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Sunbeam Breadmaker

IDN-536-01.16F: Introduction to Portfolio Planning Ran Kuang Sunbeam - A Brief History

John Oster Manufacturing Company was founded. 1924 1960

In 1960, Oster Manufacturing, along with Oster and Osterizer 1897 1910 were acquired by Sunbeam. 1996 - 2001 Turning Point Sunbeam starts to Chainsaw Al produce electric home Albert J. Dunlap was recruited to be In 1897, Former appliances since 1910. CEO and Chairman of Sunbeam-Oster. Flexible Shaft Company was Later fraud was unvealed. founded, which later become Sunbeam-Oster stock took a huge dip. . In 2001, Sunbeam filed for Chapter 11 bankrupcy protection.

2016 2002 - 2004

In 2002, Sunbeam emerged from bankruptcy as American Household, Inc. (AHI). Its former household products Sunbeam Products is an American that has produced electric home Sunbeam was a subsidiary division became the subsidiary Sunbeam appliances since 1910. Their products have included the Mixmaster , the of Corporation Products, Inc. Sunbeam CG iron, Coffeemaster and the fully automatic T20 . until 2016 when Jarden AHI was purchased in September 2004 Sunbeam was owned by Jarden Consumer Solutions after Jarden's Corporation was purchased by the Jarden Corporation acquisition in 2004. Since Newell 's purchase of Jarden by Newell Rubbermaid to Corporation, the brand has been owned by company. form Newell Brands

Data from Wikipedia.org Photos from Image.google.com Resources Map

Partnership Abilities Brand Brands from parent company might be able to provide technology support for materials and sealing.

Newell Brands - Parent Company of Sunbeam Newell Brands is an American worldwide marketer of consumer and commercial products with a portfolio of well-known brands.

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Calphalon Cookware | Crock-Pot | Foodsaver | Cookware, Cutlery, Bakeware, The Original The #1 Vacuum Sealer Kitchenware & More Strength in its trademarked slow- Famous for its vacuum sealing Famous for its Hard-Anodized cook crock pot products. technology used in food savers. Aluminum and other materials used in cookwares. High-end. Operational Model Evaluation

Product Leadership Customer Intimacy Product Leadership 8.5/10 or 2/10 5.5/10

" This heating pad is the best I've " I have had about 10 irons during used, among a number of brands my years of sewing professional and models intended for home use sewing and this one is the best iron and of this approximate size. " I have purchased, hands down!!! " Some of Sunbeamp poducts are doing great, especially in the heating pad Sunbeam products have some variation in products, and color variation, but product line (for pain relief and for bedding). Irons and breadmaker also have not much. a great market share. The quantity of their products are heating pad (at least 10 major ones + 10 However, other products in the company is not receiving good reviews and heated bedding) -> 8 irons -> 6 mixers -> 1 maker have little product sales.

Operational Excellence 6/10 Customer Operation Former CEO of Sunbeam Inc., Albert J. Dunlap was found faking company Intimacy Excellence financial report. After the fraud was discovered, Sunbeam's stock took a dive and in 2001, it filed bankrupcy. Then Sunbeam was taken over by Jarden Corporation, which was later acquired by Newell Rubbermaid. Newell Brands was formed after that. Overall Although there was no revenue information for Sunbeam, the revenue - (Some) Great products information of Newell Brands is doing great and the stock market has a - Average customer intimacy (Ordinary) positive reaction towards it. So it can be assumed that Sunbeam is doing great under the operation of Newell Brands. - Average company operation (Getting better)

Product photos from Sunbeam.com Stock photo from Bloomberg.com Customer Segmentation - Breadmaker

Who Would Use A Breadmaker? What Are the Characteristics of Where Does the Current Customer These People? Segment of Sunbeam Breadmaker - People who MAKE BREAD - Enjoy the process or get the job done Lie in the Matrix? With so many bread choices from grocery stores, getting one isn't a - Care about price or not difficult thing. Therefore, the ones who uses a breadmaker\ " All in all, we thought that this machine is the perfect option for those would be the ones who are 1)not satisfied with factory made even store - Explorative or conservative looking for an inexpensive machine. It does what all the other fresh baked bread and who would want to 2)make bread themseleves. - Have proficiency in cooking or not expensive models do (bake tasty bread!), but don’t expect it to make a 3)The ones who enjoy cooking and 4)who love homemade food will perfectly browned loaf like the expensive models, not rumble as it bakes probably use a bread machine to make bread themselves the 2-pound loaf, or not breakdown after 3 years. If you want a more reliable machine, maybe it’s worth paying more for another model. For the price, we were happy with our Sunbeam 5891 purchase. "

- People who want to make bread EASIER Review from Breadmachinepros.com Among those who actually makes bread, there are people who prefer to make bread with hand entirely and the ones who would use a bread machine. A bread machine is used to help them 1)save time, 2)with their physical limitaions (strength needed when making the ) and 3) Explorative Performance discover new recipes.

