Electrolux 2006 Annual Report Download - page 23

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strategy / product development
Thoughtful
product development
In 2006, products that had been launched during the two previous years accounted for more than
40 percent of Electrolux sales. The increased investment in product development based on con-
sumer insight is defi n itely generating effects.
Vital consumer insight
Consumer insight is the foundation of all product development at
Electrolux. Understanding the needs of consumers as well as how
they think, feel and act when they use household appliances en-
ables development work to be more accurate. Even better products
are developed, and sales rise for products that consumers are will-
ing to pay a higher price for. Resources for product development
are in turn increased, and a positive spiral is created.
Global product development
Electrolux household appliances and equipment are sold in about
150 countries, and are used in more households than those of
competitors. The Group has a global Product Council, and the
product development process is also
global. Identifying global consumer
trends and segmenting customers
as well as consumers enables
Electrolux to offer products with
more relevant and attractive design, on the basis of fewer product
platforms. The goal of Electrolux product development is to create
products that are adapted to local needs together with products
that can be sold world-wide on the basis of common global
needs.
Consumer trends
On the basis of a large number of interviews and visits to households
over the past few years, Electrolux has identi ed global social trends
and consumer needs for which new products can be tailored. The
common denominators for all the products developed by Electrolux
are ease of use, high quality and exciting design, as well as user
and environmental friendliness.
Consumer insight is the foundation for
all product development at Electrolux.
Products must meet identifi ed con-
sumer needs and be easy to use.
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