ACKNOWLEDGEMENT

All praise for Almighty ALLAH whose uniqueness, oneness and wholeness are
unchallengeable. Who is the ultimate guiding force behind everyone and guides everyone
in intricate circumstances.
We would like to take this opportunity to express our sincerest gratitude to Mrs.
Lalarukh for his support and supervision throughout this project.
We are indebted to them for their sincere help and guidance that allowed us to study the
business processes of Packages Ltd. in detail and facilitated in the development and
presentation of this project.

EXECUTIVE SUMMARY
Allah almighty has gifted Pakistan with four wonderful seasons. Autumn, spring,
winter, and summer are beauty of topology of this country. These four seasons
operate in different spells. Autumn and spring lasts for 2 months each, winter for 3
months whereas duration of the summer season is larger than the other seasons. This
almost lasts for 5 / 6 months. Mercury starts rising from the month of March, it
reaches at peak in June and July and later in august and September conditions of
humid weather exists. The mercury rises to 50 degree in May June and July. Although
the people get cool relief through electric fans but people with high stream income
enjoy the luxury of air conditioners. The prices of air conditioner have substantially
decreased in the recent years. This due to the fact that more compact models have
been introduced in the market as compared to conventional large size units. This
price phenomenon has facilitated the lower income groups of the society to enjoy the
chill of the air conditioners. As the prices decreased the demand of air conditioners
also increased the manufacturers of air conditioners exploited this situation which
resulted in increase of productions of existing brands. Furthermore investment was
inducted in this sector and new brands introduced. The current total market of air
conditioner units in the country is approximately 8, 50,000 units annually. There are
34 companies operating in Pakistan. They are producing the entire demand of
8,50,000 units. Due to high cost of production these companies are importing all
parts from China and final assembling is being done in Pakistan. Smuggling also
captures a minor portion which is approximately 2 % of annual production.
The dealer network of each company comprises of 200 / 250 shops, companies have
also opened customer care centers in different areas where repair maintenance
facilities are provided. Companies have also adopted different types of marketing and
sales strategies. There appears a tough competition among the different players in this
sector. Due to this reason companies are also spending huge amounts on advertising

and using different tactics to attract the customers. Through this project efforts have
been made to explore different.
Introduction to Organization
History of Haier:
Haier was incorporated in 1984 producing house hold refrigerators Qingdao with 800
employees and only one product line, Haier has grown to become a globally recognized
name brand.

Over the past 20 years, it has grown and prospered as a worlds 2 nd Largest Home
Appliances Company.

It is only Chinese brand that has been nominated in the list of top 100 companies
of the world; Haier was ranked 95th number in the list.

On the list of the most respected global companies 2002 issued by the Financial
Times, Haier was placed first.

MISSION STATEMENT
To provide quality products & services to the complete satisfaction of our customers
and maximize returns for all stakeholders through optimal use of resources.
To focus on personal development of our Human Resource to meet future
challenges.
To promote good governance, corporate values and a safe working environment with
a strong sense of social responsibility.

VISION
To be a leading home Appliances business with strong brand and a team of exceptional
people

SWOT Analysis
SWOT analysis is a simple framework for generating strategic alternatives from a
situation analysis. It is applicable to either the corporate level or the business unit
level and frequently appears in marketing plans. SWOT (some referred to as TOWS)
stands for strengths, weaknesses, opportunities, and threats.
The following diagram shows how a SWOT analysis fits into a strategic situation
analysis.

Strengths :

Our product price is normal according its features.

It will be the market leader as its a new product
Financially strong very strong.
It will provide high quality as compare to competitor so it will be a strong
edge for the business to flourish.

High tech production plant will be installed that will produce high quality
product on a large scale

Weakness:

Weak delivery chain.

We will import few raw material items from other countries so dependence on
imported raw material would be a hurdle in producing theca.

People might misunderstand its operating functions.

