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Haier presentation

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Haier presentation

  1. 1. Promotions Management Exploratory Research Air Conditioning Industry Presented By: Group 6 Meesha Siddiqui Mohsin Zeb Taimur Alam Butt Saif-Ur Rehman
  2. 2. Brief Overview Of IndustryBrief Overview Of Industry Introduction To HaierIntroduction To Haier Competitor AnalysisCompetitor Analysis Demographic And Psychographics Of Target MarketDemographic And Psychographics Of Target Market Findings Of Exploratory ResearchFindings Of Exploratory Research Creative BriefCreative Brief Print AdPrint Ad Media PlanMedia Plan Outline of the project
  3. 3. Project Proposal We were required to carry out a research on the electric appliancesWe were required to carry out a research on the electric appliances industry of Pakistan gathering an overview of the various productsindustry of Pakistan gathering an overview of the various products available in the Pakistani market.available in the Pakistani market. The main focus of our study being narrowed down more specificallyThe main focus of our study being narrowed down more specifically to the air conditioners segment.to the air conditioners segment. With the overall disposable income of the average Pakistani consumerWith the overall disposable income of the average Pakistani consumer rising and betterment of life styles, air conditioners are becoming arising and betterment of life styles, air conditioners are becoming a basic necessity of life, especially in a country like Pakistan wherebasic necessity of life, especially in a country like Pakistan where temperature is at an extreme.temperature is at an extreme.
  4. 4. Objectives To try and understand the thinking of the consumers who purchase air-conditioners. Know-how pertaining to the electronics purchased. Purchase Pattern (seasonal variations, events etc.) Attributes considered while purchasing Basis for creative platform and strategy
  5. 5. Haier is a globally recognized manufacturer of world-class electrical home appliances. Joint venture between Ruba General Trading Company and Haier Group of China who brought Haier to Pakistan. Initial investment of about US$35 million. Commitment to provide world-class innovative products based on uncompromising quality to the Pakistani consumer. Introduction OfIntroduction Of HaierHaier
  6. 6. The plant spreads over a vast area of 63 acres with a covered area of 0.6 million square feet including a workers’ colony on Raiwind Road, Lahore. The project is expected to produce 0.9 million pieces of household appliances per year with plans to export to the Middle East and all over Asia. The roster of products in Pakistan includes Refrigerators, Air- Conditioners (Window & Split), Deep Freezers, Washing Machines, Microwave Ovens and Small Appliances with Dishwashers, Vacuum Cleaners, Television Sets Introduction Of Haier contd.
  7. 7. Haier Air- Conditioners: Product Range consists of: Inverter Series ( Environmentally friendly, vitamin - c layer, 50% energy saving) E-Series (Works in extreme temperatures exceeding 52 degrees) PKA Series (Economical and powerful)
  8. 8. Price RangePrice Range Brand 1 Ton 1.5 Tons 2 Tons Haier Rs. 21,000 Rs. 28,500 Rs. 43,000
  9. 9. Placement: Haier distribution network consists of : 3 display centers in Lahore, Karachi and Quetta Nationwide offices, sales offices in the following cities of Pakistan are shown. 18 Service centers 73 authorized dealers all over Pakistan
  10. 10. Promotions: Use of Billboards, newspaper advertisements, television commercials Haier ‘s participation at exhibitions such as ‘Dawn Lifestyles’ Collaboration with Summer Olympics Celebration of events:- Mother’s day lucky draw and father’s day cricket tournament
  11. 11. CompetitorCompetitor AnalysisAnalysis
  12. 12. Cool Industries (Pvt) Limited., was established in 1973 and grew to a leading Home Appliances manufacturing Company in Pakistan. Cool Industries (Pvt) Limited, products capture over 80% of the local market for Refrigerators, Deep Freezers, Air Conditioners and other home appliances. The company manufactures Refrigerators, Deep Freezers, Air Conditioners, Washing Machines, Microwave Ovens and many other quality home appliances, with the production ratio exceeding the overall production of Pakistan's appliances manufacturers. Waves…..Waves…..
  13. 13. Waves is the undisputed leader in the market, both in the residential and commercial sector of Pakistan. Waves split AC are energy savers and provide strong cooling due to its T4 compressor. Waves….. Product Range Consists of: WS series Plasma Gold Series
  14. 14. PricePrice RangeRange Brand 1 Ton 1.5 Tons 2 Tons Waves Rs. 20,500 Rs. 24,900 Rs. 35,500
  15. 15. Bahawalpur D.G. Khan Faisalabad Gujranwala Hyderabad Karachi Lahore Larkana Multan Peshawar Quetta Rawalpindi Sargodha Sialkot Sukkur Sahiwal Placement: Waves has display centers in the following cities, namely:
  16. 16. Promotion:Promotion: Uses Banners, Newspaper ads, TV commercials, Brochures, catalogs and E-Newsletter Sales promotions:Sales promotions: Use of Gift vouchers and special offers.
