DEPARTMENT OF BUSINESS ADMINISTRATION MAHARAJA SURAJMAL INSTITUTE Recognized by UGC U/S 2/f Affiliated to Guru Gobind Singh Indraprastha University (GGSIPU), Delhi. C-4, Janakpuri New Delhi-110059

Session 2009-2012

This is to certify that the project titled MARKETING MIX ANALYSIS OF HAIER IN SEGMENTS OF REFRIGERTORS is an academic work done by AKASH SHARMA submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Surajmal Institute, Delhi, under my guidance & direction.

He has worked under my guidance and I wish him all the best in his entire future Endeavour.

Dr. Rajeev Dahiya (Name of the Project Mentor)

2| Page

Success is an effort bounded activity that involves co-operation of all. I hereby take the opportunity to express my profound sense of gratitude and reverence to all those who have helped and encouraged me towards successful completion of the Project Report. It has been a great experience working on ‘MARKETING MIX ANALYSIS OF HAIER IN SEGMENTS OF REFRIGERTORS’. It gives me complete insight of this concept of marketing and its application. I would like to thank my Project Guide Dr. Rajeev Dahiya for his immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. I would like to thank all faculty members of Maharaja Surajmal Institute for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty, my parents and brother without whose concerned and devoted support the project would not have been possible.

(AKASH SHARMA) Roll no - 02914901709 BBA (Gen.) VI Sem.

3| Page



to get a toehold in an already crowded market. Haier India has also launched its brand of mobile phones in India. Continuous improvement in Product quality and post sales service at affordable price is common to all Consumer durable manufacturers across Industry. it has attained global recognition. Other cheap Chinese products have flooded the Indian market over the last few years.2-billion giant. but the company is now aiming to entrench itself as one of the mainstays of the global consumer electronics industry. But doing business in Indian Market is not easy. making no impression. Price Affordability.its country cousin like Konka and TCL entered. There are more worries than just fierce competition even for a late entrant like Haier.C segment” Consumer durables Industry is growing at a rapid pace. competitors marketing mix strategies and accordingly comparison can be done and which will ultimately help to offer the product with the right combination of the four Ps and with this Haier can improve their results and marketing effectiveness in Refrigerators. Product Awareness and availability have helped the industry players to generate great business.About the topic: “By the way of doing the marketing mix analysis for the Haier. leaving Haier with 6| Page . It has consistently been among China's top-performing companies domestically for the past 20 years. with unique technology and provide convenience by satisfying them with something new would surely attract customers. The company was established in 1984. a $9. Haier is known worldwide for “inspired living” of customers with the unique and patented product like Bottom Mounted Refrigerators. Haier Appliances which is one of the largest Home Appliances brand in the world. Almost the entire industry was unanimous that its image as a Chinese manufacturer will be a challenge -.refrigerators. But the company which would introduce innovative product. microwave ovens and dishwashers. but leaving some unpleasant memories. it will provide necessary market information. Haier India was launched in India in December 2003 and by August 2004 had an all-India promotion launched with over 55 products across six product categories -. including a 25th spot ranking in the World's Most Respected Brands list by Forbes in 2006. and in only 23 years. and left India. color television/DVDs. washing machines. washing machine and A.

little chance for a premium positioning. how to equip the people who are responsible for selling the product… and so on. there are so many players in the market and there is enough space for players like Haier seeing the economy grow at around 8-10%. Haier product categories range from refrigerators. But it is already more than 6 years of Haier launching in Delhi market. home theatre systems. how it should be priced. 7| Page . which prohibited the brand from building a mass appeal. one of the world brand evaluation organizations. air conditioners.189 patented technology certificates and 589 software intellectual property rights. and fighting this image is taking most of Haier time in India. listed by the World Brand Laboratory. Despite this Haier entered the Indian market with a premium line of products. Haier was named one of the brands among world’s 100 most recognizable brands. Although. 2004. The marketing mix is a vital part of any marketing strategy. water heaters and DVD players. televisions. computers. This is a tool whereby the marketer takes decisions on what and how a product should be. how it will be promoted. their business is not like what should be for the brand which is 2nd largest appliances brand in the world. On January 31. the Haier Group has obtained 6. refrigerating cabinets. where it can be sold. This calls reevaluation of Haier marketing mix strategies in the market. By April 2006. washing machines. Trade circles have similar apprehensions. mobile phones.

ALL ABOUT THE PROJECT: 1.C segments. 3.e. which ultimately suggests reevaluation of marketing mix in the market for Haier in these product categories and also to establish Haier from the scratch. Marketing mix analysis for Haier in Refrigerator. 4. and promotion in comparison with the competitors undertaking a strategic assessment of an organization’s environment also to identify potential opportunities and threats relevant to future marketing policy and building the effective marketing mix strategy for the Haier in the Ahmedabad market. It includes assessing the corresponding opportunities and threats. and recommending appropriate actions across the marketing mix to develop and/or protect HAIER`S products. 8| Page . Why marketing mix analysis for Haier appliances. manufacturing household electrical appliances in 96 categories with 15. But despite having better product range and better quality especially in refrigerator. product place. This is about evaluating the Haier marketing mix i. Marketing mix Analysis for Haier in Refrigerators. 2. price. Design of the study: • • To know the perception regarding the brand “Haier”. Brands like TCL and Godrej are selling in large numbers as compared to Haier. currently having 3% market all over the segments in Indian market. launched in India in 2003.100 specifications. Washing machine and A. Haier is world’s 2nd largest home appliances brand. washing machine and in AC segments are not doing well in the market. Washing machine and Air conditioners segment with their competitors. Identify and monitor competitors’ marketing strategies and activities: This is about monitoring key competitors’ marketing mix strategies and evaluating their Potential implications for Haier.

 To Study Haier competitor’s Marketing Mix Strategies. promotion.e. product.e. direct dealers. price. washing machine and Air conditioners segment with respect to others. Price. It will show where Haier product stands in comparison to their competitors . Which clearlyidentifies the different requirements that customers look to be satisfied and at what prices.e.  To analyze right strategic direction for Haier firstly by the way of studying current image of the brand “Haier”.OBJECTIVE OF THE STUDY:  To study brand awareness for Haier in the market place. SAMSUNG. different technology adopted by the players in these segments had been collected. what is the difference in terms of product offering.. an essential step is to gather information regarding marketing mix i. distributors. and finally to the customers. Place and Promotion. For the analysis of Haier Refrigerators. For product analysis detailed information regarding the product lines of major players. various product models. secondly through market mix analysis. their USP. It gives valuable inputs regard to difference that the brand is dealing with their competitors.  To produce valuable inputs for the Haier from the Market with respect to four elements of marketing mix. i. Product. pricing strategies of the competitors. Like if LG. 9| Page . place. finding loopholes and building effective marketing mix strategy for Haier in Refrigerator. satisfying same customer need. product features. ELECTROLUX are present in a segment. it will also give insight in to product requirement to fight with the competition and what are the Haier strengths in these segment in comparison to its competitors. WHRILPOOL. technology of the products. dealers. GODREJ. and then comparative Analysis with other major appliances players in the market. This also suggests competitors direct monetary pricing benefits to distribution intermediaries. and to know the different marketing mix strategies adopted by other players in the market so can the analysis of Haier product should be done. i.

