SERIALNO.

CONTENTS ABSTRACT INTRODUCTION:

ABOUT THE TOPIC ALL ABOUT THE PROJECT RESEARCH OBJECTIVES

PAGE NO.

1. 2.

4 6

3. 4. 5.

METHODOLOGY LIMITATIONS MARKETING MIX STARETEGIES

THE MARKETING MIX INGREDIENT FOR SUCCESS APPLIANCES MARKET OPPORTUNITIES

12 13 14

6.

INDUSTRIAL STRUCTURE AND DEVELOPMENT BRAND AWARENESS

CUSTOMER AWARENESS SURVEY ANALYSIS

33

7.

DEALERS INTERACTION ANALYSIS AND PRODUCT MAPPING

30

REFRIGERATORS WASHING MACHINES AIR CONDITIONERS

8.

PLACE
COMPETITORS PRESENCE IN GUJARAT BRAND WISE MAJOR DEALER MAPPING IN AHMEDABAD SERVICE MAPPING

64

12.

PROMOTION
LG AND SAMSUNG INNOVATIVE PROMOTIONAL AND ADVERTISEMENT INITIATIVES PRINT ADVERTISEMENT ANALYSIS OF DIFFERENT BRANDS BTL ACTIVITIES OF ALL BRANDS IN AHMEDABAD.

55

9.

PRICE

69

Acknowledgements
I am extremely grateful to Mr. Pallav Jain, branch manager, Haier Appliances Ahmedabad, for helping me and providing me with me useful information. By interacting with him, I learnt few facets of professional management in the consumer durable industry and I am sure the knowledge imparted will go in a long way in enriching my career. I wish to acknowledge my indebtedness to my project guide Mr.Sumit Kujur , management executive, Haier appliances and my faculty guide Prof. Abrar Ali Sir. The project could not be completed without their able support guidance. Thanking them is a small gesture for the generosity shown. Finally, I take this opportunity to thank all senior executives, staff members and every associate of Haier Appliances, without their cooperation I would not be able to complete this project.

Abstract
FOR a company with a relatively young history, Chinese manufacturer Haier Electronics Group Co Ltd has achieved a global profile that companies with a longer presence in the market will be envious of.
This project intends to map the current image of the brand Haier in the Refrigerator, Air

conditioners and washing machine segments, comparison of Haier marketing mix of Haier vis--vis
other more established brands in Ahmedabad and finally marketing mix mapping of Haier in refrigerator and washing machine segments with other companies.

For mapping the marketing mix of Haier with the other consumer durable brands in Refrigerators, Air Conditioners and Washing machine first essential step is to know the current brand image of the Haier in these segments, for this the a brand awareness survey is already for Haier. This gives some valuable inputs to the organization. Like in the survey it was found that still most of the people surveyed perceived Haier as an electronic brand which manufactures TV and mobile phone. Marketing communication done so far for Haier is not accurate this can be understood by this fact that despite focusing on world 2nd largest brand status still 65% of the people surveyed doesnt know that it is world 2nd largest appliances brand. In Product mapping it was found that Haier quality is good comparing to their competitors especially in appliance i.e., washing machines, air conditioners and refrigerators. Haier is the first consumer electronics company to launch the Bottom Mount Refrigerators in India and also one of the few companies to introduce an exclusive 100 per cent clothes dryer in the market. The Company recently launched refrigerators with a unique VC Fresh technology that helps to keep food fresh in the refrigerators for a longer period of time and introduced ACs with the digital Inverter technology for energy efficiency.

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. Pricing always plays a major part, especially in Ahmedabad market no one can deny its importance. This study gives an insight in to different pricing strategies adopted by the different companies. In one way it will give comparison of the customer prices in the same segment among various companies and in the other way it will give valuable competitive information regarding pricing benefits given by the other companies to their intermediaries, like what are the margins they are giving to their dealers, to direct company dealers and to the distributors. With current brand status, where people accept it as a quality brand and 6 years of business in India now time has come for Haier to go for good quality in a affordable price definitely value for money. Finally there is much more possibilities for the brand Haier in the market let me put it this way. The market is expanding and it is yet to reach full maturity. So, there is always a huge opportunity for new players. For example, in any category, lets say consumer electronics, the market leader three years back has gone into oblivion and there is a new market leader now. It all depends on how well one can drive its business, how well the company understand the consumers and accordingly introduce value-added services for them. The opportunities are still there. The TV market has grown to nine million and refrigerators to four million. Therefore, there is no reason why a global leader with proven technological strengths cannot find a footprint.

Introduction About the topic:

By the way of doing the marketing mix mapping 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 inspiring the 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 $9.2billion 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, 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 Gujarat 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 worlds 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.

All about the project:

1. Why marketing mix mapping for Haier appliances. Haier is worlds 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 Ahmedabad market. Brands like TCL and Godrej are selling in large number in Ahmedabad as compare to Haier, which ultimately suggests reevaluation of marketing mix in Ahmedabad market for Haier in these product categories and also to establish Haier from the scratch. 2. Design of the study: 1. To know the perception regarding the brand Haier. 2. Marketing mix mapping 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 Mapping 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 organizations 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.

OBJECTIVE OF THE STUDY:

To study brand awareness for Haier in the market place.

To produce valuable inputs for the Haier from the Ahmedabad market with respect to element of marketing mix, i.e., Product, Price, Place and Promotion. To Study Haier competitors marketing mix strategies, and then comparative mapping 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 analyze right strategic direction for Haier firstly by the way of studying current image of the brand Haier, secondly through market mix mapping.

