Table of Content

Summary 1 Introduction 1 Situational analysis 3 PESTEL Analysis 3 SWOT Analysis 7 Competitive Edge Analysis 7 Recommendation 9 STP Analysis: 9 Marketing Objective and Goals (SMART) 16 Marketing Mix (7Ps) 16 Conclusion 20 Reference 21

Summary
This report is focusing on the washing machine sector of Whirlpool Corporation in the UK market, firstly give a situation analysis of the broad market, which including using PESTEL SWOT and Competitive Edge, analysing both internal and external environment of the business combined to demand of customers; secondly offer several recommendation to the business using STP, SMART and 7Ps models; finally a brief conclusion is given. Introduction
Washing Machine is one of the most common household appliances in the UK, with many global brands sharing, such as Hotpoint, Bosch, Beko and LG etc. Whirlpool is one of them with a range of washer and dryer products. Even though these global brands compete in other home appliance sectors as well, washing machine marketing competition seems less fierce than other short life appliances.
The market share of Whirlpool's washing machine can be calculated either by value of sales of customer possession. Graph 1(Westgarth, 2014) showed the market shares of several brands in the UK market by value. It is clear that Whirlpool only counted 3%, which is the lowest, only one tenth of the market leader Hotpoint. Graph 2(Westgarth, 2014) illustrate another picture of the market share: 7% of people remember they are using a washing machine branded Whirlpool, which means compare to the actual sales, Whirlpool has a good brand recognition.

Graph 1: Manufacturer market share in the UK by value

Graph 2: Ownership of washing machine brand in the UK
The report will focus on one of the washer series in Whirlpool, the Sixth Sense series (Whirlpool UK website). Even though there are not many models in this series, its unique characteristics make it an interesting product series in conducting marketing strategy.
Situational analysis
PESTEL Analysis
Political:
The next UK general election will take place in 2015, hence this year is believed to be a mid-term year. This political issue will affect the washing machine market mainly through uncertainty. A possibility to change the current government will cause possibility to change many economic factors, such as import duties, industry subsidies etc.
Economic：
The government statistic website showed that the households number in the UK will increase at a rate of 4% from 2013-18 (Jefferies, 2013). A Mintel research (Westgarth, 2014) showed that no more than 1% of UK households would do the laundry outside their home, and that around 3% of all household did not have their washing machine, washer dryer included (Caines, 2013). It is clear that washing machine is an essential appliance in a household, therefore, the growing number of households is likely to cause the demand of washing machine increasing.
Furthermore, according to a gfk report (Ridsdale, 2014), the Consumer Confidence Barometer kept its increasing trend since last June, and reached its highest point this June (Graph 3). This increasing trend illustrated that UK citizens will be more willing to purchase goods in the coming years, which is considered a positive signal to demand of washing machines.

Graph 3: Consumer Confidence Index
Social:
An Mintel Research Group report summarized that gender is a social factor that would affect the choice of washing machine (Ridsdale, 2014). The Graph 4 showed female is twice likely to take the responsibility to use the washer than male, which is reasonable because housework is most likely done by female in a household (Ridsdale, 2014). This is important because the person who use the washing machine should have the right to choose which one to buy, depends on their needs. However, the other sides of the graph is giving more information on this. Nearly one third of men stated that they shared the responsibility with someone else in the household, which illustrated that even in a household, men still did one third of the laundry. Therefore, actually a wide range of citizens are using the washing machine, the selection of washing machine is not an issue of "painting it pink", instead, it should be a more comprehensive decision.

