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The environment in which whirpool entered the Indian market was recently
liberalized economically. The environment then can be described briefly as
follows:
2. India was recently liberalized when Whirpool entered the market. So, it
gave the customers a lot of choices. Not jut whirpool. When it entered the
market small-scale manufacturers already dominated the market. Japanese
and European manufacturers were also eyeing the same market. The
purchasing power of the Indian customers was high in comparison to its
international exchange value. Surprisingly, the consumption pattern did not
match and justify the income classification. This made it difficult to identify
target market and forecast the sale. The most unique fact which
characterizes the environment was the areas of concern of the customers.
Generally, price is considered as the main success factor. But, in Indian
market it almost ranked 2nd. People were more concerned about water
consumption, water conservation, variability in electric supply, voltage
fluctuation, domestic help issues and detergent saving. These were the
issues which even “rich” were concerned about. The quality of components
varied as per the suppliers and machine were damaged while being
delivered to the dealer’s showroom due to careless handling. Another
factor in this environment was the culture of the people in the market. This
included the clothing pattern of them.
4. Whirpool strategy was of world domination. This strategy was based on the
platform strategy. Under this strategy a basic framework or platform of
actual design is established that is common to all th versions of the product
manufactured by the company. Features can be added or deleted
depending on individual market or even individual customer tastes. The aim
was to bring a $200 million annual savings by the year 2000. Whirpool
decided to enter the market through joint venture as they would allow the
company to quickly establish a manufacturing presence. Therefore, it
joined hands with TVS under the name TVS Whirpool. Whirpool believed in
customer focused product development and extensive user research using
right ethnographic tools as its measure for growth and sustainance.