s

INSTITUTE OF BUSINESS ADMINISTRATION,

PUNJAB UNIVERSITY, LAHORE

PRINCIPLES OF MARKETING

YEAR:
2022-2026

SEMESTER:
3RD SEMESTER

SUBMITTED TO:
DR. ZEESHAN AHMER

GROUP MEMBERS:
RAMEEN QURESHI (106)
MUHAMMAD UMER (118)
BISMA ANSARI (124)
MOHAMMAD MATEEN (147)
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TABLE OF CONTENTS
ABSTRACT .............................................................................................................................................................. 2
INTRODUCTION ..................................................................................................................................................... 2
Nature: ...................................................................................................................................................... 2
Mission: ..................................................................................................................................................... 3
Brand name: .............................................................................................................................................. 3
Product line: .............................................................................................................................................. 3
MARKETING MANAGEMENT PHILOSOPHY ............................................................................................................. 4
Production:................................................................................................................................................ 4
Product:..................................................................................................................................................... 4
Selling: ....................................................................................................................................................... 4
Marketing: ................................................................................................................................................. 4
Social Marketing:....................................................................................................................................... 5
COMPETITIVE ENVIRONMENT................................................................................................................................ 6
Competitors: ............................................................................................................................................. 6
Competitive position in industry: .............................................................................................................. 6
SWOT ANALYSIS ..................................................................................................................................................... 7
Strengths: .................................................................................................................................................. 7
Weaknesses:.............................................................................................................................................. 7
Opportunities: ........................................................................................................................................... 8
Threats: ..................................................................................................................................................... 8
MARKET STP .......................................................................................................................................................... 9
Segmentation: ........................................................................................................................................... 9
Targeting.................................................................................................................................................... 9
Positioning:.............................................................................................................................................. 10
MARKETING MIX OF HAIER .................................................................................................................................. 11
About Haier ............................................................................................................................................. 11
Haier Product Strategy: ........................................................................................................................... 11
Haier Place Strategy: ............................................................................................................................... 13
Haier Pricing Strategy:............................................................................................................................. 14
Haier Promotion Strategy: ...................................................................................................................... 15
CONCLUSION ....................................................................................................................................................... 16
REFERENCES ......................................................................................................................................................... 17

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ABSTRACT

This comprehensive report offers a detailed analysis

of Haier Company, a prominent player in the global
home appliances and consumer electronics sector. It
meticulously examines the nature of Haier's
business operations, encapsulating its mission
statement, brand identity, and diverse product
portfolio. Furthermore, the report dissects Haier's
marketing management philosophy and evaluates its
competitive landscape, encompassing a thorough exploration of competitors,
industry positioning, and a SWOT analysisThe report further elucidates Haier's
marketing mix, delineating its approach to product development, pricing strategies,
promotional activities, and distribution channels. Ultimately, the report provides a
comprehensive conclusion synthesizing the key findings and implications of Haier's
marketing strategy, supplemented by relevant references for further exploration and
analysis.

INTRODUCTION
NATURE :
Haier Group Corporation, founded in 1984 as Qingdao Refrigerator Co., has grown
into a global leader in the home appliances and consumer electronics industries.
Haier experienced a dramatic change, driven by visionary founder Zhang Ruimin's
steadfast dedication to innovation and quality. This dedication was emphasised by
Zhang's symbolic act of breaking malfunctioning freezers, which signified a new era
of customer-centricity and excellence.
To remain competitive, Haier has diversified its product portfolio, extended its
global base, and embraced technology improvements. The secret to Haier's success
is its persistent commitment to comprehending and meeting client needs, which is
supported by a culture of constant innovation and integration of smart technology.

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MISSION :

“To provide our customers with high-quality electrical equipment while

maintaining a high standard of engineering, design, and manufacture.”

