Fisher and Paykel – Marketing Assignment Help on Fisher and Paykel
This research report aims to quantify the market size and trends for Fisher & Paykel’s washing machine along with analysis of qualitative information. The report is broadly categorized under five sections whereas each section comprehensively provides snapshot of the analysis. Section one contains the analysis of target segment based on segment attractiveness analysis. Brand positioning will be done by considering a unique selling proposition under section two while section three will define the four marketing P’s (product, price, place, and promotion) for the product under consideration. Ethics and social responsibility strategies will be discussed under section four.
The report has been produced by analyzing the available information which is easily available without he express permission of the research sponsor. The sources of information included public information via annual reports to shareholders, company marketing information, advertising campaigns, company press releases, local news source, government reports and trade association reports for Fisher & Paykel Appliance Limited. Every effort has been made to gather accurate information which is best available at the time of need. However, the information is volatile in nature due to which the report is time limited.
There is no single way to segment a market so the marketer needs to try different segmentation variables. (Sikarwar & Verma, 2012) Based on the segmentation table presented in appendix, the targeted segment for Fisher & Paykel Washing Machine is outlined below.
Fisher & Paykel’s washing machine will be targeted based on demographics of the market segment. The behavior, purchasing power and motives of the customers strictly depend on the social class.
Upper Class: Buy Luxurious Products
Middle Class: Durable and Quality Products
Lower Class: Low-Priced Products
By targeting middle class, Fisher & Paykel Appliance Limited can position itself based on reputation for high quality and dynamic product design while using the new technology (Fulton, et al., 2014).
Growing middle class is leading to increased demand for products with innovative designs under globally known brands (Court & Narasimhan, 2010). The launch of innovative and quality products in this premium segment is likely to benefit Fisher & Paykel Appliances Limited.
Fisher & Paykel has remained the leader in home laundry appliances in Australia in 2015 with a market share of 17%. The stability of consumer tastes has worked in favor of Fisher & Paykel as they were reported to upgrade their older washing machine with current models during shifting their homes (Euromonitor, 2016). Consumers are seeking premium features for their home laundry appliances that drives value for money.
Home laundry appliances have been increased by 1% in volume. The industry has been reported to grow at CAGR of 2%. This is due to strong housing growth in Australia in 2015 (Euromonitor, 2016).
Arcelik, Boch, Beko and Electrolux are some main competitors in the appliances industry in Australia (Hamlin, et al., 2016).
Fisher & Paykel Appliances Limited positions the laundry products (specifically washing machines) as “premium, contemporary, low priced, high quality, dynamic product design, modern style and technologically integrated”. The washing machine will be based on innovative technology of smart drive due to which the machine will be able to auto sense the water load by using only three main machine parts. This will reduce the water usage as well as electricity consumption rate. Hence “efficiency” will be used to differentiate the washing machine of Fisher & Paykel Appliances Limited from other main competitors.
“Delivering Sleek Efficiency –> You Wash – You Save”
Washing with Smart Drive is about owning a quieter, energy efficient, low cost, smaller and dynamic Washing Machine 8K that offers an automatic sensing technology enabling it to sense load and use less water while running with three parts i.e. computer, agitator and direct drive motor.
Washing Machine 8K is manufactured using innovation and robust engineering and design. Smart drive technology provides for the washing machine drum to rotate and control by a beltless motor which makes it energy efficient and reliable to use. The motor sensing technology and slim design of latest motors allows Fisher & Paykel Appliances Limited to manufacture the machines with slimmer designs.
Fisher & Paykel Appliance Limited will be first to offer Direct Drive technology as it is manufactured by PML (subsidiary of FAP) (Herald New Zealand, 2012). Direct Drive technology can be used for gaining competitive edge in terms of lower cost and higher customer benefits.
Consumers in Australia tend to indulge into busy lifestyles which pushes them to buy technologically innovative products with premium features and high quality offered at lower prices (Euromonitor, 2016).
|Superior||Auto-Sense technology makes it easier to wash clothes efficiently at faster pace.|
|Communicable||“Delivering Sleek Efficiency”|
|Affordable||Lower Priced at $300|
|Profitable||Technology internally developed by Fisher and Paykel Machinery Production Limited (PML), hence it has lower manufacturing cost and high profit (Herald New Zealand, 2012).|
|Pre-emptive||First to offer auto sensing technology for water usage with three main parts.|
|Unique||Difficult to imitate since the technology is internally developed by PML. So, it is highly costly for other manufacturers to imitate or produce (Herald New Zealand, 2012).|
|Distinctive||Competitors do not offer auto sensing technology at such lower price. Hence it offers efficiency at lower cost (Herald New Zealand, 2012).|
To consumers of laundry appliances concerned about energy efficiency, Fisher and Paykel is the brand of environmental friendly load sensing washing machine that gives efficient, quicker and cleaner washing experience at a premium price of just $300 (lower than competitors).
The washing machine offered by Fisher & Paykel is on growing stage as the home laundry appliances are increased by 1% in volume in 2015 (Euromonitor International, 2010). This is due to positive strong housing growth in Australia in 2015, due to which there is a positive impact on the sales of home laundry appliances. Consumers are more inclined towards upgrading their older appliances with the current model while shifting their homes. Fisher & Paykel has remained the leading home laundry appliance by having a volume share of 17% in the market (Euromonitor, 2016). Due to being highly reputable brand offering reliable laundry appliances, Fisher & Paykel is trusted by the Australian consumers.
