Marketing Strategy and SWOT Analysis of Whirlpool
Have you ever thought about how some things do not work on their own? Not literally but almost as if they need something else to justify their existence. Among those things are clothes, for example. Wear them for one day, two days, but then eventually you can not put them back on without washing them. Something else is food. Think about how much food would be wasted if refrigeration was not an option. Yup, it does sound pretty simple and such a useless realization to face. But some companies save everybody just a bit of headache. Among those businesses is Whirlpool, a kitchen, and laundry appliance store.
To begin this blog, we are going to take a look at the mission and vision statements of Whirlpool.
The mission statement of the company is as follows.
“Earn trust and create demand for our brands”.
Purchasing home appliances is slightly complicated. Even after asking a bunch of people around, this is a contradictory situation. One might like a fridge but you may end up hating it if you buy it for yourself.
That is exactly why it is crucially important to find a brand that you are going to be fond of. A company that you will go back to whenever the necessity arises.
Building a loyal consumer base is valuable for all brands. Ensuring that customers are not going to stop buying from your brand after one buying is a beneficial factor for your business.
After falling in love with a certain company, individuals will definitely spread the word about their favorite company. Again, when it comes to expensive investments such as a washer and dryer, you want to be perfectly sure before being set on your decision.
Realizing that most of your friends and family have got their dishwasher from the same place and are all happy about it, should tell you something. If you are aware that people have experienced a product and truly like it, trying something unknown pretty much goes out of the picture.
That is exactly what the mission of this company is. Whirlpool wants to be a company famous for reviews.
Next up, we are going to get to the vision statement of Whirlpool.
Which goes something along the lines of “Be the best kitchen and laundry company, in constant pursuit of improving life at home”.
Think about it. After a long day full of work where you have surely lost your nerve a few times, you want to get to a relaxed environment. Still, you are surely going to have laundry and dishes to do but who said that those things can not be turned into enjoyable activities?
You can get them done while watching a show or a movie, something you would do while relaxing anyways.
Companies like Whirlpool are trying to make your home experiences the most enjoyable that they can. Doing chores around the house does not have to be this unpleasant duty.
Happiness starts from your safe space. Your safe space is your home. Hence why you should not be miserable at your home from loaded tasks.
Moving on, let’s discuss the positioning strategy of Whirpool.
With this post, the company is advertising the 2 in 1 Removable Agitator.
As Whirlpool is widely known for its washing machines, making an outstanding creation is a smart marketing move from it.
This new washing machine allows people to customize their laundry the way they want. For instance, while washing jeans, uniforms, towels, etc. it is better to leave the agitator in. In cases of washing sweaters, sheets, and comforters, however, taking the agitator out is the better way to go.
Again, the company’s product is reflecting its mission and vision by creating an easy-to-use washing machine. Simplicity is not everything that matches the company’s values, it is also the convenience, and making people’s at-home experiences better.
So what does this post leave us with?
Well, the most obvious hint is that washing machines are used a ton in people’s daily lives. It is not just a fancy product advertised by a luxury brand, but an actual necessity.
The second point worth mentioning is that Whirlpool did not think of a highly creative and different way of marketing this product. Instead, it just laid out all the needed information in the most simple and non-pretentious way.
After those details, it probably becomes apparent that the archetype that Whirlpool belongs to is Everyman.
What do we know about this archetype?
Desire: connection with others
Aim: to belong, fit in.
Strategy: develop ordinary solid virtues, the common touch, blend in.
These are the messaging levels of the archetype.
Level One: loneliness, alienation.
Level Two: the orphan, feeling abandoned and alone, seeking affiliation
Level Three: the joiner, learning to connect, fit in, accept help and friendship
Level Four: the humanitarian, believing in the natural dignity of every person regardless of his or her abilities or circumstances
The Regular Guy/Gal archetype provides a good identity for brands:
- whose utilization helps people belong or feel that they belong
- whose purpose is something used regularly in daily life
- with pricing that is considered medium to low (or that is an upscale variant of a product that would generally be cheap)
- provided or marketed by a company with a down-home organizational culture
- that desire to distinguish themselves resolutely from a higher-priced or more elitist brand
Following up, we are going to present the SWOT analysis of Whirlpool.
Strengths
Excellent product portfolio: Whirlpool offers plenty of products in categories ranging from washing machines, refrigerators, air conditioners, and others. This is the strongest significant quality of the company.
Huge revenue: It only makes sense that a company with such a diverse product division earns a lot of money. The 2017 results claim that Whirlwool had a $21 Billion. You can only guess how much that number must have grown.
Employee strength: Another benefit for the company is its strong consumer base. The company has many consumers not only in America but also worldwide.
One of the top major appliances manufacturers: Whirploop is a leader in the appliance manufacturing category. While the latter is impressive, it is not even close to the fact you are about to find out. Forbes, a huge global media company, has ranked Whirlpool 199th place in the top global companies across all divisions.
Strongest in washing machines: This is another specialty of Whirlpool’s that is exceptional. The marketing of its washing machines makes it a leader in the world.
Manufacturing advantage: Whirlpool is sold in over 61 countries. Aside from being marketed in those locations, the company also owns manufacturing hubs. As a result of all of that, this company is greatly wanted in the market for its goods.
Covers the whole world: It is safe to say that Whirlpool is sold in over 100 countries. Among those are various stores in the US, UK, Europe, Middle East, Africa, Asia, and so on. Understandably enough, the active presence of the company in many locations has enabled its large revenues.
Strongly involved in charity work: One of Whirlpool’s values is giving back to the community. Hence why the company has many ways of turning that into a reality.
