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Electrolux aims to boost catering equipment share.

Electrolux Aims to Boost Catering Equipment Share

The world's largest white goods manufacturer, Electrolux of Sweden, has set its sights on becoming the leading producer of equipment for the European foodservice (catering) industry. The company has restructured itself to accomplish the task, designing a strategy of integration and cooperation to gain ground in continental and global markets.

Mr. Azzaline, head of corporate development and control for the foodservice division, explained the objectives with the slogan: "35 14 40." That's shorthand for the company's goal of earnings. A 35% return on net assets, producing 14% operating profits, and carving out a 40% market share. Already off to a good start, division sales increased to SEK 4.8 billion in 1990 from 1.4 billion five years earlier.

Electrolux was once held within parameters basically determined by the marketing range of company brand names such as Zanussi in southern Europe, Therma in central Europe, and Electrolux in the north. The new structure created five units: three geographical (the same basic division of the continent) and two product oriented ("Dynamic Preparation & Baking" and "Vending Machines").

However, the cooperation-integration theme breaks the product name framework and allows for a pan-European marketing mix for the group's 50 subsidiaries producing 30 brand names for global clients.
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Title Annotation:Electrolux of Sweden
Publication:Quick Frozen Foods International
Article Type:Brief Article
Date:Oct 1, 1991
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