The strong consumer market confidence has positively affected the retail sales. The 2014-15 year was characterized by intense competition between suppliers and manufacturers based on price reductions of various products (Fisher & Paykel Appliance Holdings Limited, 2013). Fisher & Paykel Appliances limited faced rising operating revenues across all its markets. Australia remained the largest market of Fisher & Paykel Appliances Limited, as the sales rose up by 46% to $384 million. The loss in previous year of the group of about $31m was narrowed down to $12.6m in 2014 while sales rose from $772m to $1.13billion showing the growth of FAP recently.
|Low Price||Wide||Mass Media
The offered product is a convenient product which is bought frequently by consumers in Australia (Euromonitor, 2016). Australians are commanding an increasingly busy lifestyle which has pushed the technological innovation growth in the market. The product being offered can be analyzed in three layers
The core product is about the actual benefit that the consumer gains by buying the product. In this case the core product is “washing clothes”.
The actual product considers features, brand, quality, design and packaging of the product (Brassington & Pettitt, 2005). In this case the actual product of Fisher and Paykel is sleekly designed and auto load sensing washing machine that comes with a smart drive technology. The machine has features of auto sensing and is sleek due to being manufactured by using only three parts i.e. computer, agitator and direct drive motor.
The augmented product includes warranty, after-sales support, delivery and installation. (Brassington & Pettitt, 2005) Hence, Fisher & Paykel Washing Machine will be equipped with warranty, installation at a preferred day and time as well as after sales support for three years’ time. This will help in tempting the customers to purchase the washing machine by Fisher and Paykel in preference to another machine.
Consumer appliances industry in Australia is highly competitive and fragmented, due to which a low price point is utilized by Fisher & Paykel to offer its product in the market (Euromonitor, 2016). The firm is using price penetration strategy by charging a relatively low price i.e. $300 for reaching the mass market. This pricing strategy is designed to capture a large share of substantial market which results in lower production cost. Being a convenient product and in-house production of Smart Drive Technology, economies of scale is achieved by Fisher and Paykel hence making the product to be sold at lower price. Moreover, Fisher & Paykel has remained a leader in laundry segment in Australia by maintaining 17% share, so it can sustain short-run losses that are needed to obtain the penetration (Euromonitor, 2016).
|Intensity Level||Distribution intensity Objective||Number of Intermediaries|
|Intensive||Achieve mass market selling: Popularity with convenient good that should be available everywhere||Many|
The washing machine will be displayed in most of the large retail stores located in Melbourne and other main cities of Australia. This is because the product is a convenient product so it should be available wherever it’s possible (Brassington & Pettitt, 2005). The main targeted intermediaries will be Woolworths, Coles, Westfield, Harvey Norman, Kogan and Milan Direct, Super Retail Group, Costco and Myer. Aldi, Metcash and JB HiFi will also be taken into consideration. The retailer channel will be maintained where Fisher & Paykel will sell the products to consumers through retailers.
In order to promote the product, the slogan will be used as follows
“Delivering Efficiency – You Wash – You Save”
The promotion will be done through utilizing three main tools of marketing media discussed below:
The machine will be advertised by endorsing celebrities featuring as a “house wife”. This source will be used because it provides the ability to communicate sight, motion and emotion while giving the product a larger than life image. House wife will be predicted to connect with “cost saving” attributes of most house wives as well as will be able to target green consumers (Brassington & Pettitt, 2005).
Billboards are effective way to deliver the brand positioning statement to the potential customers. You wash – You save campaign will be helpful in delivering message of “efficiency and cost saving”.
Lastly, social media like Facebook, Twitter and Instagram will be utilized to market the product. Social Media is undoubtedly the most important tool for marketing communications in terms of reaching out to the youth of the Generation “Y” (Doole & Lowe, 2008). This form of communication is crucial and essential for our campaign as the potential of this vehicle is vast and should not be underestimated
Source: (AIMIA, 2015)
In Australia, the mostly used social media is Facebook, twitter and google plus. These three will be used for targeting the customers that use internet in Australia.
|Mix||Washing Machine 8K Current Strategy||Your Recommendation||Explain how your Recommendation will more-effectively support and communicate your Brand Positioning.|
|Product||Fisher & Paykel DE40F562A2 Washing Machine||Fisher & Paykel DE40F562A2 Washing Machine with Auto Sensing Technology and Direct Drive||Will help in re-positioning the machine as “efficient and cost-saving”. Also it will offer value for money.|
|Place||Minimal Retailers||Major Retailers in Australia||Will be more aligned with the product as it is a convenient product which should be available everywhere.|
|Promotion||Brochures, posters, billboards, online marketing tool||Billboards, Television advertisements along with celebrity endorsement and Social media.||Adverting a housewife will make the housewives feel connected. It will also help in positioning the product as cost efficient. Visual and hearing senses can be helpful in making the product a success.|
|Price||$349||$300||Lower price means market penetration strategy that is in-line with the type of product. It will create more value for money and target the middle class more efficiently.|
In conclusion, the marketing plan lies at the heart of an organization’s success (Doole & Lowe, 2008). Washing Machine is a convenient product that can be used by the mothers, professionals and housewives to wash clothes quickly while saving money on water and electricity. By analyzing the demographics, psychographics, behavioral and geographic categories of targeted market, Washing Machine 8k of Fisher and Paykel can change the perception of how consumers see it. The cost saving and efficiency route can also help in making Fisher and Paykel Washing Machine 8K the best option. Moreover by making the sleek and modern design equipped with Direct Drive technology, Fisher and Paykel Washing Machine 8K can surely improve its market share from 17% to 20% (Euromonitor International, 2010).