SWOT Analysis for Walton AC

Strengths

1. Brand Recognition: Over the years, Walton has developed a solid brand reputation.
Walton was named the nation's most admired brand in the electronics sector, showing its
excellent brand image and customer trust, in a survey performed by Bangladesh Brand
Forum in 2021& 2022.

2. Wide Product Range: Walton provides a wide variety of air conditioner types, such as
split air conditioners, window air conditioners, inverter air conditioners, and cassette air
conditioners. They are able to meet the demands and preferences of various customers
because of their broad range of products, which gives them a competitive advantage in
the market.
3. Innovation in Technology: Walton places a strong emphasis on technological
innovation in their air conditioners. For instance, they have added capabilities to their
products like Wi-Fi connectivity, inverter technology, and sophisticated cooling systems.
These innovations improve user experience, boost energy efficiency, and set their air
conditioners apart from those of rivals.
4. Efficiency in Energy: Walton has made tremendous progress in creating air conditioners
that are energy-efficient. Bangladesh Standards and Testing Institution (BSTI) awarded
Walton's 'Inverna (Extreme Saver)' series AC a 5.5-star energy rating. This highlights
their dedication to lowering energy use and environmental effect.
 5. Distributive System: Walton has a strong distribution network that consists of
showrooms, authorized dealers, and online marketplaces. Customers in a variety of places
can easily access their air conditioners because of their vast distribution network.

Weaknesses

1. Limited Global Presence: Compared to certain major rivals like LG, Samsung, and
Daikin, Walton's global presence is somewhat insignificant. Even though they have
expanded into countries like India, Nepal, and the UAE, their market share in these areas
may still be lower than that of local companies and well-known international brands.
2. Inadequate Research: It's probable that Walton has trouble creating products that meet
market demands and struggles to properly target the right customer segments with their
marketing campaigns. Walton could find it difficult to position its products effectively,
stand out from the competition, and react to market developments quickly without an in-
depth understanding of the competitive landscape.

Opportunities

1. Market Growth: Urbanization, increased disposable incomes, and shifting climatic

conditions are all contributing to the enormous expansion of the air conditioner market.
By 2027, the global air conditioner market is projected to reach $945.4 million, according
to an examination by Allied Market Research. Walton now has the chance to increase its
market share and market presence in the expanding industry.
 2. Technological Advancement: Walton has options to innovate and set its products apart
because of technological improvements in the air conditioning sector, including as smart
home integration, IoT capabilities, and eco-friendly cooling agents. Walton can maintain
its position as an innovator in technical innovation, attract in tech-savvy customers, and
acquire a competitive edge by investing in research and development.
3. International Expansion: Walton may expand its global reach and investigate new
markets. For instance, they could focus on developing areas in South America, Africa,
and Southeast Asia where there is a rising need for air conditioners. Strategic alliances,
regionalized marketing plans, and knowledge of the particular requirements of each
market can all help to assist this expansion.

Threats

1. Intense Competition: With both domestic and foreign brands striving for market
dominance, the air conditioner market is extremely competitive. Competitors like LG,
Samsung and Panasonic have made a name for themselves as globally recognized brands.
Walton needs to consistently concentrate on product quality, customer service, and
efficient marketing techniques to set itself apart from rivals in order to mitigate this
threat.
2. Brand Perception: Walton may face challenges with brand awareness and perception in
some markets. This is particularly noticeable in international markets because customers
are more familiar with well-known global brands.
 3. Economical Aspects: Recessions, currency fluctuations, and inflation are examples of
economic challenges that might have an effect on consumer spending and the need for air
conditioners. Walton must keep an eye on the state of the economy in their target market.

Recommendation & Suggestion

Walton Air Conditioner has a number of advantages, including an adequate distribution network,
a reputable brand, a broad selection of products, technological innovation, and energy efficiency.
However, the business encounters difficulties like a limited global presence, poor brand
impression, high prices, and insufficient research. Walton AC needs to use focused strategies to
get over these challenges and boost sales and market share.

Product
 Identify the customer wants and preferences through market research, and take those
insights into consideration while developing new products. Invest in R&D to bring in
cutting-edge technologies like voice control, air quality monitors, or interaction with
smart homes. Promote these capabilities extensively in marketing campaigns to set
Walton ACs apart from rival products and draw in tech-savvy customers.
 Continue to broaden the product range to serve a larger consumer base and target
particular market segments. Introduce portable air conditioners for small apartments or
specialized air conditioners for commercial spaces, for instance.

Price
 Analyze significant competitors' pricing methods in-depth, and position Walton air
conditioners favorably. When combining extra services or extended warranties, think
about providing competitive prices or value-added pricing.
 To attract price-sensitive customers, implement promotional campaigns and offer
periodic discounts or rebates. Use holidays, special celebrations, or marketing events to
increase sales by creating a sense of urgency. Walton must keep an eye on the condition
of the economy in their target areas
 Distribution
 By collaborating with authorized dealers, merchants, and online platforms in domestic as
well as international markets, the distribution network can be expanded. To enhance
customer accessibility, ensure appropriate product placement and availability in key
stores and e-commerce platforms.
 To reach customers directly, develop and promote direct-to-customer channels like an
online store or mobile app. This enables Walton to keep control over the customer
experience, collect valuable customer data, and offer tailored offers or post-purchase
assistance.
 To find important emerging markets with significant growth potential, conduct market
research. Create regional marketing plans and distribution systems that are suited to the
demands and tastes of these regions. Design and specification changes should be made to
reflect the local climate and consumer needs.

Promotion
 Create an interactive approach for integrated marketing communications that combines
traditional and digital platforms. This could involve content marketing, social media
marketing, influencer collaborations, digital advertising, television commercials, and
online advertising. Also, a positive brand image can be developed through sponsorship of
relevant events, celebrity endorsements, community involvement, and PR initiatives.

 Through hashtag marketing and online reviews, encourage happy customers to share their
positive experiences. Utilize social proof to increase your credibility and establish trust
with potential customers. To raise brand awareness, take part in trade shows and sponsor
pertinent events. Create an emotional connection with the brand by interacting with
customers through interactive content and storytelling.

After- sales Services

 To make sure customer service personnel have the knowledge and abilities to offer
effective and efficient help, invest in training and development programs for them. Install
 a mechanism for collecting consumer feedback to learn more and keep service quality up
to par.
 To improve the entire customer experience, provide extended warranties, frequent
maintenance plans, and simple access to replacement components. To enable direct sales
to clients, create a user-friendly and responsive e-commerce website or mobile
application. Implement online customer support tools like live chat and chatbots to give
customers immediate assistance and improve satisfaction.

Conclusion

In Conclusion, Walton Air Conditioner may boost sales, market share, and brand equity by
putting these plans into action to address its flaws, seize opportunities, and take advantage of
its strengths. Walton can establish itself as a dominant player in the air conditioning sector,
serving the needs of customers on a global scale, through careful execution and market
dynamics adaption.

References

https://www.risingbd.com. (n.d.). Walton refrigerator gets ‘Best Brand Award’ for 9th time.
Risingbd Online Bangla News Portal.

Desk, T. (2023, January 19). South Asia’s most cost-effective Walton AC shows electricity
consumption at DITF. Dhaka Tribune.

Walton e-Plaza Provides 20% Discount on Online Purchase. (n.d.).

Portable Air Conditioner Market Size & Share | Industry Report-2027. (n.d.). Allied Market

Research.