haier 2003 (1)
TRANSCRIPT
MAJOR PROJECT REPORT
ON
“MARKETING MIX ANALYSIS OF HAIER IN SEGMENT OF REFRIGERATORS”
SUBMITTED BY: SUBMITTED TO:
AKASH SHARMA DR. RAJEEV DAHIYA
ROLL NO. 02914901709 ASSISTANT PROFESSOR
BBA (GEN) VI SEM DEPT. OF BUSINESS ADMINISTRATION
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
CERTIFICATE
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)
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ACKNOWLEDGEMENT
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.
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TABLE OF CONTENTS
CHAPTER 1:
INTRODUCTION
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CHAPTERNO. CONTENTS PAGE NO.
CH-1 INTRODUCTION
ABOUT THE TOPIC
OBJECTIVES
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
4-10
CH-2 PROFILE OF THE ORGANISATION 11-24
CH-3 DATA ANALYSIS AND INTERPRETATION 25-54
CH-4 CONCLUSION AND RECOMMENDATIONS 55-60
ANNEXURE
BIBLIOGRAPHY QUESTIONNAIRE
About the topic:
“By the way of doing the marketing mix analysis for the Haier, it will provide necessary market
information, 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, washing
machine and A.C segment”
Consumer durables Industry is growing at a rapid pace. Price Affordability, Product Awareness
and availability have helped the industry players to generate great business. But doing business
in Indian Market is not easy. Continuous improvement in Product quality and post sales service
at affordable price is common to all Consumer durable manufacturers across Industry. But the
company which would introduce innovative product, with unique technology and provide
convenience by satisfying them with something new would surely attract customers. Haier
Appliances which is one of the largest Home Appliances brand in the world. Haier is known
worldwide for “inspired living” of customers with the unique and patented product like Bottom
Mounted Refrigerators.
The company was established in 1984, and in only 23 years, it has attained global recognition,
including a 25th spot ranking in the World's Most Respected Brands list by Forbes in 2006. It has
consistently been among China's top-performing companies domestically for the past 20 years,
but the company is now aiming to entrench itself as one of the mainstays of the global consumer
electronics industry.
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 -- refrigerators, color
television/DVDs, washing machines, microwave ovens and dishwashers. Haier India has also
launched its brand of mobile phones in India.
There are more worries than just fierce competition even for a late entrant like Haier, a $9.2-
billion giant, to get a toehold in an already crowded market. Almost the entire industry was
unanimous that its image as a Chinese manufacturer will be a challenge -- its country cousin like
Konka and TCL entered, and left India, making no impression, but leaving some unpleasant
memories. Other cheap Chinese products have flooded the Indian market over the last few years,
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leaving Haier with little chance for a premium positioning. Trade circles have similar
apprehensions, and fighting this image is taking most of Haier time in India.
Despite this Haier entered the Indian market with a premium line of products, which prohibited
the brand from building a mass appeal. Although, 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%. But it is
already more than 6 years of Haier launching in Delhi market, their business is not like what
should be for the brand which is 2nd largest appliances brand in the world. This calls reevaluation
of Haier marketing mix strategies in the market.
Haier product categories range from refrigerators, refrigerating cabinets, air conditioners,
washing machines, televisions, mobile phones, home theatre systems, computers, water heaters
and DVD players. By April 2006, the Haier Group has obtained 6,189 patented technology
certificates and 589 software intellectual property rights. On January 31, 2004, Haier was named
one of the brands among world’s 100 most recognizable brands, listed by the World Brand
Laboratory, one of the world brand evaluation organizations.
The marketing mix is a vital part of any marketing strategy. This is a tool whereby the marketer
takes decisions on what and how a product should be, where it can be sold, how it should be
priced, how it will be promoted, how to equip the people who are responsible for selling the
product… and so on.
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ALL ABOUT THE PROJECT:
1. Why marketing mix analysis for Haier appliances.
Haier is world’s 2nd largest home appliances brand, manufacturing household electrical
appliances in 96 categories with 15,100 specifications, launched in India in 2003, currently
having 3% market all over the segments in Indian market. But despite having better product
range and better quality especially in refrigerator, washing machine and in AC segments are not
doing well in the market. Brands like TCL and Godrej are selling in large numbers as compared
to Haier, which ultimately suggests reevaluation of marketing mix in the market for Haier in
these product categories and also to establish Haier from the scratch.
2. Design of the study:
To know the perception regarding the brand “Haier”.
Marketing mix analysis for Haier in Refrigerator, Washing machine and A.C segments.
3. Identify and monitor competitors’ marketing strategies and activities:
This is about monitoring key competitors’ marketing mix strategies and evaluating their Potential
implications for Haier. It includes assessing the corresponding opportunities and threats, and
recommending appropriate actions across the marketing mix to develop and/or protect HAIER`S
products.
4. Marketing mix Analysis for Haier in Refrigerators, Washing machine and Air conditioners
segment with their competitors.
This is about evaluating the Haier marketing mix i.e. product place, price, 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.
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OBJECTIVE OF THE STUDY:
To study brand awareness for Haier in the market place.
To produce valuable inputs for the Haier from the Market with respect to four elements
of marketing mix, i.e., Product, Price, Place and Promotion.
To Study Haier competitor’s Marketing Mix Strategies, and then comparative Analysis
with other major appliances players in the market, finding loopholes and building
effective marketing mix strategy for Haier in Refrigerator, washing machine and Air
conditioners segment with respect to others.
To analyze right strategic direction for Haier firstly by the way of studying current image
of the brand “Haier”, secondly through market mix analysis.
It gives valuable inputs regard to difference that the brand is dealing with their competitors. Like
if LG, SAMSUNG, WHRILPOOL, GODREJ, ELECTROLUX are present in a segment,
satisfying same customer need, what is the difference in terms of product offering, technology of
the products, pricing strategies of the competitors. This also suggests competitors direct
monetary pricing benefits to distribution intermediaries, i.e. distributors, direct dealers, dealers,
and finally to the customers. Which clearlyidentifies the different requirements that customers
look to be satisfied and at what prices.
