PROJECT REPORT

ON

STRATEGIC MANAGEMENT

WHIRLPOOL

SUBMITTED BY:

GROUP NO. 8
(SANJANA, PALAK PRINCY, RIDDHI GUPTA, RAGHUVAR, MUKUL ARORA)

SUBMITTED TO:

DR. DEEPAK SINGH

(PROFESSOR OF STRATEGIC MANAGEMENT)

JAIPURIA INSTITUTE OF MANAGEMENT

Noida, Uttar Pradesh

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 COUNTRY WATCH
 The real GDP growth rate was -10.29 (2020), 4.86% (2019),6.78(2018) and inflation rate 3.7% (2019),3.9%
(2018).
 India has a population of 1,339,330,514. Urban population comprises of 34.47 % (2019) and rural population
comprises of 65.53% (2019).
 Age structure of India consist of 0-14 years -26.31%, 15-24years- 17.51%,25-54 years- 41.56%,55-64years-
7.91%.
 Labor force of India is 472 million (2020).

WHY SHOULD WE INVEST IN INDIA?

 One of the fastest growing industries economies in India
 Largest youth population in India
 Indian infrastructure
 rising global competitiveness
 global innovation index 2020
Industry details
The FMCD market is segregated into urban and rural market and has been successful in attracting number of
marketers from all the world. The sectors consist of huge middle class, larger upper class and small poor class and
the industry has expected to generate new employment of around 5 lakh and foreign exchange inflows which will be
worth $75 billion by 2025.

Market size

 Consumer electronics and appliances industry is has expected to double its reach to Rs 1.48 lakh crores by
2025.
 Electronic hardware production is increased from Rs 4.43 trillion (FY2019) to Rs 5.47 trillion. (FY2020).
 In FY20 TV penetration in the country was 69% because of DTH market. Total DTH subscribers are 70.58
million in FY20 and domestic appliances and air conditioner market were estimated to be 17873 crores,
12568 respectively.

Investments

The sector has attracted many investments over the years. As per Department for promotion of industry and trade the
electronic goods from was at $5.05 billion (April2020 - October 2020). The Saudi Arabia’s Public investment fund
invested Rs 9555 crore in Reliance retail (November 2020) total fund fundraise to Rs 47265 crores. The S&P BSE
consumer durables rose 5.34% (January 2021) and was at 18.29%.

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Company Overview

 Whirlpool India is the leading manufacturer and marketer of home appliances in India, and it is
headquartered is in Gurugram.
 It owns three states of art manufacturing facilities at Faridabad, Pondicherry, and Pune.
 Whirlpool India was incorporated in 1960 as kelvinator of India ltd., later in 1993 the company entered in tie
up with whirlpool corporation USA.
 Whirlpool India has a market share of over 25%. Annual sales turnover 5992.52 crore in March 2020.
MISSION EVALUATION MATRIX
With the help of mission statement matrix, we are evaluating the mission statement of the company with
the competitive company (SAMSUNG). We are evaluating with the various elements of the mission
statement matrix. The mission statement of the Whirlpool and the SAMSUNG are:

VISION STATEMENT OF WHIRLPOOL: “Best branded consumer products in every home around the
world”

MISSION STATEMENT OF WHIRLPOOL: “Create demand & Earn trust everyday”

MISSION STATEMENT OF SAMSUNG: “We will devote our human resources & technology to create
superior products & services they’re by contributing to a better global society”

EVALUATION MATRIX
ELEMENTS WHIRLPOOL SAMSUNG
MARKET NO YES
PRODUCT & NO YES
SERVICES
EMPLOYEES NO YES
SURVIVAL GROWTH NO NO
PROFIT
TECHNOLOGY NO YES
PUBLIC IMAGE YES NO
SELF CONCEPT NO YES
CUSTOMERS NO NO
PHILOSOPHY YES NO

There are two elements in the mission statement. The Public image and the philosophy but in the Samsung
matrix there are four elements market, employees, technology, and the self-concept.

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We are comparing both the statements of the matrix and give the suggestion to revise the mission statement
because competitor mission statement is too strong with our mission statement. The mission statement
reflects the company culture that affects the wealth and brand value of the organization

The suggested mission statement is: ““Increasing the standard of comfort by innovative technologies & earn
trust towards our brands in the digital world”

In this statement we added some of the elements like market, technology, and customer. When we compare this
revised statement with the competitor statement is sounds like better than the previous one.

