This document provides a summary of Manan Kodia's final semester presentation on Whirlpool dishwashers. It includes the following key points:
- It discusses the FMCD (fast moving consumer durables) sector and examples like televisions, refrigerators, and dishwashers.
- It then focuses specifically on Whirlpool, providing details on the company's size, product portfolio including different dishwasher models, specifications, and strengths and weaknesses.
- Finally, it analyzes Whirlpool's position in India including target markets, competitors, the marketing mix, and SWOT analysis.
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
WHIRLPOOL ANALYSIS
1. FINAL SEMESTER 1 PRESENTATION
NAME – MANAN KODIA
MBA 2
UID- 2019-1905-0001-0025
TOPIC – WHIRLPOOL
DISHWASHERS
2. SECTOR INFORMATION
FMCD goods are a category of consumer products that do not have to be purchased
frequently because they are made to last for an extended period of time (typically more
than three years). They are also called durable goods or consumer durables.
EXAMPLES OF FMCD GOODS ARE: TELIVISON, REFRIGERATOR, MICROWAVES, WASHING
MACHINES, CONSUMER ELECTRONICS, ETC.
TYPES OF GOODS IN FMCD INDUSTRY
WHITE GOODS
BROWN GOODS
CONSUMER ELECTRONICS
3. WHITE GOODS
Refrigerators
Washing machines
Air conditioner
dishwashers
BROWN GOODS
Microwave/ovens
Electronic fans
Mixer/grinders
Chimneys
Consumer
electronics
Audio/video systems
Tv’s & Pc’s
Mobiles
INDUSTRY SIZE
• India is expected to become 5th largest market for FMCD
industry by 2025.
• The Global market size will increase up to $400 billion in 2022.
• Indian appliance and consumer electronics market reached US$
31.48 billion in 2017.
• It is expected to increase at a 9 % CAGR to reach US$ 48.37
billion in 2022.
4. 60%
40%
Sales
URBAN RURAL
CONSUMPTION OF FMCD PRODUCTS IN INDIA
URBAN VS RURAL
MARKET OVERVIEW / GROWTH PATTERN
• The size of consumer durables market in India reached US$ 30 billion in 2017.Sales of
consumer durables increased 13 % in Q4 FY17, 20 per cent in Q1 FY18 and 16 per cent
in Q2 FY18.
• Around two third of the total revenue is generated from urban population and rest is
generated from rural population.
• Godrej group, Whirlpool, Haier, Blue Star and Videocon Industries are few of the major
domestic players operating in India consumer durable market.
5. CONTRIBUTION OF VARIOUS PRODUCTS TO
REVENUE
REFRIGERATOR
45%
WASHING MACHINES
21%
A.C.
9%
OTHERS
25%
SALES
7. THREAT OF SUBSTITIUE
Technology advancements
Buyers have huge propensity
to substitute
BARGAINING POWER OF BUYER’S
Use of Internet to get all the
information enables
customers to be powerful.
Buyer’s switching cost is very
less
BARGAINING POWER OF
SUPPLIER’S
Product differentiation is very
low.
By changing the input firms
cannot drastically differentiate
on price.
COMPETITIVE RIVALRY
Continuous innovation leads
to intense rivalry.
Homogeneity in product and
low switching cost.
THREATS OF NEW ENTRANTS
Highly capital intensive.
Major players have developed
brand equity.
Brand loyalty is moderate.
PORTER’S FIVE FORCES
8. COMPANY INFORMATION
Whirlpool is an American multinational fortune 500 company
Headquartered in Michigan, USA.
Annual revenue $20 billion.
Over 100000 employees
70+manufacturing & technological research centers.
PRODUCT PORTFOLIO
WASHING
MACHINE
REFRIGERATOR MICROWAVE DISHWASHER
AIR
CONDITIONER
CONSUMER
ELECTRONICS
9. PRODUCT VARIANT DIMENSIONS / COLOURS
STANDARD SIZE 24*24*35 (BLACK, WHITE, GREY, METALLIC)
CUSTOM SIZE 30*24*35 (BLACK, WHITE, GREY, METALLIC)
PORTABLE SIZE 18*24*36 (BLACK, WHITE, GREEN, OFF WHITE)
PRODUCT SPECIFICATIONS
Special Features Any Ware plus silverware basket, Auto Soil Sensor, Sheer Clean wash system
Maximum Noise Level 60dB
Place Settings Qty 14
Programs Qty 4
Special Programs & Options Normal, rinse, pots and pans, high temperature wash, sani rinse, light/china, NSF
certified sanitize option, soak & scour option, heat dry option
Control Type Electronic
Maximum Start Timer Delay 6 hrs
Timer Settings Features start timer delay
Safety Features Control lock
Sound Package Quiet partner 2
Maximum Noise Level 60dB
ENERGY STAR Certified YES
Rated current 15A
Frequency 60Hz
Model DU1055XTVQ
Form Factor Freestanding
Place Settings Qty 14
Programs Qty 4
Special Programs & Options NSF certified sanitize option, heat dry option, high temperature wash, light/china,
10. STRENGTHS
Excellent product
portfolio, largest
manufacturer of
consumer durables,
deep product line.
Huge Revenue $21billion
in 2018
Huge human resource 1
lac employees globally.
WEAKNESS
Stagnancy in total
revenue
Dependence on US &
Asian market
Known as follower, not
innovator
High revenue, but low
margin.