For the analysis of Haier Refrigerators, an essential step is to gather information regarding
marketing mix i.e. product, place, price, promotion, 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. It will show where Haier product stands in comparison to their competitors , 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. For product analysis detailed
information regarding the product lines of major players, their USP, various product models,
product features, different technology adopted by the players in these segments had been
collected.
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RESEARCH METHODOLOGY:
1. 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 Product, Customer survey through use of a structured questionnaire was done. Sample size
was 20.
For Price, Meeting with the dealers to know other companies pricing, by collecting and
analyzing prices for the customers. Customer survey was done through a feedback form. Sample
size again was 20.
For Promotion, 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; and
Haier’s marketing activities.
2. Secondary Data
Secondary data is data collected by someone other than the user. Common sources of secondary
data collection are through company websites, journals, organizational records& annual reports.
For Place, Obtaining secondary data on feedback from the existing dealers of Haier and other
consumer electronic dealers in the Market through direct interviews. To establishing and
implementing processes for obtaining ideas, Information and insights from the dealers regarding
the Haier marketing proposition for refrigerators and washing machine, after that evaluating the
feedback, assessing the benefits and any risks associated with possible options, and making
recommendations towards enhancing the Haier marketing proposition especially “place”.
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LIMITATIONS OF THE STUDY:
Due to time, geographic and monetary constraints, it may not be able to go deeper
in to search
This project is primarily focusing on Refrigerator product category.
Unavailability of data. Especially for promotional strategies of competitors.
There could be some errors, data collection, data interpretation, and even the
environment plays an important role in the outcome of the results.
Respondents may not provide full or accurate information during the survey.
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.
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Chapter 2:
PROFILE OF THE ORGANISATION
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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. Haier was founded in 1984 in Qingdao, Shandong
Province, China and manufactures home appliances in over 15,100 different specifications under
96 categories.
By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589
software intellectual property rights. Haier products are sold in over 100 countries. Haier is the
official Home Appliances Sponsor of the Beijing 2008 Olympic Games.
Headquarters: Qingdao, Shandong Province, China
Employees: Over 50,000 worldwide
Financial Information: Haier’s global revenue in 2005 reached RMB 103.4 billion
Average annual growth of 68% between 1984 and 2005
No. of Subsidiaries Over 240
Listed Subsidiaries: Haier Electronics Group Co., Ltd. listed on the Hong Kong Stock
Exchange
Qingdao Haier Co., Ltd. Listed on the Shanghai Stock Exchange
Business Scope: Technology research
Product development and manufacturing Trade
Financial services
Key Product Lines: Refrigerators/Freezers, commercial air-conditioners, microwave
ovens, washing machines, dishwashers, televisions, mobile phones, computers
Global Presence:
Trading Companies: 64
Design Centers: 8
Industrial Complexes: 15
Sales Network: Over 58,000
Board of Directors
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Chairman and CEO: Mr. Zhang Ruimin
President: Ms. Yang Mianmian
Vice Chairman: Mr. 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, 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.
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COMPANY PROFILE
Haier Appliances (India) P. Ltd
Haier India started its commercial operations in January 2004 and is a 100 per cent subsidiary of
the Haier Group. The India launch was started with innovative products which were designed
keeping the day to day customer needs in mind -- products that will transform the customer's
everyday living into inspired living. 'Products that will make your today better than yesterday.'
Haier India launched BMR technology for the first time in India followed by the Double Drive
which is a newly patented technology.
Haier clocked revenue of about Rs 325 crore in calendar year 2008. Haier India is set to achieve
sales of over Rs. 400 crores in calendar year 2009. 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,
ACs and washing Machines categories.
The India operations already has an established dealer network of approximately 1600 dealers all
over the country, which is backed by a strong service and after sales service network. Haier
Products are available at all major retail outlets and in most of the modern retail chains.
As part of the company's plans to expand operations in the country, Haier in August 2007 had
acquired a manufacturing facility, located at Ranjangoan in Pune district of Maharashtra. Spread
over 40 acres of land, the plant has capability to manufacture Refrigerators, CTVs and Washing
Machines. Haier is upgrading the new facility with state-of-the-art equipments to create a
Research & Development facility for refrigerators. The facility was acquired as a part of
Purchase of Appliances Business of Anchor Daewoo Industries Limited by Haier India.
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About Haier Group
The Haier group was set up in 1984 in Qingdao of China. In just over two decades as per
Euromonitor Statistics of 2003, Haier was ranked as the 2nd largest Home Appliances brand in
the world and as per Euromonitor Statistics of 2008, Haier branded refrigerators have been
ranked as number one worldwide. The group has emerged as a top multinational, manufacturing
a wide range of home appliances and consumer electronics products with 15 Industrial Parks
globally including USA, Europe, Middle East, Africa, and South Asia other than its robust
presence in China. The company has its marketing and sales network in 168 countries around the
world, and in 2008, the group turnover aggregated US$ 17.9 billion. The product range
comprises of over 15,100 models in 96 categories. On January 31, 2004, Haier was named one of
the world’s 100 most recognizable brands and a global brand name, listed by the World Brand
Laboratory, one of the world’s leading brand evaluation organizations.
Haier’s international promotion framework encompasses global network for design, production,
and distribution and after sales services. Haier has established 18 design institutes, 10 industrial
complexes, 22 overseas production factories and 58,000 sales agents worldwide. Haier’s current
domestic market share for refrigerators, freezers, air conditioners and washing machines is
around 30%. Haier products are marketed in all top European chain super markets as well as in
top chains in Americas.
Haier’s management philosophy and corporate culture are admired and are the subject of
research by overseas scholars. Haier’s achievements and experiences have been incorporated into
the archives and used as MBA teaching material by Harvard University, the European Business
College and Laussane Management College.
Global Branding Strategy
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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. Haier’s international business framework encompasses a global network of design,
procurement, production, distribution and after-sale services.
Today, Haier has established 15 industrial complexes, 30 overseas production factories and
bases, 8 design centers and over 58,000 sales agents worldwide.
In China, Haier’s 4 leading product categories - refrigerators, refrigerating cabinets, air
conditioners and washing machines - have over 30% market share. In overseas markets, Haier
products are available in 12 of the top 15 chain stores in Europe and 10 leading chain stores in
the USA.
