Launch of the Neptun washing machine

Maytag has jointly
with the Leo Burnett Public Relations agency
Silver Anvil Award for 1998.

Overview

While front-loading washing machines have long been the standard in the European market, the North American market has always favoured the top-loading washing machines with which it grew up. In 1992, the US Department of Energy passed severe energy restrictions and water conservation regulations. At the same time, Maytag began developing the Neptune high-efficiency washing machine. It was in connection with the government regulation that Maytag predicted the opportunity for long-term profit and the need to invest $50 million to be used to enter the washing machine market. Maytag invited Leo Burnett to work with it on a PR campaign to bring this truly revolutionary laundry product to market. The plan began in April 1996 with the release of a white paper, followed by a national launch in March 1997 and a joint programme with the Department of Energy in the summer of 1997.

Research.

• A prototype washing machine was developed; Maytag and Leo Burnett conducted a focus group survey to see how consumers would perceive the new design proposed by Maytag Maytag then refined the product to tailor it to the needs of consumers
• Leo Burnett has appointed a high-efficiency washing machine specialist group consisting of representatives from three key related fields: Seattle Water Department, Electric Power Research Institute and the Department of Energy (DOE), and included three representatives from Maytag.
• Leo Burnett has gathered and analysed information on existing European front-loading washing machines and is ahead of its competitors in planning to improve such appliances and/or the point of view on this issue.
• Leo Burnett has researched and identified 12 key target markets with water shortages.
• The agency commissioned and published a series of editorials on trade, consumer protection and the environment to keep the public informed about Maytag's successes in this area and help identify consumer hotspots.
• In the course of its market research, Leo Burnett found that Maytag faced several obstacles: 1) consumer scepticism: Will they do what they promise? Will it be worth the price? Will I really save on utilities? 2) concerns of trade organisations: How will these models compete with European models? Will Maytag really be able to make a difference in the market? 3) competitors' reactions: How will the competition be perceived by wealthy citizens?
• The information obtained from the white paper was used to develop a complete list of media outlets.
• Leo Burnett studied other programmes of the Ministry of Energy to determine how to behave when working with a government organisation.
• Research was conducted in Berne, Kansas, to continue to monitor customer satisfaction.

Planning

The project was developed in close cooperation with Maytag's PR department, taking into account the findings of the research, as well as commercial and PR objectives. The PR plan was analysed throughout the planning process due to changes in the washing machine production schedule. As a result of intense competition, confidential Neptun design development and preliminary research, a two-year programme was created at a total cost of $500,000.

PR objectives

• Disseminate information about the launch and benefits of horizontal axis washing machines, especially the Maytag Neptun.
• To increase the level of trust in Maytag as an innovator and leader in the relevant product group.
• To show consumers and retailers that Neptun technology does not contradict Maytag's core principle of reliability.

Commercial objectives

• Convince consumers to buy this washing machine rather than wait until their existing washing machine breaks down.
• To achieve the targets set for the production and sales of washing machines.
• Raise share prices.

Strategy.

• Gain supporters among editors and in related industries.
• To raise the expectations associated with the launch of a washing machine.
• Focus media coverage on the product.
• Hold a spectacular event to mark the launch of a product on the market.
• To win over the business community to the side of high-efficiency Neptun washing machines.
• Maintain the momentum until the product is available for retail sale.

Target audiences: Media (reports on trade, home, women, parents, children, technology, business, environment, new products, design, entertainment and marketing), service industry, related industries, water-scarce markets, consumers, retailers and other groups. The unique benefits of the Neptun washing machine allow you to go beyond the usual target groups.
Materials and sources: White paper, database of 2,000 people, display of eye-catching advertisements, invitations, scripts, press releases, press telegrams, audio and video press releases, local wire services, websites, newsletters, briefing brochures, internal information for stores, surveillance via video, print, internet, fortnightly reports, brief final issue.