OPPORTUNITY
Entering in small
appliances market
(mobile, irons)
Targeting emerging
market (Africa, Asian
countries)
Increasing depth of
product line.
THREATS
Increasing competition
Decreasing margin
Mature markets (US,
Europe)
Threat from Chinese &
Korean companies.
SWOT
ANALYSIS
OF
WHIRLPOOL
11. TARGET MARKET
• Consumers/End users
(including middle& high
class)
• Hotels& restaurants etc.
Government agencies
MAJOR COMPETITORS
13. STP ANALYSIS
SEGMENTATION TARGETING POSITIONING
• Demographic
Income
Occupation
• Geographic
Tier 1 cities
Tier 2 cities
Tier 3 cities
• Psychographic
Life style
Personality
• Behavioral
Value
Personality
Benefit Sought
• MAJORLY FOCUSES ON RICH CLASS
& HIGH MIDDLE CLASS
• HIGH QUALITY PRODUCTS
• TARGETS HEALTH & SAFETY
CONSCIOUS CUSTOMERS
• SHIFTING TO LOW MIDDLE CLSS
SEGMENT (CONSUMER
ELECTRONICS)
• MAJORLY POSITIONS ITSELF IN
HOME MAKING
• TARGETS WOMEN IN THEIR
ADVERTISMENT
• TAG LINE “YOUR MAGIC IS HOME
MAKING”
• BRINGS A COUPLE IN THEIR
ADVERTISMENT
14. STRENGTHS
• CREATING AN IMAGE
• INNOVATIVE PRODUCT
• HIGHLY DIFFRENTIATED
PRODUCTS
WEAKNESS
• HIGH PRICE OF
PRODUCT
• HIGH SERVICE &
MAINTAINANCE COST
OPPORTUNITY
• HUGE MARKET
• CURRENT MARKET AT
EARLY GROWTH STAGE
• NEW LAUNCHES COULD
GIVE MORE BENIFITS
THREATS
• NEW COMPETITORS
ENTERING MARKET
• RISE IN RAW MATERIAL
COST
• LOW MARGINS
SWOT
SWOT ANALYSIS OF
DISHWASHERS
15. PRODUCT LIFE CYCLE
R&D
INTRODUCTION
GROWTH
MATURITY
DECLINE
• The dishwashers were launched in 1950’s in USA & EUROPE. Although till now also the R&D process is done to make the product more
efficient & effective.
• Today the dishwashers are in the growth stage in India as well in many other countries, this is because more & more people are getting aware
of such products in developing countries.
• In western countries dishwashers have reached the maturity level because of long usage as well as high public awareness and high usage.
• It is expected that the dishwashers would go on to decline stage in western countries.
• In developing countries like African & Asian countries the dishwashers have a long way to go and reach maturity level & further to decline
stage.
16. BCG MATRIX (ANALYSIS)
CASH COWS STARS QUESTION MARKS DOGS
MATURE MARKET
LEADERS
HIGH REVENUE
HIGH ROI
HIGH LIQUIDITY
HIGH GROWTH
RATE
EXAMPLE
WASHING
MACHINES
HUGE REVENUE
MAXIMUM
GROWTH RATE
HIGH SCOPE
HIGHLY
COMPETITIVE
RESEARCH CENTRES
PROFIT CENTRE
EXAMPLE
REFRIGERTOR
HEAVY INVESTMENT
LOW MARKET
SHARE
HIGH R&D
HIGH POTENTIAL
SMALL SHARE IN
REVENUE
INTRO & GROWTH
STAGE
EXAMPLE FRONT
DOOR WASHING
MACHINES
LOW MARKET
SHARE
LOW GROWTH
LEAST REVENUE
LOW PENETRATION
COULD BE TURNED
TO QUESTION
MARKS
EXAMPLE
COOKING/CLEAN’G
APPLIANCES
17. Raw Materials: 3440.34cr
Power & Fuel: 37.15cr
Employee cost: 493.05cr
Selling & Admin cost: 69.21cr
Miscellaneous expenses: 775.48cr
INCREASE IN TOTAL ASSETS (OVER
THE YEAR) (2018-19)
=346.33cr
Cash and Bank Balance
=1061.00cr
RATIOS PERCENTAGE/TIMES
RETURN ON CAPITAL EMPLOYED 29.66%
QUICK RATIO 1.01 TIMES
CURRENT RATIO 1.60 TIMES
DEBTORS TURNOVER 21.77TIMES
ASSET TURNOVER 2.74 TIMES
RETURN ON ASSETS 10.97%
GROSS PROFIT MARGIN
GROSS PROFIT / NET SALES * 100
NET PROFIT MARGIN
NET PROFIT/SALES * 100
GP MARGIN (2019) = 9.83% NP MARGIN = 7.94%
FINANCIAL STATUS
19. EMPLOYEE RESOURCE GROUP
MANUFACTURING ACROSS THE GLOBE
WINNING WORKPLACE
TRAINING & DEVELPOMENT
NEW EMPLOYEE
ORIENTATION
CLASSROOM
LECTURES
PROGRAMMED & SELF
STRUCTURED
ON THE JOB
TRAINING
ORGANISATIONAL CULTURE
EMPLOYEE BENIFITS
FINANCIAL HEALTH
PHYSICAL HEALTHS
TIME OFF / PAID LEAVES
DISCOUNTS & PERKS