BRAND NAME:
Haier (home appliance)

PRODUCT LINE:
1. Refrigerators
2. Washing Machines
3. Air Conditioners
4. Televisions
5. Dishwashers
6. Microwaves and Ovens
7. Freezers and Wine Coolers
8. Home Comfort Appliances
9. Smart Home Solutions

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MARKETING MANAGEMENT PHILOSOPHY

PRODUCTION :
Haier's early years were marked by a strong production orientation, focusing on
manufacturing efficiency and product quality. Founder Zhang Ruimin's symbolic act
of smashing defective refrigerators in 1985 exemplified the company's commitment
to quality control and accountability, laying the foundation for its future success.

PRODUCT :
As Haier expanded its product portfolio beyond refrigerators to include a wide range
of home appliances and consumer electronics, it maintained a strong product
orientation. Emphasizing product excellence and innovation, Haier continuously
seeks to enhance the quality, features, and design of its products to meet evolving
consumer needs and preferences.

SELLING :
While Haier has historically placed less emphasis on aggressive sales tactics, it
recognizes the importance of effective sales and distribution channels in reaching
customers and driving revenue. Through strategic partnerships with retailers and
distributors, Haier ensures its products are readily available to consumers in both
domestic and international markets.

MARKETING :
Haier's marketing management philosophy has increasingly shifted towards a market
orientation, placing a greater emphasis on understanding and meeting the needs of
customers. By conducting market research, gathering customer feedback, and
analyzing consumer trends, Haier strives to develop products and marketing
strategies that resonate with its target audience, driving customer satisfaction and
loyalty.

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SOCIAL MARKETING:
In recent years, Haier has also embraced a social marketing orientation, recognizing
the importance of corporate social responsibility and ethical business practices. By
integrating sustainability principles into its operations, Haier aims to minimize its
environmental footprint and contribute positively to society. Initiatives such as eco-
friendly product designs, energy-efficient appliances, and community outreach
programs reflect Haier's commitment to social and environmental stewardship.

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COMPETITIVE ENVIRONMENT

COMPETITORS:
1. Orient
2. Dawlance
3. PEL (Pak Electron Limited)
4. Kenwood
5. Waves
6. Panasonic
7. Singer
8. Gree Electric

COMPETITIVE POSITION IN INDUSTRY:

In Pakistan's home appliances market, Haier has historically been one of the leading
players, often competing with other major international brands like LG, Samsung,
and Panasonic, as well as local brands such as Dawlance and Orient. While specific
market share percentages can fluctuate over time due to various factors such as
marketing strategies, product innovation, and economic conditions, here's a general
estimation of the competitive landscape.
According to latest update of 2022:
1. Haier: Around 25-30% market share
2. Dawlance: Around 20-25% market share
3. Orient: Around 15-20% market share
5. Samsung: Around 5-10% market share
6. Panasonic: Around 5-10% market share
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SWOT ANALYSIS
STRENGTHS:
1. Global Presence: Haier has a strong international presence, operating in over 100
countries. This global reach provides diversification and revenue stability.
2. Innovative Culture: Haier has a reputation for innovation, consistently
introducing new products and technologies. This innovation fosters customer loyalty
and market leadership.
3. Brand Reputation: Haier is known for its quality, reliability, and customer
service. Its strong brand reputation gives it a competitive edge in the market.
4. Diversified Product Portfolio: Haier offers a wide range of home appliances,
including refrigerators, washing machines, air conditioners, and kitchen appliances.
This diversified portfolio helps mitigate risks associated with fluctuations in specific
product categories.
5. Efficient Supply Chain: Haier has developed efficient supply chain management
systems, enabling it to reduce costs, streamline operations, and respond quickly to
changes in demand.
6. Customer-Centric Approach: Haier emphasizes understanding and addressing
consumer preferences, leading to tailored products and services that resonate with
target markets.
7. Strategic Partnerships: Haier has formed strategic partnerships and made
acquisitions to expand its market reach and technological capabilities, enhancing its
competitive position.