  17. 17. Established in 1956 as the pioneer of Pakistani electrical goods in technical collaboration with M/s AEG of Germany. In October 1978, the company was taken over by Saigol Group of Companies. The company comprises of two divisions: Appliances Division Power Division Appliances Division consists of appliances manufacturing namely air conditioners, refrigerators and Deep Freezers: PELPEL….….
  18. 18. PEL Air ConditionersPEL Air Conditioners PEL window-type air conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With the shift of users preference from window type to split type air conditioners, PEL has started manufacturing split type air conditioners.
  19. 19. Product and Price Range Silver Line QB 1.5 tons Rs 30,300 Regal R2 1.5 tons Rs 22,600 Challenger C-4 1.5 tons Rs22,600 Future F-19 1.5 tons Rs 29,400 Dazzler D21 1.5 tons Rs. 29,200 Luxury L5 1.5tons Rs. 28,500
  20. 20. Placement:Placement: In order to facilitate its customers, Pel has a number of centers located in various cities around Pakistan for the ease of accessibility by its customers. PEL has the following networks namely: Customer care centers Authorized service centers Area sales offices
  21. 21.  Bahawalpur  Batkhela  Dera Ghazi Khan  Burewala  Dera Ismail Khan  Faisalabad  Gojar Khan  Gujranwala  Gujrat  Hyderabad  Karachi  Lahore  Mirpur-AJKMirpur-AJK  MultanMultan  OkaraOkara  PeshawarPeshawar  QuettaQuetta  Rahim Yar KhanRahim Yar Khan  RawalpindiRawalpindi  SargodhaSargodha  SheikhupuraSheikhupura  SialkotSialkot  SukkurSukkur  WahWah These are located in the following cities: Placement
  22. 22. PromotionsPromotions Uses Banners, Newspaper ads, TV commercials, Brochures, catalogs, magazines and radio commercials Brand Ambassadors such as Hadiqa Qiyani.
  23. 23. BRAND 1 TON 1.5 TONS 2 TONS HaierHaier Rs. 21,000Rs. 21,000 Rs. 28,500Rs. 28,500 Rs. 40,000Rs. 40,000 Samsung Rs. 25,000 Rs. 31,000 Rs. 43,500 LG Rs. 24,500 Rs.33,000 Rs. 42,500 Orient Rs. 21,500 Rs. 28,000 Rs. 42,600 PEL Rs. 21,000 Rs. 28,000 Rs. 35,000 Panasonic Rs. 26,000 Rs. 36,000 Rs. 45,000 Mitsubishi Rs. 27,000 Rs. 36,500 Rs. 45,000 Waves RS. 20,500 RS. 24,900 RS. 35,500 Prices Of Various Brands
  24. 24. Trends In The Split AirTrends In The Split Air Conditioner IndustryConditioner Industry Split units consumption and production peaked in the summer of 2006. The year 2007 saw the sales of split air conditioners leveling out. This year the consumption and production of splits is down by approximately 50%, reason being assembly plants being severely affected by the electricity crisis and the hike in oil prices. The effect load shedding has had on the sales of split units has been negative, with sales dipping by 10-20%. Suggesting that if people were buying 10 split units a day before load-shedding, now they are buying approx. 8 units
  25. 25. Market Share Of Various CompaniesMarket Share Of Various Companies Producing Split Units For AirProducing Split Units For Air ConditioningConditioning
  26. 26. Questions Used For the Interviews Conducted Questions regarding the air-conditioner usage per day. What are factors which influence your purchase? Which brand cools the most? How do you evaluate your brand’s competitors from the brand you are using? Which brand did you previously use? Which brands would you prefer to buy? Do advertisements affect your purchase?
  27. 27. Age Bracket 25-55 Interview duration 15-30 minutes Location Home, office and university Name of brand used Specifically “Haier” Role of person Buying authority holder Selection Criteria
  28. 28. NAME AGE GENDER PROFESSION S.E.C Raja Tanzeel 26 Years Male Student A Mohd. Yousaf 29 Years Male Banker A Mohammad Ikram 35 Years Male Real Estate A Dr. Adeel Ashraf 37 Years Male Doctor A Dr. Gulraiz Ahmad 36 Years Male Professor A Mohd. Mubeen 35 Years Male Businessman A Zafar Ul Majeed 55 Years Male Govt. Officer A Demographics (SEC A)Demographics (SEC A)
  29. 29. Social class A1 & A2 Hobbies Music, internet surfing, driving buying behavior Moderate/luxurious Dressing Executive (usually) Behavior Friendly & social Interests Politics, entertainment world. Psychographics (SECPsychographics (SEC A)A)
  30. 30. Majority of the consumers used A.C at least 8-10 hours daily. These days life without A.C is like going back to 17th century. Majority of the people had used Pell, Dawlance and Mitsubishi. The most affective source of media has been TVCs and Billboards. The buying decision are usually in the hand of male head of the family. Leakage and medical issues like lack of fresh air causes dullness and skin diseases. HAIER is preferred brand however the list includes , Pell, Mitsubishi, and Sabro as well. Findings:Findings:
  31. 31.  It makes you cooler…  It’s the best buy for its price…  Better than others…  Live cool…  Living at its best….  2nd largest home appliance selling brand worldwide… Word About Haier!!!!Word About Haier!!!!
