FRIGIDAIRE COMPANY: LAUNCHING THE FRONT-LOADING WASHING MACHINE
FRIGIDAIRE COMPANY: LAUNCHING THE
FRONT-LOADING WASHING MACHINE
The Frigidaire Company, Laundry Products Division, in Webster City, Iowa, was a high-volume manufacturer of washing machines and dryers. In October of 1996, after several years of intense development, Frigidaire introduced a new front-loading (horizontal axis) washing machine in the United States. This new machine was designed and developed to offer U.S. consumers an alternative laundry product that was superior to conventional, top-loading (vertical axis) washing machines in terms of energy consumption, water conservation, and washing performance. Although an eager and receptive market for the front-loading washer did not exist, Frigidaire intended to use the new product to expand its position in the marketplace and to establish itself as the industry leader in energy-saving, environmentally sound laundry products. Despite a $20 million investment, exhaustive development efforts, and detailed marketing plans, however, Bill Topper, Vice President and General Manager of the Laundry Products Division, was concerned. Initial sales were sluggish; results for the first three months of sales were 30%-40% below projected levels. Although this early dismal performance was not a cause for panic, it triggered some serious concerns for the Frigidaire management staff. As Bill Topper reviewed data for the first three months’ performance, he pondered several questions that he would need to review with the key players in his management team—Chris Kenner, Market Manager, John Jergens, Market Planner, and Dave Modtland, Manager of Washer Engineering and Project Leader. Could Frigidaire create, and grow, a market for horizontal axis washing machines in the U.S.? How could Frigidaire best encourage product adoption?
THE FRIGIDAIRE COMPANY
The Frigidaire Company, owned by AB Electrolux of Sweden, was the fourth largest producer of household appliances in the United States, behind Whirlpool, General
FRONT-LOADING WASHING MACHINE
The Frigidaire Company, Laundry Products Division, in Webster City, Iowa, was a high-volume manufacturer of washing machines and dryers. In October of 1996, after several years of intense development, Frigidaire introduced a new front-loading (horizontal axis) washing machine in the United States. This new machine was designed and developed to offer U.S. consumers an alternative laundry product that was superior to conventional, top-loading (vertical axis) washing machines in terms of energy consumption, water conservation, and washing performance. Although an eager and receptive market for the front-loading washer did not exist, Frigidaire intended to use the new product to expand its position in the marketplace and to establish itself as the industry leader in energy-saving, environmentally sound laundry products. Despite a $20 million investment, exhaustive development efforts, and detailed marketing plans, however, Bill Topper, Vice President and General Manager of the Laundry Products Division, was concerned. Initial sales were sluggish; results for the first three months of sales were 30%-40% below projected levels. Although this early dismal performance was not a cause for panic, it triggered some serious concerns for the Frigidaire management staff. As Bill Topper reviewed data for the first three months’ performance, he pondered several questions that he would need to review with the key players in his management team—Chris Kenner, Market Manager, John Jergens, Market Planner, and Dave Modtland, Manager of Washer Engineering and Project Leader. Could Frigidaire create, and grow, a market for horizontal axis washing machines in the U.S.? How could Frigidaire best encourage product adoption?
THE FRIGIDAIRE COMPANY
The Frigidaire Company, owned by AB Electrolux of Sweden, was the fourth largest producer of household appliances in the United States, behind Whirlpool, General