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Australia Edition 3

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BJ Electrolux THE MARKET

BJ Electrolux THE MARKET No market more accmately reflects om changing needs than that for domestic appliances. Refrigerators, vacuum cleaners and lawnmowers evolve quickly to fill the demands of discerning and critical homemakers. The white goods market alone is valued at more than .5 billion per year in Australia. And the market is growing: in 2000, Australians bought more whitegoods than ever before. While the 200 I building sector appears to be in a period of consolidation, it's expected that stronger growth will come during the next 24 months. ACHIEVEMENTS The Electrolux Group is the world' s largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refi-igerators, washing machines, cookers, vacuum cleaners, chainsaws, lawnmowers and garden tractors. In 1999, group sales were A billion and the total workforce mm1bered 93,000. Each year, customers in more than 150 countries buy 55 million Electrolux Group products for both domestic and professional use. The Swedish-based Electro lux About one million vacuum cleaners were produced Group includes such world-famous brands as dming the year. Electrolux, AEG, Zanussi, Frigidaire, Eureka and Diversification followed. Dming the 1940s and Husqvarna. 1950s the Electrolux product range expanded to Electro lux Home Products is the largest include the 'Assistent' foodmixer, its first washing household appliance maker in Australia. After the machine ( 1951) and first compressor-driven acquisition in early 200 I of Email Major refrigerator (!956). Appliances, Electrolux Group sales in the region By the advent of the will total some billion, with ,-------- =------'----=-----, a major share of Australia's white goods market - one of the largest in the Electrolux group. That volume is made up from leading shares in the cooker, laundry, dishwasher, refrigerator and freezer appliance markets. HISTORY The Electrolux story began in 1912 with the manufacture of its first vacuum cleaner, the 'Lux 1 ', at Lilla Essingen, in Stockholm - though the name Electro lux wasn't coined until seven years later, in 1919, when company president Axel W enner-Gren laid firm foundations for the company's future - and introduced his sales staff to the concept of door-to-door selling. By 1928, the company had five manufacturing plants, 20 subsidiaries, and 350 offices worldwide. Swinging Sixties, Electrolux offered a comprehensive range of domestic appliances, including cookers, freezers and a new line of washing machines. The age of acquisition began in 1967, with the appointment of Hans Werthen as president. Dming the following decade, the company became the world's largest manufacturer of floor care products by acquiring National Union Electric/Eureka in the United States of America. Fellow Swedish company Husqvarnajoined the Electrolux portfolio in 1978, strengthening its position on the home market and laying the foundation for the group to emerge as world leader in chainsaws. Dming the 1980s, Electrolux added several prestige names to its portfolio. A majority shareholding in Italian white goods manufacturer Zanussi came in 1986, while the acquisition of An1erican White Consolidated Industries the same year added such names as Frigidaire, Kelvinator and White-Westinghouse. Another household name, AEG, came in 1994. One ofEurope's leading appliance makers, AEG employed some 9000 people in 16 countries. Electrolux began Australian operations in 1925, and in New Zealand the following year. Manufacturing in Australia began in 1934, in a small factory in West Melbourne. The company moved to South Yarra two years later and remained in that site for almost half a century. The recent acquisition of Email Major Appliances by Electro lux has further strengthened the company's position as the world's favomite supplier of powered domestic and garden appliances. 40