  32. 32. NAME AGE GENDER PROFESSION S.E.C Omer Maqsood 38 Years Male Teacher B Ahsan Ullah 29 Years Male Pharmacist B Mrs. Mehtab 54 Years Female House Wife B Sana Ullah 49 Years Male Laboratory Assistant C Fareed Bhatti 36 Years Male N.G.O Supervisor C Azam 35 Years Male Computer Programmer C Demographics (SEC B &Demographics (SEC B & C)C)
  33. 33. Social class B & C Hobbies TV Dramas, Indian Movies, socializing buying behavior conscious Dressing Shalwar Qameez. Pant shirt (un formal) Behavior Friendly & social Interests Family Issues, future concerns/planning/ideas Psychographics (SEC B & C)
  34. 34.  AC is used for almost 5-6 hours daily and usually in offices.  SABRO is the most preferred brand and is considered as the biggest competitor of HAIER.  Leakage and fluctuation problems have been noticed until now in AC usage.  Money is basically the biggest issue in buying and using AC. Findings :
  35. 35. Means –End ChainMeans –End Chain ModelModel Attributes:Attributes:  Works at low voltage  Energy saving  Cools at temperatures as high as 52 C  Technological expertise Benefits:Benefits: Creation of relaxed, cool environment Chilled atmosphere in 10 minutes. Values:Values:  Chilled living environment  Pleasure  Relaxation  Comfort  Cooling
  36. 36. Creative Brief:Creative Brief: ◊ Brand ◊ Brand Belief ◊ Brand Personality ◊ The Problem Is (why are we advertising) ◊ So we must say (the differentiating proposition) ◊ To these people (target market) ◊ Who will believe it because (the support) ◊ So that this happens (desired outcome)
  37. 37. Creation of a localized brand Focus speed and differentiation Introducing new products Brand Belief BrandBrand BeliefBelief
  38. 38. Unmatched home appliances Innovator: With over 6000 patented technology certificates and 590 software intellectual property rights Friend and companion forever Thinking globally and acting locally Brand PersonalityBrand Personality
  39. 39. Lack of awareness about the new line of Haier Air Conditioners. Quality perceived is low as it is a Chinese Made Air Conditioner. Competition has strong market presence. Salesmen in the outlets try to push Mitsubishi and LG Air Conditioners due to higher commissions from these companies The Problem Is (why are weThe Problem Is (why are we advertising)advertising)
  40. 40. Providing good Value for money with the New models of Air Conditioners very Powerful, being able to work at 52 degree Celsius and at low voltages So We Must Say (TheSo We Must Say (The Differentiating PropositionDifferentiating Proposition
  41. 41. SEC A using Air Conditioners up to 10 to 15 hours Healthy and comfortable living Environmentally aware Indoors luxurious lifestyle during summer Those that consider life without an Air Conditioner unimaginable SEC B using Air Conditioners up to 5 to 8 hours Economic aspects considered important To These People (Target Market)To These People (Target Market)
  42. 42. Who Will Believe It Because (The Support) Haier is producing quality products in over 100 countries Official sponsors of 2008 Beijing Olympics Third best Chinese brand globally Number 1 Chinese home appliances brand according to surveys by Interbrand, Business Week and Brand Channel
  43. 43.  Increased awareness of the New models of the Air Conditioner and its unique features that will Encourage Non users to try the Air Conditioner So That This Happens (DesiredSo That This Happens (Desired OutcomeOutcome ))
  44. 44.  Executional Framework  Dramatization ExecutionalExecutional FrameworkFramework
  45. 45. Story BoardStory Board
  46. 46. Story BoardStory Board
  47. 47.  In the final scene, he will sit on his chair, cool, calm and relaxed. As he puts the remote on the side table, a snow flake will fall on his hand. HAIER Inspired living Story BoardStory Board
  48. 48. MediaMedia PlanPlan
  49. 49. To Create Awareness By Informing Consumers In Order To Gain Wider Acceptance And Recognition In The Market. Campaign StatusCampaign Status
  50. 50. SEC A using AC 10 to 15 hours daily Healthy and comfortable living Environmentally aware Luxurious lifestyle Those that consider life without an AC unimaginable SEC B using AC 5 to 8 hours daily Economic aspects considered to be important Who have conscious buying behavior TargetTarget AudienceAudience