WEAKNESSES:
1. Dependency on China Market: While Haier has a global presence, it still relies
heavily on the Chinese market for a significant portion of its revenue. Dependency
on a single market exposes the company to risks associated with regional economic
fluctuations and regulatory changes.

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2. Brand Perception in Some Markets: In certain regions, Haier's brand may not
hold the same prestige as other established competitors, affecting its market
penetration and pricing power.
3. Product Recall Risks: As with any consumer electronics company, Haier faces
the risk of product recalls due to quality issues, which could damage its reputation
and incur financial losses.

OPPORTUNITIES:
1. Emerging Markets: Expansion into emerging markets offers significant growth
opportunities for Haier, especially in regions where urbanization and rising
disposable incomes are driving demand for home appliances.
3. Sustainability Initiatives: Increasing consumer awareness and regulations
regarding environmental sustainability create opportunities for Haier to develop eco-
friendly products and practices, appealing to environmentally conscious consumers.
4. E-commerce Growth: The continued growth of e-commerce provides Haier with
additional distribution channels and opportunities to reach consumers directly.

THREATS:
1. Intense Competition: Haier faces intense competition from both global and local
competitors in the home appliances industry, which could impact market share and
pricing power.
2. Economic Uncertainty: Economic downturns or instability in key markets could
adversely affect consumer spending on discretionary items like home appliances.
3. Rapid Technological Changes: Rapid advancements in technology pose a threat
as competitors may introduce superior products or disrupt existing business models.
4. Supply Chain Disruptions: Disruptions in the supply chain, such as natural
disasters, trade disputes, or geopolitical tensions, could impact Haier's ability to
manufacture and distribute products effectively.

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MARKET STP

SEGMENTATION:
Haier utilizes a multi-faceted segmentation approach, considering various factors
to divide the market into relevant groups:
Demographic: Age, income, family size, life stage (young professionals, families
with children, etc.)
Geographic: Regional preferences, climate variations influencing appliance needs
(e.g., focus on air conditioners in hot regions).
Psychographic: Lifestyle, values, and social status. Haier targets eco-conscious
consumers with energy-efficient appliances and design-conscious consumers with
aesthetically pleasing models.
Behavioral: Usage habits, brand loyalty, and purchase occasion (replacing a
broken appliance, renovating a kitchen). Haier caters to both budget-conscious
value seekers and those seeking premium features.

TARGETING
Haier doesn't necessarily target a single segment. They might target multiple
segments simultaneously with different product lines or marketing approaches.
Here are some potential target segments:
Young professionals: Affordable, energy-efficient appliances for first apartments.
Families: Durable, spacious appliances catering to family needs (large capacity
washing machines, refrigerators).
Tech-savvy consumers: Smart appliances with connectivity and automation
features.
Eco-conscious consumers: Appliances with high energy efficiency ratings.

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POSITIONING:
Haier positions itself differently based on the target segment:
For value seekers: Haier emphasizes affordability, reliability, and durability.
For design-conscious consumers: Haier highlights sleek aesthetics and
innovative features.
For environmentally conscious customers: Haier focuses on energy-saving
technologies and eco-friendly practices.
Across all segments: Haier positions itself as a global leader in home appliances,
offering a variety of choices for consumers' needs and budgets.
By using this STP approach, Haier can tailor its marketing efforts to resonate with
specific customer groups, ultimately increasing its market share and brand loyalty.

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MARKETING MIX OF HAIER

The Marketing mix of Haier analyses the 4Ps of Haier, which includes the Product,
Price, Place, and Promotion of Haier. Haier is a public company of Chinese origins.
It is associated with the consumer electronics and home appliances industry and is
headquartered in Qingdao, China. Brand Haier was founded in 1984 and, by 2014,
had the largest share of the market in terms of white goods.

