Whirlpool Case
Whirlpool case
1. Describe Whirpool’s global marketing strategy.
At its early beginning, Whirlpool was a normal company in U.S; it started selling white good like refrigerators, stoves, washing machines, and microwave ovens. Its sells were $18 billion a year and growing 2 or 3 percent annually. Whirlpool is one of the market leaders of electro domestics, nowadays, not only in the United States but also worldwide. This is because Whirlpool sells 3 different lines of products that differ on prices but not quality: from Kitchen Aid, Kenmore/Whirlpool, and Raper and Estate.
David Whitwam was CEO in Whirlpool in the year 1993, and he bet for globalization. Whitwam easily noticed that a great number of Whirlpool’s revenues were coming from the overseas. He aimed first at Europe, and invested $1 billion in the continent, later on the company ranked at the third position. Though, even with this success, Whitwam wanted more; he invested another 2 billion, but this time results were not what he expected. He wanted to grow in countries like Japan, Asia and Latin America, but with the wrong results, counselors weren’t sure about his vision.
So the company decides to keep on with their globalizing strategy, giving it a second chance but this time focusing on Latin America and in a specific country: Brazil. To enter the market, Whirlpool buy two local companies to had an easier entry way, but what they didn’t know is that Brazilians’ washers were priced even lower than Whirlpools lowest and most economic product line. Whirlpool had to plan a new selling strategy, analyzing the purchasing power of locals and their needs and wants. Investing on a new washing machine, whirlpool created the cheapest washer on the market, with simple cycles and a polish white color. But this machine was not a Brazil special, the same washer was adapted for different countries, varying on color and cycle titles: In India a delicate cycle will be ‘sari’ and in China a grease removing cycle
1. Describe Whirpool’s global marketing strategy.
At its early beginning, Whirlpool was a normal company in U.S; it started selling white good like refrigerators, stoves, washing machines, and microwave ovens. Its sells were $18 billion a year and growing 2 or 3 percent annually. Whirlpool is one of the market leaders of electro domestics, nowadays, not only in the United States but also worldwide. This is because Whirlpool sells 3 different lines of products that differ on prices but not quality: from Kitchen Aid, Kenmore/Whirlpool, and Raper and Estate.
David Whitwam was CEO in Whirlpool in the year 1993, and he bet for globalization. Whitwam easily noticed that a great number of Whirlpool’s revenues were coming from the overseas. He aimed first at Europe, and invested $1 billion in the continent, later on the company ranked at the third position. Though, even with this success, Whitwam wanted more; he invested another 2 billion, but this time results were not what he expected. He wanted to grow in countries like Japan, Asia and Latin America, but with the wrong results, counselors weren’t sure about his vision.
So the company decides to keep on with their globalizing strategy, giving it a second chance but this time focusing on Latin America and in a specific country: Brazil. To enter the market, Whirlpool buy two local companies to had an easier entry way, but what they didn’t know is that Brazilians’ washers were priced even lower than Whirlpools lowest and most economic product line. Whirlpool had to plan a new selling strategy, analyzing the purchasing power of locals and their needs and wants. Investing on a new washing machine, whirlpool created the cheapest washer on the market, with simple cycles and a polish white color. But this machine was not a Brazil special, the same washer was adapted for different countries, varying on color and cycle titles: In India a delicate cycle will be ‘sari’ and in China a grease removing cycle