Market Expansion Strategy for Electrolux: MBA7003 Marketing WRIT1

Student ID
MBA7003 Marketing
WRIT1
2022-2023
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Contents
Introduction...................................................................................................................... 2
Analysis of the external environment............................................................................2
Product identification and justification...........................................................................3
Ansoff matrix analysis...............................................................................................4
The development of the marketing strategy.................................................................5
Marketing Plan with a Long Time Frame......................................................................7
Recommendations in relation to the market.................................................................7
Conclusion....................................................................................................................... 8
References.......................................................................................................................9
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Introduction
In order to be successful, a company's expansion and development must adhere to a
number of guidelines (Kardung et al., 2021). In order to improve a company on many
fronts, one may choose from a wide variety of tactics. Electrolux's iconic hoover cleaner
has been selected as the company's product to analyze. It's a finished product, and the
research will focus on expanding into a different demographic of buyers so that the
company's message may reach more people. Successful market growth may be
attained via the analysis of external circumstances and the creation of multiple
approaches. For marketing strategy as a whole to reach new heights, it is necessary to
correctly identify the market, divide it into distinct segments, and choose an appropriate
price for each.
Analysis of the external environment
Electrolux's macro-environmental study would provide a framework for a thorough
knowledge of the macro-environment, allowing for an in-depth examination of the
company's present situation. The discussion's focus on critical concerns would help
shed light on the business's predicament.
Political factors- The UK's relative political situation is good for the business's R&D
infrastructure as a whole (Wong, 2022). With Japan's advanced R&D infrastructure in
place, the business seems to have been able to negotiate partnerships with Japanese
institutions. When the state's rate of interest is elevated, it makes it harder to raise
money.
Economic factors- The present market situation is unrelated to the positive situation in
the sector, and the firm is also experiencing a number of problems as a result. The
hoover cleaner industry's poor reception reflects the fallout from the Västervik plant's
closure. The firm has seen a decline in market share over the last five years as a result
of the economy (Bressanelli et al., 2020).
Social factors- Despite the notion of being a danger, the business has managed to dig
into the process of keeping uniformity by always upgrading its infrastructure with
appropriate technology, which is the key cause for its achievement and growth. The firm
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consistently stays ahead of the curve in the investing process since it knows how to
circumvent common roadblocks (Townsend, 2023).
Technological factors- Technological progress simplifies the procedure of maintaining
a competitive edge via a wide range of inventive ideas. There are issues related to the
installation of cheaper equipment that the corporation needs to eliminate to keep things
consistent. Keeping up with the pattern of technological progress has given Electrolux
hope for a wide range of novel products. Electrolux's green vacuum cleaner is made
possible by the use of several technical components (Henriksson et al., 2020).
Environmental factors- From its founding, the organization's goal has been to do R&D
for the purpose of developing a wide range of goods that are integral to the hygiene
system, and as such, it has not caused any environmental damage. On the other hand,
the corporation may take its company to an entirely different level by prioritizing
environmental friendliness and cleanliness.
Legal factors- In order to maintain a competitive edge over the long term, innovative
companies like Electrolux Group need the protection afforded by patent law. It is the
responsibility of Electrolux Group to maintain a risk-free workplace for its employees.
Discouragement of both overt and covert forms of prejudice requires the establishment
of appropriate measures. Electrolux Group may benefit from a stronger employer
corporate image due to strict adherence to employment rules, which is crucial in the
current talent race (Hartmann et al., 2020).
Product identification and justification
The firm is well-known for developing a hoover cleaner, which serves as an important
tool for studying environmental consciousness as a system. Electrolux is a household
name because of the company's pioneering work in hoover cleaner innovation and
modern technology. The company had the most rivalry between its legacy and current
offerings. The firm has seen tremendous success due to the development of hoover
cleaners which have a wide range of unique qualities, as well as the potential for further
market growth if the firm starts to focus on developing and releasing new versions of the
same item.
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