MBA7003: Electrolux Hoover Cleaner: Market Strategy, Ansoff Analysis

This report provides a comprehensive analysis of Electrolux's marketing strategy for its iconic hoover cleaner, focusing on expanding into a new demographic of buyers. The analysis includes an examination of the external macro-environment using PESTEL factors (Political, Economic, Social, Technological, Environmental, and Legal), product identification and justification, and the application of the Ansoff Matrix to explore market penetration, market development, product development, and diversification strategies. The report further details market segmentation based on ethnic and psychological factors, selecting London's Camden market as the target market, and positioning the product with innovative features. The marketing plan outlines a long-term advertising approach, pricing strategy, and recommendations for market research, SEO optimization, and fostering a culture of innovation to ensure sustainable growth and competitive advantage.

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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Ansoff matrix analysis
Using the Ansoff matrix will shed light on the company's expansion and the creation of
its new product offerings. There are four distinct categories in the Ansoff Matrix that may
be used to guide product evolution in response to market demand. There are four main
categories represented by these charts: expanding into new markets, creating
innovative products, expanding existing ones, and diversifying an existing business
(Qiu, 2022). The group's primary objective is to expand into new customer
demographics. The technique of satisfying the advancement of offering is connected to
the implementation of a market growth plan for joining a particular market based on the
purpose of the company and its existing position. The primary selling points of
Electrolux's hoover cleaner are its cutting-edge technology and novel features
(Golubeva, 2022). The firm has an intention of joining a new home market as part of its
approach to growth, with the expectation that doing so would help it attract a broader
range of customers and hasten the firm's progress towards its goal of market prosperity.
With the right unique Technology in hand, you'll be able to increase your chances of
being successful in the emerging market.
Figure: Ansoff Matrix
Source: (Bush, 2020)
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There are several methods available to adhere to the market expansion strategy's
persuasiveness. It stands to reason that the organization's overall massive achievement
will be tied to the implementation of growth tactics in the market. The firm plans to
expand the previously existing hoover cleaner with new and improved features for a
new target audience (Boyer et al., 2021). If the company wants to grow and expand its
market, it must follow a certain sequence of procedures.
 The selection of the promotional strategy requires the first step of creating an
overview. Once identified, a system might be put in place to target
advertisements based on a wide variety of factors.
 Expanding into a digital platform with well-executed internet advertising will
greatly aid in the smooth running of existing channels (Gielens and Steenkamp,
2019).
 A well-thought-out economic budget will be an important tool in bringing the goal
to expand the market to fruition.
 Attracting new customers is only the beginning; providing them with excellent
goods is the next logical step.
 These steps include recording the brand's steady expansion and the consequent
rise in sales that follows the launch of a new product.
The development of the marketing strategy
Market segmentation- Market segmentation is going to be conducted with ethnic and
psychological factors considerations in mind. Recognizing the demographics of the
target market requires adequate segmentation of the market. In order to correctly
identify the target market, it is necessary to pay close attention to the local people and
their requirements and desires (Deepak and Jeyakumar, 2019). Customers' financial
situations may be better understood with this information. In order to better comprehend
people's points of view, psychological categorization is going to be helpful. There is
going to be careful monitoring of people's knowledge of the vacuum cleaning method
and its efficacy.
Selected market- The company has decided to expand into London's Camden market.
The market is large enough for the company to succeed by producing the most in-
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demand vacuum cleaner available. Because of how the market is set up, a whole new
demographic of customers may be easily and successfully established. Market
competition is intense, but due to the business's innovation process, a novel, the
cutting-edge vacuum cleaner is currently in the works.
Targeting- The group will focus on those aged 25 to 60 to convince them that the new
vacuum cleaner features are essential. Based on this demographic data, we will choose
who to focus our new business approach on. Customer needs and preferences will be
taken into account while conducting surveys and compiling data from the country's
statistical system. Most Britons are middle-aged, between the ages of 30 and 50, based
on the census. For the firm to succeed, therefore, it must primarily appeal to consumers
in the medium age range.
Figure: Population of UK
Source: (statista, 2022)
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Positioning- For an edge in the marketplace, it's important to be creative and provide
something no one else does. Once the market has been properly segmented, the
positioning will be finalized. If customers are persuaded to see things from the
company's point of view, the company's market positioning has succeeded.
Marketing Plan with a Long Time Frame
Proper implementation of the plans for steady growth in the following five years will
allow an ongoing advertising approach to be implemented. Covering the field of
technical advances is also consistent with the correct procedure of commercialization
and the suitability of the company (Hillemane et al., 2019). The path the system takes
toward attaining outreach objectives is tied to the steps of building the prospective base
of consumers. The method of contacting the largest possible number of individuals for
the purpose of expanding the client base may be traced back to the variety of online
communication platforms available today.
Pricing strategy- It is essential for the business to use a penetration pricing plan early
on in order to broaden its pool of prospective clients. The company's expansion can
only be scaled upwards if it has a solid consumer base.
Recommendations in relation to the market
It is essential that the business perform extensive market research in light of the present
global condition and the general picture in order to comprehend all the minor and major
features of the market effectively. The threshold for profitability may be calculated with
correct market segmentation. In order to improve the sealing, it is necessary to create
distinct client groups and then examine their purchasing patterns. If implemented, the
suggestion to study potential new customers might be beneficial to the company's
growth. Gaining a larger social media following is possible for businesses that make the
most of internet resources and use a systematic approach to building Search Engine
Optimization (SEO) techniques (Bizzi and Labban, 2019). The corporation has to
develop an infrastructure, and culture of creativity and efficiency in order to expand into
the rising market, which is currently populated by several electronic products
organizations. Various services might benefit from a system that combines investment
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in market growth with the creation of products. With the simple implementation of
various company approaches, the strategic execution of the penetrative strategy would
be useful in providing a high standard of service to consumers. It is recommended for
Electrolux's administrative purposes since it combines the finest credit with the lowest
cost method.
Conclusion
At the point when everything is tied together. It's important to remember that the
corporation may provide its wares to customers in other markets if they know how to
use the services correctly. A machine that vacuums is an excellent product, and one
that is particularly critical at the moment. The method of expanding into new markets will
help the organization deal with the macroenvironment's primary challenges. Competitive
analysis, the implementation of different advertising approaches, accurate market
division, and a system for addressing customer expectations will all contribute to the
growth of the assets of the business. Effective market growth occurs when the full range
of potential challenges and benefits has been uncovered.
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References
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