Haier is now approaching its goal of being “local” in American and European markets via
localized design, manufacturing and sales processes. In addition, Haier has set up production
facilities and plants in the USA, Italy, Pakistan, Jordan and Nigeria.
Haier’s innovative management principles, such as Haier’s OEC management model, “market-
chain” 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 business case studies are
included in the text books of Harvard University, University of Southern California, Lausanne
Management College, European Business College and Kobe University.
Services
With the concept of “customers as the foundation of growth”, Haier provides a one-stop star
service to its customers. 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, 8 of Haier’s product categories were ranked No. 1 for customer
satisfaction and overall satisfaction.
In addition to high quality home appliances, Haier is also focused on offering best-of-breed
service solutions to its customers. Haier’s service system runs throughout the production process
from product design, production, manufacturing, to pre-sale, under sales and after sales service.
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Since 2002, Haier has successfully established a network of over 5,000 domestic professional
service suppliers to deliver timely customized service.
Partners
Haier has established an extensive sales network around the globe. Key partners in perspective
markets include:
• China: Strategic alliance with Suning and Gome chain stores
• America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME DEPOT, Best Buy,
PC-Richard, Wal-Mart, Sam's, Costco, BrandsMart and Target
• Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and JUSCO
• Europe: Cooperation with KESA, Media Market and Carrefour
Home appliances production by Haier
General home appliances
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Refrigerators: Haier is one of the world’s largest and most advanced refrigerator manufacturers,
producing over 12 million units of refrigerators and freezers annually at its 20 production
facilities worldwide. Haier consistently applies leading global technologies in the manufacturing
of its products. Haier is the first company to make breakthroughs in integrating fluorine-free,
energy-saving technologies with large freezing capacity, and solve technological problems
related to sterilization. Haier has also rolled out the world’s first variable-frequency refrigerator,
which is made of heat insulating material designed for aerospace.
Household Air Conditioners: At its eight large production bases in China, Haier uses the
world’s most advanced automatic flexible production lines to ensure the delivery of large
quantities of highly reliable air conditioners, which are exquisite in quality and free of defects.
Commercial Air Conditioners: Haier has become a well-known global brand for commercial
air-conditioners for its strong R&D, excellent product performance, and marketing capability.
Haier delivers commercial air conditioners, large multi-system air conditioners and large cold-
water air conditioning units in 8 categories and 260 specifications, featuring an integration of
fluorine-cooling, wind-cooling and water-cooling functions. Haier’s variable-frequency, variable
capacity multi-system central conditioners, flexible variable-capacity screw compressors, and
household variable-frequency central air conditioners lead the industry trend with their energy
efficiency.
Washing Machines:Haier produces washing machines of 5,000 different specifications under 18
categories, and is the only company in the world with the capability of large scale production of
top load washing machines (popular in Asia), front load washing machines (popular in Europe),
agitator washing machines (popular in America) and dual-drive washing machines. Haier, with a
mission of “customer-oriented design”, pays great attention to safety, health, and the
environmental concerns of consumers in designing its products. Haier has introduced a series of
new hi-tech environmentally-friendly washing machines, staying ahead of the market trend and
demonstrating the technological innovation capability of the company.
Freezers:Haier produces 1.8 million units of freezers each year. Haier is licensed to supply
products for military provisions, and is the only company to win the bid for three consecutive
years. Haier freezers have received ISO9001 quality, ISO14001 environmental compliance, and
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ISO12001 metering and testing certification. Haier is also China’s first freezer maker to receive
TUV International Safety Certification, and was the first to receive a no-fluorine certificate from
the United Nations Development Programme.
Vacuum Cleaner:Developed with the Haier spirit of continuous innovation, Haier dust
collectors consistently lead the trend in the dust collection market. Haier’s dust bag series are
innovatively designed to collect dust from all directions. The user-friendly design includes such
features as a speed-adjustment button on the handle, dust bag design, and lightweight aluminum
alloy cord.
Home appliances for kitchen and bathroom
Integrated Kitchen:Haier integrated kitchen products come with an advanced green safety
system, and are equipped with environmentally friendly material, dust-free digital technology,
high-quality sync installation and one-stop green service channel, thus bringing customers the
ultimate green and safety experience. Haier Kitchen Company is the only company in its product
segment to receive ISO9001 quality certification in China.
Water Heaters:Haier manufactures water heaters of 300 specifications under 12 categories,
including electric water heaters, gas water heaters, solar energy heaters, and gas boilers, in the
categories of mechanical, electric, and network-based, and with the capacity range of 5-litres to
500-litres. With the application of high technology, Haier produces water heaters in a wide range
and specifications both for home and commercial use. Haier follows its “Safety-based Products”
philosophy in manufacturing water heaters and leads the industry in safety technologies.
Kitchenware:Haier’s kitchen appliances cover 4 categories: dishwashers ( see above
introduction, exhaust fans, gas cookers and sterilizing cupboards, in more than 300
specifications. Haier Kitchenware products are based on environmentally-friendly technology,
with zero leakage and low radiation. The products have won environmentally friendly and green
product certifications in both China and the US.
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Microwave Ovens:Haier offers microwave ovens in 50 varieties under 8 categories, including
mechanical,electronic and digital, and with the capacity range of 17-litres to 40–litres. Haier
ovens feature both stainless steel and painted stoves, and come with top doors and side doors. In
2003, Haier developed the steam microwave oven, taking the lead in the application of new
technology. Haier is committed to manufacturing high-quality, high-tech and environmentally
friendly products, using components made by the world’s top 500 companies. Haier microwave
oven products have received FCC and FDA certificates from the U.S Federation Drug
Administration.
Audio and video products
Color TVs:Growing at an annual rate of 141% over the last 9 years, Haier color TVs are
manufactured with the application of high technology. Haier aims to provide the right products
for different consumer groups, gaining high customer recognition. Haier is committed to
strengthening its global competitiveness, with the creation of a global supply chain under the
concept of “competitive cooperation”. Haier’s extensive range of products, including traditional
TVs, flat-panel TVs, digital TVs, wireless TVs, touch TVs and 5.1 sound system TVs, aim to
bring more freedom, comfort and greater entertainment to homes and customers.
