ASSIGNMENT- 3

BRAND RATONALIZATION OF ELECTORLUX

SUBMITTED BY: PRATEEK GUPTA ROLL NO: 2012PGX119

THE REASON: Electrolux, the worlds largest producer of kitchen, cleaning, and outdoor appliances, had grown through acquisitions and therefore had a very large and diverse portfolio of brands. As a result of brand complexity, brands were behaving independently, depleting resources, giving rise to both internal and external confusion, and increasing costs. Electrolux was further hurt in the early 1990s by an economic downturn in its core European and North American operations and by the maturing of the white goods sectors in those same markets, which intensified competition.

THE PROCESS: In 1997, a process was started to create a new brand policy, a common thought process, and a worldwide brand performance scorecard. Electrolux began to reduce its fragmented operations and become more efficient. A pan-European logistics function was set up for white goods and floor-care products. In late 1996 the company's North American white goods operation, Frigidaire Company, was combined with the two North American outdoor products companies, Poulan/Weed Eater and American Yard Products, to form Frigidaire Home Products.