case study A

How many customers like to clean up after they clean up? Not many. For the typical consumer, things can get pretty messy when its time to empty the family vacuum cleaner. At least thats what electrolux is counting on. Electrolux, a Swedish appliance manufacturer headquar-tered in Stockholm, Sweden, is the worlds second-largest household appliance maker. The company sells major appli-ances and vacuum cleaners under a variety of brand names, including its own, that are intended for consumer and pro-fessional use. formerly, electrolux vacuums used the brand name of Eureka; however, since 2000, the company sells both eureka-and electrolux-branded vacuums. In its almost 100-year-old history, electrolux used engineers

and accountants to manage the product development process. According to Bill fischer, a professor at Swiss business school IMD who specializes in innovation management, the idea of seeking insights from its customers . . . would have been revolutionary. But thats exactly what Electrolux did. Market researchers from the company watched and talked to people vacuuming in Australia, france, and russia. These observations led to the development of the UltraCaptic bagless vacuum cleaner. The vacuum has a unique Compact and Go solu-tion that reduces the dust created when emptying the vacuum. The UltraCaptic compresses the dust into a spongy pellet the company calls a dirt cake, thus eliminating the flyaway particles when the user empties the vacuum. In addition to cleaner emptying, the UltraCaptic is packed full of other innovative features. It is able to be efficient while being quieter that most other high-end vacuums. It of-fers a bagless cyclonic system that gives customers consistent suction power to thoroughly clean their homes. Customers

have the option of moving between wood floors, carpets, tiles, furniture, crevices, and any other surfaces. All of these advantages are great; however, the success of

the UltraCaptic is not a sure thing. A major concern is price; con-sumers may not be willing to pay the premium price of $700 for the UltraCaptic. While an important feature of the UltraCaptic is its quieter operation, some consumers assume that in order for a vacuum cleaner to perform well, it must make a loud noise. They believe that the noise is required because of the powerful suction coming from the motor. These buyers may not believe that a quiet machine is doing the job they paid for. furthermore, the premium vacuum market is highly com-petitive. Dyson is one of the market leaders and has a percep-tion of high quality among consumers. The brand is bolstered by its cutting-edge design, powerful suction, and premium pricing. Miele, a manufacturer of high-end domestic appli-ances based in Germany, offers various vacuum cleaners that have a reputation for exceptional quality, performance, and durability. for electrolux, the challenge is obvious. Will customers per-ceive that the UltraCaptic has a difference worth paying for?

You Make the Call

6-43. What is the decision facing electrolux? 

6-44. What factors are important in understanding this deci-sion situation?

6-45. What are the alternatives?

 6-46. What decision(s) do you recommend? 

6-47. What are some ways to implement your recommendation?

write the references (Marketing: Real People, Real Choices (8th Edition)by Greg Marshall, Elnora Stuart, Michael R. Solomon)

write a high-quality work 

no plagiarism