DVD Players Haier offers a diverse line of DVD players of exceptional quality. Haier DVD
players are favored by consumers for their performance and after sales service. The products
have won a number of awards for environmental protection and energy efficiency.
Communication and IT products
Mobile Phones: Based on the philosophy that the technology and fashion can co-exist, Haier
integrates state-of-the-art wireless communication technologies into a complete range of in-
fashion mobile phones. Haier mobile phones include such latest features as GSM/GPRS
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technology, integrated digital cameras, MMS, MIDI Polyphonic ring tones and color LCD
screens. The product line includes bar-type phones, clamshell phones, smart phones and the new
and unique slim phones.
Computers (desktop and laptop):With a special attention to users’ health, and eye-protection,
Haier makes desktop and laptop computers for personal and commercial use in different ranges,
including the world’s first laptop with 2.0 mega-pixel camera. Haier is committed to delivering a
full-service package, and offers free software commissioning. By establishing strategic alliances
with suppliers, such as Intel, Microsoft, China Unicom and China Netcom, and taking advantage
of the technology and resources of its partners, Haier consistently improves the quality of its
computers. In product R&D, Haier employs a team of top class engineers from the U.S., Japan,
Republic of Korea, and China’s Taiwan region, and has established a strict-quality control
system.
Digital Information Products:Haier offers a number of patented digital information products,
including MP3 and MP4. Haier is committed to delivering personalized products, services and
application solutions to meet the individual needs of users.
Haier Software: Qingdao Haier Qingda Software Company, established in 1998, is a high-tech
enterprise engaged in development of embedded systems, information software, and system
integration. Its main business is focused on the development of commercial intelligent systems
and embedded systems, software outsourcing, system integration and the development of
multimedia systems. Haier Group’s LCD TV and plasma TV control panels are all designed by
Haier Qingda.
Pharmacy Products
Founded in 1996, Haier Pharmacy is the newest growth area within the group. The product
offerings cover 80 specifications under 60 categories including medical raw materials, tablets,
capsules, granules, oral liquid, medicine powder for injection, lyophilized powder for injection,
eye drops, etc. The products of Haier Pharmacy fall into four categories of marine drugs, Chinese
medicine, Western medicine and healthcare products, with focused areas of the heart and
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cerebral system, digestive system, osteoporosis, diabetes and healthcare, all of which have
received GMP certification in China.
Haier services
Intelligent Home Integration:Haier’s intelligent system is the mainstay of Haier E-home
program. Haier provides comprehensive solutions for communities, hotels, supermarkets, office
buildings, factories, urban security departments and homes, and delivers a series of intelligent
products, such as digital video phone systems, security monitoring systems, anti-burglary alarms,
home environment control and access control systems.
Networked Digital Home Solutions:Haier launched the third generation of networked home
appliances, called “Haier E-home”, in 2005. Haier deploys “Haier E-home” using a
technological system based on proprietary intellectual property rights, such as home network
system structure and home network communications technology. The home network is divided
into a main network transmitting high speed information, and a sub-network transmitting low
speed information. Haier E-home can enable remote access to home appliances and the
interconnection of appliances through the Internet, PDA, mobile communications network, cable
TV network and fixed line networks.
Travel: Haier Group’s Conference & Exhibition Division provides one-stop service for
organizing meetings and conferences, from preparation to hosting the event. Haier’s hotel system
is able to provide conference services, accommodation, catering and entertainment. Haier
Science and Technology Museum is an exhibition hall of modern industries invested in by the
Haier Group. The museum, based on Haier’s enterprise culture, is a comprehensive facility
serving as a science and technology museum and cultural center, and providing travel and
entertainment services. The Haier International Travel Agency mainly offers business travel
services.
Insurance:Established in 2001, Qingdao Haier Insurance Agency delivers insurance policies on
behalf of insurance companies through Haier’s comprehensive network and large customer base.
The company also makes loss assessments and handles compensation on behalf of insurance
companies.
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Logistics:Haier Logistics was established in 1999. By establishing a global network of suppliers,
Haier has gained significant advantages in terms of cost and R&D. Haier aims to establish an
efficient supply chain and provide customer-oriented value-added services. Haier logistics is
growing into a global trade company through continuous supply chain management optimization.
Haier Real Estate: Qingdao Haier Real Estate Development and Investment Company is a
wholly-owned subsidiary of the Haier Group. In developing its real estate business, the company
pays high attention to improving the quality of construction and living conditions, while making
efforts to preserve cultural heritage and to facilitate a healthy and civilized living environment.
The Marketing Mix: Ingredients for Success
The marketing mix, earlier known as the 4 P’s, (but now has a few more), is a vital part of any
marketing strategy. This is a tool whereby the marketer takes decisions on what and how a
product should be, where it can be sold, how it should be priced, how it will be promoted, how to
equip the people who are responsible for selling the product… and so on. Getting the marketing
mix right is equally important for the large corporation and the small business owner.
One of the most critical marketing management decisions is that decision of setting the
marketing mix values, and selecting and employing strategy that periodically changes that
marketing mixes in response to changing business environment. The marketing mix problem
involves setting the values of the marketing decision variables; the four P’s; namely, Product (its
quality), Price, Place (distribution and sales-force expenditures) and Promotion (advertising,
selling). Developing an effective marketing mix is important for product planners seeking to gain
competitive advantage in industrial markets. The decision regarding specifying the marketing
mix depends on a set of variables, such as competitor's price, competitor's product quality,
competition level, forecasted sales and others. These types of variables necessitate adoption of
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appropriate approaches that can deal with such variables' nature marketing mix analysis is a step
done to achieve this.
Product: A lot of thought and effort goes into designing a product offering. The most important
question, as a marketer, 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. This will force to
think of why that product is unique, and thereby help to evolve that product’s Unique Selling
Proposition.
Price: This element of the marketing mixcan be many a strategy’s undoing. A complete
understanding of the financials that drive a business is essential before deciding a pricing
strategy. 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, 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. Traditional trading and distribution models have given way to remote or virtual
channels. While reaching the customer may have become simpler, your job as a decision maker
has become that much more complex. You now have a plethora of options to choose from – do
you go for brick and mortar or direct mailing, use the phone or sell door to door? This decision
should, first and foremost, be driven by customer preference and then by other considerations
like logistics and economics. Indeed most businesses rely on a multi distribution channel
strategy.