Sample size was 20. Observing the number of marketing activities done by the other companies by keeping the record of activities done by them and analyze the difference between the others. by collecting and analyzing prices for the customers. For Place. Information and insights from the dealers regarding the Haier marketing proposition for refrigerators and washing machine. after that evaluating the feedback. Customer survey was done through a feedback form. journals. Obtaining secondary data on feedback from the existing dealers of Haier and other consumer electronic dealers in the Market through direct interviews. Primary Data Collection Primary data are those collected by the investigator itself for the first time and thus they are original in character and are collected for a particular purpose. For Promotion. For Product. 10 | P a g e . Common sources of secondary data collection are through company websites. organizational records& annual reports. and making recommendations towards enhancing the Haier marketing proposition especially “place”. 2. assessing the benefits and any risks associated with possible options. Sample size again was 20.RESEARCH METHODOLOGY: 1. For Price. Meeting with the dealers to know other companies pricing. To establishing and implementing processes for obtaining ideas.Secondary Data Secondary data is data collected by someone other than the user. and Haier’s marketing activities. Customer survey through use of a structured questionnaire was done.

Especially for promotional strategies of competitors. and even the environment plays an important role in the outcome of the results. geographic and monetary constraints.  Unavailability of data. it may not be able to go deeper in to search  This project is primarily focusing on Refrigerator product category.  There could be some errors. data interpretation.  Due to time constraints the sample size was relatively small (20) and would definitely have been more representative if I had collected information from more respondents.  Respondents may not provide full or accurate information during the survey.LIMITATIONS OF THE STUDY:  Due to time. data collection. 11 | P a g e .

Chapter 2: PROFILE OF THE ORGANISATION 12 | P a g e .

Shandong Province.  Headquarters: Qingdao.. Haier is the official Home Appliances Sponsor of the Beijing 2008 Olympic Games. Haier products are sold in over 100 countries. Ltd. washing machines.189 patented technology certificates and 589 software intellectual property rights. dishwashers.Corporate Overview and Company Facts The Haier Group is China’s largest home appliance brand and one of the world’s leading white goods home appliance manufacturers. China  Employees: Over 50. of Subsidiaries Over 240  Listed Subsidiaries: Haier Electronics Group Co. the Haier Group has obtained 6. mobile phones.000 13 | P a g e . China and manufactures home appliances in over 15.100 different specifications under 96 categories.. Haier was founded in 1984 in Qingdao.000 worldwide  Financial Information: Haier’s global revenue in 2005 reached RMB 103. Shandong Province. Ltd. Listed on the Shanghai Stock Exchange  Business Scope: Technology research • • Product development and manufacturing Trade Financial services  Key Product Lines: Refrigerators/Freezers. listed on the Hong Kong Stock Exchange Qingdao Haier Co. computers  Global Presence: • • • • Trading Companies: 64 Design Centers: 8 Industrial Complexes: 15 Sales Network: Over 58.4 billion  Average annual growth of 68% between 1984 and 2005  No. televisions. microwave ovens. By April 2006. commercial air-conditioners.

 Board of Directors • • • Chairman and CEO: Mr. Zhang Ruimin President: Ms. 14 | P a g e . Wu Kesong  Recognition: • Ranked 86th among the world’s 500 Most Influential Brands by World Brand Lab in 2006. Only Chinese brand to be ranked in top 100 for three consecutive years • Ranked 1st among Chinese brands with the most potential by Glebors Global Financial Reports of Canada. Yang Mianmian Vice Chairman: Mr. 2006 • • Ranked 1st among China’s Top 10 Global Brands by the Financial Times in 2005 Ranked 1st among China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines in 2005 • CEO Zhang Ruimin ranked 26th among World’s Most Respected Business Leaders by the Financial Times in 2005 • CEO Zhang Ruimin ranked 6th among Asia’s 25 Most Powerful People in Business by Fortune magazine in 2004 • Received a World Climate Award from the United Nations Development Program and the US Environment Protection Administration in 2000.

ACs and washing Machines categories. The facility was acquired as a part of Purchase of Appliances Business of Anchor Daewoo Industries Limited by Haier India. 400 crores in calendar year 2009. The India launch was started with innovative products which were designed keeping the day to day customer needs in mind -. the plant has capability to manufacture Refrigerators. CTVs and Washing Machines. In just over two decades as per Euromonitor Statistics of 2003. Haier clocked revenue of about Rs 325 crore in calendar year 2008. Spread over 40 acres of land. Ltd Haier India started its commercial operations in January 2004 and is a 100 per cent subsidiary of the Haier Group.COMPANY PROFILE Haier Appliances (India) P. Haier is upgrading the new facility with state-of-the-art equipments to create a Research & Development facility for refrigerators. The India operations already has an established dealer network of approximately 1600 dealers all over the country. Haier in August 2007 had acquired a manufacturing facility. which is backed by a strong service and after sales service network. As part of the company's plans to expand operations in the country. Haier Products are available at all major retail outlets and in most of the modern retail chains.products that will transform the customer's everyday living into inspired living. Haier was ranked as the 2nd largest Home Appliances brand in the 15 | P a g e .' Haier India launched BMR technology for the first time in India followed by the Double Drive which is a newly patented technology. Haier India also aims to achieve a leadership position in the next 3-4 years in India and aims to be among the top 3 brands in Refrigerators. 'Products that will make your today better than yesterday. Haier India is set to achieve sales of over Rs. About Haier Group The Haier group was set up in 1984 in Qingdao of China. located at Ranjangoan in Pune district of Maharashtra.

22 overseas production factories and 58. On January 31. procurement. production. distribution and after-sale services. and in 2008. Haier’s achievements and experiences have been incorporated into the archives and used as MBA teaching material by Harvard University. Haier products are marketed in all top European chain super markets as well as in top chains in Americas. Haier branded refrigerators have been ranked as number one worldwide.000 sales agents worldwide. one of the world’s leading brand evaluation organizations. freezers. Haier’s international promotion framework encompasses global network for design. 16 | P a g e . The group has emerged as a top multinational. Haier has established 15 industrial complexes.100 models in 96 categories. Middle East. and South Asia other than its robust presence in China. Africa. The company has its marketing and sales network in 168 countries around the world. The product range comprises of over 15. the group turnover aggregated US$ 17.000 sales agents worldwide. Global Branding Strategy Haier’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations. Today. air conditioners and washing machines is around 30%. Europe. and distribution and after sales services. production. Haier was named one of the world’s 100 most recognizable brands and a global brand name. listed by the World Brand Laboratory. 10 industrial and as per Euromonitor Statistics of 2008.9 billion. 30 overseas production factories and bases. Haier’s current domestic market share for refrigerators. Haier’s international business framework encompasses a global network of design. the European Business College and Laussane Management College. 8 design centers and over 58. manufacturing a wide range of home appliances and consumer electronics products with 15 Industrial Parks globally including USA. Haier has established 18 design institutes. 2004. Haier’s management philosophy and corporate culture are admired and are the subject of research by overseas scholars.

