Electrolux 2007 Annual Report Download - page 27

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23
Growing number
of new products
In 2007, a record number of new products were launched world-
wide. Research also shows that many more consumers prefer the
Electrolux brand than in last year. The increased investment in
product development based on consumer insight is clearly start-
ing to give results.
Interviews and visits to households
Insight into consumer behavior is the basis for all product devel-
opment within the Group. Interviews and visits to households on
a large scale in recent years have enabled Electrolux to identify a
number of global trends in society and consumer preferences to
which products can be adapted. The common denominators of all
products launched by Electrolux are ease of use, high quality and
exciting design as well as user- and environment-friendliness.
Global trends and processes
The goal of the Group’s product development is to generate prod-
ucts that can be sold worldwide on the basis of common global
needs, as well as products that are tailored to local requirements.
Identifying trends for various customer and consumer segments
enables Electrolux to offer products with relevant functions and
attractive design. Global products also contribute to more effi -
cient production, as the number of production platforms can be
reduced.
Continued high investment level
In 2007, over SEK 2 billion was invested in development of new
products, an increase of 10% over the previous year. This invest-
ment is expected to remain at the same high level in coming years.
Electrolux is committed to developing products for profi table seg-
ments as well as markets that show strong growth. The Group’s
common product development process based on consumer
insight is expected to stimulate greater market demand.
Products that are generated by the Electrolux process for consumer-focused develop-
ment account for a rapidly growing share of Group sales. This in turn leads to an
improved product mix as well as higher long-term profi tability.
During 2007, Electrolux successfully launched a new
range of refrigerators in Southeast Asia. The product
development team conducted extensive research and
found there was a great need to ensure that food
retained its original nutritional value, taste and fl avour
during preservation. In response, Electrolux intro-
duced a number of innovations in the new refrigera-
tors, among them a system that attract and absorb
stray odours, and odour control bins to help prevent
strong smells from one food mixing with the taste of
another.
Success story: Market Fresh for Asian kitchens
Early in the development, a clear mes-
sage was formulated for launching
and marketing the new refrigerator.
Point-of-sale material and advertise-
ments were created around the theme
of freshness, as the refrigerator is
called Electrolux Market Fresh
Despite a higher price tag, sales are
substantially higher than for previous
Electrolux models on the market.
strategy | product development
23
23