“WE CREATE COOLING ZONE, DEEP SATISFACTION & INTENSE PLEASURE”

PROJECT ON HAEIR CEILING FANS IN INDIA
SUBMITTED TO: GROUP MEMBERS: MS. MONICA MOR DEEPSHIKHA DEV SUBMITTED BY: JANAK DEORA GROUP NO. 11 JNANA RANJAN PATI NEHA GOYAL SUDEEP KHOKHAR SUMESH YADAV

VIJAY KUMAR

INDEX:
1. EXECUTIVE SUMMARY 2. CURRENT SITUATION 2.1MACRO ENVIRONMENT 2.2PEST ANALYSIS 3. MARKET ANALYSIS 3.1MARKET SIZE 3.1.1OVERALL MARKET 3.1.2TARGET POPULATION SIZE 3.2 MARKET SEGMENTATION 3.2.1 DEMOGRAPHIC SEGMENTATION 3.2.2 GEOGRAPHIC SEGMENTATION 3.3 SWOT 4. CURRENT SITUATION 4.1 BACKGROUND 4.2 CORPORATE INFORMATION 4.3 MISSION STATEMENT 4.4 AIM 4.5 VISION 5. MARKETING STRATEGY 5.1 PRODUCT DECISION 5.2 PLC 5.3 FOUR P’S 6. COMPETITOR’S ANALYSIS 6.1 STRENGTHS AND WEAKNESS OF COMPETITORS 6.2 SWOT OF COMPETITOR 6.3 MARKETING PENETRATION

7 BIBLIOGRAPHY

1. EXECUTIVE SUMMARY:
INTRODUCTION:
In a hot country like India fans are a relief. Over the years it has come from being hand held banana leaves to remote controlled multicolor designer fans fitted with exotic lights. The technology involved in the product is low. This has led us to a wide proliferation of the industry by bringing in fans for the common peoples of India. The competition from small-scale manufacturers is fierce and a continual worrying factor for us. But we never let ourselves down and because of which we are successful now. Some of the major existing companies in this fan industry have shown no longer interests that they used to do a few years ago in their product structure. But we have worked on every aspect and are now ready to hit the market with our various models of fans whose pricing starts from Rs.865 onwards. On the financial front the industry has suffered from a number of product problems. Shortages of working capital and high interest rates have constrained their resources. Rising input costs. The seasonal as well as cyclical nature of the industry also had an impact. No wonder the production has been erratic. The fan industry undergoes major seasonal and cyclical changes. A year of growth is generally followed by year of slump. However the product is generic to every home the fundamentals of the industry are strong. Essentially being a low technology industry, unorganized sector occupies the same position as the organized sector in terms of sales There is also a major effort to corner the rural markets, which on an average contributes about 30-40% of the total fan sales in the country. Since any branded products are taken for granted as trustworthy. The companies are trying hard to reach the rural market. The future of the industry seems to be bright as new horizons are added in India every year (any boom in housing constructions will still be beneficial). However there is not enough room for the players in organized sector unless they penetrate unorganized sectors market share. Designer fans are here to stay.

2. CURRENT SITUATION:

2.1 PEST ANALYSIS: A PEST analysis is an analysis of the external
macro-environment that affects our firm. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.

POLITICAL:
    Government type and stability Freedom of press, rule of law and levels of bureaucracy and corruption Social and employment legislation Tax-policy, and trade and tariff controls- If sales tax rate is increased by the government the sale price of all the input is increased as well as the final price will be increased subsequently and the demand as well as the sales of the product will go down. Wage legislation-minimum wage and overtime Mandatory employee benefits Industrial safety regulations Product labeling requirements Environmental and consumer-protection legislation Likely changes in the political environment Industry specific regulation Funding, grants and initiatives Home market lobbying/pressure groups Shareholder/ stakeholder needs/ demands

         

ECONOMIC:
                       Home economic situation Home economy trends General taxation issues Taxation changes specific to product/services Seasonality/weather issues Market and trade cycles Specific industry factors Market routes and distribution trends Customer/end-user drivers International trade/monetary issues Disposable income Labor costs Job growth/unemployment Discretionary income Tariffs Inflation rate Interest rates Consumer confidence index Import/export ratios Production level Internal cash flow Business cycle stage(e.g. prosperity, recession, recovery) Skill level of workforce

     

Exchange rates and stability of host country currency Efficiency of financial markets Impact of globalization Infrastructure quality Government intervention Economic growth rate