Key partners in perspective markets include: • China: Strategic alliance with Suning and Gome chain stores 17 | P a g e . Haier provides a one-stop star service to its customers. Partners Haier has established an extensive sales network around the globe. Services With the concept of “customers as the foundation of growth”.In China. to pre-sale. Haier’s 4 leading product categories . In overseas markets. European Business College and Kobe University. In addition. manufacturing. Haier is now approaching its goal of being “local” in American and European markets via localized design. Since 2002. In addition to high quality home appliances. Haier business case studies are included in the text books of Harvard University. University of Southern California. 1 for customer satisfaction and overall satisfaction.000 domestic professional service suppliers to deliver timely customized service. such as Haier’s OEC management model. Haier has set up production facilities and plants in the USA. Haier’s service system runs throughout the production process from product design. manufacturing and sales processes.have over 30% market share. Lausanne Management College. 8 of Haier’s product categories were ranked No. production. air conditioners and washing machines .refrigerators. Italy. Haier has successfully established a network of over 5. Haier products are available in 12 of the top 15 chain stores in Europe and 10 leading chain stores in the USA. In a joint survey conducted by the China Consumer Association and the China Enterprise Research Centre of Tsinghua University on China’s domestic durable commodities for 2003 and 2004. Pakistan. refrigerating cabinets. under sales and after sales service. Jordan and Nigeria. Haier is also focused on offering best-of-breed service solutions to its customers. Haier’s innovative management principles. “marketchain” management and “individual goal combination” – a system of assigning incentives-based responsibility to staff to ensure the quality of products delivered to their customers – have gained high recognition among international management institutes.

Haier is the first company to make breakthroughs in integrating fluorine-free. producing over 12 million units of refrigerators and freezers annually at its 20 production facilities worldwide. HOME DEPOT.g. KOJIMA and JUSCO • Europe: Cooperation with KESA. and solve technological problems related to sterilization. e. PC-Richard. 18 | P a g e . Lowe's.• America: Cooperation with TOP 10 retailers. Sam's. YAMADA. energysaving technologies with large freezing capacity. SEARS. BrandsMart and Target • Japan: Cooperation with TOP 10 retailers.g. e. which is made of heat insulating material designed for aerospace. Wal-Mart. Haier consistently applies leading global technologies in the manufacturing of its products. Best Buy. Haier has also rolled out the world’s first variable-frequency refrigerator. Media Market and Carrefour Home appliances production by Haier • General home appliances Refrigerators: Haier is one of the world’s largest and most advanced refrigerator manufacturers. Costco.

Household Air Conditioners: At its eight large production bases in China. Haier has introduced a series of new hi-tech environmentally-friendly washing machines. Haier dust collectors consistently lead the trend in the dust collection market. flexible variable-capacity screw compressors. and household variable-frequency central air conditioners lead the industry trend with their energy efficiency. pays great attention to safety. staying ahead of the market trend and demonstrating the technological innovation capability of the company. and lightweight aluminum alloy cord. and the environmental concerns of consumers in designing its products. Haier’s variable-frequency. Vacuum Cleaner:Developed with the Haier spirit of continuous innovation. health. and is the only company to win the bid for three consecutive years. Haier’s dust bag series are innovatively designed to collect dust from all directions. Haier. Washing Machines:Haier produces washing machines of 5. Haier is licensed to supply products for military provisions. and is the only company in the world with the capability of large scale production of top load washing machines (popular in Asia). dust bag design. which are exquisite in quality and free of defects. excellent product performance. and was the first to receive a no-fluorine certificate from the United Nations Development Programme. Haier delivers commercial air conditioners.000 different specifications under 18 categories. with a mission of “customer-oriented design”. front load washing machines (popular in Europe). wind-cooling and water-cooling functions. agitator washing machines (popular in America) and dual-drive washing machines. variable capacity multi-system central conditioners. Haier uses the world’s most advanced automatic flexible production lines to ensure the delivery of large quantities of highly reliable air conditioners. and marketing capability. The user-friendly design includes such features as a speed-adjustment button on the handle.8 million units of freezers each year. ISO14001 environmental compliance. featuring an integration of fluorinecooling. Freezers:Haier produces 1. Haier freezers have received ISO9001 quality. and ISO12001 metering and testing certification. 19 | P a g e . Haier is also China’s first freezer maker to receive TUV International Safety Certification. Commercial Air Conditioners: Haier has become a well-known global brand for commercial airconditioners for its strong R&D. large multi-system air conditioners and large cold-water air conditioning units in 8 categories and 260 specifications.

Haier Kitchen Company is the only company in its product segment to receive ISO9001 quality certification in China. including electric water heaters. In 2003. and with the capacity range of 17-litres to 40–litres. Haier Kitchenware products are based on environmentally-friendly technology. With the application of high technology. solar energy heaters. using components made by the world’s top 500 companies. Haier microwave oven products have received FCC and FDA certificates from the U. Haier ovens feature both stainless steel and painted stoves. 20 | P a g e . Water Heaters:Haier manufactures water heaters of 300 specifications under 12 categories. with zero leakage and low radiation. taking the lead in the application of new technology. including mechanical , electronic and digital. and gas boilers. and network-based. in the categories of mechanical.S Federation Drug Administration. high-quality sync installation and one-stop green service channel. dust-free digital technology. thus bringing customers the ultimate green and safety experience. exhaust fans. Haier produces water heaters in a wide range and specifications both for home and commercial use. and come with top doors and side doors. electric. in more than 300 specifications. gas cookers and sterilizing cupboards. and are equipped with environmentally friendly material. Kitchenware:Haier’s kitchen appliances cover 4 categories: dishwashers(see above introduction.• Home appliances for kitchen and bathroom Integrated Kitchen:Haier integrated kitchen products come with an advanced green safety system. gas water heaters. The products have won environmentally friendly and green product certifications in both China and the US. Microwave Ovens:Haier offers microwave ovens in 50 varieties under 8 categories. Haier developed the steam microwave oven. and with the capacity range of 5-litres to 500-litres. Haier follows its “Safety-based Products” philosophy in manufacturing water heaters and leads the industry in safety technologies. high-tech and environmentally friendly products. Haier is committed to manufacturing high-quality.

By establishing strategic alliances with suppliers. 21 | P a g e . Haier DVD players are favored by consumers for their performance and after sales service. comfort and greater entertainment to homes and customers. and offers free software commissioning. Japan.1 sound system TVs. MMS.• Audio and video products Color TVs:Growing at an annual rate of 141% over the last 9 years.. including the world’s first laptop with 2. Haier mobile phones include such latest features as GSM/GPRS technology. gaining high customer recognition. The product line includes bar-type phones. flatpanel TVs. integrated digital cameras. China Unicom and China Netcom. • Communication and IT products Mobile Phones: Based on the philosophy that the technology and fashion can co-exist. clamshell phones. Haier is committed to delivering a full-service package. including traditional TVs. Haier color TVs are manufactured with the application of high technology. aim to bring more freedom. MIDI Polyphonic ring tones and color LCD screens. such as Intel. Haier aims to provide the right products for different consumer groups. digital TVs. and has established a strict-quality control system.S. wireless TVs. Haier makes desktop and laptop computers for personal and commercial use in different ranges. touch TVs and 5. and eye-protection. with the creation of a global supply chain under the concept of “competitive cooperation”. The products have won a number of awards for environmental protection and energy efficiency. Microsoft. Haier’s extensive range of products. Haier employs a team of top class engineers from the U.0 mega-pixel camera. Republic of Korea. Haier consistently improves the quality of its computers. smart phones and the new and unique slim phones. Haier integrates state-of-the-art wireless communication technologies into a complete range of in-fashion mobile phones. Haier is committed to strengthening its global competitiveness. and China’s Taiwan region. Computers (desktop and laptop):With a special attention to users’ health. and taking advantage of the technology and resources of its partners. In product R&D. DVD Players Haier offers a diverse line of DVD players of exceptional quality.

