The paper "Kelvinator Refrigerator Strategy Development Report" is an outstanding example of a marketing case study. After distress owing to the economic recession, houseware manufacturers are getting back to the growth just as consumer confidence enhances. Appliance and houseware market and the industry face stiff competition from other stores department and supermarket that sell houseware. According (Ibisworld 2013) the industry is attaining the maturity stage and has a high quality of houseware products that are well-defined with technological enhancements within every product segments. Most players have an established market place with numerous players currently expanding into position segments within that industry.
The sector also faces competition stiff competition from another substitute like a microwave and so on (David 2005). Bearing these factors in mind this strategy development report intends to analyze the Australian houseware market situation before the company make an entry into the market. The report will also provide recommendations and justification for the strategy. 2.0 Situation Analysis Kelvinator’ s ability to remain on top of its refrigerator production efficiency and quality in terms of rankings will be accredited to the company’ s internal environment.
This will involve the way the company will have analyzed the appliances market. However, the company has one advantage in that the production process is handled by the top managers who are well-known for their capability. Kelvinator’ s production team is recognized for their voracious obsession “ to enhance its market share through efficiency, effectiveness and product innovation” (Kraus, Fink, Rö ß l & Jensen 2007, p. 9). Hence, to completely understand the situational analysis of Kelvinator Company, a PESTLE analysis is established. External environment finds out the current condition of Kelvinator Company and also assists in finding out the potential impacts to the organization. 2.1 Political The political environment of the Kelvinator has a crucial influence on the effectiveness of marketing the new refrigerator.
The company may experience high taxation that might be placed on the product. Similarly, the administration may decide to lower the taxation on new products in order to promote locally manufactured goods. This can probably go well with the company, and they can use this opportunity to maximize their sales in the various Australian market. 2.2 Economic Factors The global economic downtown had a huge effect on not an only refrigerator but Australian houseware industry as a whole.
The inflation rate rose up and also the unemployment rate in Australia went up, and because products like refrigerator were considered as a luxury product, the consumers began spending less money on them (Ibisworld 2013). However, the appliance industry is improving as people are getting busy and prefer automatic products. 2.3 Social Factors All through the history of Kelvinator Company, two elements have been on the front position of Kelvinator products, the design and quality of the product.
Also, with the purchasing power of the people has gone higher in Australian markets the purchase of luxury products have increased (Ibisworld 2013). This is positive news for the Kelvinator refrigerator who are looking forward to improving the lives of young couples by making their schedule easier. Appliances are considered a status symbol in the society therefore people will definitely buy it (Analoui & Karami, 2003). They may not only consider this to buy it but also the new experience that comes with it, that is having 2 doors; the first door on the top is for the fridge, and second door below is for hot food.
They would want to save time for warming up the food.
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