Frigidaire Company: Front-Loading Washing Machine Product Positioning

Executive Summary
Defining the appropriate market segments for the front-loading washing machine is the most important step on the path to redefining the marketing plan for Frigidaire. Based on internal research and data analysis, Frigidaire already has access to the information we need to help make sound segmenting decisions. The target segments we will recommend include such descriptive captions as “elite”, “sophisticated”, “upscale” and “rich”. These terms are identified with market segments that will respond to the front-loading washing machine due to environmental concerns, fashion consciousness or both.
What we are referring to is the segmenting technique known as ‘perception mapping’. We are looking at the perceptions of the various audiences represented in exhibit 5 and grouping them based on factors that will influence their perception of the product. Once the segment is defined, we will direct a target campaign towards these segments to address their perceived needs.

By looking at exhibit 5 we see that we already have defined the perceived levels of importance of ecological impact, fashion consciousness and space savings and applied them to our potential target demographic groups. By looking at this study as shown in exhibit 5 we can very easily define our segment targets by simply selecting those that have an above average ecological orientation, value space savings, value performance or consider fashion consciousness to be important.

The following segments meet these definitions;
• Elite urban singles and couples between the ages of 25 and 54 because they value space savings.
• Sophisticated Asian and White townhouse couples over the age of 55 because they value space savings and environmental friendliness.
• Upscale suburban Asian and White families between the ages of 35 and 54 because they value performance and fashion.
• Upscale white-collar couples between the ages of 25 and 34 and 55 and 64 because they value performance and fashion.

Among other segment information that can be gleaned from the analysis Frigidaire has already completed is some information indicating that affluent retires in warmer climates may value the product because they value energy savings. We also see that consumers in some geographic areas consider environmental issues to be more important than consumers in other areas. Most of these metro areas are defined as generally wealthy and densely populated traditionally environmentally friendly areas such as Denver, Seattle and San Francisco, Minneapolis, Houston, Washington D.C., Salt Lake City, Dallas and Hartford.

Additionally, internal research shows us that nearly 80% of current Frigidaire customers are made up of families, 14.5% of current customers are single females and that sales by the Frigidaire brand have traditionally been highest in the Northeastern and Southeastern regions if the U.S.

Using our perception map idea, we can align the attributes that our target markets find the most appealing to work with our targeted efforts to these demographics and geographic targets. Because of the segments defined about, we find the following attributes to be our focus:
• Performance
• Fashion
• Space savings
• Environmental benefits

We must also remember the difference that will be presented among similar demographic targets in various geographic areas. Our initial target areas will include the most environmentally conscious metro areas in the U.S.:
• Denver
• San Francisco
• Seattle
• Minneapolis
• Houston
• Washington D.C.
• Salt Lake City
• Dallas
• Hartford

We must also keep in mind that, as mentioned previously, most of Frigidaire’s customers are families.
Keeping all of these previously researched bits of information in mind, we see a clearly developing product position rising from the numbers; we must position the product as being for families in our targeted cities and stressing the attributes of performance, fashion, space savings and environmental friendliness.

References
Mullins, John W & Walker, Orville C et al. (2005). Marketing Management: A Strategic Decision
Making Approach. 5th ed. McGraw-Hill. New York.

Palan, Kay M & Dannels, Timothy T. (1997). Frigidaire Company: Launching the Front-Loading
Washing Machine. North American Case Research Associates.

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