Italian white goods manufacturer Merloni Elettrodomestici is to reorganise its cooking appliance operation to focus on Cannon, Hotpoint and Indesit over the next year, as it moves to simplify its brand portfolio. The strategy will see Creda become a sub-brand of Hotpoint. Hotpoint absorbed the Ariston brand in the UK last year (MW march 25, 2003).
The move will enable Merloni to consolidate its marketing resources behind fewer brands. The Hotpoint range will now include a line of traditional electric cookers called the Creda Collection.
Merloni UK marketing director Neil Tunstall says the move is a step towards making Hotpoint the number one brand in cooking. It is already the UK’s leading washing machine brand.
Merloni plans to position Cannon, the leading brand in gas cookers, as its premium brand. It intends to extend Cannon’s range to include electric and dual-fuel products. Indesit will become Merloni’s entry-level range.
Tunstall says the company will support the new strategy with an significant above-the-line spend in 2005, particularly for Hotpoint. The brand’s advertising is handled by Leith London, which was appointed earlier this year (MW February 12).
The move to focus on Hotpoint follows a revamp of the brand in February. It was given a new logo and moved towards more design-led products. It now uses the strapline “Design for the real world”.