| 13 June 2011 | |
INTERVIEW: KitchenAid |
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When Whirlpool launched KitchenAid built-in in the UK, it promised a new brand for kitchen studios, but then it all went quiet. Now it has a new strategy including a new sole distributor, DR Appliances. Andrew Davies went to find out more...
You can always tell an iconic product when its impossible for TV cooking shows to disguise them no matter what angle they film them from. Smeg's retro fridge is a good example, as is KitchenAid's famous food mixer.
Owned by Whirlpool, the KitchenAid brand covers premium appliances too and before the economic downturn, the company launched a full range of built-in models aimed at the kitchen specialist. From a business point of view, it incorporated the brand under the umbrella of Maytag, and with quality products it looked like a good fit.
However, not only did it never really take off, it went downright quiet.
Since 2009, though, Whirlpool has restructured itself significantly to iron out brand issues that became apparent during the inevitable close introspection that many companies were forced into as the market dropped. Previously, there were separate sales channels for different brands, but now, according to business unit head Andy Burns (above right), it operates as a more harmonious entity and has created more of a portfolio approach.
This is embodied in its Croydon base, which now contains an impressive showroom space that includes all three brands under one roof to, as Burns put its, 'tell the brand story'.
There are two business units now and Burns is the head of the kitchen side taking the built-in ranges, including KitchenAid and Maytag, to independent specialists as well as the likes of Magnet and B&Q.
The biggest change with KitchenAid is the move to one single distributor - DR Kitchen Appliances. Formerly known as DR Cooker Hoods, it has built up the Elica brand in the UK very successfully, and it's clear Whirlpool wants it to do the same with KitchenAid.
We sat down with Burns and DR Kitchen Appliances director Howard Bogod (above left)....
Q: What went wrong with the KitchenAid brand?
Andy Burns: We had too many distributors to give the level of service and response we needed to. On the flip side, the distributors couldn't give the level of time and dedication to KitchenAid because they offer choice across many brands.
Our dealer base in KitchenAid was in decline in numbers, the coverage was poor and there were major pockets of the country with no representation at all and so it wasn't a foundation to match the scale of investment.
Q: Was the involvement with Maytag a help or hindrance?
AB: Maytag's strength and customer base was traditionally electrical independents rather than kitchen specialists, so when the KitchenAid brand was taken into their portfolio I would say some of the choices we made in who we built the business with weren't the right ones. It didn't build momentum, it got to a level in 2009 where it had around 200 dealers with displays - but it's one thing to have a display and another to rotate and sell though. Now we're back with a core of about 50 dealers who are selling, able, confident, and engaged in the brand.
Q: Howard, why have you signed up with KitchenAid?
Howard Bogod: We build a business by giving the very best service we can, some customers with Elica order products they want to arrive in three weeks' time, then you get the others who phone and say they want it by 10am next morning. We're good at helping our customers when they want it, and you can only do that if you're a relatively small company and focused on particular products.
Distributors that we have in Britain are essentially wholesalers, they have a wide portfolio of products, and they don't go out and promote and sell one particular one.
Q: And how will that apply to you and KitchenAid?
HB: KitchenAid needs that level of focus and commitment. We will use the experience, knowledge and position in the market of the DR team as well as a separate team focused on KitchenAid and we've been recruiting specifically for that. We've also decided we will need a dedicated London showroom, which we plan to have as soon as possible, and we need to do a lot of PR work too.
Q: So Whirlpool wants DR Kitchen Appliances to do with KitchenAid what it's done with Elica?
AB: It's not within the capabilities of a producer the size of Whirlpool to provide that perfect white glove service every day, it isn't our core competence. That's where the experience of someone like DR can be a huge asset.
Q: How do you persuade retailers to take someone else out of the showroom to put you in?
HB: It's not possible, if you're selling £50m worth of products every year, to have the same level of attention as someone selling £5m. So those kitchen studios who are looking for it can see they have an alternative and we're going to offer very good margins.




