Fridgiaire Case Analysis :: Business Marketing Case Studies

Frigidaire Case analytic thinkingProblems/IssuesIntroduction of the expect cargo washing machine was con bmed with a human activity of problems/issues. Besides the obvious technology differences between the front burden and buy the farm loading machine the big difference for a consumer is the set. The advantages such as tumble wash, energy efficiency, space saver, and about 8,000 gallons of water supply saved a year are overshadowed by the high price. There were other sensing problems technologically speaking, however these are all minor. The major problem is the price of genius unit and the lack of price savings from this energy/water savings over time to compensate for this higher price point. Consumer take did not significantly increase according to focus groups until the price came downwardly to $599 from the target retail price of $799.Case Analysis Kento a greater extent in 1996 had 29% of washing machine marked share. The initial sales for the new front loading was hing machine dropped below forecast mainly collectable to failure to get Sears Kenmore brand in the mix. The expected DOE regulations were slow indefinitely, therefore decreasing the demand for energy efficient machines.The management team up wanted to provide incentives to consumers, dealers, and Frigidaire. The research showed that close personal attention would be key in gaining market share, as well as foreground the advantages of the front loading washing machine over the give loading washing machine to not only consumers but to dealers. AlternativesInvest more money (allocation of resources) in research to get the price point of the top loader down to $599. This will set the company back a bit, however if more research and development can produce level production costs this will increase market share significantly. hurry negotiations with Sears (sources of synergy) to take advantage of their section of the market. This will increase the front loading market share as wel l, based on the fact that Kenmore has the largest contribution in market share as of 1996.Increase marketing efforts (sources of combative advantage) to the target groups to stir up more interest in the advantages of the front loading washing machine. This will increase demand if you start a buzz about the advantages, focusing on all or one of them.