Consumer and Trade Promotions - Haier Appliances (I) Pvt. Ltd.

Details

Case Code : CLMC-043
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

The Haier Group, Chinese, Premium brand, Distribution system, Sales promotion campaign, Trade promotions, Exclusive Outlets, ‘Planet Haier’, Product bundling, Sourcing hub, Direct marketing and Euromonitor

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet gives an overview of the leading global consumer appliances major Haier’s marketing communication strategy for its entry in India. The caselet illustrates the importance of a planned marketing communications strategy to overcome the tag of being a ‘Chinese’ company. The caselet also elaborates on the different elements present in Haier’s marketing communications mix.

Issues:   » Importance of trade and consumer promotions   » Multinational companies and their marketing communication strategies   » Marketing communication mix Introduction The Haier Group, a consumer appliances manufacturing giant based in China, entered India in December 2003 through its wholly-owned subsidiary, Haier Appliances (India) Pvt. Ltd. (Haier). Haier is the second largest consumer appliances brand in the world next only to Whirlpool and has a presence in 166 countries and a product range of 15,100 models in 96 categories (Euromonitor, 2003).

It posted revenues of US$ 9.2 billion for the financial year 2003. Haier launched a range of consumer appliances in India, including washing machines, refrigerators, color televisions, microwave ovens, and air conditioners. The company initially focused its efforts on North India. It developed a marketing strategy with the objectives of increasing brand value, differentiating its products, and establishing a strong distribution system.

Questions for Discussion:

1. “We are going to change the perception that Chinese products are ‘cheap’. Armed with high technology products and in keeping with the global image of Haier, our products will be competitively priced.” Discuss the marketing communication strategy adopted by Haier, in light of the Indian consumer’s perception about Chinese products and the company being a new entrant in the highly competitive consumer appliances market.

2. The marketing communication mix that a company adopts depends on various internal and external factors. What major factors would Haier have considered while designing its marketing communication mix?