The Indesit Company – Launch of Audio Visual Range
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The Indesit Company:
Launch of Audio Visual Range
Marketing Communications Report
Table of Contents
Main Sections
List of Appendices
1. Introduction
The aim of this report is to design an Audio Visual (AV) range for a company who has had no previous experience within this market. The company we have chosen is The Indesit Company and it will be a product extension of the brand name Indesit.
Technology has driven dramatic sales growth in certain sectors of the UK market for consumer electronics, causing relatively rapid development in some areas of the market. However, technological advances often result in a change in consumer purchasing from an established product type.
The Indesit Company was formerly known as Merloni Elettrodomestici UK Limited and was formally renamed The Indesit Company effective January 2005.
The Indesit Company has launched their company with the following vision in mind:
“There is no value in the economic success of any industrial initiative if it is not also accompanied by commitment to social progress.”
Aristide Merloni (1967)
The Indesit Company is based in Italy and is one of the top three white goods manufacturers in Europe, with around 16% of the market, and recorded sales of Ђ3 billion in 2003, with 13 million appliances sold in Europe. The company owns the Hotpoint, Cannon and Creda brands, which it acquired from GE/GDA in 2002. As such, the company is now the leading white goods supplier in the UK, with an estimated share of around 30% of all domestic appliance sales.
In 2004, The Indesit Company invested Ј16 million in the Hotpoint factory in North Wales in order to boost production of washing machines from 790,000 to 1 million units a year. In total, Ј60 million was spent on the Hotpoint brand in 2004, including a new logo and revamp with an Ј11 million above-the-line advertising campaign in July 2004.
The Indesit Companys other brands in the UK – Indesit and Ariston – will soon be limited to one, with the Ariston brand being phased out from early 2005, in order to concentrate on the companys higher-profile brands of Indesit and Hotpoint.
The Indesit Company also owns Servis, although Servis still operates as a separate company in the UK.
The Indesit Company has been a well-known and trusted company since the late 1970s, however they have never expanded into the AV market and as such, creates the basis of our report.
The AV range we want to launch for Indesit includes DVD players, Hi-Fi offered in a range of colours and a state-of-the-art turntable.
We plan to launch two DVD players- one at an entry-level and another at mid-range together with the Hi-Fi, followed in 3 months by a state of the art turntable.
2. Executive Summary
This report looks at the possibilities available to The Indesit Company should they choose to launch an AV Range.
This report includes a SWOT and PEST Analysis to analyse factors within the company as well as other global factors. Also included are details of strategy, tactics and an action plan. Details of the products themselves have also been added.
3. Analysis of Marketing Situation
3.1 Market Analysis
The British love their TV, and this love affair with television is also reflected in the significantly higher household penetration of video recorders and DVD players. Approximately 90%