Life Just Got Easier.

Portfolio Analysis & RecommendationsProduct Planning, Fall 2012Alison W. Tisza

2

Company History

1924John Oster Sr. founded the John Oster Manufacturing Company.1930

The Sunbeam Mixmaster stand mixer was introduced.

1946The Chicago Flexible Shaft Company became incorporated

1957Sunbeam Mexicana, S.A. de C.V. opened in Mexico.

1971The Rival Company introduces the Crock-Pot slow cooker.

1982The Holmes Group is formed by Jerry Kahn.

1972The Mr.Coffee brand invents first automatic drip coffeemakers, providing both convenience and affordability for household use.

1989The FoodSaver brand is launched, offering consumers high quality vacuum sealing and food storage solutions.

1992The Holmes Group acquires The Rival Company.

1998Sunbeam-Oster Corporation acquired Signature Brands (Mr.Coffee products).

2002Sunbeam-Oster Corporation successfully emerged from bankruptcy protection as a private company and new identity — American Household, Inc. (AHI). Its former household products division became the subsidiary Sunbeam Products, Inc.

2005American Household, Inc. is acquired by Jarden Corporation (JAH) in January. In March, Sunbeam Products, Inc. began doing business as Jarden Consumer Solutions to better reflect its new heritage as part of the Jarden family of companies and better identify with all of its world-class brands.

In July, Jarden Corporation acquires The Holmes Group and begins combining its businesses into Jarden Consumer Solutions. In August, Jarden completes the integration of its FoodSaver and VillaWare brand businesses into Jarden

1989The Mr.Coffee brand introduces the first automatic Iced Tea Pot, the first automatic iced tea maker.

1897The company was incorporated as the Chicago Flexible Shaft Company.

1910The company began manufacturing its first electric appliance, an iron named “The Princess,” marking the beginning of the Electrical Appliance Division.

1932The Rival Company is formed in Kansas City, Mo., with the introduction of its first product – the Juice-O-Matic juice extractor.

1960Sunbeam acquired the John Oster Manufacturing Company and introduced the Osterizer blender, a completely automatic blender.

1893Two founders of Sunbeam, John K. Stewart and Thomas J. Clark, began manufacturing and selling a commercial horse clipping machine in Chicago.

1981Sunbeam Corporation acquired by Allegheny International, Inc.

1989Allegheny International, Inc. is dissolved and Sunbeam-Oster Corporation emerges.

The Sunbeam Corporation is an American brand known for producing electric household appliances. With modest beginnings in 1893 as a manufacturer of commercial horse clipping machines, the company - then known as Chicago Flexible Shaft Company - introduced the Princess Electric Iron in 1910. The iron marked the beginning of the Electrical Appliance Division.

Although the company did not officially incorporate itself as Sunbeam Corporation until 1940, it introduced the Sunbeam branded Mixmaster in 1930. The Mixmaster was the first mechanical mixer with two detachable beaters whose blades interlocked. It served as Sunbeam’s flagship product for the next forty years.

In 1960, after the acquisition of John Oster Manufacturing Company, Sunbeam introduced the Osterizer, the first fully automatic blender. Through multiple acquisitions and brushes with bankruptcy, in 2005 Sunbeam became part of Jarden Consumer solutions. Sunbeam has continued to develop and innovate a variety of small electric appliances, from irons to self heating blankets to blenders and mixers.

3

Company Today

Value Proposition

Life Just Got Easier.

Sunbeam products promise to enhance the daily lives of consumers in and around the home, making otherwise mundane experiences more satisfying through its offering of innovative household products and the ease with which they can be purchased.

Sunbeam has widespread brand recognition, which is synonymous with quality and durability. They develop and manufacture a variety of small household electrical appliances while steadily adding new products to their portfolio, such as the warming blanket that adjusts heat by sensing the body’s temperature.

The company also has quick distribution by means of electronic communication with the customer, and works closely with retailers to promote efficiency and service.

