A proposed marketing plan for National washing machine

• Main Authors: Bacolod, Anne Marie R., Dematera, Ana Liza Y., Layug, Leilani, Ng, Lily L.
• Format: text
• Language: English
• Published: Animo Repository 1995
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16779
• Institution: De La Salle University

For about six years now, National has been the undisputed market leader in washing machines--both in the single tub and the twin-tub categories. Its market dominance is primarily attribute to the fact that it was the pioneer in the single-tub category, providing the consumers with a solution to their household need at a very affordable price, and thus educating the market on the use of washing machines in general. In 1991, two years after the Laundrynette's introduction to the consumers. National already cornered 79% of the single tub market. In the next two years, National would maintain market leadership with a market share of 73% and 72% respectively for the fiscal years 1992-1993 and 1993-1994. The industry predicts that eventually, the demand would shift to twin-tubs. However, demand for the single tubs have been steadily growing in the past four years, reaching a growth rate of 150% for the years 1993-1994. In the past year, other industry players have become more aggressive, introducing their own single tub models and investing heavily in advertising. These players include Sharp, Goldstar, Kelvinator, and GE. Sharp, specifically, has been gaining inroads in the sales of its single tub washing machine, gaining for itself a market share of 15% in the nine months that it has been in existence, from its launching of its single tub models in July, 1994. National, specifically, has been greatly affected with a decrease in its market share of about 12 points from 72% in the fiscal year 1993-1994 to just 60% for 1994-1995. As of April, National's market share in the single tub category decreased to 57%. This situation calls for National's defense of its market leadership before its competitors. Sharp specifically, gains more ground against them. This marketing plan proposes the development of a new, bigger capacity washing machine at 6.8 kgs. Accessorized and priced affordably at P 4,680, the new product aims to enhance the single-tub line of the company, thus counteracting Sharp's threat to its market leadership. The new product's target market is the CD class. Aware that consumers are price sensitive and that competitors are lowering their prices to move inventory and emphasizing on their product's bigger capacities, the new product would be positioned uniquely as something with 'added value' for the consumers' money, aside from a bigger capacity, capitalizing on the product's known brand as well as its reputation for quality. This new product would require an additional investment of approximately P 15 M, with expenses allocated up to the end of the fiscal year 1997. Most of this investment is allocated for additional media and promotional expenditures which is aimed at pushing the product aggressively and increasing brand awareness. The product's after sales service would also be enhanced to include an on-line computer system and pagers for field personnel for faster response to consumer complaints. Although there would be no additional investment required for sales and distribution, the strategy is to expand usership in the provincial areas, where the demand could still be increased. Additional investment would also be put into research on product performance, advertising, promotions, consumer's acceptance and dealer feedback and performance to aid in faster planning for further competitive strategies. For the long-term, it is also suggested that further enhancement of the twin-tub line and the possibility of reintroducing a fully automatic unit be entertained as the company prepares for a shift in consumer preferences in the future.