including MP3 and MP4. capsules. Western medicine and healthcare products. is a high-tech enterprise engaged in development of embedded systems. software outsourcing. Haier Software: Qingdao Haier Qingda Software Company. lyophilized powder for injection. with focused areas of the heart and cerebral system. hotels. security monitoring systems. osteoporosis. Haier Group’s LCD TV and plasma TV control panels are all designed by Haier Qingda.Digital Information Products:Haier offers a number of patented digital information products. in 2005. • Pharmacy Products Founded in 1996. services and application solutions to meet the individual needs of users. all of which have received GMP certification in China. granules. home environment control and access control systems. established in 1998. • Haier services Intelligent Home Integration:Haier’s intelligent system is the mainstay of Haier E-home program. called “Haier E-home”. etc. Its main business is focused on the development of commercial intelligent systems and embedded systems. diabetes and healthcare. Haier is committed to delivering personalized products. Networked Digital Home Solutions:Haier launched the third generation of networked home appliances. Haier Pharmacy is the newest growth area within the group. and delivers a series of intelligent products. urban security departments and homes. anti-burglary alarms. office buildings. medicine powder for injection. oral liquid. The home network is divided into a main network 22 | P a g e . system integration and the development of multimedia systems. The products of Haier Pharmacy fall into four categories of marine drugs. factories. The product offerings cover 80 specifications under 60 categories including medical raw materials. Haier deploys “Haier E-home” using a technological system based on proprietary intellectual property rights. supermarkets. tablets. Chinese medicine. and system integration. such as home network system structure and home network communications technology. eye drops. digestive system. Haier provides comprehensive solutions for communities. information software. such as digital video phone systems.

In developing its real estate business. and providing travel and entertainment services. based on Haier’s enterprise culture. The Haier International Travel Agency mainly offers business travel services. cable TV network and fixed line networks. Logistics:Haier Logistics was established in 1999. catering and entertainment. The company also makes loss assessments and handles compensation on behalf of insurance companies. Haier E-home can enable remote access to home appliances and the interconnection of appliances through the Internet. By establishing a global network of suppliers. Haier logistics is growing into a global trade company through continuous supply chain management optimization. Haier has gained significant advantages in terms of cost and R&D. the company pays high attention to improving the quality of construction and living conditions. Travel: Haier Group’s Conference & Exhibition Division provides one-stop service for organizing meetings and conferences. accommodation. Haier Science and Technology Museum is an exhibition hall of modern industries invested in by the Haier Group. 23 | P a g e . and a sub-network transmitting low speed information. Qingdao Haier Insurance Agency delivers insurance policies on behalf of insurance companies through Haier’s comprehensive network and large customer base.transmitting high speed information. while making efforts to preserve cultural heritage and to facilitate a healthy and civilized living environment. Haier aims to establish an efficient supply chain and provide customer-oriented value-added services. Insurance:Established in 2001. Haier’s hotel system is able to provide conference services. PDA. The museum. is a comprehensive facility serving as a science and technology museum and cultural center. mobile communications network. from preparation to hosting the event. Haier Real Estate: Qingdao Haier Real Estate Development and Investment Company is a wholly-owned subsidiary of the Haier Group.

how to equip the people who are responsible for selling the product… and so on. Traditional trading and distribution models have given way to remote or virtual 24 | P a g e . Price: This element of the marketing mixcan be many a strategy’s undoing. as a marketer. how it should be priced. such as competitor's price. A complete understanding of the financials that drive a business is essential before deciding a pricing strategy. These types of variables necessitate adoption of appropriate approaches that can deal with such variables' nature marketing mix analysis is a step done to achieve this. The marketing mix problem involves setting the values of the marketing decision variables. and thereby help to evolve that product’s Unique Selling Proposition. a person need to ask is whether there is a need for that type of product and how this product satisfies that need better than those of their competitors. One of the most critical marketing management decisions is that decision of setting the marketing mix values. This is a tool whereby the marketer takes decisions on what and how a product should be. how it will be promoted. competitor's product quality. is a vital part of any marketing strategy. Price. forecasted sales and others. if an existing product line is capable of absorbing them? What is your objective – do you plan to gain market share on the strength of a rock bottom price or do you wish to create a premium image targeted at niche customers and price your product accordingly? Place: This is probably that element of the marketing mix that has undergone a complete change in definition. (but now has a few more). where it can be sold. Product (its quality). Place (distribution and sales-force expenditures) and Promotion (advertising. The decision regarding specifying the marketing mix depends on a set of variables. Base your decision after considering the following – what is the perceived value of your product in the eyes of the customer? How price elastic is the market? Do you wish to load overheads on to the new product. competition level. and selecting and employing strategy that periodically changes that marketing mixes in response to changing business environment. This will force to think of why that product is unique. Developing an effective marketing mix is important for product planners seeking to gain competitive advantage in industrial markets. the four P’s. selling). Getting the marketing mix right is equally important for the large corporation and the small business owner. Product: A lot of thought and effort goes into designing a product offering. The most important question.The Marketing Mix: Ingredients for Success The marketing mix. namely. earlier known as the 4 P’s.

While reaching the customer may have become simpler. your job as a decision maker has become that much more complex. finding loopholes and building effective marketing mix strategy for Haier in Refrigerator and Washing machine segment 25 | P a g e . ranging from live events to internet marketing. product. the entire landscape has changed from what it was a few years ago. promotion strategies must pack sufficient punch to cut through the clutter. price. place. this is what makes the essential difference. You now have a plethora of options to choose from – do you go for brick and mortar or direct mailing. Indeed most businesses rely on a multi distribution channel strategy. Marketing mix analysis for the brand is done to know the standing of the brand mapped with their competitors with respect to essential element of marketing mix i. first and foremost. Does your marketing communication address a specific need of the target audience? Is the message memorable? Does it spur action? Here again. It always helps to stay in touch with the latest developments.channels. use the phone or sell door to door? This decision should. Possibly no other marketing mix element draws as much attention from strategy makers. let consumer needs drive your efforts. be driven by customer preference and then by other considerations like logistics and economics. It ensures Studying marketing mix strategies of the brand mapped and reviewed and refined periodically according to market condition and competition comparative analysis with other major players in the market. Again. Promotion has gone way beyond mere advertising and public relations – it is now a highly evolved process. The marketing mix is a dynamic entity and needs to be reviewed and refined periodically. and promotion..e. Promotion:In a commoditized industry. In these times of information overload.


refrigerators and televisions. Which factors affect your purchase of a brand? 27 | P a g e .BRAND AWARENESS SURVEY 1. 2. and this preference was mainly for AC`s. Which brand do you prefer? BRAND Haier LG Samsung Sony Videocon Whirpool PREFERENCE GIVEN 9% 36% 23% 9% 8% 15% whrilpool 15% Videocon 8% Sony 9% Haier 9% LG 36% Samsung 23% Out of people surveyed 36% preferred LG in their last purchase. Only 9% of the people surveyed opted for Haier and that was mainly for mobiles that were branded for Reliance Communication CDMA phones.

People opted Haier in the attributes like product features. were the leading big brand names in the marketlike LG and Samsung. it was 60% for Haier. This also suggests that Haier needs to push products before a customer enters inside the store. there is much more potential in the brand itself. more than any other brand. it will enhance the brand value and will push the brand sale as well 3. Do you have a look at Haier products before making you purchase decision? 28 | P a g e . It represents if the product features of Haier can communicate suitably.Brand name matters always that’s why most of the companies which was opted by the customers.

because of unavailability of the brand in the customers preferred multi brand store. other factor could be their will be dealers demonization to sell the Haier Products. 4. less effort by the sales intermediaries. This is also showing the uncertainty in the minds of the customers.Custom havea look on H ers aier productsbefore m akingthe purchasedecision? 60 50 40 30 20 10 0 Yes No custom had a look on Haier ers product before making the purchase decision? 36 people surveyed knows about Haier but only 20 the people surveyed had look on Haier product before making the purchase decisions. Are you aware that Haier is the 2nd largest electronic goods company in the 29 | P a g e . 36% people know but didn’t want to see the products. this is surrounded by many factors like “Place” strategy of Haier.

