FRIGIDAIRE COMPANY***Front-Loading Washing Machine***
...close personal contact from our engineering department. Current Problems: --Public Perception of the Front-Loading Machine Doesn’t Clean Well Tangles Clothing Expensive to Maintain and Technologically Complex Larger/Heavier Machines can be Difficult to Install --The “Frigidaire” Brand Name only Represents 2% of the Washing Machine Market. --Low Brand Acceptability Relative to Our Major Competitors. --Pricing: Only 8% of washers on the market are priced above $700. At the current target price of $799 a consumer could purchase a top loading washer and have money left over to purchase a dryer. --Deferred Government Regulations requiring Efficient Appliances. What Should Be Done? --Initial demand for this product was overestimated. --Focus should be placed on targeting more specific markets and less on the mass market. It will be important to start slow when trying to enter and develop a market that has traditionally been very sluggish in the U.S., at best. --Continue to promote the efficiency and environmental advantages of this machine while marrying it to a perception of “high-end” style, quality, and prestige. --Aggressively promote the washer in areas where consideration of environmental issues when purchasing a product is above average. Focus more on these areas and less on the Mass Market. --Aggressively market washer to the Middle/High income categories. --Continue to provide all incentives listed above under “Strengths.” --Sales projections for the first year should be cut again from 60,000 units to 25,000 units and the sale price of the washer should be increased to $1299. (See Frigidaire Sales Projections.xls). If we can be relatively successful with a high-end, quality model at a small innovation rate (5%), then strive for a higher imitation rate (10%) once word of our product gets out to more people through customers and dealers. --Currently: 53% of Americans purchase energy efficient appliances. 46% take into consideration the environmental impact when purchasing products. **We can expect these numbers to continue ...