Electrolux 2007 Annual Report Download - page 30

2626
Electrolux brand
is growing
For a consumer-goods company like Electrolux, the brand is one of
the most important assets. Since consumers do not purchase
household appliances often, they have limited knowledge of the
products that have been introduced since their last purchase. A
leading brand that stands for quality, thoughtfulness and innovative
products is, therefore, important for both consumers and retailers.
“Thinking of you”
“Thinking of you” highlights the Group’s intensive focus on con-
sumer insight for development of new products. Communication
profi les Electrolux as the “Thoughtful Design Innovator”. Market-
ing plans are integrated in the product development process at an
early stage.
Marketing activities are coordinated in order to achieve greater
effi ciency and impact. Investments are aimed at countries with the
greatest potential, and cost-effi cient media such as PR and the
Internet are being used more frequently.
Increased investment in the Electrolux brand
Investment in brand communication in 2007 amounted to 1.8% of
net sales. During the next few years, this investment will rise to
more than 2% of sales in connection with major product launches,
e.g., in North America.
The focus on the Electrolux brand enables more effi cient use of
resources. Among the double brands, investment is directed
mainly to AEG-Electrolux in Europe. Investments are also made in
other local brands such as Zanussi in Europe and Frigidaire in
North America.
Strengthening of the Electrolux brand in different regions
Sales of Electrolux-branded products, including double brands, have
risen from 18% in 2000 to approximately 50% in 2007. In Southeast
Asia and Latin America, all Group appliances and vacuum cleaners
are sold under the Electrolux brand. The share of Electrolux-branded
appliances in Europe is approximately 52%, and approximately 1.5%
in North America. In all regions, continuous investment programs are
aimed at strengthening the Electrolux brand through launches of
innovative products in the high-price segments.
More of Electrolux in USA in 2008
Sales in the US under the Electrolux brand comprise vacuum
cleaners and high-end appliances. In 2008, a new line of appli-
ances will be launched under the Electrolux brand in the premium
segment. The goal is over time to achieve a substantial share in
the high end of the North American market in order to improve the
product mix.
All market communication aims at creating a strong image of Electrolux, for all
products and markets. Marketing plans are integrated at an early stage in the
product development process and activities are coordinated to achieve best impact.
Electrolux brand’s share
of total sales
50
40
30
20
10
0
06 0705
%
Low-price segment, 9%
Mass market, 44%
Premium segment, 38%
Super-premium segment, 9%
Frigidaire
Electrolux
launch in
2nd quarter
In 2007, Electrolux appliances were sold
in the US under the brands Frigidaire
and Electrolux ICON. To expand the
Electrolux product offering, a new
Electrolux-branded product line will be
launched in the second quarter 2008
in the fast-growing premium segment.
An important reason
for the Electrolux
brand’s relatively low
share of sales is that
it is a new brand in
the US. Most of the
Group’s sales in the
US are under the
Frigidaire brand.
Estimated value segments on
the US market
26
strategy | brand
26