Opportunities:

In Pakistan AC industry is growing at a high rate so there is an opportunity for

the business to avail and become successful.

A large market which can be captured.

Operational efficiency can be attained once we start .
Our capital resources are good.

Threats:

There is an expected rising competition in the market can occur.

Load shading can effect our business.
Economics crises can also a threat for us.
As split AC is going to introduce a new type of AC so there is chance that people
will show reluctance in the beginning.

In future there is a possibility of shortage of raw material.

Marketing strategy:
Our marketing strategy is based on delivering a strong customer value positioning in a
differentiate market. We have built a very strong relationship with the concerns. We will
visit all the related areas. We will make our product and services to every home. We are
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building our public relationship so that we can reach additional cities with same
offering. Our main focus is to meet our customer satisfaction.

SEGMENTATION

GEOGRAPHICAL SEGMENTATION

World region or country

Country region
City

PAKISTAN
PUNJAB
MORE THAN 40 CITIES INCLUDING
LAHORE, GUJRANAWALA,Multan,Sibi

Climate

hot weather

DEMOGRAPHICAL SEGMENTATION

Age

UNDER 30-50

Gender

MALES, female

Family life cycle

YOUNG SINGLES, MARRIED

WITH CHILDERNS

PSYCHOGRAPHICAL SEGMENTATION

Social class

Middle CLASS, Upper class

Lifestyle

Every type of lifestyle

BEHAVIORAL SEGMENTATION

Benefits

CONVENIENCE,

User status

POTENTIAL USERS, 1sT TIME USERS,

Loyalty status

NONE

Readiness stage

AWARE & TENDING TO BUY

Attitude toward product

INDIFFERENT

TARGET MARKETING
Target market is a set of buyers sharing common needs or characteristics that the
company decides to serve.
There are several target market segments including undifferentiated marketing,
differentiated marketing, concentrated marketing, and micro marketing.
The target marketing for the AC is DIFFERENTIATED MARKETING.
Because the segmented marketing is a market-coverage strategy in which a firm
decides to target several market segments and designs separate offers for each.
This is also the case in AC target marketing.
This target marketing is very apt for the AC because the product is one and dealing with
several segments existed in the market.

POSITIONING
Haier has a very sound positioning of their products in the minds and hearts of the
consumers. We will position our AC with quality and class. It is a premium product and
thats why is charged a premium price. On the other hand, the split AC has been
positioned with economy and hygiene.

MARKETING MIX
Marketing mix include the following
1. Product
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2. Price
3. Promotion
4. Place

PRODUCT
Business will be producing its product that is AC on a large scale. The different sizes
mentioned above will differentiate our produced bread from other breads. Haier will
produce the bread in different shapes and in different sizes.
1. Small 13000 btu
2. Medium 19000 btu
3. Lager 25000 btu

Product pictures:

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Product
attribute

Branding
Packaging
Labeling
Product
support
system

Product attributes:

Core benefit:
The core benefit of our product is cooling.

Actual product:

Product features:
Powerful cooling under T3 Standard
Fresh air by Negative ions
Energy Saver
LED Display
Double Condenser
International Brand Compressor
Auto Restart
Intelligent Air Flow
It tells filter cleaning time
Operating by telephone line

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Saves from dust for maximum time

Augmented product:
Warranty:
We are giving 1 year parts warranty.
We are giving 5 year compressor warranty.

Installation
We will giving a best installation by expert technicians which will give a higher result in
cooling

After sale service:

The service function in Haier isnt only to provide repair work .Its the last stage of
marketing, and also is the first stage of R&D. Itll impenetrate

in product R&D,

manufacture, marketing, after-sales and other enterprise activities. We provide 1 year

after sale services.

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Packaging
The a packaging breakthrough significantly improving portability, convenience,
and product protection and consumer information while lowering environmental impact
in comparison to existing solutions. Its unique design combining primary and secondary
packaging provides optimum product protection as well as a quick and easy access.