ProductLeadership

OperationalExcellence

CustomerIntimacy

Structure, Earnings, and Goals

#379 on the Fortune 500

• The Sunbeam brand is part of the Consumer Solutions segment of Jarden Corporation.

• The Consumer Solutions segment had sales of $1.9b and earnings of $275m in 2011, which is 28% of Jarden’s total sales and 31% of total earnings.

• The international division accounts for 40% of sales.

• The international division markets Consumer Solutions products in over sixty countries, primarily Canada and Latin America.

• The goal for the Consumer Solutions segment is leading market share.

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Portfolio

$79.99

$19.99

$39.99

$59.99

Travel Iron

GCSBTR-100

$19.99

Hot-to-Trot Compact

2630

$19.99

Auto-Off

3985

$24.99

Steam Master Retractable Cord

GCSBCL 100, 200, 201

$24.99

Touch Up and Go

GCSBTG-100

$24.99

Classic

GCSBCA

3017-3028

$27.99

Compact

Value

Turbo Steam Master Pro

GCSBCS 1

GCSBSP 150, 200, 201

$39.99

Steam Master

4229 - 4235

GCSBCL 212-250

GCSBSM 229-450

$39.99

Mid-Size

Professional Digital

4267

GCSBDS 212

GCSBDG 103

$49.99

Simple Press

3050 - 3059

$49.99

Convertible Iron / Steamer

GCSBRS 100 - 105

$79.99

Full SizeLack of Differentiation

The Sunbeam iron portfolio suffers from a homogenization of offerings. Augmentation-by-addition has resulted in similar features, and similar names (most of which have numerous SKUs) across models. The products have converged and benefits between models and lines are unclear.

Doesn’t Target Customer Segments

The different iron lines offered by Sunbeam are mostly based on iron size, with one line that was created to capture the low end of the market, and do not target particular needs or outcomes.

Characteristics• Range of colors• Range of price points• Similar features• Similar construction

Themes• Ease of use• Enjoyment of use• Durability

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Industry

Ado

ptio

n

Initial Growth Maturity Decline

The market for irons is mature. Prices have stabilized, customers have high brand recognition, and differences between brands and models are minimal.

Opportunities include experiential innovation and extending customer reach.

Price Features Quality Availability Design

High

Medium

Low

Familiar names such as Black & Decker, Hamilton Beach / Proctor Silex, and Sunbeam are low to mid market brands that have captured the majority share of the iron market. Irons produced by other brands, such as Euro-Pro Shark, Panasonic and Rowenta are more premium brands that are also available.

Given the lack of product performance and delivery differentiation between brands, opportunities may include process or product system innovation.

SunbeamBlack & DeckerHamilton Beach

Value CurveLIfe Cycle

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Competitive Landscape

Sunbeam Black & Decker Hamilton Beach Panasonic

Form - Irons

SharkHandheld Steamer

RowentaSteamer

SingerSteam Press

Category - Ways to achieve wrinkle free garments

Generic - Ways to achieve nice looking garments

SunbeamClothing Shaver

3MLint Roller

Kenmore EliteSteam Washer and Dryer

Steam in Shower

Dry Cleaners

Eddie BauerWrinkle Free Clothing

TideDetergent

CloroxBleach

OxiCleanStain Remover

Budget - Ways to look nice and feel better

Haircut Makeup Accessories Jewelry Shoes

Stress Relief Candle

Exercise

An iron is an inexpensive way to make the most of the clothing that you already have.

The iron, however, finds itself in competition not only with other irons, but with a variety of other garment care products. Some of the generic competitors, such as the steam washer and dryer, promise to deliver clothing with fewer wrinkles.

On an even higher level, the driving factor behind wrinkle free clothing is to look and feel better. On the budget level the iron has many competitors that achieve those same goals.

Botox

Massage

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Customer Segments

Iron MaidenIron It Yourself IroncladIronic

Now that Iron It Yourself’s children are out of the house she’ll send them care packages of cookies along with an iron. After all, mom can’t do the laundry forever.

Ironic’s wardrobe either consists of t-shirts or he sends everything to the dry cleaner’s. He does, however, have an iron for that once a year wrinkle. Ironic, don’t ya think?