There could be other side of this fact that by the way of promoting as a second largest appliances brand. it automatically promoted the brand which is largest appliances Brand in the world. Haier is the second largest appliances in the world. in the world. Which product line do you think Haier produces? 30 | P a g e .world? YES NO 25% of the people surveyed don’t know the most common strategy adopted by the Haier to create brand awareness for the brand i. There was several lacking in their marketing communication. because of that the people who knows about the brand still don’t know about this fact. because by the way of communicating that Haier is the second largest it is automatically creating a willingness in the minds of the customers that which is the largest brand. 5.e.

People even now perceive Haier as an electronic and mobile manufacturing brand. it has a positive side which was earlier discussed. The supremacy for Haier lies in the appliances category which has been proved worldwide. Though. because still people prefer to buy a color television first. Which country’s origin do you think Haier has? 31 | P a g e . By the marketing strategies adopted by the company it has created an electronic brand image. If as a brand it is unable to convert those potential customers in to their customers. 6. it is losing in both the fronts. in that category in which it was promoted and secondly where it wants to move. that to promote brand in the appliances category it is better to promote the brand in the electronic segment first . but for that as a company it needs wider and competing options in electronic segment.

as we can infer from the data above. only 37% of the people know about the correct origin of the country. have inferior quality. 7. But the problem remains of the negative image haunting about the Chinese Products in the market which does not last long. are unreliable but cheap.COUNTRY American Europe China NO. OF PEOPLE WHO BELIEVE THIS ORIGIN 21% 23% 37% Still. Do you think Haier’s products have…? 32 | P a g e .

Suitable communication effort should be done in the market place to gain customers confidence in service front. because of the Chinese image people somehow thinks negatively about it. But the margin is very less so still there is right way for the Haier in the reliability front. 33 out of total people surveyed said that Haier products are not affordable. The market insight and factors influencing dealer focus 33 | P a g e . They perceived it as a quality brand but in the service front 48 people voted negatively about it. They perceived that because of their foreign origin company is not having appropriate service arrangements.One thing is coming good out for Haier is that people perceived it as a brand for quality out of the 60 people surveyed 34 told positively about the quality for the brand. 28 people surveyed said that Haier products are reliable and 32 negatively perceived in this factor. Haier need to focus on this they have to erase this kind of perception that they are lacking in service front. There could be other reasons for it but company needs to focus on India specific products and the pricing should be based upon it. This suggests that somewhere in the customer mind it is present that if they will purchase Haier they will face service problem in the future.

stock gets cleared easily. where before making any purchase decision.Godrej is giving extra profit margin as compare to other competitors i. and there is enough possibilities of large sell according to them because of launch of new product line series in appliances segment. Less Customer Complaints. 5. customer is more inclined towards the products of these company.C display panel stands and other POP material to many dealers. 2. And Better Bargaining with the Companies. No push sale. 34 | P a g e . 6. 3. Customer Awareness about the Brands. and finally whatever the customer will purchase he/she will definitely have a look for these companies products before making purchase decision. And No blockage of money. 4. less sales effort: LG and SAMSUNG created that kind of image in the minds of the customers. Fair pricing strategies LG and Samsung prices are almost open to everyone are aware of dealer price and customer price.e.1. Profitability and holding cost: Better Volume Sale Which Ultimately Leads to Better Margins. no need to push these company products. Samsung Loan Mela and LG No Filing Charges. With this the company better support in the form of marketing efforts. recently company gave 5 A. No Interest Finance Scheme on Air Conditioners Is Creating Good Response among Customers. dealer price +scheme of 3% + 3% distributors margin+ FOC .Whirlpool is having wide product line in refrigerator category which ultimately gives more option to select from to customers with this their service support is good and the customer complaints are also less especially due to home care program of whirlpool .

which is made of heat insulating material designed for aerospace 35 | P a g e . Haier is the first company to make breakthroughs in integrating fluorine-free. need to defrost the ice when the frost created inside the freezer.PRODUCT ANALYSIS Refrigerators A refrigerator (often called a "fridge" for short) is a cooling appliance comprising a insulated compartment and a mechanism to transfer heat from it to the external environment. Refrigerators are of two types: 1. while one which also applies it to the fridge compartment is called "total frost free". a similar device which maintains a temperature below the freezing point of water is called a "freezer". and solve technological problems related to sterilization. producing over 12 million units of refrigerators and freezers annually at its 20 production facilities worldwide. Haier is one of the world’s largest and most advanced refrigerator manufacturers. Direct cool Refrigerator: Cooling comes from the compressor only. cooling the contents to a temperature below ambient. with the air passage to the fridge compartment regulated by a dumper. 2. The latter features an air connection between the two compartments. A device described as a "refrigerator" maintains a temperature a few degrees above the point of water. spoilage from bacterial growth and other processes is much slower at low temperatures. Frost free Refrigerator: A combined fridge/freezer which applies the frost free system to the freezer compartment only is usually called "partial frost free". energy-saving technologies with large freezing capacity. Haier has also rolled out the world’s first variable-frequency refrigerator. Refrigerators are extensively used to store foods which deteriorate at ambient temperatures. Haier consistently applies leading global technologies in the manufacturing of its products.

That’s why Whirlpool is having 36 models which represents strong hold in the segment. 36 | P a g e .Comparative product models analysis of direct cool refrigerators B r a n d 100 L ts Haier 170 Lts 175 Lt s   180 Lts 185 190 195 200 205 210 215 230 L ts 243 L ts 260 L ts 300 L ts L ts L ts L ts L ts L ts L ts L ts Godrej        Whirlpool        Samsung   LG        Electrolux      From the direct cool Refrigerator capacity analysis and comparative model analysis it can be easily understood that just because to give wider option to choose from. companies are segregating the already segregated direct cool product category. It is compulsory for the appliances brands to make strong hold present in this segment to create brand preference in higher product segments. Most of the Refrigerators which are getting sold in India belong to direct cool refrigerator product category.

Company like LG is also having presence in 4 sub segments. with only 11 models and specifically in entry level it has only 7 models whereas their competitors are having 15 models.190 liters capacity with different design and variants to choose from. they can compromise in seeking product liter capacity but they don’t want to budget for the purchase. in other way it is focused to the customer who just want a fridge which can cool. For Haier there is an immense need to launch few new models in entry level segment or to increase the variants of the present models to increase the number of models offered by the brands in order to retain the customers and to give wider option to their customers. Whirlpool is having 25 models in this category where as Godrej is having 15 models. Features analysis direct cool refrigerators entry level (175-190) 37 | P a g e . with this LG is also focusing on that customers which is seeking different product attributes for the product. like 175. company must argue they are giving higher capacity then their competitors in the segment but ultimately we also have to consider that Delhi market is primarily a rural market where in the entry level customer don’t want to stretch their purchase level. Direct cool segment is the segment where Haier is having presence in 190 and 210 liters. 180. Haier is having Refrigerator with 190 liters capacity in their entry level. They only want a refrigerator with a 170 -175 liter capacity which can cool only in summers. and the customer don’t want to spend much over it. If they can find that they are unnecessarily spending more on purchasing a higher capacity refrigerator they will easily switch over to other brand.185. which he/ she want to purchase.

