Daewoo Mini Wall-Mounted Washing Machine Marketing Analysis

Profile of the market area & Product (company chosen)

1.1 Market Area Analysis

The market for Laundry appliances has always outperformed other major household categories, since washing machines are regarded as absolutely essential in today’s homes. It is estimated by Key Note that the white goods industry will grow by 14.7% by 2016, to approximately £3.83bn.

Ownership levels for washing machines are very high and that only 2% of households do not own any kind of washers these days. Over the last five years, ownership levels for washers actually showed an increase around 2% as affordability and expectations have changed. In 2011, 84.3% of UK households owned a total number of 23 million washing machines. In the past five years, there was an average volume of 2.644 million washing machines sold every year, with average retail revenue of £815 million annually. The reason for such a substantial demand of washings machines is that they only have a relatively limited lifespan, replacing old or broken machines is a key factor in driving demand, and as the washing machines has become a necessity for households these days, few homes would be able to cope without one.

The data from the Mintel report on Washers and Dryers –UK-June 2012 shows that the expected consumer expenditure on laundry appliances will reach to £1,180 million in 2016, an increase of 11% from 2011. This growth trend strongly suggests an optimistic prospect for the UK laundry market.

According to Mintel, the number of households in the UK was identified to have the most influence on the laundry market volume. The ‘National Population Projection’ states that the current UK population is 63.758 million and is expected to grow year-on-year over the next five years with a growth rate of 3.2%. This growing trend is favorable for the washing machine market due to the increase in number of households will also demand more appliances to operate.

Moreover, the disposable income level is also a...