Implementation

• A team of specialists from the main executors of the market launch programme representing related fields was created.
• A White Paper (10 pages) was published to inform key correspondents and related industries about the problems in water supply, explaining the proposed truly revolutionary technology, its advantages and the capabilities of the Neptun washing machine in conserving water resources.
• A team of specialists has been trained to focus their efforts with the media on key messages about Maytag.
• The product was also promoted at national trade fairs, which helped to build a favourable impression of the product.
• To attract media attention, the company used the mystery effect of the series of publications to fuel interest.
• An intriguing invitation was created to attend the Neptun presentation at the new Lincoln Center in New York.
• The media were invited to participate in the event and cover the presentation.
• The event/product was positioned under the common slogan "Maytag defines the future".
• We developed "The 4Cs" - a short, memorable way to package information about the main benefits of Neptun: 1) Environmental protection: Neptun saves 40% of water and 65% of energy compared to conventional top-loading washing machines; 2) Power: The Neptun is the most powerful washing machine on the market, capable of washing 10 queen-size sheets (the largest sheets) at a time, with a unique drum that makes loading and unloading easy and convenient; 3) Clean wash: removes stubborn grass and blood stains better than traditional washing machines; 4) Gentle wash: treats laundry more gently due to the absence of an agitator, and does not stretch or compress laundry.
• Printed press materials were prepared and distributed via the website.
• A presentation script was written and instructions for clients were developed.
• The Neptun was unveiled to more than 200 people, including representatives of the media, the industry and retailers. The event was featured in the main news bulletin of well-known TV mums for ten days, along with traditional Maytag and Ol'Lonely washing machines and repair services.
• A local news agency was set up at the Lincoln Centre to distribute materials and prepare interviews.
• A unique strategic partnership was conceived and implemented between the Ministry of Energy and the city of Bern, a small water-stressed city, to draw attention to the Neptun washing machine and illustrate energy and water savings.
• To spread the word about Neptun's benefits and develop a discount system, we worked with the utility departments to develop a discount system.
• Two videos were edited: a presentation of Neptun in terms of water and energy savings and the results of the campaign in Bern.

Evaluation

The following tasks were completed.
Task 1: to introduce the benefits of high-efficiency washing machines, especially the Neptun brand by Maytag.

• By distributing the White Paper, we focused public attention on the benefits of high-efficiency technology, where Maytag was mentioned as a leading manufacturer of the product group.
• Utility departments have requested information on laundry tab technology for consumers.
• The letters from consumers published by the editors were favourable to Maytag: "I commend this manufacturer for launching a consumer education programme to introduce high-efficiency washing machines to the public."

Task 2: to create a trustworthy image of Maytag as an innovator and product group leader.

• Two other US manufacturers were also offering high-efficiency washing machines at the time of Maytag's launch. The turning point in media coverage occurred after March, when publications about this product group appeared, including brief reports in the Wall Street Journal and the New York Times.

• The washing machine has won several awards, including the Kitchen and Bath Invention of the Year Award, the American Marketing Association's Edison Award, Today's Homeowner magazine's Best New Product Award, Nota Magazine's 1998 American Building Product Award, and the 1998 Machine Manufacturers Award for Best Design. "American Building Products, 1998 Machine Builders Award for Best Design.
• The media coverage of the presentation was positive, with headlines, third-party endorsements and enthusiastic editorial comments
• Many of the articles that distinguished Maytag from the competition and described the Neptun as a high-performance washing machine designed specifically for the North American consumer also highlighted Maytag's distinctive features and benefits ("The 4C's")

Task 3: to show consumers and retailers that Neptun technology is in line with Maytag's core principle of reliability.

• The headlines and articles linked Maytag continuity and Ol'Lonely traditions, and "changes at Maytag are beginning to be seen in practice, but the foundation of quality remains unchanged"

Tasks 4.5: to convince consumers to buy this washing machine rather than wait until the old one wears out; to achieve the set sales targets.

• Utilities across the country have fully expended the rebate budget for high-efficiency washing machines allocated for 1997.
• Just three months after entering the market, Neptun leapfrogged the previous sales figure, and six months later far exceeded expectations (Maytag's policy is not to disclose sales figures).
• Maytag workers were fully utilised due to the significant increase in production
• Thousands of washing machines were sold in advance on pre-sale sites as part of a programme specially developed for the Maytag website

Task 6: Maytag's share price increased.

• The financial markets responded to the efforts made to achieve success The company's share capital increased from 18% at the beginning of 1997 to 37% in week 52, almost doubling
• Analysts spoke positively about Maytag, citing the presentation of the Neptun washing machine as a reliable indicator of the company's future success.