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haier

haier

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Published by: Ali Malik on Jan 15, 2012
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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.

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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 2

Due to this reason companies are also spending huge amounts on advertising and using different tactics to attract the customers.  To promote good governance. 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. 3 .types of marketing and sales strategies. • • • Over the past 20 years. Introduction to Organization History of Haier: Haier was incorporated in 1984 producing house hold refrigerators Qingdao with 800 employees and only one product line.  To focus on personal development of our Human Resource to meet future challenges. Haier has grown to become a globally recognized name brand. Haier was placed first. it has grown and prospered as a world’s 2 nd Largest Home Appliances Company. corporate values and a safe working environment with a strong sense of social responsibility. It is only Chinese brand that has been nominated in the list of top 100 companies of the world. On the list of the most respected global companies 2002 issued by the Financial Times. There appears a tough competition among the different players in this sector. Through this project efforts have been made to explore different. Haier was ranked 95th number in the list.

It will be the market leader as it’s a new product . opportunities. The following diagram shows how a SWOT analysis fits into a strategic situation analysis. SWOT (some referred to as TOWS) stands for strengths. weaknesses. and threats. Strengths : • • 4 Our product price is normal according its features. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans.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.

Opportunities: • In Pakistan AC industry is growing at a high rate so there is an opportunity for the business to avail and become successful. Operational efficiency can be attained once we start . • High tech production plant will be installed that will produce high quality product on a large scale Weakness: •Weak delivery chain. Threats: • • • • • There is an expected rising competition in the market can occur. It will provide high quality as compare to competitor so it will be a strong edge for the business to flourish. Load shading can effect our business. Our capital resources are good. As split AC is going to introduce a new type of AC so there is chance that people will show reluctance in the beginning.• • Financially strong very strong. 5 . In future there is a possibility of shortage of raw material. • • • A large market which can be captured. •People might misunderstand its operating functions. We will import few raw material items from other countries so dependence on imported raw material would be a hurdle in producing theca. Economics crises can also a threat for us.

GUJRANAWALA. We are building our public relationship so that we can reach additional cities with same offering. We will make our product and services to every home.Multan. SEGMENTATION GEOGRAPHICAL SEGMENTATION World region or country Country region City Climate PAKISTAN PUNJAB MORE THAN 40 CITIES INCLUDING LAHORE.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.Sibi hot weather 6 . We will visit all the related areas. Our main focus is to meet our customer satisfaction.

Upper class Every type of lifestyle BEHAVIORAL SEGMENTATION 7 .DEMOGRAPHICAL SEGMENTATION Age Gender Family life cycle UNDER 30-50 MALES. MARRIED WITH CHILDERNS PSYCHOGRAPHICAL SEGMENTATION Social class Lifestyle Middle CLASS. female YOUNG SINGLES.

POSITIONING Haier has a very sound positioning of their products in the minds and hearts of the consumers. This is also the case in AC target marketing. and micro marketing. It is a premium product and that’s why is charged a premium price. 1sT TIME USERS. NONE AWARE & TENDING TO BUY INDIFFERENT TARGET MARKETING Target market is a set of buyers sharing common needs or characteristics that the company decides to serve. 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. The target marketing for the AC is DIFFERENTIATED MARKETING. the split AC has been positioned with economy and hygiene. There are several target market segments including undifferentiated marketing. POTENTIAL USERS. 8 . On the other hand. This target marketing is very apt for the AC because the product is one and dealing with several segments existed in the market.Benefits User status Loyalty status Readiness stage Attitude toward product CONVENIENCE. We will position our AC with quality and class. differentiated marketing. concentrated marketing.

Place PRODUCT Business will be producing its product that is AC on a large scale. Price 3. Product 2. Lager 25000 btu Product pictures: 9 . Medium 19000 btu 3. Haier will produce the bread in different shapes and in different sizes. Small 13000 btu 2. Promotion 4. 1. The different sizes mentioned above will differentiate our produced bread from other breads.MARKETING MIX Marketing mix include the following 1.

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Actual product: Product features: • • • • • • Powerful cooling under T3 Standard Fresh air by Negative ions Energy Saver LED Display Double Condenser International Brand Compressor 11 .Product attribute Branding Packaging Labeling Product support system Product attributes: Core benefit: The core benefit of our product is cooling.

• • • • • Auto Restart Intelligent Air Flow It tells filter cleaning time Operating by telephone line Saves from dust for maximum time Augmented product: Warranty: We are giving 1 year parts 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 isn’t only to provide repair work . It’ll impenetrate in product R&D. and also is the first stage of R&D.It’s the last stage of marketing. We are giving 5 year compressor warranty. 12 .

We provide 1 year after sale services. Branding : Recognition days almost every product is known by its brand name Brand name helps consumer to identify the product. Packaging The a packaging breakthrough significantly improving portability. and product protection and consumer information while lowering environmental impact in comparison to existing solutions. convenience. after-sales and other enterprise activities.manufacture. Brand name also tells the buyer something 13 . Its unique design combining primary and secondary packaging provides optimum product protection as well as a quick and easy access. marketing.

PRICE Price of Haier AC products would be charged according to the category of AC. This is a cheap product and the variation in price would obviously affect the customer demand. The brand name is Haier. Our price is less as compared to our competitors. Price is given according to its feature and quality. Making the price too less will give the customers think 14 . Product Small 13000 btu Medium 19000 btu Lager 25000 btu price 24495 34495 43495 Price elasticity and customer sensitivity Price elasticity is the variation of the price to the quantity demanded to the various in price. And it tells about the product and company. Labeling : The logo of the Haier and the company Haier is embossed on the AC box.about product quality in Haier AC the world Haier reflect the elegant feature of the product . And it is well known by all peoples. The is well labeled. The profit margin is low to increase the sale and to introduce the new product. Below a table is given which shows the price. 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 .

