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Market ResearchFor

Maytag Commercial

Washing MachineProfessor Cardino Yee

Group Members:Gegrimal, Danica T.

Macaguiwa, Rhiza I.

Muoz, Nikki Marie

Robin, Rosalyn B.

Teoxon, Justin A.

Asst. leader: Ibardaloza, Myra T.

Group Leader: Mondares, Jessica C.

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EXECUTIVE SUMMARY

Maytag commercial washing machine is the new brand that EXATECH

INC. has acquired.

Objectives

To determine brand awareness of Maytag Commercial Washing Machinein the market place.

To know the competitors of Maytag.

To determine the brand positioning of Maytag Commercial Washer in the

retail industry considering the various competitive brands placement

available in the market and price point basis. carrying

Methodology

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We made this research in 3 weeks to be exact. When we interview the

Promodiser of 10 appliance stores (Promodiser of commercial washing machine)

we divide our group into two, for us to make the interview faster and less time

consuming.

In our research we have to interview the Promodiser of each brand ofcommercial washing machine, we prefer the Exploratory Research Design to get

the insights of each Promodiser about the brands that they handle. The interview

that we conduct with them lasted from 10-15 minutes only, because we dont

want them to notice that what we are trying to know is the competitor of Maytag

and its marketing positioning. Weve come up using uniform question every time

we visit a store so that we could compare information that we gathered from

them.

Primary Data Collection

Product: Promodiser interview through use of uniform questionnaire and

through follow-up questions.

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Place: Obtaining feedback from the Promodiser and dealers of Maytag

around Metro Manila. Obtain ideas, information and insights from the

Promodiser and dealers regarding Maytag marketing proposition.

Secondary Data Collection

Company website of EXATECH INC.

Analyzing and Interpretation Data

Major Findings

Promodiser said that People who came from the US are the customers who are

more aware of the brand Maytag because it is a popular brand of washingMachine in the US.

6 /10 Promodiser of Whirlpool and Maytag (they only have 1 Promodiser) that we

asked said that customers in the Philippines are not aware of Maytag brand.

As Promodiser said Maytag Commercial Washing Machine competitors are SpeedQueen, American Homes and Whirlpool (Same manufacturer and distributor).

Some Promodiser usually said that Maytag Commercial Laundry is for Industrial

use. Base on the perception of the Promodiser, customers acquire it for industrialuse because it can accommodate up to 80 lbs. of laundry. Some Promodiser said

that Maytag Commercial Washing Machine is not only for Commercial use, it can

also be use for Industrial.

If it is to be base on price, as a commercial use Maytag has the highest price

among all its competitors. Its price range up to P 800, 000.00.

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Conclusion

The available commercial washing machines in the market here in the

Philippines are Speed Queen, American Homes, Whirlpool and Maytag.

Whirlpool and Maytag has the same Manufacturer in US and same distributor in

Philippines (Whirlpool in the US bought Maytag brand of Commercial Washing

Machine, year 2006.)

Maytag Brand unlike the 3 brands of Commercial Washing is not widely

known in the Philippines, customers came from US, are the people who

commonly ask for this brand. Whirlpool is the most popular brand in the

Philippines; it has already its loyal customers because it is a trusted brand; while

Speed Queen was quiet known because it offers long time warranty and American

Home as the cheapest brand.

Other Promodiser consider Speed Queen, American Homes, Whirlpool

and Maytag as competitors but if the price will reflect on, Maytag was the only

one commercial washing Machine that cost up to 380,000 to 810,000. Some

Promodiser said that Maytag is not for Commercial Use, it is already for

Industrial use. Since Hotels and Big establishments requires big washes to

accommodate their volumes of laundry services Maytag is offering 80 lbs. rigid

Mount Front Load Automatic Washer.

Recommendation

Base on what we found out from the Promodiser, Maytag is not widely

known in the Philippines yet. We recommend that Maytag should promote their

product directly to their target market, hospitals and hotels is what they consider

their target market. Maytag should hire a good and articulate Promodiser who

can carry out the product well to their prospective customer. Maytag shouldproduce a good brochure that is very catchy to the eyes of the customers and

realistic enough to support what the Promodiser is trying to sell. The brochure

must also emphasize the cost benefits and efficiency of Maytag.

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INTRODUCTION

Background

Whirlpool-Maytag Commercial Laundry line products have been formally

launched by Excellence Appliance Technologies, Inc. (Exatech), the official

distributor of Whirlpool appliances in the Philippines.

Whirlpool Corporation successfully got hold of Maytag Corporation in 2006.

