by in-store working appliances

Major Competitors

BekoBoschHotpointIFBINDESIT LIEBHERPanasonicSamsungSiemensWhirlpool

PRODUCT

CLIMATE CHANGE BILL

80% cut in the UK's carbon emissions by 2050 (compared to 1990 levels), with an intermediate target of between 26% and 32% by 2020

The Bill was passed into law in November 2008 .With its passing the United Kingdom became the first country in the world to set a long-range and significant carbon reduction target into law, or to create such a legally binding framework

Three of the key influences upon the life span of consumer durables

FASHION

FUNCTION

FITNESS

GREEN PRODUCTS

RECYCLABLE MATERIAL

LONG LASTING

ENERGY EFFICIENT

Washing machines – including washer-dryers.5.6 kg fully automatic model- HNW F1256Q White6.5 kg fully automatic model- HNM F1265J White8 kg Fully automatic model- HNW F1280Q White

Clothes dryers separate tumble dryers (gas or electric), vented or condenser machines; and standalone spin dryers (electric only).

Dishwashers – full-size, slim line or tabletop models.

Single-door refrigerators – larder-style (including large US-style). Also standard, i.e. with icebox.

Fridge-freezers – frost-free and non-frost-free models (including large US-style appliances incorporating features such as ice and water dispensers) both freestanding and those designed to fit under existing units in a built-in kitchen.

Microwaves – compact/solo microwave-only models (oven capacity <27 cubic liters), microwave plus grill (compact or full size), combination ovens combining microwave with grill power or microwave with convection heat (compact and full size).

EXCLUSIVE DISTRIBUTION

Since it is Consumer Durables, producer deliberately wants to limit the number of intermediaries handling their products. This is done to develop a high quality brand image. Exclusive distribution to recognized official distributors can enhance the prestige of the product

Exclusive distribution is a policy of granting dealers exclusive rights to distribute in a certain geographical area to gain more control over intermediaries regarding price, credit and promotional policies, greater loyalty and more determined selling of the company’s products.

The Company is also looking at franchise model for promoting its product in the market, wherein the look and feel of the stores can be specified, providing a high quality upper end product image into the minds of the consumer.

Internet becoming an increasingly popular place for UK consumers to shop as they can compare prices and get better prices without leaving their homes.

The sales force in the stores, which comprises of Sales Executives and the Sales Managers, would also be provided relevant knowledge and expertise, so that they can handle and understand the products and help in increasing the sales.

The Company is looking at projecting itself as a producer of innovative, long lasting and environment friendly green products..

The products would be set 10%-15%, higher than the average prices of the products prevailing in the market, so as to give the company an up market image

PRICING

The range of Washing Machine would start from £ 200 to £ 320

The range of microwave oven to start from £ 280 to £ 450

The prices of the Fridge Freezer would start from £ 380 to £ 680

Our company in the longer run, would like to provide bundling of goods, and price is accordingly, so as to lure the consumers who are looking for a bargain deal.

This strategy of pricing would help to attract the price sensitive consumer, once the brand has established itself as a leading player in the market.

PROMOTION

The internet has a penetration of 97% of total population

UK being a developed market, consumer is educated, and takes a very thought-out decision, after researching for the particular product on various websites, comparing the features, prices and reading the feedbacks. Featuring our products on these consumer websites is essential to increase the visibility of our brand.

platform for the growing brandsprovides the mass reach within a short span of time. It is the medium which is growing at a rate of more than 45%. So, the brand has to feature on this medium to increase its acceptability and establish itself in the market.

Sponsoring various Green Initiatives.Sponsoring the London Green Marathon can help in promoting the type of products that our company is producing. Target a huge number of people

Television

With ever increasing number of cable channels this media is getting cluttered

Radio,Press, Poster and Banners to convey a range of messages.

Brand Building initiative :Associating with the municipal authorities, and assisting them in their cleanliness drive

Greener Products, for Greener City