The Washing Machine Dilemma

The Washing MachineDilemma

TheSpeed Cycle

Average age of UK washing machine is over 8 years "

(Office Fair Trading 2011)

Typical consumer purchase cycle is

less than two weeks "(Servis Research)

Consumers are out of the market for

long periods and when they do return, they are there only briefly due to: Importance of white goods within the home

Replacement being 80% of the market

It’s essential to grab their attention in this tiny consideration window.

79% consumers seriously concerned by rising energy

bills

(Which?)

Over 6m UK households (1 in 4) in fuel poverty .. and could rise

by another 2m by 2020

(uSwitch.com)

“Key features for consumers are saving energy, water and time on

household chores.”

(Richard Caines, Senior Analyst, Mintel)

Energy Time Money

Simplicity and ease are key: "“My washing machine has every control on it but I don’t use them

– I always use the same 4”

(Focus Groups)

50% consumers willing to pay a modest premium for environmentally friendly

products

(RSA Insurance)

“The decline in average living standards looks set to continue until at

least 2013-14. (Institute for Fiscal Studies)

Consumer purchase drivers

Time trumps energy

When it comes to washing machines…

Too much choice There is a ridiculous amount of choice

… brands and models … "

I had no idea what to buy.

Focus Groups

Too many cycles

Our consumer is drowning in

confusion

Over 35% claimed to have visited a ‘bricks and mortar’ retailer to choose a product before going online to buy it at the best price

Making Showrooming popular

Driven by digital and social, brands are reaching closer to consumers to offer:

•  Advice and service •  Ideas and inspiration •  Entertainment •  Even common ground

Trigger conversation at other social touch-points

We need to intercept every point of their purchase journey with helpful tips…

… to minimise their confusion & maximise brand affinity

So, who buyswashing machines?

New Buyers

Replacement Buyers

80%

20%

YoungProfessionals

Families

Empty Nesters

Source: Competitive Research + Market Survey (2011)

•  There are over 17m families in the UK •  The majority (65%+) are headed by a married couple and have on average 2 kids

•  Average household income sits at just over £30,000 •  Increasingly both parents are working (90% dads / 68% mums – often part-time)

•  Weekly outgoings c.£600 a week – fuel / energy costs taking a growing %

Control

•  Appliances that can stand up to the demands of family life •  Appliances with smart features that can save time, energy and money

•  Appliances with the capacity and flexibility to handle a household of 4 •  Appliances that look good in the family kitchen

•  The peace of mind that comes with a manufacturer’s guarantee

Profi

le Ne

eds

Sens

ing th

e Di

ffere

nce

=

Emotional

•  Time and cost saving features •  Capacity, space and flexibility

•  Value – dependability at a good price •  Ease of ownership – usage to service

Functional

Families

•  There are over 3.6m young professionals currently working in the UK •  The average household income for a young couple sits around £36,000

•  Fulltime employment for young professionals has risen by 8.9% since 2004 •  They tend to have university qualifications, are in well paid occupations and like to take

full advantage of living in or close to the city, with busy work and leisure lives

Freedom

•  Appliances with smart functionality to shorten the ‘routine’ of daily chores •  Appliances that can be relied on (no time wasted maintaining)

•  Appliances that look good and impress – stylish / fashionable / colours •  Appliances that perform but don’t take up too much room

•  Appliances that are cheap to run and save on energy usage

Profi

le Ne

eds

Sens

ing th

e Di

ffere

nce

=

Young Professionals

Emotional

•  Time saving features •  Size to fit available space (flats)

•  Fashion – colour / style •  Ease of ownership – usage to service

Functional

•  In the UK, there are more than 18m people over 50 years of age •  The ‘grey market’ is estimated to have spending power of over £150bn annually

•  The 50-64 age group (empty nesters) are the biggest spending group •  8m in that age bracket and have disposable incomes of close to £20,000 per annum

•  Disposable incomes rise after kids leave home / find work, triggering new purchases

Re-assurance (quality / performance)

•  Appliances that are easy to use and not over-complicated •  Appliances that are smartly designed, quiet and well made (quality)

•  Appliances that are supported by good service – from purchase through ownership •  Appliances with high energy ratings to reduce household bills

•  The peace of mind that comes with a manufacturer’s guarantee

Profi

le Ne

eds

Emotional

•  Ease of use •  Stylish design

•  Quality, performance and flexibility •  Service – assistance at point of sale

Functional

Sens

ing th

e Di

ffere

nce

=

Empty Nesters

How can we help them on their journey?