Graph 4: Responsibility to do the laundry
Technological:
The technological factors of washing machine mainly included two aspects: new ways to wash the clothes and a more efficient way to save water and energy. A news report in Mail Online(2014) stated that a new waterless washing machine uses millions of tiny plastic beads to clean the dirt, saving 7 million tons of water per week, which seemed to be revolution of washing machine and an end of water washing. However, it did not mention how to kill the bacteria and any side-effect of the technology.
Another aspect refers to saving energy. Some existing innovation included Steam, 6 motions, which have been applied on the new products of LG (2014). Some other possible technologies are still under testing, such as Ultra-sound, Ozone and Silver Ions (Pakula & Stamminger, 2010). The importance to know this is, for a washing machine company, to balance the budget on existing products development and on innovative products exploration.
Environmental:
Washing machines did have environmental effects, however, not directly. Washing machine is believed to be one of the largest water users in a home, therefore indirectly affect aquatic lives. Regarding to energy usage, the use of electricity by washing machine also have indirect impact on environment. In the process of generating electricity, it is believed that large amount of fossil is burned, therefore emits greenhouse gas, the carbon dioxide. However, this should be considered the inevitable cost when gaining the convenience of using washing machine instead of washing clothes by hand. Furthermore, this is more a problem of electricity suppliers, since more environmental friendly ways they can choose to generate electricity, than a problem of washing machine manufacturer. However, helping protecting environment could be a marketing slogan, as many brand did.
Legal:
When consumers looking at an household appliance, they will always find out an energy label adhering on the machine (See Graph 5). It is said that this label is based on a framework Directive which is a range of regulation providing information to some product categories, which would help consumers make an informed choice. Since June 2010, new label lay out, containing 3 more classes above the former highest level A, which are A+, A++ and A+++. However, the washing machines currently in the UK market are almost above A, which makes more than half of the levels on the label useless (Byrne, 2013). In addition, energy consumption is actually depends on the daily actual use, for instance, the temperature chosen, and the actual load per washing. Therefore, this label seems to be more a marketing tool for manufacturers, and consumer still need to evaluate their daily washing behaviour by understanding what to consider.

Graph 5: A sample Efficiency label
SWOT Analysis

(Mix reference from Whirlpool Annual Report 2013, Fu, Ma & Zhou 2014)
Competitive Edge Analysis
According to a customer review website, to estimate how good a washing machine is, compare to its peers, the criteria contain more than twenty aspects of a model of washing machine (Top Ten Review, 2014). Although some aspects are more behavioural preference, for instance, child lock and spin option, the others should be considered serious not only by consumers, but also by manufacturers, because they should know the improvement of which aspect is more likely being a competitive selling point.
A research gave an intuitive answer to this question. The Graph 6 (Ridsdale, 2014) showed even though people are interested in many aspects such as quieter running, quicker to wash or dry, and safely wash and dry delicate clothes, they will not pay more for such improvements. What people care most, what they would like to pay more, is the highest efficiency rating, far higher than the second one, quicker to wash or dry. If this is the case, manufacturers should have built a series of top efficiency rating washing machines. However this is not the full picture if they explore one step further. It is reasonable to say people trust the efficiency rating, but not necessary because they fully understand what to expect in the mechanism of calculating efficiency rating, and possibly because there are too many aspects to consider and too many choices in the market. Therefore, a comprehensive rating might be a best way to judge. But at least, this gave a signal that regarding a washing machine, people care comprehensive performance more than specific performance, and that people will take energy and water consumption, the running cost, into account when they make the purchase decision.
From this point of view, the Whirlpool Sixth Sense series washing machines did capture the consumers' demand. The core of this series is that, the products can use 15℃water to do washing but achieve the effect of 40℃ washing, saving the heating energy, therefore deserve a high rating in efficiency label (Whirlpool UK website). In addition, this technology also have another advantage which is low temperature performs better than higher temperature washing in the condition that they have same washing effects, because low temperature help protect the bright colours and modest to fabric products. In the graph, more than a quarter people are willing to pay more for such single advantage.

Graph 6: Feathers people interested and features people would pay more.
Recommendation
STP Analysis:
Segmentation:
Washing machine is so widely use in nearly every household that it is difficult to choose a proper method to segment them. However, based on the analysis above, the concern of efficiency rating might be a good clue. In the perspective of consumers, a high efficiency rating means saving electricity and water, and thus lower running cost. So, the frequency of doing the laundry is directly related to the cost of energy and therefore can be a way of segmentation. A study about laundry consumer revealed the proportion of number of loads a person who is responsible for doing the laundry usually do in a week (Ridsdale, 2014). The Graph 7 show heavy users, if defined five and more than five loads a week, counted 31%, while 12% of people stated they do the laundry once a week. And the most common number of loads is three loads a week, counted 22%. It is notable that there is neither best number in a week, nor any number is better than the others. But for the purpose of segmentation, any other things being equal, a heavy user tends to be more sensitive to energy consumption each load, and hence more likely to choose the Whirlpool Sixth Sense series products.