Maytag was established in 1893 in Newton Iowa is renowned as one of Americas

top laundry brands.

The combination of Whirlpool and Maytag will create significant value and

direct benefits for our consumers and trade customers, said Nixon Y. Sioco,Exatechs President and CEO. Whirlpool-Maytag Commercial Laundry is well

recognized as the industry standard for quality and dependability. We are

continually looking for ways to improve equipment performance and lower

operational costs because we understand that equipment efficiency is directly

related to profitability in laundry operations.

With a focus on low energy usage, the Whirlpool-Maytags commercial line of

washers qualifies for the highest USA energy efficiency tier (CEE Tier III). Its

high- speed spin extractor removes excess water, reducing owners energyand water bills. The clothes come out of the washer very well rinsed and wrung out,

so the dryer then needs to do less work to finish the process. Customers will

notice a dramatic savings in detergent, water and a definite improvement in

cleanliness of clothes.

Problem definition

EXATECH INC. has newly acquired the brand Maytag, they are now the

distributor of this brand in the Philippines. Maytag is a Commercial Washing

Machine with a high price at the same time high in quality. That is why we had toknow what its competitors in the market are and to determine what its position in

the retail industry, while considering the other competitor and the price of every

commercial washing machine.

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RESEARCH DESIGN

Exploratory design

We prefer the Exploratory Research Design to get the insights of each Promodiser

about the brands that they handle. We interview every Promodiser of each branch

for 10 minutes-15 minutes and ask them questions that we need to know so that

we could come up with our research. We could also ask some follow up questions

after they answered ours.

Data collection

Through Interview

We conduct interview on Promodisers of each branch of Commercial

Washing Machine in appliance center for 10-15 minutes to get their

insights about the brands that they handle.

Through Internet

We use the internet for additional information about Maytags competitorand Maytag Brand itself.

Observation

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We also try to observe what particular brand the customer looks for when

it comes to Commercial Washing Machine.

Scaling Technique

Nominal Data

We used Nominal Data as the Scaling Technique of this research.Every Specific

Question, we got specific answer like the question what brands of commercial

washing machine is available on the stores. Their answer was American homes,

Speed Queens and Whirlpool (Exatech) and Maytag.

Questionnaire Development/Pilot Testing

In order for us to know if our survey questions for Promodiser and store

managers are right, we first consult it to our Industry Mentor. These are the

questions that our Industry Mentor Approved.

1. What are the brands of commercial washing machine available on the

store?

2. What are the competing brands?

3. What particular brand of commercial washing machine holds the highest

sale?

4. What are the advantages of the following washing machine laundry

commercial?

5. What are the features?

6. What are the qualities?

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7. What are the first thing that consumer consider in buying washing

machine laundry commercial?

8. Is your product affordable to your costumer?

9. What are the distinctions of each brand?

10. How many customers aware/asking for the brand MAYTAG?

11. What is the main competitor of MAYTAG?

12. What are the advantages of MAYTAG compares to its competitors?

13. Is MAYTAG affordable for the costumer?

14. How many MAYTAG brands sell in one day?

The questions from numbers 1-9 are the questions we asked to know what brands

of washing machine every appliance center has. We asked questions from

numbers 10-14 purposely to know what we need to, about Maytag. It is our way

not to be noticed that our purpose is get information about Maytags Competitor.

We tried to get the idea and ways on how Maytag position itself in the retailworld.

Sampling

Non probability: Convenience Sampling

We use convenience sampling in choosing our respondents because this method

is quick and cheap. This is also the Sampling method that is simplest and

appropriate to choose our respondents. We speak to the Promodisers that is

available and willing to give information.

Fieldwork

Our surveys run for two weeks to be exact. We went on several malls to complete

the 10 appliance stores that selling Commercial Washing Machine particularly

Maytag brand. We conduct interview on Promodisers of each brand.

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MALLS STORES

SM Mega Mall Western Appliance Store

SM Appliance StoreThe Link Ansons

Glorietta 5 Abenson

SM Makati SM Appliance Center

Trinoma Ansons

SM North Edsa SM Appliance Center

Robinsons Galeria Robinsons Appliance Store

Greenbelt Abenson

Landmark (Trinoma) Ansons

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Some stores dont sell Maytag because the brand that consumers normally seek is

whirlpool; Promodisers said theres no need to add a brand of Commercial

Washing Machine. Here are those stores:

DATA ANALYSIS AND FINDINGS

MALL STORE

Market- Market Metro

Abenson

SM North Edsa Abenson

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Analysis Techniques Employed

Based on the data we gathered and on the observation we conduct, we

choose the important and related information that can be of help with our

research. The next step we do was, reviewing the data so that we arrive to the

right information. Then we summarize it by getting the right answers from the

sales people.

