Frigidaire Case Analysis

Competitive products serving the target market

The major brands that are competing with Frigidaire in the washer category as a whole are Whirlpool, General Electric, Maytag and Amana with Frigidaire holding 7.9% of the market share. General Electric, Maytag and Amana are all planning to introduce some version of a horizontal axis washing machine. The Maytag machine will be at a much higher price point of $1200 - $1300 vs. $799 - $1300. The front-loading or non-vertical axis machines are the major competition to the Frigidaire.

The target market was identified as families followed by single females and then by single males. The sales of this brand were the highest in the East North Central part of the country followed by the South Atlantic part of the U.S.

Identifying determinant attributes

The major features and benefits of the Frigidaire front-loading washer are that it is much gentler on clothes than a vertical axis machine, it is a major water-saving device and it decreases energy consumption. The Frigidaire machine is at the lowest price point on the market for a front-loading machine. The main positioning points for the machine are the environmental safety of the product and ability to clean clothes more gently than other machines without pulling or stretching.

Collecting data about customer perception

The data collected during focus groups, surveys and trial runs showed that most consumers were interested in energy saving appliances. Consumers also used water saving devices in their homes. This showed Frigidaire that there was an interested target market for the product. Focus groups also showed that many consumers believed that a $700 price point was too high and found more interest in a machine at a $599 price point.

Analyzing the current positions of competitive products

The major brand recognition for consumers in the washer machine category lies with other companies. Brands like Maytag, Whirlpool and General Electric hold larger market share partially because of higher brand recognition. The major opportunities to gain consumer awareness of the Frigidaire front-loading washer will need to be aimed at the target market for the product. Frigidaire is at a disadvantage entering the market because of their lower brand recognition. The company will need to compete on the merits of products.

Determining customers preferred combination of attributes

The most preferred attributes of a washer