Graph 7: Number of wash loads in a typical week (%)

However, this is still too broad for Whirlpool to target a group of people and do the promotion. A research pinpointed that a typical washing machine potential buyer usually use two weeks, from needing a new washing machine at the first place, to make a final decision (Ridsdale, 2014). Another report showed the average cycle of washing machine in the UK is over 8 years (Westgarth, 2014). Combining these two, one can know the purchasing process is that, customers are out of the market for normal times, but return into the market when needed a new machine, without staying very long. The point for a manufacturer is to understand different consideration processes and segment them into groups. The following three graphs are three segments based on consideration before purchase decision making, Families, Young Professionals and Empty Nesters (Shaykh, 2014).

Graph 8: Segment one: Families

Graph 9: Segment two: Young Professionals

Graph 10: Segment three: Empty Nesters.

Targeting:
The above two segment methods offered two angles to understand customers. Combining these two methods can gave an even deeper understanding of segmented groups. For example, obviously, heavy washing machine users are more likely to be families, since more persons sharing one washing machine, and especially the families with children, because the presence of children tends to change their clothes more often, for instance, school uniform and dirty sports wearing. Therefore, Whirlpool Sixth Sense series products should target such family groups and pay serious attention on how to promote to them.
Another example of combination is that, average young professional couples tends to have high disposable income, they could be heavy users or could be modest users. They could be heavy users because some kinds of their clothes needed to be washed after wearing once, such as socks, sport clothing and underwear. Graph 11 (Ridsdale, 2014) showed other clothing that might needed washing which included some work shirt/blouse, tops and even jumpers. Young professional couples could also be modest users because their relatively high disposable income allowed them to own more types of clothing, such as specific concert dressing, professional sport dressing, fashion dressings or even several set of shirt and suit. Therefore, they do not have to wash the clothes very often. Facing such a group without obvious frequency of doing laundry, Whirlpool Sixth Sense series can also target them by promoting the protection of clothes with a lower temperature washing.

Graph 11: Washing Items After Wearing Once.
The last group, empty nesters, even though it is an increasing group in the UK, Whirlpool Sixth Sense series products do not obviously benefit them, thus better not treat this group as a target segment.
Positioning:
According to the analysis above, the Sixth Sense series should focus on two elements, the energy-efficient technology and its protection of clothes. Both advantages are strongly appealing to consumers, not only to the two targeting groups, but also to most consumers. Graph 12 (Ridsdale, 2014) showed the most important wash results top three are: removal of tough stains, keeping write fabric bright, and killing germs in the laundry. However, it should be noted that both advantages are building on one important foundation, the result of washing using Whirlpool's Sixth Sense series product should be roughly the same as using other brand washing machines with higher temperature water. However, the result cannot be formally proved, and hence the real effect cannot guarantee to be perfectly conform to what Whirlpool claimed.

Graph 12: Wash Results Considered Most Important
In addition, while the combination of such top two elements is what Sixth Sense series want to achieve, also an aim for all washing machine brands, the Sixth Sense series products are actually positioning more in low temperature washing, then enable a side-effect of protecting the bright colour and the longevity of clothes. So, the positioning graph can be drawn below, the basic challenge for Sixth Sense series products is how to ensure its theoretically perfect wash effect, then the other two advantage can work.

