WHIRLPOOL

Presenting By: Naresh A Yeligeti

Whirlpool Introduction
The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances Louis and Emory Upton founded the Upton Machine Company on 11th November 1911. Headquartered in Benton Charter Township, Michigan, United States, near Benton Harbor, Michigan The company is listed in Fortune 500 and has annual revenue of approximately $18.4 billion, more than 70,000 employees, and more than 70 manufacturing and technology research centres around the world

Whirlpool - History

Founded by Fredrick, Louis and Emry Upton called Upton Machine Corporation

Upton merged with the Nineteen Hundred Corp and began to expand to global markets

Whirlpool merged with Clyde Porcelain Steel company to create worlds largest washer manufacturing unit

Established Cool Line 24*7 Customer Service, Revenues touched 1 Billion $

Won the 30 Million $ Super Efficient Refrigerator Program

Launched e-partner website to allow customers to purchase online

1911

1916

1929

1948

1951

1957

1970s

1980s

1993

2000s

2002

2013

Sears Roebuck & Co starts partnership with Upton to market its Washers under the brand ALLEN

Nineteen Hundred marketed an automatic washer under the Brand name Whirlpool

Appliance Buyers Credit Corporation setup

Global Expansion by JV with NVPhilips , Sundaram CLayton

Became a well established player in global appliance market. Added brands like Kitchen Aid, Roper, Inglis, Acros, Laden, KIC

Bought major stake in Hefei Sanyo to expand in China market , Over 18 Billion $ in revenue , 70000 employees , 170 countries

Vison & Mission

The vision of Whirlpool Corporation is
Every Home...Everywhere with Pride Passion and Performance

The Mission of Whirlpool Corporation is Everyone...Passionately Creating Loyal Customers for Life

Strength
Consumer Oriented Products. Global operating platform.

Strong Brand name.

First company to introduce top loading automatic washer.

Weakness
Whirlpool is industries which require constant innovations that are sometimes hard to come by. Whirlpool failed to capitalize on its Dominant Consumer Franchise initiative which added special features to existing products. It failed due to cost & service issues. Poor after Sale Service Reducing profit

Opportunities
Innovation Product and services expansion Growing Asian Market Ac and Microwave category are larger and fast going categories Providing attractive schemes By 1980s, Whirlpool became the second largest white goods maker in the US after acquiring Kitchen Aid.

Threats
Increase raw materials cost LG, Samsung, Kenwood and other companies are most competitors New EU Directives Threat of cheap goods from other countries especially Japan Other companies looking to acquire whirlpool for consolidating the industry. Longer lifespan of products slowing replacement demand.

 Political : There is always positive impact on business Economical:Customers are well educated so they know what to use and not. Social : It shows life style of customers Technological : It has award winning design and technology.

With latest 6th sense technology consumer can achieve significant savings in time.

Company Strategy
Company strategy is relies on six steps:
o Selecting a market or product category for study o Choose a bases or basic for segmenting the market o Select Segmentation Description o Profile and Analyze Segment o Select Target Market o Design, Implement, and Maintain appropriate marketing mixes

Competitive Strategy
For whirlpool, Success literally depended on it, given the goal for an on-demand, self-service model for assets retrieval and distribution. Meeting the goals would allow whirlpool to support different use cases according to customer type, setting the stage for broad internal and external user adoption. This approach would be demonstrating customer satisfaction and in turn increasing whirlpool competitive advantage.

Electronic Data Interchange

Why EDI ?
Need to make supply chain efficient Cut down on expenses

Reduce paperwork

Easy EDI
Launched a scheme called Easy EDI in 1999 Used electronic interface for communication with suppliers Main aim of Easy EDI was to : - Eliminate paperwork of 600 suppliers - Save upto $600,000 a year in operational costs for data interchange

Implementation of Easy EDI

Was implemented in stages

January 1999
Suppliers involved -> 4

March 1999
Suppliers involved -> 30

December 1999
Suppliers involved -> 300

Online Excellence

Online Sales Program

e-Partner Online Sales Program was launched in September 2002 Developed a site called WhirlpoolWorldWeb.com for B to B link Aim was to reduce the gap between company and stakeholders

Online shopping
Launched a full online research and shopping site Buyers were able to compare brands and locate nearest dealer Appliances were made internet enabled

Whirlpools Digital Channel

Initial Consideration
Facebook and Twitter Mentions
Potential Customers are talking about brands/products and are looking to start conversations / receive feedback Manage and reply to any positive or negative mentions Ensure all customer queries on Whirlpool brands are answered promptly. Great PR tool to deliver positive news on product launches and new initiatives. Keep and eye and monitor online brand reputation and perceptions.

Initial Consideration
External Blogs Guest post can be posted on related/affiliate blogs Ensure information on external blogs are correct Content on blog is great for SEO purposes Great for online brand exposure

Active Evaluation
Whirlpool Website Keep website content/ information updated Check all links are working and ensure site is error free. Whirlpool Blog Provides brand information and aid sales Allows customer to further interact with Whirlpool Blog content great for SEO purposes.

Purchase
Whirlpool Twitter and Facebook Deals Encourage potential customer with special offers/ discounts. Word of Mouth both online and offline Engage both potential and existing customers Makes them feel special Helps brand loyalty and build following

Post Purchase Experience

Consumer Reviews Encourage customer reviews Potential customers love to check reviews before purchase. User generated content is great for SEO Trustworthy source of information

Post Purchase Experience

Order Confirmation Gives customer peace of mind Allows you to upsell and cross sell product Reply Email Customer Service Answer all post purchase issues Great customer service helps build company perception and loyalty.

Learning
Globalization Even though whirlpool and its suppliers benefited from this, Global product development ensured that the needs of the customers in diverse markets were to be met.

CURRENT SCENARIO
Chairman & CEO of Whirlpool Corporation - Jeff M Fettig Statistics for Year 2012-13 Revenue = $18.143 Billion (Rs. 1161.15 Billion) Net Earnings = $ 0.401 Billion (Rs. 25.66 Billion) 68000 employees and more than 60 manufacturing and technology research centers globally
WHIRLPOOL SALES REGION WISE
EMEA 16% Asia 5% North America 52%

Latin America 27%

CURRENT SCENARIO
Whirlpool India 75% owned by Whirlpool Mauritius Ltd.
Chairman & MD - Arvind Uppal Statistics for Year 2012-13 Revenues = Rs. 3036.50 Crore

Profit = Rs. 127.748 Crore

Conclusion
By 2003 Whirlpools supply chain was 50-60% complete with a lot of scope for improvement. Its supply chain needs to be more flexible to sell its product on a global platform. It used the Malcolm Baldridge Award Quality Criteria to maintain quality in its logistics process. The restructured operations yielded considerable reductions in FG inventory and improvement in the ability to respond to customers.