ABOUT HAIER
• Type: Multinational consumer electronics and home appliances
• Industry: Consumer electronics, home appliances
• Founded: 1984
• Founder: Zhang Ruimin
• Headquarters: Qingdao, Shandong, China
• Area served: Over 160 countries and regions
• Key people: Zhang Ruimin (Chairman) and Yu Chunjiang (CEO)
• Number of employees: 130,000

HAIER PRODUCT STRATEGY:

Haier is a multinational organization that sells, manufactures, develops, and designs

several electronic goods. The brand started its operations as a manufacturing unit of
refrigerators and, with time, has expanded its product range into ninety-six
categories and includes nearly 15,100 models.

It is a world-class company that offers products in large-scale and digital integrated

circuits, logistics, bio-pharmaceuticals, network appliances, and home integration.

Commercial products include:

• Commercial Freezers
• Commercial Air Conditioners

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Consumer Products include:

• Microwave Ovens
• Water Heaters
• Air Conditioner
• Television
• Washing Machine
• Refrigerator
• Computers
• Mobile Phones

The product mix of Haier in 2023 is:

1. Home Appliances: Refrigerators, Washing Machines, Dishwashers,

Freezers, Air Conditioners, Microwave Ovens, Stoves and Cooktops
2. Consumer Electronics: Televisions, Audio Systems, DVD and Blu-ray
Players
3. Small Appliances: Vacuum Cleaners, Coffee Makers, Toasters, Air
Purifiers, Irons
4. Commercial Appliances: Commercial Refrigeration, Commercial
Laundry Equipment, Professional Kitchen Equipment
5. Smart Home Products: Smart Home Appliances (IoT-enabled), Home
Automation Solutions
6. Medical Devices: Haier Biomedical Products (such as laboratory
freezers and refrigerators)
7. Industrial and Business Solutions: Haier Industrial Equipment and
Services
8. Logistics and Supply Chain Services: Haier’s logistics and supply
chain management services for businesses

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HAIER PLACE STRATEGY:

Haier has a solid international presence, including countries like Malaysia, the
Philippines, Indonesia, Japan, India, Australia, Pakistan, United Kingdom, France,
Norway, Chile, New Zealand and the United States.

Its first overseas production facility was established in Indonesia in 1996 and in 1997
in Malaysia and the Philippines. Later, production plants were also located in
Italy,the United States, Asian countries, and some African countries like Egypt,
Algeria, Tunisia, and South Africa.

Haier has a strong distribution network comprising an efficient and capable

workforce of nearly 70,000 employees, five R&D centers, eight design centers, 24
industrial parks, 1 43,330 sales stores, 30 factories for overseas production, and 66
trading companies. Here are five key elements of Haier’s place strategy:

1. Global Presence: Haier has established a strong global presence with a

widespread distribution network. The company operates in multiple
countries and regions, ensuring its products are accessible to consumers
worldwide through various channels.
2. Retail Partnerships: Haier collaborates with various retail partners,
both online and brick-and-mortar stores, to make its products readily
available to consumers. This includes partnerships with major
electronics and appliance retailers to showcase and sell its products.
3. E-commerce: Haier has a significant online presence through its official
website and e-commerce platforms. The company leverages digital
channels to reach a broader audience, offer convenience, and facilitate
direct sales to consumers.
4. Authorized Dealers and Service Centers: Haier maintains a network
of authorized dealers and service centers to provide after-sales support,
including maintenance and repairs. This enhances customer
satisfaction and ensures product availability even in remote areas.
5. Customized Distribution: Haier tailors its distribution strategies to suit
the local market conditions and consumer preferences. This might
involve different product offerings, pricing strategies, and distribution
channels in various regions to meet specific customer needs.

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HAIER PRICING STRATEGY :

Haier has projected its estimated revenues to be 32.8 billion and its net income to be
2.45 billion US dollars by the end of 2014. As a relatively new company, it wanted
to face its competitors successfully, penetrate deeper markets, and create a
solid customer base. Haier adopted a competitor-orientated and penetrating pricing
strategy, setting its product prices marginally lower than rival companies.