Graph 13: The Reporter-Made Positioning Graph
Marketing Objective and Goals (SMART)
According to Annual Report of Whirlpool Corporation (2013), the net sales of the total group increased by 3.5%, however operating profit increased by nearly 50%, net income for corporation increased by more than 100%. Considering this is the full picture of the whole group, washing machine sector in the UK market should contribute at least no less than such grow rates, otherwise this sector is considered fed by other sectors. Therefore, the objective of washing machine sector in the UK market can be stated: Net sales should increase 3.5% in term of real value in the account year 2014.
Marketing Mix (7Ps)
Product:
The core of the Sixth Sense series products had been discussed above, however, as mentioned, a washing machine has more than twenty aspects can be valued when writing a description or review. Based on the two targeted groups, some aspects are more important than the others. For example, child lock seems to be essential in the family groups with children, while the colour and shape design are more important in young couples groups than families. Other feathers and functionalities, included cycle options, spin levels, temperature selections are considerable issues in both groups, while some delicate options should be considered by young couples as well. In terms of help&support, it is actually an essential part which cannot be avoided by any brand any product.
Recommendation to Whirlpool Sixth Sense series product is, to consider developing a top loader model using the same technology, since top loaders have some advantages compared to front loaders facing the families group. The main one is considered to be maintenance: top loaders have relatively simple mechanism, which is good for family members to use the machine even without sufficient knowledge on washing machines.
Another recommendation to this series of product is, since energy saving is one of the core selling points, the benefit of it should be maximized by a more eye-catching description. A research showed that providing lifetime saving data is more preferable than providing annual saving data (Bull, 2012).
Price:
One can feel that consumers are becoming more sophisticated in making purchase decisions. The recommendation is even though the Sixth Sense series product is believed to be very competitive, on the one hand, it cannot excess the most common price of the consumers last purchasing price, which is showed in Graph 14 (Westgarth, 2014); on the other hand, the sum of saving of running cost and the selling price is the actually price a consumer will consider.

Graph 14: Spend on Last Washer

Place:
Recommendation for Whirlpool washing machine is, to catch the trend that showrooming is becoming more popular nowadays. This is a new challenge that the function of a traditional retail store is changing, from a end line of selling to a testing place for online-buyers.
Promotion:
As mentioned in the Place section, showrooming style of purchasing is becoming more popular this times. Mintel research showed, in Graph 15, in the whole washing machine market, the current online buying counted 22% of total buying, and the researcher predicted that this number will grow to 40% in the year end (Mercer, 2014). Facing this change, recommendation for Whirlpool is to expand its supply network further, but reducing the storage in each spot of the network.

Graph 15: Distribution Method, By Value.

People:
According to a research of home appliance (Westgarth, 2014), the employees in Whirlpool must be creative and modest with customers. The stuff group consist of different nationalities, cultures, and are offered opportunities to work in multicultural environment. It is believed that such characteristics would add value to the brand.
Process:
The recommendation for this part is to reduce the time in the whole purchasing behaviour. Even though showrooming is becoming popular in customers, it takes time to do research firstly, touch or test the machine in a retail place secondly, and go back home to buy it online lastly. In this process, Whirlpool can reduce the time cost by offering online-buying services, with an online-buying price, in the retail store. Another advantage of this comes from warranty. If customer has any warranty problems, they can get the answer directly from stuff in the retail store.

Physical Evidence:
This is an essential component of the whole purchasing process mentioned above. The recommendation to this part is, more models can be tested by customers and more trained stuff to answer or solve problems from customers.

Conclusion
This report has successfully via investigated and analysed external and internal environment to make marketing strategies by STP, SMART and 7Ps.
Even though washing machine itself is a complex home appliance, Whirlpool's Sixth Sense technology separate its product from the other brands with unique advantages, makes this series can conduct a clear and straight forward marketing strategy. What's more, the market potential is large for Whirlpool, even though new strong competitors are entering, competing with Whirlpool both in traditional distribution line, and in the coming showrooming trend.
To sum up of this report above, all of the issues have been discussed in this report.

Reference
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Fu, R. Ma, S. & Zhou, Q. (2014) 'Home Appliance: Whirlpool Inc', Krause Fund Research Spring 2014.

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Pakula, C. & Stamminger, R. (2010) 'Electricity and water consumption for laundry washing by washing machine worldwide', Energy Efficiency, Vol 3, pp. 365-382.

Ridsdale, S. (2014) 'June sees Consumer Confidence Index move into positive territory for the first time since March 2005', GfK Group, Available from: http://www.gfk.com/uk/Documents/Press-Releases/GfK%20Consumer%20Confidence%20Barometer%20Press%20Release%20(June%202014)%20FV.pdf (accessed 1st July)

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