ELEMENTS WHIRLPOOL
MARKET YES
PRODUCT & SERVICES NO
EMPLOYEES NO
SURVIVAL GROWTH PROFIT NO
TECHNOLOGY YES
PUBLIC IMAGE YES
SELF CONCEPT NO
CUSTOMERS YES
PHILOSOPHY YES

PEST ANALYSIS
PEST analysis talks about the macro-environment conditions of the industry. The PEST stands for the political,
economic, social and technology conditions of the macro environment. With the help of the analysis, we plan our
strategies that help us to achieve our goals in the effective manner.

POLITICAL: There are various political schemes, policies and decisions that affect the business growth some are:

1. PLI schemes: the PLI stands for the Production linked Incentive launched on the 1 st august 2020 by the
India government. In this scheme the government gives the incentives to the companies who manufacture
their products in India.

2. RCEP: The RCEP stands for the regional comprehensive economic partnership. It is a type of an
agreement of the countries in which the countries reduce their import and export rate.
3. Digital India: Indian government is continuously promoting the digital India with various.
promoting activities.

4.

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 5. ELECTRICITY IN RULAR AREAS: Mostly consumer goods depend on the electricity. The Indian
government is providing electricity to every region via vigorous activities that directly depending on the
sales of consumer durable goods.

ECONOMY:

Inflation rate: Inflation rate is inversely proportional to the sales of the product. According to the IMF data there is
more probable chance to increase the inflation rate in India.

NOTE: The government and the RBI now more focus on the GDP instead of the inflation rate
because of pandemic.

GDP: India is continuously improving its GDP after the pandemic. There is more opportunity in the sector to
improve the business.

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 We all know that after the recession there is a boom in the market. From the previous data the after year
2022 there is a boom in the market. The year 2022 gives more opportunity to the whole sector.

SOCIAL:

Population: India is a very big market and there is a great opportunity to survive in India than the other
country regarding the population.

India has the 2nd highest population, but it is continuously increasing. It is the best place for doing the business.

TECHNOLOGY: In this pandemic number of companies changes their strategies to survive. There are some
interesting facts to be seen in this pandemic is change in behavior of the people towards their health and suddenly
increasing their boost in the health centers.

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It can be clearly seen that how different sectors are trying to the provide health care to our consumers.

There is also the one element of INDUSTRY 4.0 that is fusion of technology, in which trying to fusion of the
technologies. Just like as the consumer goods introduces the consumer products with providing the health care of
their consumers. During the pandemic this is the best time to develop that type of technology.

Just like UV lights in air conditioner, that affects the eyes, washing with the sanitizers, air purifiers with some
natural fragrance and UV lights and some other technologies that helps their consumers to stay healthy.

PORTER’S 5 FORCES ANALYSIS

The Porter’s 5 force analysis tells us about the actual position of the industry in a particular country. We are trying to
know the consumer durable sector in the India with the help of these 5 porters forces.

1. Threats of new entrants: the whirlpool market share is 16% in India and the market leader is the Samsung
with 28% market share. LG and Godrej have 23% and the 22% market share in India.
All the companies in the consumer durables are globally and they all are of high brand value with strong
distribution channel. So, there are threats of new channel is quite very low. The entrance of new company is
only possible when new companies only accept the penetration pricing strategies.

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 2. Threats of new substitutes: Product line of whirlpool is diverse. We are trying to only analyze the
substitute of washing machine.
There are various substitutes of washing machine of whirlpool.
a. LG and Samsung have high market share in the washing machine in India than the whirlpool. It is one
of the highest threats for whirlpool in washing machine.
b. There are also some other threats of substitute of washing machine like the launderer.
c. There are also women’s specially in the rural area preferred more washing their clothes with their hands
instead of the using washing machine.
d. Another one is servant; in urban cities most families prefer to wash their clothes through servants
because they are believing that washing machine not clean their cloth too much as wash by hands.

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BARGAINING POWER OF SUPPLIERS: Power of suppliers is totally depending upon the performance of their
supplier company and the brand value.

The
bargaining power of the suppliers depends upon the performance of the company as if the company doing well the

This is the industry performance of the whirlpool suppliers.

CUSTOMER BARGAINING POWER: large number of sellers and less no of buyers therefore the bargaining
power of buyer is high and vice versa.

