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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).
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
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.
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.
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.”
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.
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 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 bestquality 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 through lifelong relationships with the customers.
—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.
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 highperformance 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 1. Manufacturing • • • Lessened power plant emissions through low-energy lighting and highefficiency 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 1. 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 1. 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 NORTH AMERICA -No. 1 position in the industry -$7.9 billion of sales -$810 million of operating profit -Approximately 31,000 employees United States KitchenAid, Whirlpool, Roper by Whirlpool Corporation, Estate, Gladiator Canada Inglis,Whirlpool, KitchenAid Mexico Whirlpool, Acros, Supermatic, Crolls Whirlpool, Bauknecht, Ignis, Polar, KEY STATS BRANDS LOCATIONS Headquarters: Benton Harbor, MI Manufacturing Locations: United States Laverne, TN; Findlay, OH; Marion, OH; Greenville, OH; Clyde, OH; Benton Harbor, MI; Evansville, IN; Fort Smith, AR; Tulsa, OK; Oxford, MS Canada Montmagny, QC Mexico Monterrey Operations Center: Comerio, Italy Manufacturing
EUROPE - No. 3 position in Western and Central Europe
_ $2.7 billion in 2003 sales _ $124 million in 2003 operating profit _ Approximately 14,000 employees
Laden in France, KIC in South Africa
Leader among Western companies, with No. 1 market position in India _ $416 million in 2003 sales _ $7 million in 2003 operating profit _ Approximately 5,000 employees
Locations: France Amiens Germany Neunkirchen, Schorndorf Italy Naples, Siena, Cassinetta, Trento Poland Wroclaw Slovakia Poprad South Africa Isithebe Sweden Norrköping Headquarters: Hong Kong, PRC Manufacturing Locations: India Faridabad, Pune, Pondicherry China Shanghai, Shunde Whirlpool
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.
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.
1. http://www.whirlpoolcorp.com 2. whirlpool annual report 2008.pdf
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
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