The acquisition has particularly strengthened Electro lux's position in Australia, bringing with it such favomed and trusted names as Westinghouse, Kelvinator and Simpson, Hoover, Chef and Dish/ex. Electrolux celebrated 75 years in Australia in 2000, and today Electrolux Australia employs more than 4400 people. THE PRODUCT Across about 20 product lines - ranging from lawnmowers to refrigerators - Electrolux is the world's largest appliance manufacturer and one of the world's largest industrial companies. The company ranks among the 100 largest corporate employers in the world. In Australia, the range of products is among the broadest in the market: from Kelvinator refi·igerators and fi·eezers to Dish/ex dishwashers, Simpson and Hoover washing machines, Chejand Westinghouse cookers and cooktops and Westinghouse fridges, Electrolux offers almost every imaginable major kitchen and laundry appliance. The floorcare and outdoor product range is also extensive, including brands such as Electrolux, Volta, Flymo, Poulan, McCulloch and Weedeater. Another fully owned division of Electrolux Australia is Electrolux Laundry Systems, which specialises in the marketing, distribution and aftersales support of industrial laundry and dry-cleaning equipment. Electrolux Australia's Conm1ercial Cleaning Equipment Division produces and markets the Euroclean range of products, which includes industrial vacuwn cleaners, wet cleaners, scrubbing and polishing machines, and carpet washers. Electro lux Professional Food Service appliances are used extensively in leading hotel and restamant kitchens across the world, inclu- - - ·-- ding the well-known Tetsuya's restaurant in Sydney. RECENT DEVELOPMENTS Electrolux is at the forefront of incorporating true irmovation and high technology into household appliances. The Electrolux 'Screenfudge' is at the leading edge of the socalled ' intelligent' technology, incorporating featmes that enable it to suggest dinner recipes, store shopping lists and record messages with an in-built video camera. It can be linked to the internet and even be used as a TV or radio. The 'Live-In' range of Electrolux appliances is fully networked and linked to a central monitor interface that folds away underneath a kitchen cupboard. The range includes a built-in oven, dishwasher and refrigerator. Another Electrolux innovation currently undergoing trials is the Unattended Delivery Unit. With separate compartments for refrigerated, fi·ozen and dry items, the Unit is designed to be placed outside the home to receive delivery of purchases (perhaps ordered by the Screenfridge ). Further exciting research projects include the 'e2 Home' a joint venture with Ericsson, established in 1999, to develop products for the 'intelligent' home, and the related "networked apartment" complexes built in Stockholm that showcase complete solutions for high-tech urban living. PROMOTION Electrolux designs its marketing and advertising campaigns to build true brand strength and to drive mass market/trade awareness ofbrand positioning. Integrated campaigns utilise media with particular relevance to the product categories and the ability to reach specific target markets. The marketing and promotional campaigns are developed to support the achievement of market share and margin objectives while building brand awareness and the loyalty of trade customers and consumers in the long te1m. Television and print campaigns, high profile poster sites, internet and PR are all part of the ongoing brand media strategies along with consumer promotions to help drive product sales. Brochures, point-of-sale and advertising support continue the brand message through the retail distribution channels. -~ ~-----. 8) The Electrolux Group. The world's No.1 choice. KITCHEN, CLEANING AND OUTDOOR APPLIANCES Mass media campaigns are often used to assist in the release of new products and to help build brand awareness and preference. Westinghouse recently launched a television execution on the new 'Virtuoso' range to further develop the existing high consumer brand awareness and strong category presence of the brand. Simpson has utilised radio and outdoor media to promote laundry products to a younger, more mobile target. BRAND VALUES The Electrolux brand name gives consumers confidence in the group's products and services in a complex, crowded world. "Electrolux will be a leader in world-class products that make everyday life more comfortable, easier and safer," says the Electrolux Mission Statement. THINGS YOU DIDN'T KNOW ABOUT ELECTROLUX 0 The EW1620N front-load washer has a unique inclined dfUI11, making it easier to load and unload than conventional front loaders. Spin speeds up to 1600rpm provide maximwn water extraction and minimise drying times. 0 The 'Automower' is a self-driven lawnmower that cuts grass automatically. When the battery runs low, the Automower navigates itself back to the charging station and returns to the lawn full of life. There is also a solar-powered version of the Automower that automatically recharges itselfwhile in the sun. 0 The Tmin Opera House chose 'Aqua Clean' fi·om Electrolux Laundry Systems, not only because it uses biodegradable detergent, but also because it removes unpleasant odoms fi"om clothing - something ordinary illy cleaning doesn't do. 0 The Electrolux 'Wascator WE66MP' has reduced laundry costs by 60 per cent during the past 1 0 years. 0 The 'Santo Super 1872' holds the record for the least energy-consuming refiigerator, using only as much as a 1 OW light bulb. 0 Using a new Electrolux washing machine compared to a I 0-year-old model can save 100 bathfuls of water per year. 0 Exhaust air that passes through tl1e filter of the new 'Oxygen' vacuw11 cleaner is 100 times cleaner than the air in Antarctica. 0 The Electrolux 'Robot' vacuum cleaner is listed in the Guinness Book of Records as the world's most advanced domestic robot. 41

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