Electrolux 2009 Annual Report Download - page 40

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*
The Group’s investments in product development and marketing are aimed primarily at increasing
the share of products sold in the higher price segments. This enables an improved sales mix,
which generates higher margins. The strategy is to position Electrolux globally as a premium brand
that stands for innovative, energy-efficient products with attractive design.
PREMIUM SEGMENT
TheElectroluxbrandispositionedinthepremium
segmentthroughouttheworld.InLatinAmericaand
SoutheastAsia,mostoftheGroup’sappliancesandall
vacuumcleanersaresoldundertheElectroluxbrand.In
Europe,theshareofElectrolux-branded(including
double-branded)coreappliancesisapproximately55%,
andisincreasingsteadily.InNorthAmericaand
Australia,theshareoftheseproductsisrisingrapidly
fromlowlevels.Investmentsindoublebrandsinclude
primarilyAEG-Electrolux,whichisamajorpremium
brandinseveralEuropeanmarkets.TheGroupalso
investsinstrong,regionalbrandssuchasZanussi,
EurekaandFrigidaire.
*AEG-Electrolux is an exception,
used in five European countries.
Brand
annual report 2009 | part 1 | strategy | brand
Stronger position in the premium segment
Achieving a strong position in the premium segment is an impor-
tant component of the Group’s strategy for profitable growth. The
market for household appliances currently shows growth primar-
ily in the higher and lower price segments. The rapid emergence
of a large, global middle class generates, among other things,
greater demand for well-designed products with well-known
global brands. It is now possible to identify global needs. As one
of the few global producers of household appliances, Electrolux
has a definite competitive advantage.
The Group’s position in the global premium segment
has been strengthened by launches of innova-
tive Electrolux-branded products in Europe,
North America and other markets. The prices
of the new products that have been launched
in North America are on average three times
higher than the prices of the Group’s previous products
for the mass market. The Group’s share of the premium
segment in North America is estimated at approximately
5-10%. In Europe, Australia, the Middle East and Asia, kitchen
specialists are accounting for a growing share of the sales net-
work. Electrolux has been able to increase sales and capture mar-
ket shares on the basis of a strong brand, attractive design and
the ability to offer innovative products. As a leading global pro-
ducer of built-in products, Electrolux benefits from the expansion
of kitchen specialists.
Super premium
Low-end
PREMIUM
MASS MARKET
36