Michelin Chef Idealist Adventurer - people who Perfectionist - people who challenge - people who - people who want to improve themselves to be look for the best look for the the best coolest Practical Aspirational - People who want to MAKE DOUGH- Newbie Proficient Focused One-dish Practicalist Deal Finder RELATED DISH Learner Chef - people who - people who - people who in Nowadays, some bread machines have the function of making ferment - people who is just want to get search for the dough for and cake. Some can even make jam. This could also be a just want to learn to do the good at making things done cheap one in the reason for people to purchase a bread machine. traditionals specific bread cheaply coolest

Conservative Cost

Icons by Jaime Wilson, Dávid Gladiš, icon 54, Made Somewhere, Andrey Vasiliev, Artem Kovyazin from Thenounproject.com Customer Segmentation - Other Sunbeam Products

Heating Pad - Health Iron - Household Current Sunbeam Average Price Range $30 - $50 Average Price Range $20 - $35 Customer Segment

Performance

Perfectionist Idealist - people who - people who look for the look for the best coolest

Practical Aspirational Practicalist Deal Finder - people who - people who in just want to get search for the things done cheap one in the cheaply coolest

Cost Aimed at pain relief, Sunbeam's best selling product heating pad is priced Same situation for Sunbeam's 2nd best selling product - irons. They are of Sunbeam products are aimed at people with normal income. These people from $10 to $50. There's no other competition in heating pad category low price and ordinary tech. But the price difference between a high priced are kind of cost sensitive. since the top 15 on Amazon.com are all Sunbeam product. iron and the ordinary priced iron is $20 - 30, which is not much difference. At the same time, products provided by Sunbeam are not the ones with the The product itself does not have a cool and fancy look. There's not much most cutting edge technology. They are using common technology where high-end technology in this product category. And the price is faily low. other companies all have. But the strength of Sunbeam seems to be that it Therefore, this product is more aimed at the common market than a high- is able to utilize their operation and resources to create the best sellers end one. within certain price. This low-price, low-tech strategy works well in the products where technology doesn't make much of a difference. However, when the product requires high technology to provide a great experience, Sunbeam loses the battle there.

Data and images from Amazon.com Breadmaker Market Lifecycle

Growth Period - Approaching Mature

Currently there are around 300 at least 10 different kinds of recipes. . Healthy eating is different bread machines in It is when a product is approaching the new fashion. The trend here is market. (According to Amazon its mature period that all products that more and more people are data). Yet there are not much within the group becomes similar. returning to kitchen to cook. There specification difference between However, the opportunity here is will be new needs due to behavior them. It is a standard for all bread that people are becoming more change of customers. makers to be able to make a 1.5 - concerned of what they eat in the 2 lb loaf, 13 hours time delay and

Product Models in Market: 295 Data from Amazon.com Sales Revenue Sales

Time Introduction Growth Mature Decline Competition Landscape

GENERIC - Cooking BUDGET CATEGORY Utensils - Homemade, Family - Kitchen FOR (Nostalgia) Appliances - Enjoy cooking - Hands-on FORM - Speed up Process - Breadmakers Experience - Healthier Lifestyle

Afterall, people cook to live, and live to cook. Whether it is for family or to live a healthier life, people cook for a reason. It is the reason that the Data and images from Amazon.com company need to take more into consideration. Competition in Breadmaker

Tier 1 - Low-price Beginner Professional

4 out of 14 products fall into this tier. Possible Opportunity 06 BB-PAC20 10 Zojirushi BB- 13 Sunbeam + Oster products are also $284.99 Current customers for Sunbeam CEC20 $229.14 BBM800XL in this tier. They are low price, with + Oster are the ones prefer low $245.79 getting-by functions and the sales priced products. data are good. There might be opportunities to provide products with a little more professional features with slightly increased price. Tier 2 12 Zojirushi BB- - Medium-price Pro HAC10 $178.99 Low Price 04 High Price CBK-200 $99.99 09 6 out of 14 products fall into this 02 Cuisinart SD-YD250 CBK-100 $64 07 Breadman $104.99 tier. They have some professional BK1050S $89.99 functions and their prices are higher. This is the largest market according to sales data despite the fact that the 14 Rosewill RHBM- average price is higher. At the same 15001 $54.99 time, it has the fiercest competition. 08 Gourmia 11 Kuissential 01 Oster CKSTBRTW20 GBM3100 $89.99 $53.99 $89.99 03 Hamilton Beach 05 Sunbeam 5891 29882 $46.55 $49 Tier 3 - The Professional