People who came from the US are the customers who are more aware of the

brand Maytag because it is a popular brand of washing Machine in the US.

Maytag Commercial Washing Machine has no competitor in the Philippine

Market because of its High Price. Unlike other brand of washing machine Maytag

is likely to be acquiring to be used for industrial purposes like hospital and hotel.

RESULTS

These are the results of our interview.

Commercial washing machine available on 10 stores

Speed Queen

American Home

Whirlpool (Exatech)

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8 out of 10 stores sell these brands except for Glorietta 5 that doesnt sellAmerican Homes and Robinson Galleria Appliance, doesnt sell Speed Queen

Competing brands in Commercial Washing Machine

Whirlpool

Speed Queen

Most Promodisers told us that these are the two brand that competing

for Commercial Washing Machine. Whirlpool brand is widely known here,

while Speed Queen already recognized by the costumers because it offers

longer warranty like any other brands.

Particular brand of commercial washing machine that holds the

highest sale

Whirlpool

Almost all Promodiser, told us that Whirlpool hold the higher number of sale

than other competing brand because consumers are more aware on the former

than the latter. Though most promodisers stated that it is whirlpool that holdsmore sales, some of them have also said that it all depends on the promodisers on

how he/she will promote the product because sometimes the other brand is the

one that made the most sales. To avoid being bias, we tried to interview the store

managers but only 4, of them agreed to be interviewed for the reason that the

information that they might give us is confidential to be shared on us. The Store

Managers and some promodiser agreed upon one thing that Whirlpool is the

leading of Commercia Washing Brand and "that Maytag's sales rate dont climb

that high mainly because of its high price"

Advantages of the following Commercial Washing Machine based to

the answers of the Promodisers.

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BRANDS ADVANTAGES

Speed Queen

Speed Queen Offer longer warranty

than other brands.

Lifetime Warranty on stainless steel

tube

5 years warranty on transmission

2 years warranty on all parts

One year property on labor

American Home Cheap Price

Whirlpool

Trusted brand by the customers

After Sales

If the costumer bought the

Commercial Washing Machine

today, they follow up it the next day.

High Efficiency

May Tag

Other Promodisers said that Maytag

advantage is that this brand was

popular in USA, so consumers that

is Balik-Bayan will look for the

May Tag brand here in Philippines.

Some Promodisers said that aside

from Commercial Use, it can be use

as Industrial as well

High Efficiency

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First thing that consumer consider in buying Commercial Washing

Machine

Consumers first consider the brand, followed by price or vice versa, afterwards

they consider features, warranty and qualities. Promodisers told us that

costumers considered brand first because if it is known for its quality they will

feel assurance for their money. If the costumers considered price first, it is

because they have limited budget.

Brand affordability to the costumers

The cheapest brand of commercial washing machine is the American homes,

that why it is affordable for costumers. While in Whirlpool, it is affordable for

its costumer because for them their money will not be wasted because the brand

is trusted. In MayTag, it is affordable for those prosperous people, big companies

like Hotels because the promodiser said that it is already industrial use and it can

accommodate up to 80lbs of laundry. In Speed Queen, same as American

Homes, but the latter is cheaper than speed queen.

Distinctions of each brand

Price

Brand awareness

Features

Speed Queen and American home has the same features

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Customers aware/asking for the brand MAYTAG

Costumers that came from USA are aware of this brand but consumers here in

this country is not so familiar in May Tag brand.

Main competitor of MAYTAG

Some promodiser told us that the main competitor of Maytag is Whirlpool

(distributed by exatech like Maytag) but some Promodiser said that if

price is consider it has no competitor because its the only one commercial

washing machine that so expensive, and most of the times its not use for

commercial, its for industrial use already like Hotels and Hospital.

Advantages of MAYTAG compare to its competitors

The Advantage of May Tag is that in the Market, It is the Commercial Washing

Machine that can be use as industrial.

CONCLUSIONS

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We found out on our interview with the promodiser and store managers

that all the stores that we visit has Maytag washing machine they said that the

commercial washing machine that is competing with Maytag are Speed Queen,

American Homes and Whirlpool (which is distributed by the same company).

Speed queen is the brand that offers a long time warranty and it is slowly getting

more known in the Philippines, American Homes is the brand that has the lowest

price that is why it is the brand that is likely to be purchased by most customers

who has limited budget.