Low prices or economic pricing helped the company attract a vast and thriving
customer base and increase its share in the consumer market. The production cost of
Haier products is less than other brands because of cheap labor; hence, they can
easily afford the economical pricing system and still generate good revenues.Here’s
an overview of Haier’s price strategy:

1. Value-Based Pricing: Haier focuses on offering products that provide

exceptional value for customers. The company carefully assesses its
appliances’ and electronics’ features, quality, and benefits, aligning
pricing with the perceived value. This approach ensures that customers
receive quality products at a fair price.
2. Competitive Pricing: Haier is aware of the competitive landscape
within the appliance and electronics industry. The company regularly
monitors key competitors’ pricing strategies and adjusts its pricing to
remain competitive.
3. Segmented Pricing: Haier recognizes that different
customer segments have varying price sensitivities and preferences. The
company often employs segmented pricing strategies to cater to a diverse
customer base.
4. Promotions and Discounts: Haier strategically utilizes promotional
campaigns and discounts to stimulate demand during crucial selling
seasons or product launches. These promotions can include limited-time
discounts, bundle offers, cashback incentives, or trade-in programs,
providing customers with added value.
5. Skimming and Penetration Pricing: Haier may implement skimming
or penetration pricing strategies depending on the product category and
market maturity. Skimming involves initially setting higher prices for
innovative or premium products and gradually lowering them over time.

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HAIER PROMOTION STRATEGY:

Haier has adopted a global strategy of branding and marketing that has helped it
immensely in creating a positive brand influence in the consumer market. It has been
an enthusiastic partner in social work. It is a part of Project Hope and has taken the
initiative to provide education to underprivileged and deprived children. Nearly one
hundred and eighty-six schools have benefitted from this project.

Brand Haier has been quite vocal in expressing its concern over the ecological status
of our world. It has promoted the concept of green ideas and has been a part of a
community that actively supports planting trees. Haier has also taken part in charity
programs and sports events. It promotes its products via
several advertising campaigns.

Haier employs an integrated promotion strategy that includes digital marketing,

social media engagement, and strategic partnerships. The company leverages online
advertising, influencer marketing, and customer reviews to build
brand awareness and trust. Haier also runs seasonal promotions and product
launches to engage consumers and drive sales.

Commercials are shown through electronic media on radio and different television
channels, through print media on billboards, household magazines, and newspapers.
It has started advertising through social media and taken the help of several platforms
like Twitter, Facebook, and YouTube. It also has a personalized website to provide
necessary information to its interested customers.

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CONCLUSION
To sum up, Haier has proven to have an exceptional grasp of its industry, goals,
and brand identity. With a wide range of products to meet different customer
demands, the business is prepared to face competition.

Haier is positioned as a leader in the industry because of its marketing management

strategy, which is focused on customer-centric innovation. Haier keeps a
competitive edge by constantly updating its products to satisfy shifting client
needs.

With careful competition research and a comprehensive SWOT analysis, Haier has
pinpointed important areas for expansion and development. By using its strengths
and minimizing its shortcomings, this strategic strategy helps the business become
more resilient in the face of market obstacles.

Haier is dedicated to providing customized solutions to a wide range of customer

categories, as demonstrated by its market segmentation, targeting, and positioning
strategies. Haier becomes known as a reliable option among customers by clearly
conveying its value proposition and brand promise.

The cornerstone of Haier's success is its marketing mix, which includes innovative
products, competitive pricing, clever promotion, and effective distribution
networks. By ensuring that Haier goods reach the appropriate audience at the
appropriate moment, this integrated strategy promotes profitability and steady
development.

All things considered, Haier's strategic understanding and unwavering commitment

to innovation and customer satisfaction make it a strong competitor in the
worldwide market. Haier is positioned for future growth and market leadership
thanks to a strong foundation and a dedication to quality.

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REFERENCES

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