SOCIO-CULTURAL:
                   Population growth rate Population employment patterns, job market freedom Public opinion Lifestyle choices and attitudes to these Consumer attitudes and opinions Media views Brand, company, technology image Major events and influences Buying access and trends Advertising and publicity Demographics (family size) Trends Diversity Living standards Housing trends Attitudes to people Occupations Earning capacity of people Staff attitudes

TECHNOLOGICAL:
            Competitive technology development Research funding Impact of value chain structure Impact of cost structure Associated/dependent technologies Replacement technology/solutions Maturity of technology Manufacturing maturity and capacity Information and communications Consumer buying mechanisms/technology Technology legislation Innovation potential

            

Technology access, licensing, patents Intellectual property issues Inventions Innovations Research Energy uses/sources/fuels Manufacturing advances Information technology Internet Transportation Waste removal/recycling Email Software changes

3. CURRENT SITUATION: 3.1 MARKET ANALYSIS: 3.1.1MARKET SIZE: 3.1.2.OVERALL MARKET- Metro cities with higher income
group people with the taste of style and uniqueness.

3.1.3. TARGET POPULATION SIZE-20000-30000 each metro
city

Our present target population size is 20000-30000 people but in future times we have better opportunities because more and more youth are moving towards service sector and are earning wealthily. For example- We may take an example of Gurgaon, Haryana. As more and more service class/business class people here are of 25-35 age groups and

are very conscious about their status symbols. They want luxury and comfort. So, Haier will serve their needs and wants at best. POORLY SERVED NEEDS THAT OUR PRODUCT WILL SERVE • • • • • • • Ceiling fans with good performance Accessible with remote Soundless Innovative and advanced oscillating features Exciting colours Floral patterns in accordance with the design of walls When not in use, the blades of the fan can be folded so as to get it protected from the dust. And after folding, it acquires the shape of the flower or a lamp for the image of uniqueness and style.

BENEFITS OFFERED
• • • • • 18 months warranty Energy saver Free Liquid wash for good care of fan blades Good customer care service Door to door fan service facility

3.1MARKET SEGMENTATION:
TARGET SEGMENT • BUSINESS CLASS • HIGHER INCOME CLASS • HIGHER MIDDLE CLASS

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs Variables Used for Segmentation

3.2.1 DEMOGRAPHIC SEGMENTATION:• • • Its for all age group. Income – low, middle & high end consumer Occupation – all types of working and non-working people

3.2.2

GEOGRAPHIC SEGMENTATION:

has no set geographic target area. By leveraging the benefits of liberalization and integration of the markets of the world, Itwill seek to serve both domestic and international customers.

• •

Metropolitan Cities, major cities of the states, and towns. Density of Area: Semi-urban, Rural.

3.3 SWOT ANALYSIS:

SWOT analysis is a framework for analyzing your strengths and weaknesses, and the opportunities and threats you face. This will help you to focus on your strengths, minimize weaknesses, and take the greatest possible advantage of opportunities available.

STRENGTH:
           We are able to respond very quickly as we have no red tape, no need for higher management approval, etc. Our biggest strength is our market segmentation. We have low priced fans Not only is this we also cater to the needs of the middle class consumers. Hence it is catering to the needs of both the segments. Thus we have reduced its risk by not targeting only one kind of the market. We have launched many economy fans This helped them remain loyal to their high-end customers. We are also known for our designs and varieties. We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers Our lead consultant has strong reputation within the market We can change direction quickly if we find that our marketing is not working We have little overhead, so can offer good value to customers

WEAKNESSES:
     Our company has no market presence or reputation We have a small staff with a shallow skills base in many areas We are vulnerable to vital staff being sick, leaving, etc. Our cash flow will be unreliable in the early stages Though the quality and performance of HAEIR fans has been reasonably good it is not at par with orient or Compton.

OPPORTUNITIES:
 Our business sector is expanding, with many future opportunities for success

  

Our local council wants to encourage local businesses with work where possible Our competitors may be slow to adopt new technologies It is expected that there will be 15% growth in demand for fans with a boom in the real estate sector and the market is looking for different models suiting the new pattern for decor and housing arrangements. Thus given its variety and designer models HAEIR has great opportunity over the years to come. Moreover Chinese influx in Indian market is likely to end with Chinese government withdrawing manufacturing incentives and appreciating RMB by 10%. This would give Indian manufacturers a more competitive edge domestically as well as globally. HAEIR has a good opportunity for tapping a large percentage of unorganized sector in which the cheap Chinese assembled fans play a major role. It is also widening its distribution network by opening various retail outlets in many parts of the country. In fact HAEIR is targeting 22% of the Indian market by 2010.