How can we help them on their journey?

Ask friend/family

Search Online

Retail Store

Brand Recommended

Brand’s own website

Online Retailer

Buy Via brand

Compare "Models

Compare Models

Choose Appliance

BUY Product

Magazine / Online Reviews

Buy previously owned brand

Appliance breakdown

Appliance Defective

Buying a"new house

Moving into a new place

Post-wedding purchase

Kitchen renovation

Bulk buying

Boxing Day / Seasonal Sales

Growing Family Needs

Renting your place

Choose Appliance

1. Triggers 2. Drivers 3. Discovery 4. Consideration 5. Purchase

Redirect People want simplified choices – "

Mintel (2012)

29%"check customer

reviews

28%"are looking for a

SALE to buy

Highlight benefits of buying direct

People will pay a premium for design

Need a quick replacement

TIME / COST" Saving Features

Maximise value of purchase

Stylish Design

Quality & Performance

Ease of Use

Good Value

Capacity & Space

Ease of Ownership

Size to Fit

Journey to your washing machine

Capacity & Space

Ask friend/family

Brand Recommended


Online Retailer

Buy Via brand

Compare "Models

Compare Models

Choose Appliance

BUY Product



Appliance breakdown

Appliance Defective

Buying a"new house



Kitchen renovation

Bulk buying



Renting your place

Choose Appliance


Retail Store

Search Online

40% compare prices online before purchasing in-store

44% want an

appliance that saves TIME

Majority want the choices to be made

simplified

Multi-channel researchers but tend to buy in-store




Stylish Design


Ease of Use

Service at POS

Ease of Ownership

Size to Fit

How do families do it?

Ask friend/family

Brand Recommended


Online Retailer

Buy Via brand

Compare "Models

Compare Models

BUY Product



Appliance breakdown

Appliance Defective

Buying a"new house



Kitchen renovation

Bulk buying



Renting your place

Choose Appliance


Retail Store

Choose Appliance

Search Online

44% talk about home purchases

with friends on SM

12 out of 16 daughters go with

their Mum’s recommendation

34% visit the company’s

Facebook page Consider customer reviews to be more

trustworthy than professional content

Need things fast. Consider:

“NURTURE EXPRESS”

Tend to research and buy on-line




Stylish Design


Ease of Use

Service at POS

Ease of Ownership

Size to Fit

Capacity & Space

How do young pros do it?

Ask friend/family

Search Online

Brand Recommended


Online Retailer

Buy Via brand

Compare "Models

Compare Models

Choose Appliance

BUY Product



Appliance breakdown

Appliance Defective

Buying a"new house



Kitchen renovation

Bulk buying



Renting your place

Choose Appliance




Stylish Design

1. Triggers 2. Needs/Drivers 3. Discovery 4. Consideration 5. Purchase

Retail Store

1 in 4 like to visit retailers for in-store

expert advice

There is a need for brands to have “Online Advisors”

to answer questions – "Mintel (2012)

Make purchases in-store,"after discussing with sales reps


Ease of Use

Service at POS

Capacity & Space

Ease of Ownership

Size to Fit

How do empty nesters do it?

Ask friend/family

Brand Recommended


Online Retailer

Buy Via brand

Compare "Models

Compare Models

BUY Product



Appliance breakdown

Appliance Defective

Buying a"new house



Kitchen renovation

Bulk buying



Renting your place

Choose Appliance


Retail Store

Choose Appliance

Search Online




Stylish Design


Ease of Use

Service at POS

Ease of Ownership

Size to Fit

Capacity & Space

Opportunity Area but also risky to jeopardize existing relationships with

major retailers

How do showroomers do it? Research in-store,"buy online

First thought bubbles…

1. Target the most obvious touch-point

Washing Machine Owners Not Currently ‘In Market’

Active Considerers “Triggered”

Desperate for a"Washing"Machine

Washing-up tips portal

Needs Ideas

Fix-your-machine website (Support Platform/Aggregation)

Helping-you-through website (Re-targetting)

Focus on offers/sales

Intelligent Product Selectors

Reinforcing the brand promises

Online Helpers

Social Reviews

Brand’s"CRM

HOT"Prospects

COLD"Prospects

2. Nurture them through the funnel

Generate word-of-mouth Top-of-mind brand awareness

Build long-term trust Create a community

3. Create

An Introduc+on for Whirlpool Presented on 5th December 2012

thank you www.asadshaykh.com

The Washing Machine Dilemma

Lifestyle

Transcript of The Washing Machine Dilemma