Frigidaire Company: Horizontal Axis Washing Machine

The Challenge
Frigidaire needs to develop a marketing plan for the horizontal axis washing machine that will give the company first mover advantage and will positively affect brand perception, market share and revenue for the long-term.

Definition and Analysis of the Problems
Initial sales of the front-loading washing machine did not meet expectations.

Recommendations and Reasoning

Release the product under a new brand name to lessen the affect of any negative Frigidaire brand perception in the marketplace. The company has a history of delivering a quality product to both its end users as well as brand marketers such as Kenmore and, in the case of the front-loader, Whirlpool and GE. Quality, however, does not build brand value by itself. Any issue that the company may have in relation to its brand image should not be addressed as a portion of this broader, large scale and innovative product release. It should be addressed as a separate long-term issue.

Although the company has launched the product under the Gallery brand of higher-end appliances, it maintains the problematic Frigidaire name. Developing an entirely new brand and building a new set of expectations will be a more viable solution for immediate implementation of long-term success than trying to tackle the brand issue alongside such an innovative product launch.

Participate in more mass media advertising and promotion to affect positioning and category perception. Think Maytag, Kenmore or Whirlpool. These brands have become experts at manipulating the masses via the primary use of mass media. By not participating and competing on this level, Frigidaire is further helping to deteriorate the competitive ability of the Frigidaire brand. The boldest example of the problem of not participating in mass media promotion is that the Kenmore brand, by effectively promoting on a grand scale including mass media, enjoys wide-spread perception as a superior brand appliance; all the while being manufactured by Frigidaire.

Plan for a longer introduction, ramp-up and market acceptance period. According to company forecasts, Frigidaire had expectations of moving into full production capacity within 90 days of launch. With the challenges of developing market demand, overcoming brand stigmas and competing with traditional vertical axis machines among other issues, the company needs to more realistically look at the project from a longer-term expectation. Defining an entirely new product category and its associated set of consumer demands requires much more than a 3 month investment of marketing effort.

Target strictly high affluence consumer profiles. Initial studies done by Frigidaire marketing helped to develop a product launch that targeted consumers who would never consider spending nearly $1,000 on a washing machine when they can purchase a washer/dryer set for $500. By targeting all marketing efforts at developing desire among affluent markets in the most highly affluent domestic regions, the company will be helping to promote its vision of brand quality and strength as well as product quality and strength. It is possible that by promoting an entirely new brand in this entirely new market to an entirely affluent audience utilizing highly visible mass media promotion – that the brand could become so associated with the product that they are one in the same in the minds of consumers.

Other Considerations
• The issue of the weaker Frigidaire brand should be addressed outside the scope of such an adventurous product launch.

• First mover advantage is not always advantageous especially in high-risk ventures. Sometimes it’s better to let the competition make the first mistakes

• Look more at the European model – what are manufacturers currently promoting and how did they reach current levels of success over a longer period of time?

• How did Frigidaire pricing of vertical axis machines compare to top 3 market leaders? How may this have affected initial market reaction when pricing the horizontal axis machine only in relation to Frigidaire vertical axis machines?

• Address age-old perceptions more directly.

• Make a broader appeal with regard to water and energy savings.

4 comments July 1st, 2005