Electrolux 2008 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2008 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 62

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62

Market
The 20 million consumers in Australia live on a
land mass roughly of the same size as the US.
The majority of the very highly urban population
lives in cities on the Eastern seaboard.
Demand is driven primarily by interest in
design, innovations and brand. The shortage of
fresh water has led both consumers and authori-
ties to demand energy-efficient products with
low water consumption.
Retail outlets are dominated by five large
chains, and competition between Asian and
European producers is harsh.
Sales and market shares, appliances in
Australia 2004–2008 Improved profitability
Restructuring and improvements
in efficiency
A review of the factories in Australia and
New Zealand was started in 2004 in
order to deal with the high production
costs. In the interest of greater efficiency
and coordination of production, four
plants were closed and the components
operation was divested. Part of produc-
tion was relocated or outsourced to low-
cost countries. Most components are
now purchased in low-cost countries.
The efficiency of sales and marketing
has also improved.
The work to develop new products for the
high price segments, focus on the
Electrolux brand, brand-building market-
ing, lower product costs through restruc-
turing and improvements in efficiency has
been succesful. Profitability for appli-
ances in Australia has increased thanks to
improved product mix and lower costs.
The average sales value per unit has
improved by 12.5% since 2004.
Sales
1,000 40
32
24
16
8
0
800
600
400
200
004 05 06 07 08
%
AUDm
Market share
Profitability improve-
ments have been
achieved through
lower cost product
sourcing, improved
mix from consumer
insight driven product
development, innova-
tion, and absolute
focus on customers.
Electrolux brand ambassadors
In the initial advertisements, Electrolux
kitchen appliances were recommended
by the renowned Australian chef Tetsuya,
see page 23. Fashion designer Alex Perry
(picture) and his creations were featured
in the launch of the Electrolux Iron Aid
condensor dryer. Alex Perry put Iron Aid
to the test when he dried one of his most
delicate fashion creations in this
machine, and it came out in perfect
condition. The launch gained signifi-
cant media attention for the Electrolux
brand in the fasion press and Internet
blog sites, where Electrolux had never
been mentioned before.
Television personality and renowned
landscape designer Jamie Durie is the
most recent Electrolux ambassador as
he uses Electrolux outdoor cooking prod-
ucts to match his garden designs (picture
to the left).
Presenting famous personalities as
ambassadors in Electrolux campaigns gen-
erates credibility and gives the Group access
to new media channels. A recent survey shows
that these campaigns have generated a strong
increase in the share of consumers who are consid-
ering purchase of Electrolux products.
39