Executive Q&A: With Maytag Buy, Whirlpool Is Awash in Sales
Can you guess what the No. 1 speed button on Whirlpool microwaves is?
Defrost?
Nope. It's popcorn. That's because the Whirlpool customer wants the easy user interface. On a KitchenAid microwave, the top speed button is melted butter. That's because the KitchenAid consumer is a home enthusiast who likes to bake. She wants the melted butter so she can bake.
What kind of car do you have, Dave?
I drive a 2001 BMW M5.
So you don't have the iDrive that comes in the newer BMWs? You know, the complicated computer system with the joystick and all the menus you have to page through?
I will never drive an iDrive. I'm going to save my 2001 for as long as I can.
What other big consumer trends do you see?
The aging boomers are an economic power. Every nine seconds a boomer retires. In 2005, one third of home sales were a second home. The boomers are much more design-conscious instead of function-conscious. For the first time, consumers are buying products not because they have to but because of new designs. Over one third of people who are buying front-loader washers, for instance, had washers that still worked. Mainly they are buying just for a new style.
So what are some of the most interesting new technologies you're working on?
A dryer that dries faster. A washer-dryer set that matches up on cycle time. Our newest washer-dryer was bigger and better but didn't have any intellectual property in it. We did customer research and sent it back to the developers. One problem we know is out there is inconsistent dryer performance, often caused by lint. So we made a dryer with two motors. The second one is a variable-speed motor that can measure air pressure and kick it up a notch to blow out the lint if it senses a problem.
What other features do consumers want?
Fast-fill water on a washing machine. Different kinds of nozzles on a fridge's water dispenser, so the water doesn't spill. A water line that goes through the freezer so the water comes out colder. We've worked on steam cooking that can grill a steak in a microwave in about three minutes.
A microwave steak? Yuck.
Actually, it's pretty good.
Which competitors do you think are doing the most to appeal to these evolving consumer tastes?
We benchmark them all. LG is the most interesting. Part of the challenge we have is speed to market. GE and Fridge (Frigidaire) are very important, but the one that probably keeps me up at night is LG.
Do you need to start doing more manufacturing in China to stay competitive?
We do go to China and other low-cost countries for materials, subassemblies, and components. We get motors from China, for example. But it helps our manufacturing in the U.S. if we have low-cost sourcing. Which will increase. We don't just get stuff from China but also from Southeast Asia, India, South America, and eastern Europe.
But I don't think we need to do final assembly overseas. That's where we use lean manufacturing and continuous improvement. At our plants in the U.S., we have the right investment in technology, logistics, and distribution.
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