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 is also suggests competitors direct monetary pricing benefits to distribution intermediaries, i.e. distributors, direct dealers, dealers, and finally to the customers. Which clearly identifies the different requirements that customers look to be satisfied and at what prices. These different requirements can then be used to develop the alternative strategies that need to be implemented, to better access the segments and tune the product offers to suit the customer requirements and to the level of competition. To make this study more accurate for mapping of Haier against the competitors, a direct interaction with the major consumer durable dealers is being done, which suggests regarding possible selling counters for Haier in Ahmedabad market, what are the brands these dealers are dealing with, their focused brand, why they are focusing on theses brand, what the dealers point

of view regarding the Haier, specific product perception in the Washing machine, Air conditioners and Refrigerators segment and finally exploring the possibilities of widening the distribution network in the Ahmedabad market, other than that if the dealer is already Haier dealer, this interaction is a effort to know how can company will make dealers motivated to sell Haier. For the mapping of Haier Refrigerators, Air conditioners, and washing machines, 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 mapping 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 mapping 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.

Methodology:
1. Primary Data Collection For Product: Customer survey through use of a structured questionnaire. For Price: Direct meeting with the dealers to know other companies pricing, by collecting and analyzing prices for customers (MRP) dealers (D.P),direct dealers, and distributors. For Place: Obtaining feedback from the existing dealers of Haier and other consumer electronic dealers in the Ahmedabad 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 or in other words dealer expansion in Ahmedabad city. Promotion: Observing the number of marketing activities done by the other companies by keeping the record of activities done by them, and also attending the activities to feel the difference between the Haier marketing activities. 2. Secondary Data Collection through company websites, journals & annual reports. 3. Analyzing and interpretation. 4. Mapping with respect to other competitors in the market in Refrigerator and washing machine and Air conditioners category. 5. Findings and conclusion can be drawn.

Limitations of the Study:

Due to time, geographic and monetary constraints. It may not be able to go deeper in to search

This study is related to Ahmedabad market only.

This project is primarily focused on Refrigerator, Washing machine Air conditioners 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

The Marketing Mix: Ingredients for Success

The marketing mix, earlier known as the 4 Ps, (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 Ps; 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 appropriate approaches that can deal with such variables' nature marketing mix mapping 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 products Unique Selling Proposition. Price: This element of the marketing mix can be many a strategys 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 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 mapping 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 mapping with other major players in the market, finding loopholes and building effective marketing mix strategy for Haier in Refrigerator and Washing machine segment

Appliances market opportunities:

The top 67 cities in India are also the key potential market for appliances companies .According to NCAER, usage pattern of consumer durable in these cities reflect a growing trend for appliances such as refrigerator and washing machines. Ownership of refrigerators, for instance, in these 67 cities is much higher than the national average 492 out of 1000 household in these cities own refrigerators compared to the national average of 134 to 1000 households. Similarly, 316 households per 1000 households in the top 67 cities owned washing machine compared to the national average of just 72 households among every 1000 households. Year 2007 was a very good year for the appliances sector in India. Air conditioners and microwave ovens grew by 24-25 percent. And even washing machine- which have traditionally seen poor sales have seen moderate growth. The housing boom in these cities is increasing the demand for appliances. The increasing number of double - income families also bodes well for the sector. The frost free segment of the refrigerator market is seeing spectacular growth as more urban families are replacing their old refrigerators. Consumers in the south and western regions of India go for high- end models of appliances while the north and east continue to prefer lower-end models and direct cool refrigerators. Optimistically we can say that robust appliances sales will continue in 2008, particularly since changes in the electricity scenario is making it power accessible to more Indians in the urban as well as rural areas.

Industry structure and development

The growth in the refrigerator and in the washing machine category has been marginal in the year under review with a growth of 7% for the year 2006-2007. Some segments have however grown faster than others. For instance in the refrigerator category, the frost free category (27% contribution) has had a double digit growth, while the large DC segment actually decline, leading to an overall growth in the refrigerator of 8% the washing machine category which has been remained flat for several years saw a growth of 4% led by a full automatic segment which has registered strong double digit growth. The large 70% semi automatic segment registered a more modest growth of 3%. Given the fact that refrigerator category has shown a reversal of trends, and with washer growth expected to continue, the overall growth is likely to be better in the ensuring financial year. The air conditioners have been growing steadily at a rate of 25% and this is expected to continue. The AC market has been more capacities being offered and there is a distinct trend towards split air conditioners. The Indian market size for refrigerators was estimated at 4.1 million units in 2004 and the installed manufacturing capacity of these players is above 6.5 million units per annum. Also the washing machines market in India was estimated at 1.45 million units in 2004 while the installed manufacturing capacity is near 3.75 million units. This clearly indicates much lower capacity utilization for most of the players. The quality of these products manufactured still needs to be enhanced if they are to catch up with the global standards. This could partly be due to highly labor intensive operations with low automation and also because of the prevailing technology gap. The concept-to-market time for most of the plants in India is still higher than the global norm and except for LG, exports from India havent really picked up as projected. There still seems to be quite a way to go before India becomes one of the global appliance production and export hubs like China. LG is one of the leading players that offer a full range of appliances to Indian consumers right from refrigerators to CTV to mobile phones, etc. Other players can also adopt a similar strategy as this will help these companies to increase their influence on the supply chain as more

dealers / distributors will be willing to display a full range of products rather than a couple of appliances. This can also help absorb costs for the loss-making products at the expense of profitable ones. Whirlpool is working on improving cost efficiency and is operating a 5 day extended shift in its plants. The company is determined to invest further in India to regain its market leadership.

Haier Group Company Facts

Corporate Overview The Haier Group is Chinas largest home appliance brand and one of the worlds 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: Haiers 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 o Product development and manufacturing Trade o 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