Sargodha. If the price is too high then the customers will not by it. Faisalabad. etc. PLACE At initial stage split AC will produce the products for Lahore and its surroundings. The distribution network of HAIER AC Flows as follows: Producer Distributor Whole Seller Retailer Promotion: 15 .that the product is a cheap one and its quality is inferior. With the passage of time business will start focusing to place the product in all the cities. As the business flourishes and brand gets its place in the market AC will start producing other major cities oh the country like Islamabad.

advertisers are informed or stimulating the market about their products and services. their spending is more on consumer incentive schemes. We will be launching a mass promotion campaign so that we can make the maximum of people aware of our product. 20% goes on TV. 20% on Outdoor activity and balance 20% on Sales Promotion activity. On promotion. Due to satellite transmission and having multi-channels. Promotion Strategy HAIER promotion budget is around 1. information is given to customers and through magazines and newspapers. 40% spending of their budget is Print Media. They believe that print media and outdoor activity help them to reach to their target customer. Daily Newspapers 16 . For instance when HAIER introduces a new article in the market. This type of advertising is often adopted by HAIER Sale Corporation on various occasions. it does not pay one unless you have very huge budget to spend on this media.75% of their turnover. Company can use these tools for promotion purpose  Advertising  Sales promotion  Personal Selling  Direct Marketing Product Advertising In product advertising.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. Since it pays them and there is direct relationship between sales and consumer. it gives customer a direct benefit in shape of price reduction. Further.

V. Magazines Pak electron ltd presents beautiful ads of its home appliance in well reputed weekly or monthly magazines. we will also promote it by personal selling. We will go to the customer for personal selling and will introduce our new product.Life has become so faster that no one can spare time to watch T. Special types mean executive magazines. For such type of people daily newspaper is an important media which HAIER has adopted. Direct marketing: We will also use direct marketing to introduce our new product.V. By doing so. Personal selling: We will introduce our product . Sales promotion We will be giving incentives to the middle men. or listen to radio regularly. business magazines etc. We will send sms we will send mail to our existing and new customers. Advertising messages of HAIER appear in a newspaper more frequently because it’s much cheaper the T. These magazines include both general and special types. 17 . 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. These middle men are actually the channel members.

HAIER Advertisement Boards in Lahore Haier AC advertisement in Multan 18 .

111-102-103 and also having the toll free number 0800-00735(HAIER) which was recently added for the customer’s value.Customer Services HAIER has 27 areas sales offices in all the major cities of Pakistan. HAIER has also its service center in 24 cities and the authorized service center numbers are now reaching to 500 all over Pakistan. HAIER has a UAN number for its customer complaints i.e. Customer services vans are now giving fast and reliable services to HAIER customers. They are selling direct into those cities and giving the right information about that market. 19 .

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branding is an important decision. Brand Equity Determination Factors: The scientific data collection for an existing brand is very important in calculating the brand equity. This concept is referred to as brand equity. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. 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: 21 .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.

Profits will increase. Growth stage • • • 22 Costs will be reduced to increase the sales of the product.Product Life Cycle Management: Market introduction stage • • • • The is not the new product it is existing product but it become with new features. Customers will be prompted to buy the new product. Awareness will be created by advertising. There will be danger of competition with some new players in establishing market. 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.

Sales volume decline or stabilize. Prices. Profit becomes more a challenge of production/distribution efficiency than increased sales.• Prices to maximize market share will be created by advertising. Sales volume will rise. There will be increase in competitive offerings. profitability diminish. Prices will tend to drop due to the proliferation of competing products. Saturation and decline stage • • • • Costs become counter-optimal. Mature stage • • • • Costs will become low the market will be well established and there will be no need for publicity. New Product Development Process: 23 .

The numbers of AC users are increasing every year and is a cause of increasing demand of such AC. Market and consumer trends. focus groups. trade shows.Idea Generation: Ideas for new products can be obtained from basic research using a SWOT analysis (OPPORTUNITY ANALYSIS). 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. or Ethnographic discovery methods . The idea about such a Split AC is innovative and it will more facilitate to the use of customer. competitors. salespeople. Idea Screening: 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. employees. 24 . corporate spies. company's R&D department.

. The costs for the manufacture of the product are known. The benefits are analyzed. Testing the Concept by asking a sample of prospective customers what they think of the idea. Middle class and lower class people are mostly dependant upon AC while upper class people use it more. The reaction of the consumers is kept in mind. Marketing Strategy Development: - The target market is mostly comprised of men and a few women.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. 25 .

After going through all the previous stages Split AC with different features are launched. Commercialization: Launch the product: The new product is introduced in the market. The budgeting. Product advertisements and other promotions: Product advertisement and promotion is done in order to enhance the sales. The effects and results are analyzed by test marketing. Initially produt is sold at the cost price for test in market. 26 . Business Analysis: The prices of currently sold ACs in Pakistan would be compared. Product Development: The concept of the product is converted into the final “product”.- The product planned price is determined for split AC. Test marketing: The product before getting introduced in the market is firstly tested. sales and profit goals are determined. Estimation of sales and profit will be done.

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. 27 .

pk MR.com.Imran Yousafzai (country marketing manager of Haier company) MR.Khadim Hussain (regional manager Multan) 28 .haier.Reference : www.

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