Aubergine Red and Deep Red and Red. Grey.Features Haier HRD LG 181PP4 211 MP Whirlpool Genius Samsung RA18QHMb1 Electrolux Deo fresh Haier Capacity Gross is known worldwide for “inspiring the living” of customers with the unique and patented (Liters) 190 175 180 180 180 Defrosting System Air Flow Type Insulation Clean Back Deodorizing Tomato bin Detachable gasket Open Alarm Door Semi Automatic Direct Cool PUF Semi Automatic Direct Cool PUF Semi Automatic Direct Cool PUF Semi Automatic Direct Cool --Semi Automatic Direct Cool Maxi 2 Reversible Door Swing Door Lock Large place Bottle --Wire Wire Wire 0 Wired Material Used Wire for Shelves Adjustable Shelves Crisper or Large Vegetable Tray transparent Material Moisture Humidity Control or Double humidity controller Plastic Crystal Crystal Acrylic Quick Freezing Rolled bond Component freezer Chiller Tray Colors Available 38 | P a g e Exterior Finish Large chiller tray Red/ grey Red. Grey Powder Coated 8650 Powder Coated 8700 Anti-rust Galvanized Iron Body 8700 Powder coated 8400 Price . Mild Blue. Grey Powder Coated 8500 Silky Blue. Silky White Metal Grey.

It has also one biggest advantage “as the compressor and vegetable box is downwards in normal two door refrigerators. which it generally occupies in the Normal two door Frost Free Refrigerators”. This is a truly a family refrigerator. This technology keeps the fruits and the vegetables fresher for a longer period of time. Frost free refrigerators capacity analysis 39 | P a g e . Haier refrigerators are also equipped by spacious design. it is easy for her to use this refrigerator. in the days to come it will surely add more Customers in its kitty and inspire people to live with uniqueness in India. and Vegetable Box is upwards in the BMR. Besides this there are other features that are different from the conventional Frost Free like the VC fresh technology. This product has done wonders worldwide and considering the kind of requirement Indian customer has. Haier BMR has drawn a considerable amount of attention from the customers who have appreciated this concept and are using this technology to express their caring nature towards their families. she will purchase BMR because she does not have to bend. the Compressor doesn’t occupy space of Vegetable box which is upward in the BMR.Think a wife who is expecting a child bending is not good for her.

240 -260 liters 3. its strong hold needs to be capitalize seeing the product potential of BMR refrigerators. 275. 40 | P a g e . 200-235 liters 2.300 liters Haier is having good presence in this segment of frost free refrigerators with models present in all three categories.Brand 200 Lts 220 Lts 230 Lts 240 Lts 245 Lts 250 Lts 260 Lts 275 Lts 280 Lts 300 Lts 315 Lts 340 Lts 365 Lts 375 Lts 400 Lts Haier Godrej Whirlpool Samsung LG Electrlux                                  Comparative product models analysis Frost free segments: 1. The total number of Haier models is 15 more than Godrej only keeping this thing in a view need to capitalize in building strong segment presence. which other companies are not having.

is quite less as compared to their competitors like LG. and Haier is not in competition of LG and 41 | P a g e . Competitive strategy should be like this were first Haier should wipe out smaller brands compare to LG and Samsung because this brand also have market share larger than Haier. Godrej it is greater than only Electrolux. whirlpool. Haier also need to focus on those dealers were it will not face direct competition with LG and Samsung. Samsung.PLACE Competitor’s presence in Delhi PLACE KAROL BAGH PAHAD GANGH KARKARDOOMA FILMISTAN CP JANAKPURI LODHI ROAD SAKET LAJPATH NAGER NEHERU PLACE GANDHI NAGER                  HAIER  LG    SAMSUNG WHIRLPOOL GODREJ ELECTROLUX         Haier’s presence in Delhi market. one thing is also evident that Haier is present in major counters with LG and Samsung. for instance.

Samsung it should target on brands like Electrolux Godrej . so it can compete the bigger brand later on. Promotion Samsung’s Innovative promotion and advertising initiatives To establish trust and confidence among Indian consumers. the historic India vs. Pakistan cricket series .the World Cyber Games. TCL first. the Olympic torch relay. • Samsung India associated itself with the ruling passion of the Indian mass consciousness: Cricket. In 2004. for the first time. The Samsung refrigerators and ACs incorporate a revolutionary new technology called Silver 42 | P a g e . Samsung sponsors the Indian contingent to the Olympics and the Asian Games. Samsung also brought to India what was possibly the biggest cricketing spectacle of this decade. Samsung also brings every year to India . Samsung ran a Kitchen-on-Wheels programme where mobile kitchens with microwave ovens went to various localities demonstrating the advantages of microwave cooking. which is regarded as the Olympics of the Cyber world. Samsung tied up with noted painter SatishGujral for his paintings to be available as downloads on Samsung mobile phones. • Product placement was done in movies and popular television serials like ‘Jassi’ where Samsung products were set in lifestyle environments.‘The Samsung Cup’. In mobile phones. • For Microwaves. It also ran training programmes for deserving Indian athletes under the Olympic Ratna banner. • Samsung branded its products as superior technology and environment friendly ones. which caught the imagination of an entire nation. • Samsung also launched a series of innovative below-the-line activities. • Not confining itself to cricket. Samsung launched the Team Samsung campaign with the stars of the Indian cricket team. Samsung did active promotion and advertising by taking the following initiatives. Samsung has also helped bring to India.

flat-screen TVs make up over 50 per cent of Samsung’s TV sales compared an industry average of 17 per cent. They also have a ‘memory re-start’ that takes care of the frequent power failures in India. In microwave ovens. features like the bio-ceramic coating and 3D shower waves keep in mind the health conscious public of today. Customized products for Indian Consumers • Samsung understands the local cultural sensibilities to customize its products according to the Indian market. • Samsung washing machines have an additional menu that takes care of the local Indian wardrobes. 43 | P a g e . It has set up a “usability lab” at the Indian Institute of Technology in New Delhi to customize Samsung products to meet the specific needs of Indian consumers. It is present in three of Samsung’s semi automatic models and dries the clothes better than the rest. Thus. Samsung has concluded that Indian consumers want more sound oriented products. the Samsung televisions for India have a higher sound capacity than their foreign counterparts. Samsung has introduced for the first time in India a feature called Super Dry. ergonomics and interface. This industry-institute partnership is helping Samsung to study and analyze consumer response in aspects of product design. • For the semi-automatic segment of Samsung washing machines. It launched the “Bio” range of products. including aesthetics. • Through its research done on consumer preferences in India. TV Flat’ and attractive exchange offers. As a result.Nano Health System that ensures freshness and bacteria free environment. • Launched a special marketing campaign for Flat TVs including a focused advertising campaign ‘DuniyaHaiGol.

Kolkata and Bhopal for CTVs. Local and efficient manufacturing • Reduce cost and toovercome high import duties. • This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier. LG manufactures monitors and refrigerators in India at its manufacturing facility at Noida. LG was the first brand to enter cricket in a big way. 44 | P a g e . • LGEIL is implementing a “digital manufacturing system”DMS) as a cost-cutting innovation. LGEIL had already commissioned contract manufacturing at Mohali. In continuation of its association with cricket. This has helped LGEI to reduce costs. • • Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural markets. LG brought in four captains of the Indian cricket team to endorse its products. LG has taken innovative marketing and promotional initiatives: • • Launch of new technologies in consumer electronics and home appliances. LG was the first brand to introduce gaming in CTVs. • LG has differentiated its products using technology and health benefits. by sponsoring the 1999 World Cup. Product localization • Product localisation is a key strategy used by LG. and followed it up in 2003 as well. The CTV range has ‘Golden Eye’ technology. air-conditioners have the ‘Health Air System’ and microwave ovens have the ‘Health Wave System’.LG introduced the cricket game in CTVs.Innovative marketing strategies of LG To make itself a known brand in the consumer electronics sector. Delhi. LG invested more than USS 8 million on advertising and marketing in this sport. LG came out with Hindi and regional language menus on its TV.