Branding :
Recognition days almost every product is known by its brand name Brand name helps
consumer to identify the product. Brand name also tells the buyer something about
product quality in Haier AC the world Haier reflect the elegant feature of the product .
The brand name is Haier. And it is well known by all peoples.

Labeling :
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The logo of the Haier and the company Haier is embossed on the AC box. They
change the color of their AC logo according to the occasion like on the Independence
Day they changed the color of the AC logo in to green and white .
The is well labeled. And it tells about the product and company.

PRICE
Price of Haier AC products would be charged according to the category of AC. Price is
given according to its feature and quality. The profit margin is low to increase the sale
and to introduce the new product. Our price is less as compared to our competitors.
Below a table is given which shows the price.

product
Small 13000 btu

price
24495

Medium 19000 btu

34495

Lager

43495

25000 btu

Price elasticity and customer sensitivity

Price elasticity is the variation of the price to the quantity demanded to the
various in price. This is a cheap product and the variation in price would obviously affect
the customer demand. Making the price too less will give the customers think that the
product is a cheap one and its quality is inferior. If the price is too high then the
customers will not by it.

PLACE
At initial stage split AC will produce the products for Lahore and its surroundings. As the
business flourishes and brand gets its place in the market AC will start producing other
major cities oh the country like Islamabad, Faisalabad, Sargodha, etc.
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With the passage of time business will start focusing to place the product in all the cities.
The distribution network of HAIER AC
Flows as follows:
Producer

Distributor

Whole Seller

Retailer

Promotion:
We have a new product and it is in the stage of where we need to create
awareness in of the product in the people. We will be launching a mass promotion
campaign so that we can make the maximum of people aware of our product.
Promotion Strategy
HAIER promotion budget is around 1.75% of their turnover. 40% spending of their
budget is Print Media, 20% goes on TV, 20% on Outdoor activity and balance 20%
on Sales Promotion activity. They believe that print media and outdoor activity help
them to reach to their target customer. Due to satellite transmission and having
multi-channels, it does not pay one unless you have very huge budget to spend on
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this media. On promotion, their spending is more on consumer incentive schemes.

Since it pays them and there is direct relationship between sales and consumer.
Further, it gives customer a direct benefit in shape of price reduction.

Company can use these tools for promotion purpose

Advertising
Sales promotion
Personal Selling
Direct Marketing
Product Advertising
In product advertising, advertisers are informed or stimulating the market about their
products and services. This type of advertising is often adopted by HAIER Sale
Corporation on various occasions. For instance when HAIER introduces a new
article in the market, information is given to customers and through magazines and
newspapers.
Daily Newspapers
Life has become so faster that no one can spare time to watch T.V. or listen to radio
regularly. For such type of people daily newspaper is an important media which HAIER
has adopted. Advertising messages of HAIER appear in a newspaper more frequently
because its much cheaper the T.V.

Magazines
Pak electron ltd presents beautiful ads of its home appliance in well reputed weekly or
monthly magazines. These magazines include both general and special types. Special
types mean executive magazines, business magazines etc.

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Sales promotion
We will be giving incentives to the middle men. These middle men are actually
the channel members. By doing so, these sales people will promote our product over the
other products. These sales men will be given commission on the number of split AC
sold.

Personal selling:
We will introduce our product , we will also promote it by personal selling.
We will go to the customer for personal selling and will introduce our new product.

Direct marketing:
We will also use direct marketing to introduce our new product. We will send sms we
will send mail to our existing and new customers.

HAIER Advertisement Boards in Lahore

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Haier AC advertisement in Multan

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Customer Services
HAIER has 27 areas sales offices in all the major cities of Pakistan. They are selling
direct into those cities and giving the right information about that market. HAIER
has also its service center in 24 cities and the authorized service center numbers are
now reaching to 500 all over Pakistan. Customer services vans are now giving fast
and reliable services to HAIER customers. HAIER has a UAN number for its
customer complaints i.e. 111-102-103 and also having the toll free number 080000735(HAIER) which was recently added for the customers value.