OPPORTUNITY AND THREATS OF WHIRLPOOL

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According to the above two matrix there is some opportunity and threats for whirlpool are:

EFE MATRIX
Opportunities WEIGHT RATING WEIGHTAGE COMMENTS
PLI SCHEME 0.07 2 0.14 Increased manufacturing
(medium)
DIGITAL INDIA 0.15 2.5 0.375 Not need of huge investment
(HIGH)
ELECTRICITY IN 0.07 1 0.07
RULAR AREAS
(MEDIUM)
TECHNOLOGY 0.15 2.5 0.375 More R&D
(HIGH)
BUSINESS CYCLE 0.03 0.5 0.015 Macro environment
(LOW)
SOCIAL (MEDIUM) 0.08 1 0.08 Low market share

THREATS
RCEP (LOW) 0.05 1 0.05 Macro environment
INTEREST RATE 0.08 1.5 0.12 Macro-environment
(MEDIUM)
NEW ENTRANTS 0.05 2.5 0.125 Need high investment
(LOW)
SUBSTITUTE 0.10 1 0.10 High substitute present
(HIGH)
SUPPLIERS 0.07 2 0.14
(MEDIUM)
CUSTOMERS 0.10 2 0.2
(HIGH)
1.00 1.775

CONCLUSION
Company’s weightage is very low as it is low than 2. The company needs to work on its market performance.

 The company can work on their manufacturing part and can pay importance on their exports.
 Whirlpool should focus on rural market as well and increase their market penetration in rural area.
 They should diversify their product portfolio and work on their R&D (Research & development).

Value chain analysis

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Firm Infrastructure

 Financing – money from equity share Rs 126 Cr. (2020) Money from debt Rs 229 Cr. (2020)
Therefore, the ratio of equity and debt for the company is 1.80.
 Investor’s relation – Earning per share 32.08(2019), 37.54(2020), it is seen that earning per share increased
by 14.64%. This shows good investor relation.

Human resource management

 Recruitment process- Group Interview Phone call screening Background check Drug test On-site
Interview
 Training Process- Six Sigma Training, Sales training, Leadership training.

Technology development

Whirlpool to build on innovations in sanitization for washing machines. Its top load washers are equipped with in-
built heaters which sanitize clothes and remove about 99%of germs and allergens.

Procurement

 Advertisement-Whirlpool does advertisement by organizing various add campaigns to target the masses.
Recently it has launched its new ad campaigns starring Kriti Sannon.
 Services-Assured call back within two hours, service engineers visit in 2 hours ,3500 +service networks
across the country.
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Operations

Whirlpool headquarter is in Gurugram and the company owns three manufacturing facilities at Faridabad,
Pondicherry, Pune.

Outbound Logistics

Marketing and sales

Company focuses on complete 360degree communication to ensure good communication for its product. It has
shown maximum interest in television advertising to target the masses. The company is also involved in organizing
various marketing and public relation activities like cooking shows. It has also invested high amount in social media
marketing.

After sales service

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  Assured call back within two hours,
 service engineers visit in 2 hours,
 3500 +service networks across the country

IFE METRIX

Internal factor Weight rate Weighted score Weighted

comment
strength
Intense 0.05 5 0.25 Traditional key
corporate strength to
culture success

Marketing and 0.10 4 0.40 achieved gold

advertisement EFFIE award by
America
marketing
association
Product 0.15 4 0.6 More investment
innovation(R&D) on R&D in every
year
Durability of the 0.15 5 0.75 One of few major
products applications
major left
Brand image 0.05 4 0.20 Second in
corporate
reputation

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 survey 2000
financials 0.1 4 0.40 Very strong
financial position
and cash flow
condition
weakness
Operating 0.10 2 0.20 Prices low as cost
margin increases
Distribution 0.05 2 0.10
channel
Global market 0.10 2 0.20 Not well
recognized in
global market
Unmanaged 0.1 1 0.10 Blind acquisition
accusation led to strategic
error
After sale 0.05 3 0.15 Outsourcing
service through
independent
dealers

total 1.00 3.35

Different levels of strategies

LEVELS GOALS

CORPORATE LEVEL  Share price – 2400

 ROI – 52
 EPS- 45

BUSINESS LEVEL  Quality performance.

