Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

21. Developing Innovative
    Marketing Plans

Text © The McGraw−Hill

Companies, 2002

604 Chapter 21

growth, social responsibility,

and profitability. Using nearly

40 pieces of consumer

research, the team refined

what the strategy might be

and what it would cost.

S.W.O.T. analysis showed

that Maytag’s advantages

included a strong dealer

network, the technical skills to

develop the product, and the

financial resources to do it.

Major threats were mainly

related to competitors’ efforts

and consumers’ prior attitudes

about front-loading machines.

Addressing those threats

would take informing and real

persuading.

Market segmentation

helped to narrow down to a

target market. Various seg-

ments could be identified. For

example, there was a homo-

geneous business market. It

consisted of owners of coin-

operated laundries who were

mainly interested in operating

costs and attracting cus-

tomers. Consumer segments

were more varied. Relevant

needs focused on cleaning,

removing stains, caring for

fabric, and saving water or

energy. Some people just

wanted less hassle on wash

days and a care-free washer.

Maytag decided not to target

just the segment that con-

served energy; that was not a

qualifying dimension. Instead

they combined several seg-

ments into a larger target

market. The main qualifying

dimension was the ability to

pay for a dependable washer

that provided superior clean-

ing. Determining dimensions

were interests in saving time,

hassle, and expense while get-

ting better results.

The design of the washing

machine evolved from target

consumers’ needs, so it is dif-

ferent from most washers. The

stainless steel tub tilts at a 15-

degree angle, which improves

visibility and reach. Cutting out

the normal agitator increases

load capacity by about a

third while decreasing dam-

age to clothes. It also

increases access space for

bulky items and makes load-

ing and unloading easier. Fins

inside lift the clothes and

then plop them back in the

shallow basin of water. This

eliminates spills because

the water level is below the

door. In fact, it uses half the

water and energy of regular

machines but removes tough

stains better. As Maytag’s

design progressed, consumer

tests showed that consumers

liked the unique benefits and

were willing to pay for them.

Financial analysis of the

marketing plan for this new

product indicated that it could

meet Maytag’s objectives, so

Maytag invested the money to

put the plan into action.

The new product needed a

memorable brand name—

Neptune. The existing market-

ing program positioned

Maytag as “the dependability

people,” so the plan called for

a strategy that would build on

that base but also position the

new product as really new and

superior—as “the washer for

the new millennium.”

The plan specified a war-

ranty that would signal real

dependability to consumers.

It called for a 10-year war-

ranty on the drive motor or

rust damage and for lifetime

coverage on the stainless

steel wash basket.