Promotion:In a commoditized industry, this is what makes the essential difference. Possibly no
other marketing mix element draws as much attention from strategy makers. Again, let consumer
needs drive your efforts. Does your marketing communication address a specific need of the
target audience? Is the message memorable? Does it spur action? Here again, the entire
landscape has changed from what it was a few years ago. Promotion has gone way beyond mere
advertising and public relations – it is now a highly evolved process, ranging from live events to
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internet marketing. In these times of information overload, promotion strategies must pack
sufficient punch to cut through the clutter.
The marketing mix is a dynamic entity and needs to be reviewed and refined periodically. It
always helps to stay in touch with the latest developments. 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.e., product, price, place, and promotion. 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, finding loopholes and building effective marketing mix strategy for Haier in Refrigerator
and Washing machine segment
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Chapter 3:
DATA ANALYSIS AND
INTERPRETATION
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BRAND AWARENESS SURVEY
1. Which brand do you prefer?
BRAND PREFERENCE GIVEN
Haier 9%
LG 36%
Samsung 23%
Sony 9%
Videocon 8%
Whirpool 15%
Out of people surveyed 36% preferred LG in their last purchase, and this preference was mainly
for AC`s, refrigerators and televisions. Only 9% of the people surveyed opted for Haier and that
was mainly for mobiles that were branded for Reliance Communication CDMA phones.
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2. Which factors affect your purchase of a brand?
Brand name matters always that’s why most of the companies which was opted by the
customers, were the leading big brand names in the marketlike LG and Samsung.
People opted Haier in the attributes like product features, it was 60% for Haier, more than any
other brand. It represents if the product features of Haier can communicate suitably, there is
much more potential in the brand itself. This also suggests that Haier needs to push products
before a customer enters inside the store; it will enhance the brand value and will push the brand
sale as well
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3. Do you have a look at Haier products before making you purchase decision?
36 people surveyed knows about Haier but only 20 the people surveyed had look on Haier
product before making the purchase decisions, this is surrounded by many factors like “Place”
strategy of Haier, 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, less
effort by the sales intermediaries. 36% people know but didn’t want to see the products. This is
also showing the uncertainty in the minds of the customers.
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4. Are you aware that Haier is the 2nd largest electronic goods company in the
world?
25% of the people surveyed don’t know the most common strategy adopted by the Haier to
create brand awareness for the brand i.e. Haier is the second largest appliances in the world.
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.
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,
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, in the world.
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5. Which product line do you think Haier produces?
People even now perceive Haier as an electronic and mobile manufacturing brand. The
supremacy for Haier lies in the appliances category which has been proved worldwide.
By the marketing strategies adopted by the company it has created an electronic brand image.
Though, it has a positive side which was earlier discussed, that to promote brand in the
appliances category it is better to promote the brand in the electronic segment first , because still
people prefer to buy a color television first, but for that as a company it needs wider and
competing options in electronic segment.
If as a brand it is unable to convert those potential customers in to their customers, it is losing in
both the fronts, in that category in which it was promoted and secondly where it wants to move.
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6. Which country’s origin do you think Haier has?
COUNTRY NO. OF PEOPLE WHO BELIEVE THIS
ORIGIN
American 21%
Europe 23%
China 37%
Still, as we can infer from the data above, only 37% of the people know about the correct origin
of the country.
But the problem remains of the negative image haunting about the Chinese Products in the
market which does not last long, have inferior quality, are unreliable but cheap.
7. Do you think Haier’s products have…?
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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. They perceived it as a
quality brand but in the service front 48 people voted negatively about 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. They perceived that because of their foreign origin
company is not having appropriate service arrangements.
Haier need to focus on this they have to erase this kind of perception that they are lacking in
service front. Suitable communication effort should be done in the market place to gain
customers confidence in service front.
28 people surveyed said that Haier products are reliable and 32 negatively perceived in this
factor, 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. There could be other
reasons for it but company needs to focus on India specific products and the pricing should be
based upon it.
The market insight and factors influencing dealer focus
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1. No push sale, no need to push these company products, less sales effort: LG and SAMSUNG
created that kind of image in the minds of the customers, where before making any purchase
decision, customer is more inclined towards the products of these company, and finally whatever
the customer will purchase he/she will definitely have a look for these companies products
before making purchase decision. Less Customer Complaints, Customer Awareness about the
Brands.
2. Profitability and holding cost: Better Volume Sale Which Ultimately Leads to Better
Margins, And Better Bargaining with the Companies. And No blockage of money, stock gets
cleared easily.
3.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 .
4.Godrej is giving extra profit margin as compare to other competitors i.e. dealer price +scheme
of 3% + 3% distributors margin+ FOC , and there is enough possibilities of large sell according
to them because of launch of new product line series in appliances segment. With this the
company better support in the form of marketing efforts, recently company gave 5 A.C display
panel stands and other POP material to many dealers.
5. Fair pricing strategies LG and Samsung prices are almost open to everyone are aware of dealer
price and customer price.
6. Samsung Loan Mela and LG No Filing Charges, No Interest Finance Scheme on Air
Conditioners Is Creating Good Response among Customers.
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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, cooling the
contents to a temperature below ambient.
Refrigerators are extensively used to store foods which deteriorate at ambient temperatures;
spoilage from bacterial growth and other processes is much slower at low temperatures. A device
described as a "refrigerator" maintains a temperature a few degrees above the point of water; a
similar device which maintains a temperature below the freezing point of water is called a
"freezer".
Refrigerators are of two types:
1. Direct cool Refrigerator: Cooling comes from the compressor only, need to defrost the ice
when the frost created inside the freezer.
2. Frost free Refrigerator : A combined fridge/freezer which applies the frost free system to the
freezer compartment only is usually called "partial frost free", while one which also applies it to
the fridge compartment is called "total frost free". The latter features an air connection between
the two compartments, with the air passage to the fridge compartment regulated by a dumper.