To Ironclad, ironing is part of the daily ritual. He’ll iron one or two things every day.

Once the Iron Maiden gets going she can’t be stopped. Batch ironing might be downright torturous but she’ll see it through.

Psychographic

Behavioral

She is first and foremost looking for safety and ease of use. She’ll pick a brand she recognizes and is willing to pay a little more for peace of mind.

Female40 plus years oldMarried with childrenMiddle class

He thinks and iron is an iron. He’ll uses it so infrequently that the fancy features don’t mean much to him and he’ll pick the least expensive option available.

Male or Female18-30 years oldSingleWorking and Middle Class

For him, it’s a must have item, he is willing to pay more for an iron that’s quick to start up and quick to put away. Time savings and ease of use are the two biggest things he’s looking for.

A must have item for her as well, she’ll pay more for an iron that is comfortable to use for long periods and will save her time during her weekly ironing marathons.

Male or Female18-30 years oldSingleWorking and Middle Class

Female30-60 years oldMarriedWorking and Middle Class

Demographic

8

Portfolio Options

New Customers

Current Customers

Current Products New Products

Extend - Consistent Design Language

Sunbeam’s irons do not have a consistent design language. They come in everything from monochromatic and angular to colorful and rounded. Buttons for operation are located in different positions across models. If Sunbeam were to redesign existing product housing to have a consistent aesthetic and mode of operation across products they may be able to attract new customers.

Diversify - Laundry Innovations

Sunbeam’s competitors in the garment care arena are not all post laundering products, but includes laundry appliances, such as the relatively new steam washer and dryer, which promise to dewrinkle clothes.

If Sunbeam were able to develop a product that could be used in tandem with a customer’s current non-steam washer and dryer set up to dewrinkle clothes, they would be able to capture new customers.

Penetrate - Simplify the Purchasing Process

Sunbeam’s current portfolio is arranged around iron size. For a buyer, the differences between models and brands are unclear. Sunbeam can simplify the purchasing process and further penetrate its customer base by removing redundant products, creating meaningful naming conventions, and reorganizing the product line around the customer segments / behaviors.

Expand - Ironing Add Ons

While Sunbeam’s offering includes irons and steamers, they do not offer adds on to make the ironing process easier. Supplements for existing irons, such as heat resistant cases for quick iron storage or a cord keeper that turns a regular cord into a retractable one, can help meet the diversified needs of the customers without the need to introduce a new model.

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Portfolio Recommendations

Strategic Importance

Market Attractiveness

Technical Feasibility

Competitive Advantage

Core Competencies

Financial Reward

Total

Rank

Pene

trate

Exte

nd

Expa

nd

Diversi

fy

10

7

10

10

4

4

45

2

10

7

10

7

7

7

48

1

7

7

10

4

4

7

35

3

4

4

4

7

7

10

36

4

Rating Scale: 1-4-7-10

Long Term - Consistent Design Language (Extend)

In the long term, Sunbeam’s iron line would greatly benefit from consistent design language - everything from the product housing the naming conventions. Creating consistent aesthetics and modes of operation will help attract new customers, further align the product line with the company’s strategy of distinctive designs, and continue to build brand strength.

Short Term - Simplify the Purchasing Process (Penetrate)

Simplifying the purchasing process, by removing redundant models and aligning the product lines with the customer segments is a feasible short term goal. While it will not generate immediate financial rewards, it will help solidify the product line’s strategy - “Life Just Got Easier” - and put it in a better position for developing future products but having more defined requirements.

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References

Research

http://www.sunbeam.com/Index.aspx?section=garmentcarehttp://www.jarden.com/http://www.jardencs.com/http://www.fundinguniverse.com/company-histories/sunbeam-oster-co-inc-history/http://www.hotstocked.com/companies/j/jarden-corporation-JAH-description-58529.htmlhttp://www.appliancedesign.com/articles/92180-23rd-annual-eid-winners-distinctive-designs

Photographs

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