While Whirl pool is the brand that is trusted by most customers because of its

tested quality and it has been in the market for 100 years. Speed queen and

whirlpool are the brands that always compete for the highest sale; one big

advantage of whirlpool is they have been in the market for century. Some

promodisers said that Maytag has already been used by big businessestablishments like hotels and hospital. If someone is to buy Maytag,

promodisers said it is most probably the business who wants to maintain a good

or high impression to their customers. The most important thing that consumers

consider when it comes to buying a commercial washing machine is the brand

and price. They want to make sure that the product that they purchased is worth

the money they pay.

Maytag is not much known yet to consumers here in the Philippines. It is rare on

customer to ask about the brand Maytag on retail stores. It sometimes took a

month before a store could actually sell a unit of Maytag unlike in the U.S.wherein it is the number 1 brand. That is why when a consumer here is from the

U.S. they prefer to buy Maytag among the other brand.

If the price is the first thing a customer is going to consider. Maytags price is sure

that only high earners can afford that is why it has no direct competitor.

As we roam every store we learned that not of all of them carry the brand because

its is very expensive. Whirlpool is the most common that customers always look

for.

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RECOMMENDATIONS

Maytag brand of Commercial Washing Machine is not yet widely known in the

Philippines. To get the consumers aware with this product Maytag needs to use

promotions, particularly Direct selling. Maytag should hire a good and articulate

Promodiser who can carry out the product well to their prospective customer.

Maytag should produce a good brochure that is very catchy to the eyes of the

customers and realistic enough to support what the Promodiser is trying to sell.

The brochure must also emphasize the cost benefits and efficiency of Maytag.

Weve noticed that only few of the promodisers of Maytag is knowledgeable of

their product. We recommend them to conduct more seminars and trainings on

how to become an effective promodisers, because they can never avoid a situation

that a customer will ask some questions about the product. There was an instancethat they are not able to answer the questions that we been asked to them

regarding their product (Maytag). They can also put designated spot for their

display in some exclusive Malls.

Brand positioning refers to target consumers reason to buy your brand in

preference to others. Maytags Brand Positioning in the market, aside from it can

be use as a Commercial washing machine; it can also be use as an Industrial

because of its price that mostly upper-class people and big establishments like

hotels only can afford it. We recommend that it should sorted out from other

brand of commercial washing such as American Homes, Speed Queen andWhirlpool that is not on the same price range as Maytag. It should have its own

Promodisers that can sell the product very well to the customer.

LIMITATIONS AND FUTURE DIRECTIONS

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We went to 10 appliances stores that selling a Commercial Washing Machine in

different malls. Were not able to do research on the store that doesnt sell Maytag

Commercial Washing Machine.

Makati City

Malls STORES

SM Makati SM Appliances Center

Greenbelt 5 Abenson

Greenbelt Abenson

The Link Ansons

Mandaluyong City

Mall Stores

SM MegaMall Western Appliance Store

SM Appliances Center

Quezon City

Malls Stores

Robinson Galleria Robinsons Appliances Store

Trinoma Ansons

Landmark (Trinoma) Ansons

SM North Edsa SM Appliances Stores

We went as well in Abenson and Market-Market Appliance Store in Market-

Market in Taguig City and Abenson in SM North Edsa, Quezon City, but those

stores do not sell Maytag Brand. Since the store that we need to interview has a

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Maytag Commercial Washing Machine brand, we did not include those stores to

our final result.

This Research can also be done in Cebu City, the center of the Visayas, It can also

turn to Davao City, center of Mindanao. There were many Big Establishments in

Cebu and davao.

Here are some Malls in Cebu and Davao

Cebu City

Ayala Center Cebu

SM City Cebu

Robinsons Malls

Davao City

SM Mall Davao

NCCC Mall Davao

Robinsons Malls

APPENDICES

Questionnaires and Forms

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1) What are the brands of commercial washing machine available on the

store?

2) What are the competing brands?

3) What particular brand of commercial washing machine holds the highest

sale?

4) What are the advantages of the following washing machine laundry

commercial?

5) What are the features?

6) What are the qualities?

7) What are the first thing that consumer consider in buying washing

machine laundry commercial?

8) Is your product affordable to your costumer?

9) What are the distinctions of each brand?

10) How many customers aware/asking for the brand MAYTAG?

11) What is the main competitor of MAYTAG?12) What are the advantages of MAYTAG compares to its competitors?

13) Is MAYTAG affordable for the costumer?

14) How many MAYTAG brands sell in one day?

We got our data through interview, observation and internet.