Star in the BCG Matrix: It is safe to assume from everything that we have already discussed that Whirlpool is a leader in its industry. It has a lot of potentials to keep growing its consumer base. Hence why the marketing growth of the company is rapidly expanding.
Weaknesses
Stagnancy in total revenue: The complete revenue of Whirlpool faces some deal of stagnancy. Over the years the revenues of this company have undergone some changes. The $21billion revenue is still the reality that we are looking at. It is a huge number, however, some competitor companies have a higher market share.
Depending on the US market: The company is mostly relying on either US markets or limited markets in Asia. That strategy, in turn, decreases potential profits from other countries.
More of a market follower: Whirlpool is not one to invent new marketing strategies and ways of promoting its brand. Instead, it follows already known and traditional ways to build its market. Following tactics that have already been experienced and proven to be successful may be a smart move. But you would be surprised to find out that it is also harmful.
ATL presence is dropping: As we have already covered, Whirlpool is a star in the BCG model. However, that has left out the company’s ATL and BTL presence. Although they are average, the risk of their decline is a big possibility.
Differentiation is lacking: Electronics manufacturers are not really creating anything new. They all put similar products out there. Whirlpool is not an exception.
High revenue but low margin: Although Whirlpool has high revenues, the cost of keeping up is also high. As a consequence, the company’s revenues are huge but the margin is decreasing.
Opportunities
Entering small appliances: Although Whirlpool offers many products in the kitchen and home category, it does not make smaller appliances. A great opportunity for this company could be expanding its product portfolio.
E-commerce sales: With the rapidly evolving technology, people spend more time doing online shopping, rather than traditional. So, the company can definitely keep up and grow its E-commerce sales.
Emerging markets: Investing in emerging markets is another step Whirlpool can take to face some more success. Of course, that will also allow the company to enlarge its revenues.
Services: In this category service is not always a shining position. This company can differentiate itself from others in innovating in its service performance.
Threats
Intense competition: Competition is something that is always going to be present. It is not like in ten years competition is going to drop. This is why this company has to think of fresh and different ways to maintain its revenues.
Dropping margins: The dropping margins are a significant peril to Whirlpool as they put the brand’s development to the test. Even the brand’s overall being is threatened because of this phenomenon.
Mature markets: The US and Asia are where Whirlpool’s marketing presence is strong. However, there are tons of other companies available in those countries. So, again, Whirlpool has to think of unique ways to stand out.
Last but not least we are going to distinguish the segment that Whirlpool has chosen to target.
Let’s watch this video first.
The video is following two parents during their daily journey with a couple of toddlers. We all know that it gets messy with children and that is surely something that this video demonstrates.
It walks through how even after doing laundry there are new loads to do. Because after every meal or after playtime, kids tend to get their clothes dirty.
And, of course, while food is awesome for our tummies, it is not so easy on us after we’re done cooking. Because there are going to be many dirty dishes. And that is when a dishwasher comes in handy.
There are two things that this video gives away that we can connect to Whirlpoo’s chosen segment.
The first point is the presence and importance of family. The whole video revolves around a small household or a married couple with kids. Especially nowadays, people are not likely to have children if taking care of them and valuing them is not thought out in advance. Thus, the one in the video is definitely a genuine family.
The next thing worth mentioning is perfectionism. For some people having children is an excuse for a messy house. Not for the mom in this video, it is not. She keeps her home perfectly clean and like a welcoming space firstly for them, and then for the people that may come around.
What we just talked about leaves us with no other option than the inference that the segment Whirlpool has chosen to target is Actualizers.
What do we know about them?
Lifestyle and values:
Actualizers either have to get something done perfectly or not do it at all. They are true perfectionists. To succeed in whatever it is they are working for, they divide their goal into a few smaller tasks.
A career for this segment is so much deeper than just earning money. Yes, money is important, and it is a crucial need for one’s well-being, but it only comes after the enjoyment of a job.
Actualizers are home buddies. They love being in their comfortable environment with their family members, spending some quality time together.
This segment both exercises and eats clean food to contribute to a healthy lifestyle. They will not save a penny on a workout class or a healthy food item.
Actualizers dress up comfortably. Putting together a fashionable outfit is too much work and not something that this segment is about to spend energy on.
Attitude to shopping:
Actualizers do not typically spend money unless they need to. They like to spend it wisely because they understand the value of money.
If they need to purchase something important and it happens to be expensive, then they will.
An exception where they do not hesitate to spend a bit extra on an item is when products have just come out. Actualizers are not going to sit around and wait for those new products to lose their hype.
This segment likes to spend its time productively. Hence why, when they need to go shopping, they will plan their trips, to get all the necessary items from one store.
Interesting facts about Actualizers:
They
- Feel safe at home with family and friends
- Like hanging out with their household
- Fancy a peaceful evening at home or in the garden
- Appreciate having weekend meals with family
- Care about the meaningfulness of their preferred ventures
- Love reading novels, watching films, honoring arts
- Are moved by films about nature and arts
- Feel like for their kids to be given engaging activities, they need to regularly go outside to places like theaters, cinemas, carnivals, shows, walks, and why not even restaurants
- Read local and international news to stay notified about what is happening in their surroundings
- Are involved in politics, economics, environment, finance, business, and real estate
- Really care about the growth of their kids. And they will go out of their way to tackle entertaining ways of bringing up the children.
- Are very satisfied with using the internet
- Watch TV only for few occasions when looking for particular programs.
- Are above-average radio consumers.
To sum up this long blog, we talked about the marketing tactics of Whirlpool, a home and kitchen appliance company. We mentioned different areas of its marketing to unravel its way towards success. We hope you liked it. To read more interesting, educational, and fascinating blogs like this, be sure to check out our main website.