• Maximum usage of Sales Promotional ads by Television Sets. Onida Cool Point etc.) and Air Conditioners (with brands like Onida Air Conditioner.). 45 | P a g e . • Exchange Promotion was most widely used by Durables followed by Multiple Promotion and Add on Promotions. • There was a tie between Mirc Electronics and Samsung India with equal share in H1 07.Consumer Durables used 31% of sales promotional ads during H1’07. IGO Flat TV etc. • Samsung India focused their advertising on Television Sets and Refrigerators. • 90% of advertising by Mirc Electronics in Television Sets (with brands like Onida Pure Flat TV.

go ahead and let your pink shirt cast a spell on her. Subhead:Pity.ADVERTISEMENT ANALYSIS Picture 1. LG has used AbhishekBacchan as their brand ambassador for washing machine unlike their competitors. LG communication is based through a man. Message is very clear in the 46 | P a g e .. She loves the pink shirt onyou. So. Perfect. Baseline:Get ready.. Right now. Body copy: Whatever be the time or the weather outside. which generally focus women in their ads because the washing is still related to women in Indian homes. along with noiseless and perfect cleaning. you put it into a wash justthis morning. the LG Washer and Dryer with Direct Drive System gives you 100% dry clothes. Headline:A rainy evening and she finally calls you for dinner.

Picture 3. successful and modern Indian youth.LG intends to change the usage pattern as it is an advertisement of fully automatic washing machine the pictorial presentation is just in the lines of ad headline and its subhead. i. focus is based on around the USP. and finally the ad is connected through a call from a girl for a dinner and because of the whether it is not possible to dry the shirt which was put it into a wash just this morning. Picture 2.e. 47 | P a g e . 100% dried cloths through LG washing that use of LG washing machine is so simple and uncomplicated so that a man can also use it. The use of AbhishekBacchan presents the image of independent.

For Picture 2: Headline: Barsaat main jhoomja Stain kobhoolja. Subhead:Starring Stain wash.Daagdhoyeaisekephirbheegjaanekamannkare Body copy: Whirlpool Stain wash washing machines ensure that stains disappear with the press of a single button. This range is equipped with a special Stain wash function which comes hot wash and a unique 1-2, 1-2 hand wash action that removes 6 stubborn stains, like shoe polish, red sand etc Baseline: Whirlpool. You’re magic in homemaking For Picture 3: Headline:What women want Subhead: Someone with a spotless reputation Body copy:The new Sensation from Whirlpool with Stain Wash, a unique program that cleans even the most stubborn stains be it curry or pickle, that other machines cannot. Baseline:You and Whirlpool. The world's best homemakers. Use of Ajay Devgan and Kajol in the ad of whirlpool is giving a homely feeling the first ad was primarily focused on Bengal region which suggest that how nicely the whirlpool is playing the rationality game, so it can get popular in a specific focused region. Second ad says what women want nicely connected with the women, because the washing machine is primarily used by the women in Indian homes.

48 | P a g e

Picture 4.

Headline:Whatever role life gives you, play it big. Bodycopy:Every day, life throws a million opportunities your way. We believe you should make the most of each one of them. And it is the very belief which has made us a $4 billion global conglomerate, with manufacturing and R&D facilities across the world, and the distinction of being rated India's Most Valuable Consumer Durable Company. Consumer durables represents lifestyle here in this Videocon ad two biggest youth icon from bollywood and cricket has been used , the ad is focused to give a Indianans’ touch to it , by the way of representing the Videocon as a Indian multinational. The image of both MsDhoni and Shahrukh Khan is perfectly used, one is representing the upper class and whereas M S Dhoni common middle class image is being used.
49 | P a g e

Picture 5.

Haier ads are focused on unknown faces and to the product quality, a smiling Indian face is standing in front of Haier refrigerator it shows that life is smiling with Haier refrigerator, Haier ads also shows that Haier don’t feel that it will be carry with the image any popular face but it want to create the space in the Indian market with product features. After analyzing the BTL activities of all brands in a month it is evident that Haier competitors are way ahead in comparison of no of activity done. Haier has done two activities; one was mobile van

50 | P a g e

For Haier competitors their activities were also very much different and focused like LG. LG has done mall activity at pantaloon. Haier has to increase the number of BTL activities so that brand visibility can be created. but Haier didn’t had any paper ad on that particular month. Brand visibility and awareness can be created by the increased number of BTL activities.and other was local TV ad whereas their competitors have done 7-8 activities in that particular month. one thing is also evident that others brands are focusing very much on local paper ads. 51 | P a g e . There is also evident from the analysis that in the particular month market was also flooded by different offers but Haier didn’t have any offer on that month. local newspaper ads is a very different way of marketing communication and the main benefits which arrived from it is that there is high rate of connectivity with the people in local language in comparison to other medium.

There 6. Godrej with a launch of new product line also want to create and to give a fresh look in to their brand with vibrant colors and design and in order to come up from old Indian brand image. with a wider focus on brand visibility and promotion. They are so much of variable option in same segment to attract different type of customers one of the reasons is that LG business is now is on such heights now due to mass production there landing manufacturing cost is coming comparatively much lesser than their competitors. Samsung is also adopting same kind of pricing strategy but they are different from LG in respect to their price positioning they have got the clue that modern day demand is pulled by the young aspiring middle class. With this they are so much of variable option in same segment to attract different type of customers.Pricing If we look upon the pricing strategies adopted by the consumer durable brands we can see that there is not much difference. their products are getting sold itself in the market. and requirements with the same brand. The refrigerator of a company like LG which is a market leader is starting from 7500 in 175 liter capacity in direct cool refrigerator category.3% other then what they are giving currently. Godrej is giving extra profit margin of 1. 52 | P a g e . Samsung understood that fact and started to position as a lifestyle product brand and their price positioning is accurately based upon it. They keep on capitalizing in their strategy to push the product before a customer gets enters in the store in order to pull demand from the market. they want lifestyle in their life and prefer life style product and services. Every company is trying to give variable product option in variable prices to focus on different pool of customer incomes. First they have created a kind of brand image where they don’t have to depend upon their dealer and distributors. Samsung starting entry level refrigerator starts from 8200 with a clear differentiation with their competitors in this segment. LG pricing strategy is totally matches with its corporate strategy.2 kg washing machine is starting at RS 5990 much more lesser with respect to their competitors with same kind of features. Godrej pricing is very much competitive in one way they are giving economical models and they are also focusing on high end models with their new launch.