 Market share.
(Customer oriented)

 Cost control
(Internal business process)
 PAT-600 Crore

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 FUNCTIONAL LEVEL  Satisfaction rate.
 Retention rate.
 After sale service.
(Customer oriented)
 Job satisfaction rate
 Training and learning opportunities.
 Job security.
 Organisational culture
(Learning and growth)

SWOT ANALYSIS
STRENGTH:
Excellent product line-up - Whirlpool is a major manufacturer of household appliances and consumer electronics.
Whirlpool's product line includes washing machines, refrigerators, air conditioners, and a variety of other products.
It has a wide range of products in its portfolio.

Huge revenue– As of 2020, Whirlpool had a massive revenue of $6 billion.

One of the most well-known manufacturers of major appliances: Most large and small appliances, as well as home
appliances, are manufactured by Whirlpool. Forbes ranks it 199th among the largest global corporations in all
industries.

Advantage in Manufacturing – Whirlpool manufactures in 61 different countries through its manufacturing hubs.
The factories are known for their efficient operations and high performance. As a result, Whirlpool can comfortably
meet consumer demand for its goods.

Strongly committed to charitable work - Whirlpool has several charitable projects and is committed to corporate
social responsibility (CSR) and giving back to the community.

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WEAKNESS:
More of a Market Follower – Whirlpool is notorious for being a market follower rather than an innovator since
most of its products are adaptations of existing product lines rather than anything completely different.

At presence is dropping – Whirlpool does not have a strong presence in the ATL. Its BTL presence is also
average. Since it is a star in the BCG matrix, it must spend more on ATL and BTL.

Differentiation is lacking – There are a lot of brands in the consumer electronics industry that are copying each
other's products, and there isn't much distinction between them. Whirlpool, too, is lacking in distinction.

High revenue but low margin – The income is large, but to keep the same amount of revenue, the expenditures
must also rise. As a result, the company generates a lot of money, but its net profit margin is shrinking.

OPPORTUNITY:
Entering Small Appliances – Whirlpool is well known for its big appliances and home appliances. However, there
are a range of small appliances that are not included in Whirlpool's product line. LG has done this, and Whirlpool
will do the same to increase its targeted customer base and sell more products under its own name.

E commerce sales: Whirlpool will profit from the rise in E-commerce sales around the world, especially in
developing countries.

Emerging markets: Whirlpool will be able to focus on developed and emerging markets, especially in Africa and
Asia. These emerging markets will assist Whirlpool in establishing its brand in a new market, thereby increasing
revenue.

Increasing depth of Portfolio: Another opportunity that Whirlpool should take advantage of is to broaden its
product line. It will increase the number of items it sells to its large consumer base.

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R & D – Whirlpool will increase its R&D spending to provide even better goods at affordable rates to customers,
allowing it to further penetrate the market.

Services: Because of the design of the goods, the consumer durables market is one of the few where service is still
a big issue. As a result, service delivery advances will aid the company in building brand loyalty and being a
trustworthy brand.

THREATS:
Intense Competition: The fierce rivalry in this industry is a big issue for Whirlpool. As a result, other brands are
gaining market share, and Whirlpool's revenue is plateauing. The rivalry isn't going anywhere any time soon. As a
result, Whirlpool must search for new ways to generate sales and benefit.

Dropping margins – Dropping margins are a significant threat to Whirlpool because they directly threaten the
brand's expansion and survival.

BALANCE SCORE CARD

department areas Goals measures TARGET
share price 2136.9(15/4/20) per share 2400
FINANCE Return on investment 48.15 ratio 52
EPS 45 Rs 45
return on capital 24.23(2020) ratio 25
employed
PAT 476 crore 600

customer Satisfaction rate 4.3/5 (amazon) rating 4.5/5

retention rate 1.1/5 (trusty pilot) rating 2.5/5
after sales service 1/5 (trusty pilot) rating 2.5/5
quality performance 4.1/5 (amazon) rating 4.2/5
market share 16% rating 18%
learning & growth

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 job satisfaction 3.8/5 ratings 4.0/5
training & learning 3.5/5 ratings 4.0/5
opportunity
job security 3.7/5 ratings 4.0/5
organization culture 3.2/5 ratings 3.8/5
internal business talent acquisition Process improved
process
cost control 5468 crore 4600 crores
inventory 30 days 45 days

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