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Market Segmentation For Refrigerators In Australia
Introduction
The essay examines refrigerator positioning within South east Queensland. Material for the research was a combination of primary and secondary research. The secondary material was a collection of journals and reports on the subject matter. Primary research was done by conducting interviews in refrigerator outlets and shopping malls for fifty correspondents. Respondents were required to give their opinions and choices about; preferred product brands, preferred refrigerator types, consumption power, expected duration for the refrigerator and purchasing history (brand loyalty).
How consumers make the purchasing decision for refrigerators
Some consumers look for the most favorable refrigerator type. In other words, this is segmentation by type. In this segment, a variety of choices exist for interested consumers. Consumers can purchase top freezers. Those who choose this model are usually looking for space. This model is quite wide; ranging from thirty to thirty two inches. Usually, the model’s capacity has the ability to meet large storage needs of potential clients. The second category of refrigerators is the bottom freezer type. This type of refrigerator has freezers at the bottom and freezers at the top. They offer less space than top freezers for use. Consumers may also choose to purchase side by side refrigerators. As the name suggests, such refrigerators usually place freezers and refrigerator compartments side by side. Their bins are temperature controlled and they utilize fast ice making cycles. Besides the latter, these types of fridges usually have only sixty five percent usable space. (Whirlpool Corporation, 2000)
Consumers also purchase built in refrigerators. Such refrigerators are created for the purpose of placing them in counters and cabinets. They usually come as side by sides or as bottom freezers. However, consumers asserted that their space utilization is rather poor. Cabinet depth refrigerators are another category of freezers. They are free standing refrigerators with some resemblance to built ins. However, they have less space than actual free standing fridges. The other category is the under-cabinet fridge drawer. These types of fridges are considered as luxurious items as they possess drawers. Overall, in this market segment, it was found that consumers are usually looking for ways in which they can meet both spacing and styling needs. An overwhelming number of consumers asserted that their priorities lie more with the space that a refrigerators has rather than its style. In this regard, the under cabinet fridge drawers were the least preferred as their major selling point is their stylistic features. Additionally, consumers asserted that they usually look for fridges with adjustable spaces. In this regard, they wanted fridges whose height could be easily adjusted. (Consumers Union, 2003)
The second segment is with regard to price. Here, consumers can either purchase refrigerators depending on the cost of purchasing them and also the cost of maintaining them. The latter trait is usually depicted by the amount of energy consumption. The survey found that a large number of South east Queensland consumers (thirty four out of fifty) would purchase fridges with low energy consumption. Consequently, this factor must be ascertained before purchase. Consumers here usually check on the energy consumption figures placed in the refrigerator. Other ways in which consumers ascertain their purchased refrigerators do well is by checking on certain electric devices. For instance, those ones with condensers and compressors located as the bottom, fridges with condensers that utilize fans and those ones with condensers made of copper tubes. Another element that minimizes energy efficiency is the material of construction. Usually, molded plastic are more energy efficient that Formica or wood surfaces.
In line with the latter argument, consumers also look for affordable alternatives. The issue of actual purchasing price matters a lot because consumers can forego convenience or quality for this trait. Many of the respondents avoided models such as side by side because these cost more than bottom freezer types. Price sensitive consumers usually visit a variety of outlets and shopping centers to ascertain which refrigerator types are the most conveniently priced. Also, pricing information is usually obtained through the internet. It should be noted that consumers also look for additional pricing features such as free delivery or low delivery costs.
Many consumers also consider function. For instance, certain refrigerator types have in door water dispenser allowances. Additionally, others have very efficient ice making capabilities while others also have the ability to accommodate huge amounts of products. For example, when one has a large family with teenagers, it is likely that they would like a lot of room for party trays, vegetable and tray bins. Other features that clients look for include surfaces that are easy to clean, convenient shelving, convenience while reaching items e.g. the bottom freezer type may not suit those who are fond of using frosted commodities. (Digest, 2002)
Size is another important issue that consumers are always looking for in their refrigerators. In this case, many of them prefer purchasing refrigerators that can fit their available spaces. In this case, those consumers who fall in the lower age bracket, i.e. the youth, tend to purchase fridges that are smaller in size. On the other hand, those ones with families tend to look for larger sizes. Research shows that large numbers of consumers prefer refrigerators with capacities of between tree hundred to five hundred liters. Quality was also found to be an important factor among refrigerator purchases. Many consumers asserted that quality was usually depicted by the brand name. Twenty six out of the fifty respondents claimed that they would purchase the same brand that they had. This was an indication that brand loyalty was a driving factor. The following was a summary of the most preferred brands in South east Queensland: Whistinghose, Whirlpool, LG, Fisher and Paykel and Samsung. The quality of a refrigerator was also indicated by its durability. Consumers indicated that they preferred commodities with close to eight years durability; this is only possible if the fridge has a high quality.
Decision process of competing products
Key findings indicate that other electric devices with similar capabilities compete with refrigerators. For instance water dispensers and water coolers fall in this category. Also, freezers are closely related to the latter, ice cream makers were also important competitors. Usually, consumers look for energy consuming capabilities, quality, function and branding as desirable qualities in these competing prices. However, the issue of function seemed to weigh heavily in the refrigeration market than it did among the competitors. Additionally, because the latter competitors usually have one function such as the water dispenser, then the issue of segmentation by function in the latter category did not matter as much as it did in the refrigeration segment.
Conclusion
In Australia, the most common type of refrigerator segment is the top and bottom mount models. The second most models is the stand alone freezer which is then followed by the small bar refrigerator. Research has also shown that Australians prefer moderately sized refrigerators. When comparing their consumption with that of other countries in the world, it can be seen that most Australian fridge consumers tend to prefer commodities that are between three hundred to five hundred liters. Where the former amount is usually purchased in Europe while 500 liters are common in the United States. Also, it has been found that refrigerators within the Australian market are a mixture of local creations and exported products. The two major manufacturers include Electrolux and Fisher and Paykel. While the other refrigerators originate from the US, Korea, Japan, Europe and China. It has also been shown that close to three quarter of a million refrigerators are sold in Australia annually. (Harrington, 2002)
Reference:
Harrington, L. (2002): Australian success in adopting new refrigerator MEPS, retrieved from http://www.energyrating.gov.au/library/pubs/aceee-2002a.pdf
Digest, Inc. (2002): Refrigerators & freezers; Consumers Digest, 32, 6, 105-108
Whirlpool Corporation (2000): How to make a home run with refrigeration appliances, Consumer and Family Economics Educator, 12, 9, 67
Consumers Union: (2003): Buying guide, Refrigerators; Consumer Reports, 58, 13, 88
About the Author
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