Marketing Positioning Paper on Frigidaire Company: Launching the Front-Loading Washing Machine

Essay by kuoshianA+, January 2006

download word file, 1 pages 2.0

By introducing the new front-loading (horizontal axis) washing machine designed and developed to offer consumer an alternative laundry product that is superior to the conventional top-loading (vertical axis) washing machine, Frigidaire is intent to establish itself as the industry leader in energy-saving, environmentally friendly laundry products while expand its position in the marketplace. This new front-loading washing machine offers lower energy consumption, better water conservation, and better washing performance than the conventional top-loading washing machines offered by the competitors.

Growth in environmental awareness and energy and water conversation in the United States will drive and support the market to produce a more energy efficient washing machine such as the front-loading washing machine and this will position Frigidaire in the forefront of the laundry market. The laundry market is very competitive and demanding market. Frigidaire currently competes with four other major manufacturers in the U.S. and only has 11% of the market shares.

The leader of the market, Whirlpool, has 35.9% of the market share while General Electric has 30.4% of the market and Maytag has 14.8%. Amana is behind Frigidaire with 6.4% of the market share. Similar machine is the dominating the market in the European for reason of energy conservation and it is expected that this trend will drift into the U.S. market. Through this, the front-loading washing machine will provide Frigidaire with much needed product differentiation and competitive edge in the industry.

Survey of the potential market showed that 53% of the surveyed household purchased energy-efficient appliances while 28% used water conservation device in their homes. 46% of household reported considering environmental impact when purchasing products. Focus groups study indicated some perceived potential problems with the front-loading washing machine but results were otherwise encouraging. Consumer feedback from the controlled sales program provided product improvement and indicated positive level...