THREATS:
   Will developments in technology change this market beyond our ability to adapt? A small change in focus of a large competitor might wipe out any market position we achieve The consultancy might therefore decide to specialize in rapid response, good value services to local businesses. Marketing would be in selected local publications, to get the greatest possible market presence for a set advertising budget. The consultancy should keep up-to-date with changes in technology where possible. A growing unorganized sector is a continual worry for HAEIR. The current share of the organized sector is 50% and is increasing at a rapid rate. HAEIR has to be constantly on its toes to advertise their products better at the same time keep the prices low. Otherwise the unorganized sector may eat up its market share. Unorganized sector is a big threat to the company.

3. CURRENT SITUATION:
4.1 BACKGROUND:
Rapid development of industries, construction and infrastructure fields augured necessity for various electrical devices and equipments. Electrical devices, accessories and equipments are prerequisite in every Industry and field for diverse operations.

4.2 CORPORATE INFO:

Holding the true spirit of commitment to customer satisfaction - Haeir India pvt. Lmt. is enriching lives of people with the same ingenuity and enthusiasm as its parent company Haeir America.

4.3 CORPORATE MISSION STATEMENT:
Our mission is to “Be second to none. Get it right the first time. Do it quicker and better.”Being second to none requires appropriate planning, investment in most up-to-date technology and best technical people having thorough knowledge, experience of the industry. So we need to combine quality, innovation and style for the comfort and convenience of your home.

4.4 CORPORATE AIM:
• • • • • • • To serve clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships. To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology. To always give honest and unbiased financial advice and earn our clients' everlasting trust. To serve the community by educating individuals on the merits of financial planning and in turn help shape a financially strong society. To create value for all stake holders by ensuring profitable growth. To build an amicable environment that accords respect to every individual and permits their personal growth. To utilize the power of team work to function as a family and build a seamless organization.

4.5 CORPORATE VISION STATEMENT:
“To be the most admired brand in India providing innovative, state of the art, user friendly products of lasting value to our customers, to make their today better than yesterday“. 3.  Specific- We would be specific towards our goal and try our level best to achieve it.  Measurable-we would try to achieve the desired goal.  Achievable- The objective is achievable with all available resources and through dedication to work.  Realistic- We have all the resources like men, money, material to achieve our objective.  Timed- we would achieve our targets by one year of launch. Examples of smart objectives:

MARKETING STRATEGY:

1. Profitability objective: To achieve a 30% return on capital employed within a year of launching the product. 2. Market share objectives: To gain 35% of the market share within a year of launching. 3. Promotional objective: To promote our product to fullest through all types of mass communication. 4. Objective for survival: To survive the current double-dip depression.

5.1 PRODUCT DECISIONS:
FEATURES:
Features of all the Haier fans are different. But these are some a prominent feature for which Haier is well known: • Cost effective • Large variety • Less power consumption • Nice all round performance • Strong regulators • Effective air movement to suit exact requirement for ventilation • Low temperature rise leading to longer bearing life • Specially designed blades for better performance and non-overloading characteristics • Stable speed voltage motor characteristics leading to excellent low voltage performance • Designed to comply with abnormal test conditions as per international safety standards • Higher Air Delivery Power Ratio (ADPR) for ultimate performance.

5.2 PRODUCT LIFE CYCLE
Our product lies in introduction stage. • • • • • • • Slow sales Products are non existent Heavy expenses incurred with product introduction High costs per customer Profits are negative Less competitors Customers are innovative

5.3 FOUR P’S OF MARKETING

1. PRODUCT The prices of all kinds of product differ. The prices differ on the bases of size, features, and looks.

PRODUCT LINE EXTENSION: Haier has extensive range of product line. Haier manufactures different types of ceiling fans with improved features being added to the product line. The very recent addition is the companies’ low priced fan “PAWAN”. Haier not only offers ceiling fans but also ceiling fan’s accessories such as Resistance type Regulators, “CAPCON” capacitor type regulator, CHANDY (four way light attachment), PRETTY (single dome light attachment). Haier manufactures fans of various sizes to meet the consumer and the room requirements. Ceiling fans: The Ceiling fans are available in the following sweep sizes: 1600mm, 1400mm, 1350mm are suitable for large Room size. 1100mm is suitable for medium room size. 500mm is the smallest size Haier offers. 2

PLACE:- every part of India-Rural and urban which includes all small and large cities of the country.