Green Number is the product Amature 4 out of 14 products fall into this Despite the fact that they are ranking on Amazon.com tier. They are the professional ones expensive, they are selling pretty with price that is extremely higher good. The assumption is that the than others. It also requires far better ones who actually makes bread technology than other tiers. This tier are the professionals who wants is dominated by Japanese brands like to make extraordinary bread and Zojirushi. other dough-related food. Data and images from Amazon.com Personas and Market

Young Vegetarian, Food Savvy, Housewife, Direct competition between Personas 22, single 32, has a girlfriend 50, mother of two Sunbeam and Oster when they are -- Love organic, homemade -- with good skills and want to -- Experienced and healthy food get better -- Family-centered: prepare the same company -- Help him learn -- Party lover, enjoy cooking food for family, connect Sunbeam + Oster products are targeted at the same customer group Product -- Healthy recipes for his girlfriend and friends family members and their price is similar. They are competing with each other with the -- Cooking is a hobby, more -- Cooking is part of the duty customers they share. Price control, quality, ways to get -- Time saving, do the job; Opportunity: Use similar product or slightly higher-tech product to gain better do good job customers. Short term: Expand to the same price slot but accommodate more customers Long term: Use higher technology to build a higher value product. $150 and UP And apply the lower version of the technology to create new generation of low-price product.

$100 - $150 Long Term Opportunity

$50 - $100

Short Term BELOW $50 Opportunity Problems Facing Sunbeam

Problems for Sunbeam Breadmaker Problems for Sunbeam Company Problems for Sunbeam + Oster

- Product too old - Too many product category - Direct competition Sunbeam breadmaker was first available in 2001. After more than a decade, Sunbeam Products have a lot of different products. The problem is there Sunbeam acquired Oster in 1960 and they the product Sunbeam is offering is still the same one from 15 years ago are too many different categories that it seems to lack focus. The formed a new company called Sunbeam + Oster. while offerings from other companies are much newer. On the one hand, it's consequence for this structure is that the company spend a lot of money However, after all these years, these two brands are a good thing that the product is still making a profit. On the other hand, a trying to mange current product lines. Among these product lines, some of targeting at same customer segments and are way too old model is not good for competition and gain new customers. them are making profit but a lot of them are badly designed and are losing directly competing against each other. The battle money. The bad products create a bad brand identity for this company, consumes money and is not helpful for further which is disastrous for company's long term development. development of both brands. There are signs that Sunbeam + Oster group is focusing more on the Oster brand as Oster brand has a more unified and complete product portfolio than the chaotic one that Sunbeam brand has. first available Oct. 2, 2001

- Too little product Sunbeam have one and only one product in breadmaker category. Although it's a bestseller in its price range, it is not going to help Sunbeam expand for a longer time period.

Old Products

New Products Sunbeam Healthy

Data and images from Amazon.com Strategy for Sunbeam + Oster

Sunbeam Oster

New Customers Household Kitchen Kitchen Pain Relief Pet Current Appliance Appliance Appliance 2nd Step: Expansion - Heat Pad - - Mixer - Heated - Heater - Toaster Bedding - Iron - Countertop - Icecream Future Maker 1st Step: - Panini, Pie, Penetrate Simplify portfolio, keep the Bread Maker Extension neccessary and eliminate the not so - Water Heater Current good product lines. Customers

Separate kitchen appliance and Current New combine it with Oster to form Oster Offerings Offerings Kitchen Appliance. The rest within Sunbeam form Sunbeam Home Sunbeam Home Oster Kitchen Products. Products Appliance Breadmaker Strategy -- First step, consider bringing -- Last but not the least, build in new products for current a service system besides the users with the same price and products, e.g. more recipe technology strategy. recommendation + ingredient -- Second, invest in new packet service, to attract new technology and new product. customers into this fantastic Contigo Calphalon Cookware Crock-Pot Produce higher-end products to bread making hobby. Resources gain new customers and new Famous for its air Famous for its thermo- Famous for its Hard- Strength in its market segment. from parent purifier technology. technology and sealing Anodized Aluminum trademarked slow-cook technology used in water and other materials crock pot products. company bottles. used in cookwares. High- end. Disclaimer: Further evaluation requires more information and analysis.