Haier is one of the world’s largest and most advanced refrigerator manufacturers, producing over
12 million units of refrigerators and freezers annually at its 20 production facilities worldwide.
Haier consistently applies leading global technologies in the manufacturing of its products. Haier
is the first company to make breakthroughs in integrating fluorine-free, energy-saving
technologies with large freezing capacity, and solve technological problems related to
sterilization. Haier has also rolled out the world’s first variable-frequency refrigerator, which is
made of heat insulating material designed for aerospace
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B r a n d 100
Lts
170
Lts
175
Lt
s
180
Lts
185
Lts
190
Lts
195
Lts
200
Lts
2 0 5
Lts
210
Lts
215
Lts
230
Lts
243
Lts
260
Lts
300
Lts
Haier
Godrej
Whirlpool
Samsung
LG
Electrolux
Comparative product models analysis of direct cool refrigerators
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. Most of the Refrigerators which
are getting sold in India belong to direct cool refrigerator product category. It is compulsory for
the appliances brands to make strong hold present in this segment to create brand preference in
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higher product segments. That’s why Whirlpool is having 36 models which represents strong
hold in the segment.
Company like LG is also having presence in 4 sub segments, like 175, 180,185,190 liters
capacity with different design and variants to choose from, in other way it is focused to the
customer who just want a fridge which can cool, and the customer don’t want to spend much
over it, with this LG is also focusing on that customers which is seeking different product
attributes for the product, which he/ she want to purchase.
Direct cool segment is the segment where Haier is having presence in 190 and 210 liters, with
only 11 models and specifically in entry level it has only 7 models whereas their competitors are
having 15 models. Whirlpool is having 25 models in this category where as Godrej is having 15
models.
Haier is having Refrigerator with 190 liters capacity in their entry level, 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, they can compromise in seeking product liter capacity but
they don’t want to budget for the purchase. They only want a refrigerator with a 170 -175 liter
capacity which can cool only in summers. If they can find that they are unnecessarily spending
more on purchasing a higher capacity refrigerator they will easily switch over to other brand.
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.
Features analysis direct cool refrigerators entry level (175-190)
FeaturesHaier HRD 211 MP
LG 181PP4Whirlpool Genius
Samsung RA18QHMb1
Electrolux Deo fresh
Gross Capacity (Liters) 190 175 180 180 180
Defrosting System
Semi Automatic
Semi Automatic
Semi Automatic
Semi Automatic
Semi Automatic
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Air Flow TypeDirect Cool
Direct Cool Direct Cool Direct CoolDirect Cool
Insulation PUF PUF PUF --- Maxi 2
Clean Back
Deodorizing
Tomato bin
Detachable gasket
Open Door Alarm
Reversible Door Swing
Door Lock
Large Bottle place
--- 0
Material Used for Shelves
WireWire Wire Wire Wired
Adjustable Shelves
Crisper or Vegetable Tray Material
Large transparent Plastic Crystal Crystal Acrylic
Moisture or Humidity Control
Double humidity controller
Quick Freezing Component
Rolled bond freezer
Chiller TrayLarge chiller tray
Colors Available Red/ grey
Red, Silky Grey
Blue, Grey, Red and White
Mild Blue, Deep Red and Metal Grey.
Aubergine Red, Silky Grey
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Exterior Finish Powder coated
Powder Coated
Powder Coated
Powder Coated
Anti-rust Galvanized Iron Body
Price 8400 8500 8650 8700 8700
Haier is known worldwide for “inspiring the living” of customers with the unique and patented
product Bottom Mounted Refrigerators. While taking a first look at this product it looks like
somebody has reversed the product, but that is not the case. In- fact the two sections,
Refrigerator and Freezer has been interchanged. This idea has really hit the market, because the
refrigerator section has usage of 80% and freezer section has 20% usage, because this product is
upside down 80% times the customer doesn’t have to bend. The customers of this refrigerator are
those who really care for their family.
Think a wife who is expecting a child bending is not good for her; it is easy for her to use this
refrigerator, she will purchase BMR because she does not have to bend. Besides this there are
other features that are different from the conventional Frost Free like the VC fresh technology.
This technology keeps the fruits and the vegetables fresher for a longer period of time. Haier
refrigerators are also equipped by spacious design.
It has also one biggest advantage “as the compressor and vegetable box is downwards in normal
two door refrigerators, and Vegetable Box is upwards in the BMR, the Compressor doesn’t
occupy space of Vegetable box which is upward in the BMR, which it generally occupies in the
Normal two door Frost Free Refrigerators”.
This product has done wonders worldwide and considering the kind of requirement Indian
customer has, in the days to come it will surely add more Customers in its kitty and inspire
people to live with uniqueness in India.
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. This is a truly a family refrigerator.
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Frost free refrigerators capacity analysis
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
375Lts
400Lts
Haier
Godrej
Whirlpool
Samsung
LG
Electrlux
Comparative product models analysis
Frost free segments: 1. 200-235 liters 2. 240 -260 liters 3. 275- 300 liters
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Haier is having good presence in this segment of frost free refrigerators with models present in
all three categories, its strong hold needs to be capitalize seeing the product potential of BMR
refrigerators, which other companies are not having.
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.
PLACE
Competitor’s presence in Delhi
PLACE HAIER LG SAMSUNG WHIRLPOOL GODREJ ELECTROLUX
KAROL BAGH
PAHAD GANGH
KARKARDOOMA
FILMISTAN
CP
JANAKPURI
LODHI ROAD
SAKET
LAJPATH NAGER
NEHERU PLACE
GANDHI NAGER
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Haier’s presence in Delhi market, for instance, is quite less as compared to their competitors like
LG, whirlpool, Samsung, Godrej it is greater than only Electrolux, one thing is also evident that
Haier is present in major counters with LG and Samsung, Haier also need to focus on those
dealers were it will not face direct competition with LG and Samsung. 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, and Haier is not in competition of
LG and Samsung it should target on brands like Electrolux Godrej , TCL first, 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, Samsung did active promotion and
advertising by taking the following initiatives.
Samsung India associated itself with the ruling passion of the Indian mass consciousness:
Cricket. Samsung launched the Team Samsung campaign with the stars of the Indian
cricket team, which caught the imagination of an entire nation. In 2004, Samsung also
brought to India what was possibly the biggest cricketing spectacle of this decade, the
historic India vs. Pakistan cricket series - ‘The Samsung Cup’.
Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics
and the Asian Games. It also ran training programmes for deserving Indian athletes under
the Olympic Ratna banner. Samsung has also helped bring to India, for the first time, the
Olympic torch relay. Samsung also brings every year to India - the World Cyber Games,
which is regarded as the Olympics of the Cyber world.
Samsung also launched a series of innovative below-the-line activities. In mobile phones,
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.
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For Microwaves, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens
with microwave ovens went to various localities demonstrating the advantages of
microwave cooking.
Samsung branded its products as superior technology and environment friendly ones. The
Samsung refrigerators and ACs incorporate a revolutionary new technology called Silver
Nano Health System that ensures freshness and bacteria free environment. It launched the
“Bio” range of products. In microwave ovens, features like the bio-ceramic coating and
3D shower waves keep in mind the health conscious public of today.
Launched a special marketing campaign for Flat TVs including a focused advertising
campaign ‘DuniyaHaiGol, TV Flat’ and attractive exchange offers. As a result, flat-
screen TVs make up over 50 per cent of Samsung’s TV sales compared an industry
average of 17 per cent.
Customized products for Indian Consumers
Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. 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. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has concluded that
Indian consumers want more sound oriented products. Thus, the Samsung televisions for
India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung has introduced
for the first time in India a feature called Super Dry. It is present in three of Samsung’s
semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local Indian
wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power
failures in India.
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Innovative marketing strategies of LG
To make itself a known brand in the consumer electronics sector, LG has taken innovative
marketing and promotional initiatives:
Launch of new technologies in consumer electronics and home appliances.
LG was the first brand to enter cricket in a big way, by sponsoring the 1999 World Cup,
and followed it up in 2003 as well. LG brought in four captains of the Indian cricket team
to endorse its products. LG invested more than USS 8 million on advertising and
marketing in this sport.
LG has differentiated its products using technology and health benefits. The CTV range
has ‘Golden Eye’ technology, air-conditioners have the ‘Health Air System’ and
microwave ovens have the ‘Health Wave System’.
Local and efficient manufacturing
Reduce cost and toovercome high import duties, LG manufactures monitors and
refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already
commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. This has
helped LGEI to reduce costs.
LGEIL is implementing a “digital manufacturing system”DMS) as a cost-cutting
innovation.
This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier.
Product localization
Product localisation is a key strategy used by LG. LG came out with Hindi and regional
language menus on its TV.
Introduced the low-priced “Cineplus” and “Sampoorna” range for the rural markets.
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LG was the first brand to introduce gaming in CTVs. In continuation of its association
with cricket,LG introduced the cricket game in CTVs.
Consumer Durables used 31% of sales promotional ads during H1’07.
• Maximum usage of Sales Promotional ads by Television Sets.
• 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.
• 90% of advertising by Mirc Electronics in Television Sets (with brands like Onida Pure Flat TV, IGO Flat TV etc.) and Air Conditioners (with brands like Onida Air Conditioner, Onida Cool Point etc.).
• Samsung India focused their advertising on Television Sets and Refrigerators.
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ADVERTISEMENT ANALYSIS
Picture 1.
Headline:A rainy evening and she finally calls you for dinner. Perfect. She loves the pink shirt
onyou.
Subhead:Pity, you put it into a wash justthis morning...
Body copy: Whatever be the time or the weather outside, the LG Washer and Dryer with Direct
Drive System gives you 100% dry clothes, along with noiseless and perfect cleaning. So, go
ahead and let your pink shirt cast a spell on her.
Baseline:Get ready. Right now.
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LG has used AbhishekBacchan as their brand ambassador for washing machine unlike their
competitors, which generally focus women in their ads because the washing is still related to
women in Indian homes, LG communication is based through a man. Message is very clear in
the ad that use of LG washing machine is so simple and uncomplicated so that a man can also
use it.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.
The use of AbhishekBacchan presents the image of independent, successful and modern Indian
youth, 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, focus is
based on around the USP, i.e. 100% dried cloths through LG washing machine.
Picture 2.Picture 3.
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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.
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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
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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.
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.
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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 and other was local TV ad whereas their competitors have done 7-8 activities in that
particular month.
Brand visibility and awareness can be created by the increased number of BTL activities, Haier
has to increase the number of BTL activities so that brand visibility can be created. For Haier
competitors their activities were also very much different and focused like LG.
LG has done mall activity at pantaloon, one thing is also evident that others brands are focusing
very much on local paper ads, but Haier didn’t had any paper ad on that particular 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 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.
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Pricing
If we look upon the pricing strategies adopted by the consumer durable brands we can see that
there is not much difference. Every company is trying to give variable product option in variable
prices to focus on different pool of customer incomes, 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. 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.
There 6.2 kg washing machine is starting at RS 5990 much more lesser with respect to their
competitors with same kind of features.
LG pricing strategy is totally matches with its corporate strategy. First they have created a kind
of brand image where they don’t have to depend upon their dealer and distributors, their products
are getting sold itself in the market. 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.
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, they want lifestyle in their life and prefer life style product and services,
Samsung understood that fact and started to position as a lifestyle product brand and their price
positioning is accurately based upon it. With this they are so much of variable option in same
segment to attract different type of customers.
Samsung starting entry level refrigerator starts from 8200 with a clear differentiation with their
competitors in this segment.
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.
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. Godrej is giving extra profit margin
51 | P a g e
of 1.3% other then what they are giving currently, with a wider focus on brand visibility and
promotion.
Whirlpool is having wider option both in refrigerator and washing machine they are also having
highest no of refrigerators models. They are also focusing majorly on to give lifestyle feeling and
their pricing is based upon it.
Haier entered the Indian market with a premium line of products, which prohibited the brand
from building a mass appeal. Although, 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%. In the beginning
Haier was clear that it will target niche segments. For instance, it had 2.3 kg washing machine,
targeted at small washing jobs, priced at Rs 6,990, and a bottom mounted refrigerator priced Rs
42,900, which are not offered by any other brand. Although globally, Haier is a big name in
appliances, with this segment contributing 70% to overall turnover, 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 is focusing on premium pricing seeing the negative perception of Indian people regarding
Chinese brand.