3 • • • • • • •

PROMOTION: Mass advertising – TV Trade promotions – in store display, samples Hoardings Campaigning activities Sponsorship activities Road shows Banner and hoardings with a tag line “Sabse halka par sabse tej”

2 PRICE: It would be different from model to model like more would be the price of
high class of models and less of low class of model. Designer fans would be costlier of all. Distribution Channel 0 Level: HAIER Customers (Through its own showrooms) 1 Level: HAIER  Retailer  Customer 2 Level: HAIER  Wholesale distributor  Retailer  Customers 3 Level: HAIER  Wholesale distributor  Retailer  Customers

CHANNELS OF DISTRIBUTION:
As a company, dealers and distributors play a major role in serving customers, while growing and sustaining markets. Haier has a network of strong and dedicated distributors and dealers. A network that has helped HAIER’s name and its promise of reliable quality to every part of the country. The power of this highly efficient and motivated network goes a long way to create goodwill for Haier brand among countless consumers besides creating availability and after sales services. There are 2 channels of distribution one among them is a direct dealer network. A direct dealer is a dealer who is authorized to purchase the product directly from the company and sell. They have yearly targets given to them by the company .If they succeed in achieving those targets then there is a certain discount, which is offered to them. They are also rewarded on the basis of per fan sold. New plans launch ideas and sales strategies are shared with them at frequent meetings. The same goes with the distributors. The distributor has many dealers under him the distributor commands his margin on sales. Hence the price is likely to be slightly high.

6. COMPETITIVE ANALYSIS:
Identification Of Competitors PLAYERS IN THE MARKET

6.1 STRENGTHS & WEAKNESSES OF COMPETITOR: COMPETITORS:
Haier has many competitors in the organized as well as the unorganized sector as unorganized sector supplies fans very cheap rates. Haier’s three major competitors in the industry are CROMPTON, USHA and Orient. There are also other product

competitor like Padmini, Khaitanand Bajaj. But they are not so much threat to us like those three. Crompton and Usha command the highest market share in the Indian fan industry i.e. 20% each. Followed by ORIENT, which commands 18% in the industry. Third in the league is Khaitan with a market share of 15%

6.2 SWOT ANALYSIS OF COMPETITORS:
CROMPTON STRENGTH: Crompton has acquired super brand status. Super brand is a unique International recognition that is bestowed on brands that have emerged as icons in their category. In India, a council comprising eminent professionals from the fields of advertising, marketing, research and media was formed to determine India's most respected brands. Crompton is in d list of 134 selected brands. Thus, as a brand Crompton is much stronger than Haier. Crompton is a market leader with twenty percent of the market share in organized sector. Crompton enjoys a great brand loyalty. WEAKNESS: Crompton fans are the costliest ones as compared to the other brands. OPPORTUNITIES: Crompton has an excellent brand recall. Considering their market image and market share, there are great opportunities for Crompton as compared to Haier. Crompton has a good opportunity for tapping a large percentage of unorganized sectors which contributes almost fifty percent of the total fan sales THREATS: A growing unorganized sector is a continual worry for Haier. The current share of the organized sector is 50% and is increasing at a rapid rate. Haier has to be constantly on its toes to advertise their products better at the same time keep the prices low. Otherwise the unorganized sector may eat up its market share. Unorganized sector is a big threat to the company.

SERVICES
Haier believes in quality without compromise. Haier has always offered excellent quality and service. Their products are testaments to the belief in excellence and are duly subject to the most stringent quality standards in the world. And as proof of their mettle and faith in quality, they took what may be regarded as the boldestever step in the fan industry: the introduction of the Replacement Bond. The Replacement Bond ensures that the customer always comes first. It is a bond signed by the Chairman of the Company, promising to replace any Haier fan with a manufacturing defect, discovered within one year of its purchase, with a new one. Till today, the idea goes unmatched by any competitor. This confidence in the fans

is a result of dedicated service, commitment to quality and careful attention to detail. 7. Finding place in various retail outlets. Opening HAIER’s exclusive stores. Trying to get more customers through a intensive distribution.

MARKET PENETRATION STRATEGY:

• • •

8 BIBLIOGRAPHY:
http://www.haier.com/index.htm http://www.haierindia.com/ http://www.haier.com/AboutHaier/CorporateProfile/index.asp http://en.wikipedia.org/wiki/Haier http://www.bajajelectricals.com/c-205-ceiling-fans.aspx http://www.cglonline.com/cg/avs/home/fans/ceiling/ http://www.havells.com/fans/ceiling.htm http://www.ushainternational.com/ http://en.wikipedia.org/wiki/Ceiling_fan marketing strategy book by walker mullins boyd larreche-5th edition (page6,10,11,308) marketing management by Philip kotler 11th edition

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