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Brand equity
This is a not new product but features are new that is being introduced in Pakistan so
Brand equity needs to be established. When developing a new product, branding is an
important decision. The brand can add significant value when it is well recognized and
has positive associations in the mind of the consumer. This concept is referred to as brand
equity.

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Brand Equity Determination Factors:

The scientific data collection for an existing brand is very important in
calculating the brand equity. The brand equity of a product lines at four levels:

Awareness Level
Top of Mind (TOP)
Brand Ever Used

Product Life Cycle Management and New Product

Development Process:
Product Life Cycle Management:

Market introduction stage

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The is not the new product it is existing product but it become with new
features.
Sales may be low because the product features are new and people do not
have much awareness about this product features.
Demand is to be created.
Customers will be prompted to buy the new product. Awareness will be
created by advertising.

Growth stage

Costs will be reduced to increase the sales of the product.

Profits will increase.
There will be danger of competition with some new players in
establishing market.
Prices to maximize market share will be created by advertising.

Mature stage

Costs will become low the market will be well established and there will be
no need for publicity.
Sales volume will rise.
There will be increase in competitive offerings.
Prices will tend to drop due to the proliferation of competing products.

Saturation and decline stage

Costs become counter-optimal.

Sales volume decline or stabilize.
Prices, profitability diminish.
Profit becomes more a challenge of production/distribution efficiency
than increased sales.

New Product Development Process:

Idea Generation:
Ideas for new products can be obtained from basic research using a SWOT
analysis (OPPORTUNITY ANALYSIS), Market and consumer trends, company's R&D
department, competitors, focus groups, employees, salespeople, corporate spies, trade
shows, or Ethnographic discovery methods . The idea about such a Split AC is innovative
and it will more facilitate to the use of customer.
Idea Screening:
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The following questions are to be kept in mind during idea screening:

Is the customer in the target market having benefit from the product?
This split AC will be introduced in Pakistani market for the first time. The numbers
of AC users are increasing every year and is a cause of increasing demand of such AC.
People are becoming aware and are interested such a split AC which can provide them
the features which they are vigorous to find for a long time and finally the sum of all
these features they can find in this split AC.
Is it technically feasible to manufacture the product?
It is feasible to manufacture the products because the techniques of production are
available.
Will the product be profitable when manufactured and delivered to the customer at
the target price?
The product will be profitable due to its uniqueness and benefits.
Concept Development and Testing:

The target market is detected.

The benefits are analyzed.
The reaction of the consumers is kept in mind.
The costs for the manufacture of the product are known.
Testing the Concept by asking a sample of prospective customers what they
think of the idea.

Marketing Strategy Development:

-

The target market is mostly comprised of men and a few women.. Middle class and
lower class people are mostly dependant upon AC while upper class people use it
more.
The product planned price is determined for split AC.
The budgeting, sales and profit goals are determined.
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Business Analysis:
The prices of currently sold ACs in Pakistan would be compared. Estimation of sales
and profit will be done.

Product Development:
The concept of the product is converted into the final product. After going through
all the previous stages Split AC with different features are launched.

Test marketing:
The product before getting introduced in the market is firstly tested. Initially produt is
sold at the cost price for test in market. The effects and results are analyzed by test
marketing.

Commercialization:
Launch the product: The new product is introduced in the market.
Product advertisements and other promotions: Product advertisement and promotion
is done in order to enhance the sales.

CONCLUSION
We have concluded that it is a difficult job but we have used all the marketing
strategies to become success in the market and our product is innovative we are
initially sucessing and InshAllah we will find a great success in future.
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Reference :
www.haier.com.pk
MR.Imran Yousafzai
(country marketing manager of Haier company)
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MR.Khadim Hussain
(regional manager Multan)

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