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. This will also create equity for the 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, products and
retail expansion wherein organized retailers will play a very important part.
For Haier a price plank will not work, since it's likely to reinforce the image of a cheap Chinese
product. Haier is a premium brand, and Haier positioned it in same way, however now time has
come to on the basis of additional features Haier should be positioned as value-for-money
brand. Like If Haier prices its semi-automatic washing machine at Rs 6,200 against the industry
average of Rs 6,000, it also offers an all-plastic body, which others don't. Overall, Haier has to
build its brand on the platform of technology and innovation with taking value for money status
keeping in the mind.
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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 every time he wants to use the food storage compartment. Putting the freezer at the bottom
makes it easier for the consumer.
Finally Haier has the ability to develop 1.3 new models every day and has some 13,000 models
in 38 product categories. "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, where consumer insights play an even
more crucial role their verdict.
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CHAPTER 4:
CONCLUSION AND
RECOMMENDATIONS
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Conclusion and Recommendations
1. The first and most important thing which Haier needs to do is to create awareness. It
was found in customer survey that still 64% of people surveyed were not aware of
Haier, even dealers who are in consumer durable business from more than past 20
years are not aware of Haier, 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.
2. Haier needs to increase the number of BTL (below the line) activities to generate
common awareness and visibility at grassroots level.
3. In Delhi every dealer is having collection of brands, they want to be ready for
everything like whatever customer demands they can easily find out in their store.
Currently Haier is available with most of the major dealers in Delhi, Haier needs to
focus on those dealers also where it will not face direct competition with LG and
Samsung , 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.
4. Good thing about Haier is that they got somehow success in positioning themselves
as a quality brand. The customer survey and the dealer’s survey tell the story about it.
People perceived Haier as a good product quality brand. If this can be associated with
better pricing also, there will be immense possibilities for Haier. It needs to create a
value for money brand image which can give good product quality at affordable
prices.
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5. Company product range is inappropriate especially in refrigerators whereas every
company is having 165 liters segment as an entry level refrigerator. Haier is having
190 liters. 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.
6. Haier needs to build strong dealer relation in order to provide better “place” strategies
for the brand. Haier lacks in company support factors and most of the existing dealers
in the dealer survey said that. Like most of the companies are having their regular
company dealers meet to get together with their dealers, Haier lacks needs to do this
in order to regain dealer support.
7. Service arrangements need to be strengthen, still people think that because the
company is having foreign origin and it is new too, if they will purchase any product
they will face service problem in future. Like Haier is having 6 service centers
whereas its competitor’s whirlpool, LG, Samsung, Godrej is having 14,9, 9, 6 service
centers respectively. Service policy of Haier is that a customer complaint has to go
from dealers, which give unnecessary work burden on them. Customers in rural Delhi
are not aware of the service call center facilities, company is not having the service
centers also there in those area , customers passes the complaints to dealers, and
dealers to distributors, and finally distributors has to log this complaints to the call
center, which creates overburdens them.
8. Most of the products are not attractive, looks simple and not represents the brand
quality, mostly in refrigerators segment even the logo on refrigerators are not
attractive as compare to others.
9. Haier should adopt aggressive marketing strategies to cut down competition and
visibility at market place.
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10. Appropriate product knowledge should be given by the company to dealers and to
dealers to create awareness towards quality.
11. Overall there is much scope for Haier in the market. But Brand visibility should be
increased so it can convince dealers and customers like LG and Samsung are more
customers driven, where company demand is initiated by the customers, these
company products pulls demand from the market.
12. Company must have to focus on print ads, because where in the TV ads, a person
can see only if he/she open the TV and if the ads is getting broadcast that time,
whereas print ads any person can see going through the news paper throughout the
day.
13. 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.
Currently Haier is focusing more on fiber body, timer and powerful motor, which is
almost same for all the present brands, other competitors like LG despite of all these
features focusing more on technology ,like Punch Plus Three, for whirlpool its 1-2,1-
2 Hand wash, for Godrej it is Force Four, and for Samsung it is Silver Nano.
14. Haier presence in Delhi market is less compared to their competitors like LG,
whirlpool, Samsung, Godrej it is greater than only Electrolux, one thing is also
evident that Haier is present in major counters with LG and Samsung, Haier also need
to focus on those dealers were it will not face direct competition with LG and
Samsung. 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, and Haier is not in competition of LG and Samsung it should
target on brands like Electrolux Godrej , TCL first, so it can compete the bigger brand
later on.
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15. Electrolux has a different product range of dishwashers and barbeque. Whereas in the
case of Godrej, it has laid hand not only upon many other avenues viz. furniture,
FMCG (Fast Moving Consumer Goods), Agriculture products, Chemicals,
Construction, Motors, Tools, Vending Machines, Batteries, Material handling, Locks
etc. Likewise Whirpool has some other distinct products like Air Purifiers and Filters,
Wine Coolers, Central Heating products etc. In a similar way, 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.
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ANNEXURE
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Bibliography
WEBSITES
www.wikipedia.com
www.google.co.in
www.haierindia.com
www.lg.com
www.samsungindia.com
www.electrolux.in
www.godrej.com
www.whirlpool.com
BOOKS
Kotler P., Marketing Management, Pearson Education, 13th Edition-2008
Chhabra T.N. Grover S.K., Marketing Management, Dhanpat Rai & Co (P) Ltd, 2012
Beri G.C., Marketing research, Tata McGraw-Hill Education, 4th Edition-2007
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Questionnaire
Name ___________________________________
Address________________________________________________________
Age____ Sex___ Contact number _____________________
Occupation ________________________
1. Which brand do you prefer?
Haier Samsung Sony
Videocon Whirpool
2. Which factors affect your purchase of a brand?
Brand Name Product Features Value for money
3. Do you have a look at Haier products before making you purchase decision?
YES NO
4. 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 Mobile Phones It is a full-fledged brand
Home Appliances
6. Which country’s origin do you think Haier has?
America V Europe China
7. Do you think Haier’s products have…?
Quality Service Reliability Affordability
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