products and retail expansion wherein organized retailers will play a very important part. Overall.000. targeted at small washing jobs. and Haier positioned it in same way.990.Whirlpool is having wider option both in refrigerator and washing machine they are also having highest no of refrigerators models. Haier is focusing on premium pricing seeing the negative perception of Indian people regarding Chinese brand. Seeing the market changing environment Haier focus should be to take the brand to the next level in terms of mass penetration and for this focus should be made on network. in India it wants a strong showing in CTV’s also that’s why they focused more in electronic segment first because of that they lacked focus in appliances in India. Haier entered the Indian market with a premium line of products.900. with this segment contributing 70% to overall turnover. Like If Haier prices its semi-automatic washing machine at Rs 6. They are also focusing majorly on to give lifestyle feeling and their pricing is based upon it. however now time has come to on the basis of additional features Haier should be positioned as value-for-money brand. Although.200 against the industry average of Rs 6. For instance. which prohibited the brand from building a mass appeal. In the beginning Haier was clear that it will target niche segments. since it's likely to reinforce the image of a cheap Chinese product. it also offers an all-plastic body. Haier core offerings till now have been high-end products but it should enter the mass market with some starting models in direct cool refrigerators and other such mass volume categories in an attempt to gain a bigger chunk of the market. Haier is a premium brand. This will also create equity for the brand. Haier has to build its brand on the platform of technology and innovation with taking value for money status keeping in the mind. there are so many players in the market and there is enough space for players like Haier seeing the economy grow at around 8-10%. which others don't. For Haier a price plank will not work. Haier is a big name in appliances. and a bottom mounted refrigerator priced Rs 42. which are not offered by any other brand. Although globally. Products like the bottom-mounted refrigerator that the company sells is based on the insight that consumers use the freezer less often and its placement at the top means a person has to bend down 53 | P a g e . priced at Rs 6.3 kg washing machine. it had 2.

Finally Haier has the ability to develop 1. "Haier is a brand which has given global players a run for their money and there's no reason it can’t create that position in India. 54 | P a g e .000 models in 38 product categories. Putting the freezer at the bottom makes it easier for the consumer.3 new models every day and has some 13.every time he wants to use the food storage compartment. where consumer insights play an even more crucial role their verdict.


even dealers who are in consumer durable business from more than past 20 years are not aware of Haier. The customer survey and the dealer’s survey tell the story about it. there will be immense possibilities for Haier. Haier needs to focus on those dealers also where it will not face direct competition with LG and Samsung . 3. Currently Haier is available with most of the major dealers in Delhi. The first and most important thing which Haier needs to do is to create awareness. Good thing about Haier is that they got somehow success in positioning themselves as a quality brand. they want to be ready for everything like whatever customer demands they can easily find out in their store.Conclusion and Recommendations 1. It needs to create a 56 | P a g e . 2. Haier needs to increase the number of BTL (below the line) activities to generate common awareness and visibility at grassroots level. People perceived Haier as a good product quality brand. a small and dedicated brand dealer will work not only for margins but they also can see the future opportunities in the form of Haier. In Delhi every dealer is having collection of brands. 4. It was found in customer survey that still 64% of people surveyed were not aware of Haier. If this can be associated with better pricing also. for the brand which is only having capability to compete against the Korean giants LG and Samsung needs to push the products before a customer enters inside a store.

Samsung. company is not having the service centers also there in those area . 9. 57 | P a g e . which give unnecessary work burden on them. 5. Service arrangements need to be strengthen. 8. 7. Haier lacks in company support factors and most of the existing dealers in the dealer survey said that. Haier is having 190 liters. Like most of the companies are having their regular company dealers meet to get together with their dealers. Most of the products are not attractive. Customers in rural Delhi are not aware of the service call center facilities. and finally distributors has to log this complaints to the call center. if they will purchase any product they will face service problem in future. customers passes the complaints to dealers. Company product range is inappropriate especially in refrigerators whereas every company is having 165 liters segment as an entry level refrigerator. Godrej is having 14. Haier needs to build strong dealer relation in order to provide better “place” strategies for the brand. still people think that because the company is having foreign origin and it is new too. Haier lacks needs to do this in order to regain dealer support. mostly in refrigerators segment even the logo on refrigerators are not attractive as compare to others. LG. Service policy of Haier is that a customer complaint has to go from dealers. 6 service centers respectively.value for money brand image which can give good product quality at affordable prices.9. looks simple and not represents the brand quality. If company will launch a new refrigerators in entry level with less pricing it can attract those customers who want to opt for a refrigerator in the entry level segment in less pricing there are much more scope for selling. Like Haier is having 6 service centers whereas its competitor’s whirlpool. which creates overburdens them. and dealers to distributors. 6.

1-2 Hand wash. 13. for Godrej it is Force Four. Currently Haier is focusing more on fiber body. where company demand is initiated by the customers. 14. these company products pulls demand from the market. whereas print ads any person can see going through the news paper throughout the day. Overall there is much scope for Haier in the market. which is almost same for all the present brands. Appropriate product knowledge should be given by the company to dealers and to dealers to create awareness towards quality. Punch Plus Three. one thing is also evident that Haier is present in major counters with LG and Samsung. 58 | P a g e . because where in the TV ads. 11. Company must have to focus on print ads. 10. and for Samsung it is Silver Nano. whirlpool. Samsung. a person can see only if he/she open the TV and if the ads is getting broadcast that time. Haier should adopt aggressive marketing strategies to cut down competition and visibility at market place. timer and powerful motor.9. other competitors like LG despite of all these features focusing more on technology . Godrej it is greater than only Electrolux. for whirlpool its 1-2. In the semi automatic washing machine segment one of the findings is that Haier needs to build a powerful USP for its semi automatic washing machines like they did it for Refrigerators (BMR) so it can clearly differentiate with others. But Brand visibility should be increased so it can convince dealers and customers like LG and Samsung are more customers driven. Haier presence in Delhi market is less compared to their competitors like LG. Haier also need to focus on those dealers were it will not face direct competition with LG and Samsung.

it is recommended that Haier should also diversify its Product Line and enter into the market with them so as to regenerate a brand image. Construction. Material handling. Vending Machines. In a similar way. TCL first. Batteries. Chemicals. 59 | P a g e . Central Heating products etc. Motors. FMCG (Fast Moving Consumer Goods). Likewise Whirpool has some other distinct products like Air Purifiers and Filters. and Haier is not in competition of LG and Samsung it should target on brands like Electrolux Godrej . 15.Competitive strategy should be like this where first Haier should wipe out smaller brands compare to LG and Samsung because this brand also have market share larger than Haier. Tools. Agriculture products. Wine Coolers. Electrolux has a different product range of dishwashers and barbeque. it has laid hand not only upon many other avenues viz. Locks etc. so it can compete the bigger brand later on. Whereas in the case of Godrej. furniture.

ANNEXURE 60 | P a g e .

2012 • Beri G. Marketing www. Pearson Marketing Management. Dhanpat Rai & Co (P) Marketing www.N.samsungindia. 13th Edition-2008 • Chhabra T.electrolux..lg.wikipedia.C. Grover S. Tata McGraw-Hill www.haierindia.Bibliography WEBSITES • • • • • • • • BOOKS • Kotler P. 4th Edition-2007 61 | P a g e .com www.

62 | P a g e .

Do you think Haier’s products have…? Quality Service Reliability Affordability 63 | P a g e . Which country’s origin do you think Haier has? America V Europe China Mobile Phones It is a full-fledged brand 7.Questionnaire Name ___________________________________ Address________________________________________________________ Age____ Sex___ Contact number _____________________ Occupation ________________________ 1. Which brand do you prefer? Haier Videocon Samsung Whirpool Sony 2. Do you have a look at Haier products before making you purchase decision? YES NO 4. Which factors affect your purchase of a brand? Brand Name Product Features Value for money 3. Are you aware that Haier is the 2nd largest electronic goods company in the world? YES NO 5. Which product line do you think Haier produces? Colored TV Home Appliances 6.

Sign up to vote on this title
UsefulNot useful