Winnebago Case

Topics: Recreational vehicle, Travel trailer, Forest City, Iowa Pages: 10 (3240 words) Published: March 5, 2008
Winnebago has several issues that the company should consider. The company has been experiencing back-logged orders, which could be resulting in customer dissatisfaction and lost sales. Each year the back-logged orders continue to grow. During peak sales times, Winnebago has a difficult time delivering orders at the same rate as the rest of the year. Increasing gas and diesel prices, along with an uncertain economy are making consumers think twice about spending money on travel and leisure items. Consumers are lacking peace of mind and confidence in the economy and it is affecting sales in the Recreational Vehicle industry. As sales go down, dealers are placing discounts on their current RV inventories. This strategy is helping to move the older models, however it is causing profit margins to shrink. Internal Analysis

Winnebago is the lead manufacturer of recreational vehicles, with a brand name that is synonymous with motor homes. In 2001, Winnebago had top sales of $681.83 million during the first 6 months and leading market share of 18.9% in the RV industry. Although sales have decreased since 2000 where they reached $753.38 million, Winnebago is still a very successful company. Winnebago can owe its success to many factors. Producing good quality products and excellent customer service are some of the main reasons this company is so successful. They have realized that employees, customers, and dealers play an important role in total quality management.

Winnebago's mission is to exceed customer expectations by continually improving their products and services. They follow some basic values called the four P's to achieve their mission; people, products, plant, and profitability. The company believes that employees are the strength of the company and promotes a teamwork environment. Winnebago's major production plant is located in Forest City, Iowa and includes 20 buildings that take up more than 2 million square feet, which contains the company's manufacturing, service and maintenance facilities. They also own satellite-manufacturing facilities at Hampton and Lorimor, Iowa, which add seven hundred square feet of operating space. There are three nine hundred foot assembly lines where motor homes are assembled and tested for quality control. Winnebago uses some of the most sophisticated computer-aided design/computer-aided manufacturing systems in the RV industry to design and test products.

Winnebago manufactures and sells an extensive line of RV's, under four different brand names, Winnebago, Itasca, Rialta, and Ultimate. There are three different kinds of RV's manufactured by Winnebago, Class A motor homes, Class B van campers, and Class C mini motor homes. Class A is a traditional motor home that range in length from twenty-three to thirty-seven feet long and can have a price tag of more than $250,000. Class B van campers are vans manufactured by Ford, GM, and Daimler-Chrysler to which Winnebago adds toilet, sleeping, and kitchen facilities. Class C mini motor homes are more compact, easier to drive, and are more fuel efficient then Class A motor homes and range in size from twenty-one to twenty-nine feet.

Traditionally Winnebago's target market has been the "woofies", well-off older folks over the age of 50 with discretionary income who enjoy leisure travel. With the aging baby boomer population and someone turning 50 about every 7.5 seconds in the U.S., Winnebago's market will be increasing at a rate of 350,000 people per month. With this huge market becoming available to Winnebago they will need to manufacture and market products that appeal to this market in order to continue to be one of the most successful RV manufacturers in the U.S.

-Brand name recognition
-Leader in the RV industry with 18.9% market share
-Teamwork environment
-Most technology advanced production facility in the RV industry -Exceptional customer service and warranty package
-Produce high quality products...
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