Global Marketing Report: A Case Study Of Electrolux Group Essay


Discuss about the Global Marketing Report for a Case Study of Electrolux Group.


Introduction to WA, Perth Electrolux

Increased international agreements, concessions, technology and best practices have increasingly opened the global market (Greatorex 2014). It has led to more demand of goods and services making businesses to strategize in order to exploit the opportunities (Curtin 2014). Electrolux is a well-known global leader in supply of home appliances suitable to business and household needs. The group headquarters is in Stockholm, Sweden with several of its branches stores found across countries including Perth Australia. The group offers well designed, innovative and long lasting business solutions to its esteemed customers. Examples of the solutions offered include dishwashers, cookers, air conditioners, refrigerators and domestic appliances. Majority of the groups products are kitchen appliances used for storage, food preparation and dish washing functions (Hanlon 2015).

Majority of world restaurant business are equipped with Electrolux products. The group has continued to employ competitive strategies that have helped them to control the market share and increase its customer base (Bhardwaj, Nitin, and Niharika Maharshi. 2014). They are strategically well placed to increase close collaboration with consumer needs and preferences. Electrolux group have different outlets stores hosted in number of countries including in Perth Australia. The group is currently selling over 60 million products yearly in more than 150 countries in the world. It has been in operation since 1919 and it has remained stable ever since currently it employs more than 55000 employees with a sales turnover of 121 billion dollars yearly. The statistics clearly shows that Electrolux is employing competitive local business strategies in marketing its products (Hollensen 2015).

WA, Perth Electrolux and Marketing Mix

Business organizations are tasked with responsibility of ensuring that the marketing strategies they employ are effective and competitive (Heagney 2016). Marketing is about a process of creating value of customers and understanding the environment in which they operate (Schlegelmilch, Bodo B 2013). Marketing managers need to provide marketing mix solutions relevant to the business environment needs (Khan 2014). Marketing mix (7Ps) contains different combinations for products, price, process, promotion, people, place and physical address (Bhardwaj, Nitin, and Niharika Maharshi. 2014). Manipulation of this different mix results to several marketing outputs for organizations (Voegtlin, Christian, Moritz Patzer, and Andreas Georg Scherer 2012). Over the years WA, Perth Electrolux group have been using different marketing mix in addition to best practices to cover local business needs.

The increasing pace in local markets for household’s related products resulting from changes in technology, and increased consumer power as prompted Electrolux group to change marketing strategies to tap opportunities and increasing market demands. The local market growth in 2016 was estimated at 70% of the total market volume this is an increase from 50% from the previous year. The 20% increase in local market growth accounts for 30% of Electrolux sales for the year 2016. Electrolux group performance nationally is based on the combination of the market mix it employs to increase and control its market share. The demand of local made appliances led WA, Perth to change marketing strategies.

Marketing Mix of Product, Price and Product

The increasing trend in local consumer power has influenced WA, Perth Electrolux products volumes and brands. The customers are well informed on the type of products they want and amount they are willing to part with. That has made WA, Perth Electrolux group to employ a marketing mix of price, process and product to ensure that customer needs are met. Different products have been provided for the market they include AEG, Zanussi, Frigidaire, Molteni, Wasting house and Grand cuisine. To be able to meet different consumer needs and preference the brands were designed and manufactured based on consumer insights and professional users opinions (Hurwitz, M., & Hurwitz, S 2013). The pricing differentials of the brands are classified to three types of markets luxury, premium and mass markets (Scholes 2015). To ensure that the brands are of the required quality the company has focused on continuous improvement in its manufacturing processes and methods. Quality control is achieved through employing the best techniques that improve its cost structures, methods, processes and culture (Wirtz, Jochen, and Christopher Lovelock. 2016).

Marketing Mix of Product and Place

WA, Perth Electrolux group is aiming at promoting customer experience locally. This is achieved by giving the different consumers the best experience when using the products (Wu, Shwu-Ing, and Ting-Ru Lin 2014). The group is employing product and place market mix to achieve customer experience of its products (De Mooij 2013). There is clear need to understand what the consumer requires in different localities. That is possible by obtaining information from extensive research on how best they should develop products. WA, Perth Electrolux group have employed a substantial amount of the budget for product development through research and development unit. The group product brand is based on three innovation metric of great tasting foods, care for your clothes, and healthy well-being. To ensure that place is taken in consideration different customer preferences and needs from different local regions are considered. Electrolux have designed a platform of local projects that deal with product development suitable to specific local needs. The aim of such projects is to provide a more resource efficient products for customers located in different regions of the country (Ferigotti, C. M., Cunha, S. K., & Fernandes, B. H. R 2016). It is reported that WA, Perth Electrolux is currently having 15 development center’s found in the local market.

