Highlights:
- A CAGR of 6% in net sales over the period 2018-2021
- A CAGR of 27% in EBIT over the period 2018-2021
- Consumer star rating increase from 4.2 to 4.59 (2018 vs 2021)
During 2019, the ‘Swedish thinking. Better living.’ campaign was launched in Australia to sharpen the Electrolux brand. By leveraging consumer associations of Sweden with innovation, sleek design and quality, the campaign supported the roll out of a new products aimed at more premium market segments. The Electrolux brand has a competitive advantage through its Swedish heritage, as research shows that Australian consumers associate Sweden with premium quality, sustainability, innovation, design and progress.
Emphasizing brand values and experience
The campaign was the first to cover the whole home range, rather than being limited to a single product line or category. The aim was to draw a closer association in the minds of consumers between Electrolux and the Swedish values that drive the brand, while emphasizing the experience gained from over 100 years of innovation and development in the appliance industry.
The campaign was developed to support the roll out of a new range of premium products, including 70 models across 6 categories in the laundry and kitchen segments. This rollout introduced dark stainless-steel colorways across the cooking range, for a sleek, modern look that accentuated the minimalist designs. With specific messages based on innovative product features and how these benefit the consumer, the assets showcased a premium range of items across the whole home offering, while uniting them under the simple, evocative story at the heart of the campaign.
Capturing consumers’ attention
The campaign has been a great ongoing success, far surpassing the set goals for all measures of its effectiveness – achieving nearly ten times the expected click-through rate in 2019 and over ten times the planned number of conversions, indicating high consumer engagement with the campaign. This trend continued into 2021 with both of these campaign metrics still far exceeding expectations, and growing year-on-year.
Driving strong profitable growth
In turn, sales for the Electrolux brand in Australia increased significantly since the campaign launch, with a CAGR of 6% in net sales over the period 2018-2021. Earnings for the Electrolux brand in Australia have reflected this and show sustained growth over this period at a CAGR of 27%.
Putting sustainability in focus
Having established the brand’s Swedish heritage and built greater brand credibility through this campaign, the priority moving forward is to further emphasize Electrolux commitment to sustainability. With 90% of Australian consumers concerned about sustainability and 69% placing importance on a brand’s sustainable reputation1, conveying this key brand value is vital for securing a competitive advantage.
The ‘Swedish thinking. Better living.’ campaign supported this sustainability messaging through the selection of highlighted product features. This included a focus on the TasteLock fridge crisper, which automatically controls humidity levels to keep fruit and vegetables at their best for longer, helping to reduce food waste. The “Make it Last” campaign, launched in early 2021, extends this focus to the entire laundry range and sharpens the Electrolux brand proposition in Australia to take advantage of sustainable product innovations.
- Source: ‘4 Key Insights Into Consumers and Brand Sustainability in Australia’ (Latana, 2020)