Marketing Mix of Product, Process and Promotion

The WA, Perth Electrolux group is aiming to maintain operational excellence in its provision of products and services both locally. Operational excellence is achieved by the group management through process, promotion and product market mix (Curtin 2014). The goal of achieving this is by having a competitive cost structure through continuous improvements in variable costs by using best technologies and methods. Quality and superior products brands can be achieved if better automation and modernization are used (Ye, Chen, Sanjeev Jha, and Kevin C. Desouza. 2015). Electrolux have implemented new initiative’s that have increased efficiency, reduced costs and improved product brands. The new developed products are acceptable to the market. Example of process-product process employed by the group is the modularization program a standardized global platform for new products focused at lowering costs for products and allows flexible penetration to more local markets.

Marketing Mix of Physical Address and Promotion

Another marketing strategy that WA, Perth Electrolux is employing is on the combination physical address and promotional marketing mix. The group has divided its market into different segments in different regions and states in the country. Both this markets are characterized with different needs and preferences. The segmentation of the market helps the group management team serve the markets better. Other regions have differing conditions that makes the organization to specific design products to meet the conditions. In specific market segments the purchasing power has increased because larger population is the home-owning age the group need to focus on mass production and distribution strategies. Market segmentation is useful in trying to meet the varying needs of different localities (Baker 2014).

The Electrolux group is lifted higher from a number of its strong brands in its portfolio of products. Any creation of a brand forms a valuable component in promoting consumer confidence and trust (Baker 2014). Through its research and development unit the group has been able to provide strong brands to its professional users. The use of brand is a representation of promotion physical address, and product marketing mix. The brand use by the group is guided by the philosophy that if one buys the product will have a specific unique experience. WA, Perth Electrolux is enjoying is enjoying a market share from each brand type because each provides promises of innovation, quality and leadership. Examples of brands that have been accepted locally and internationally are AEG and Frigidaire. Other brands are specific to countries and fields for example Molteni which is liked by professional chefs. Strong brands are useful tools for organizations because it simplifies marketing function and reduces costs (LI 2015).

Marketing Mix of People and Promotion

Marketing strategies employed by businesses can only work if only they are planned, co-ordinated, controlled, guided and executed (Heagney 2016). These functions are made possible if only the organization is represented by the right staff. Human resources are part of the market mix that will ensure that other components of the mix work (Lehdonviita 2014). WA, Perth Electrolux is guided by the concept of talent and teamship promotion, good leadership and rightful culture and ethics among its staff. The Group strives to have the right employs recruited who could add value by bringing new ideas and innovation to the business. Teamship is promoted in the organization by ensuring every one works towards one unified goals, collaborates and engages each other. The leadership index of the company grew from 60% (2015) to 70% (2016) that was a good indication of future and current guidance. Marketing executives and salespersons have been trained well showing the required organizational culture. The human dynamics has helped the group to perform well in how they carry out their local business.

WA, Perth Electrolux Local Marketing Management

The WA, Perth Electrolux group management is ensuring that it controls and maintains the market share locally by employing suitable strategies and techniques. The group has designed a customer driven strategy this has enable them to select customer to serve, selecting value propositions and coming up with market orientations. The main local strategic focus of WA, Perth Electrolux as focused at profitability growth by creating national business strategies that cover innovations, operational excellence and transformative initiatives. The group is also focusing at controlling the national branding rights (Schlegelmilch, Bodo B 2013). In addition to its national core business the group provides a brand licensing to more of its 50 brands. By developing and managing the brand licensing it enables other business across to exploit opportunities and strengthen their own business. The management of the business is able to maintain its national product niche by employing pricing strategies that consumers do not complain because they capture customer value. The licensing of brand is suitable for the group in identifying the niche brand suitable to market group.

The business is able to maintain and define its business portfolio this is by collecting all range of products and planning the future of these portfolios. There are a number of initiatives and activities that WA, Perth Electrolux group is focusing in the coming future to meet local needs. The management focuses on using recycled materials, help feed the planet, keeping hospital infections away, having bright ideas for better food, and being a world climate leader. The national innovation and strategies employed by management team of the group is guided by the concepts. The group is able to maintain business at local level due to its recognized leadership. The leadership and management of Electrolux group need to provide managerial professional code of practice that it focuses to achieve.

The group is able to maintain its market because it employs direct marketing because they are able to connect direct with consumers and obtaining feedback immediately. The management provided national promises which include: constantly improve on the product, make better use of resources, elimination of harmful materials, ensuring better safety and health is maintained, and creating a sustainable solution for every user. The group through the promises is able to strengthen its national small domestic appliances. The company is maintaining its local market by specializing on priorities this is by coming up with innovative products, strengthening positives, creation of new brands and product categories, and targeting new markets. The business group is able to develop new products but also manage the product life cycle of the existing products (Asker 2013).


In conclusion the performance of WA, Perth Electrolux group is characterized with better marketing strategies, best business practices and good leadership which make them to be product leader in kitchen related appliances. The way they conduct their business defines a formal business that can focus on future needs of their customers. The best practice on how business is conducted local and national is to employ better business strategies that will ensure growth of the business and maintenance of the market share.


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