  51. 51. Increase market share by 5% Increase sales volume by 15% MarketingMarketing ObjectivesObjectives
  52. 52. Advertising Objectives • Provide information • Persuasion Media Objectives • Create awareness among 80% of the target audience • Create interest in the brand among 65% of the target audience
  53. 53.  The Marketing Budget’s allocation has been based on its previous year’s sales which are as follows: Capacity Units sold Price/unit Rs. Sales Rs. 1 ton 40,000 21,000 840,000,000 1.5 tons 55,000 28,500 1,567,500,000 2 tons 5,000 43,000 215,000,000 Total 100,000 2,622,500,000 *Source:- Mr. Ahmad Hammad, Product Manager Haier ( Split A/C Units) BudgetBudget
  54. 54. CCalculation ofalculation of MMarketingarketing BBudgetudget 9% of Sales = 2,622,500,000 x.09 = Rs. 236,025,000 MMediaedia BBudgetudget 70% of marketing budget = 0.7 *236,025,00= Rs. 165,217,500
  55. 55. The media plan includes six mediums including: • Newspapers • Magazines • Billboards • Streamers • Radios • TV channels We plan to spend over two quarters, i.e. July, august and September (2008) and April, may and June (2009). This means that quarter 1 and quarter 4 for the fiscal year 2008-09. Media StrategyMedia Strategy
  56. 56. Billboards City Location Size Price Month Peshawar Arbab Road 60*20 Rs 3,000,000 April Gujranwala 60*20 Rs 3,000,000 April Sialkot 60*20 Rs 3,000,000 April Faisalabad 90*30Rs 7,000,000 April Quetta Sariab Road 60*20 Rs 3,000,000 April Islamabad Constitution Ave 90*30Rs 7,000,000 April Rawalpindi Peshawar Road 60*20 Rs 3,000,000 April Lahore Liberty Market 90*30 Rs 7,000,000 July, Aug, Sep Mozang Chungi 90*30 Rs 7,000,00 July Sherpao Bridge 60*20 Rs 3,000,000 July Jinnah Bridge 60*20 Rs 3,000,000 July Link Road 60*20 Rs 3,000,000 July Rs 66,000,000
  57. 57. Billboards LahoreLahore PeshawarPeshawar GujranwalaGujranwala SialkotSialkot QuettaQuetta Rawalpindi Islamabad 2008 July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Aug 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Sept 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 2009 April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
  58. 58. Channel Prime Time Rate/minute Hum TV 8pm to 10pm Rs 50,000  We will air eight Haier advertisements every Friday, Saturday and Sunday. This means that in three days we will air the ad 24 times. The ad will be aired 4 times a month and the months it will be aired will be July, April and May. This means that: 50,000*24=1,200,000 1,200,000*4=4,800,000 4,800,000*3=14,400,000 TelevisionTelevision
  59. 59. Channel Prime Time Rate/minute ARY Digital 8pm to 10pm Rs 50,000  We will air eight Haier advertisements every Friday, Saturday and Sunday. This means that in three days we will air the ad 24 times. The ad will be aired 4 times a month and the months it will be aired will be July, April and May.  This means that: 50,000*24=1,200,000 1,200,000*4=4,800,000 4,800,000*3=14,400,000 TelevisionTelevision
  60. 60.  Geo News 8pm to 10pm Rs 175,000  We will air four Haier advertisements every Friday, Saturday and Sunday. This means that in three days we will air the ad 12 times. The ad will be aired 4 times a month and the months it will be aired will be July, April and May.  This means that: 175,000*12=2,100,000 2,100,000*4=8,400,000 8,400,000*3=25,200,000 TelevisionTelevision
  61. 61.  Geo Entertainment 8pm to 10pm Rs 125,000  We will air four Haier advertisements every Friday, Saturday and Sunday. This means that in three days we will air the ad 12 times. The ad will be aired 4 times a month and the months it will be aired will be July, April and May.  This means that: 125,000*12=1,500,000 1,500,000*4=6,000,000 6,000,000*3=18,000,000 TelevisionTelevision
  62. 62. World Call8pm to 10pm Rs 500 We will air 10 Haier advertisements every Friday, Saturday and Sunday. This means that in three days we will air the ad 30 times. The ad will be aired 4 times a month and the months it will be aired will be July, April and May. This means that: 500*10=5,000 5,000*30=150,000 150,000*4=600,000 600,000*3=1,800,000 The costs amounts to Rs 73,800,000 TelevisionTelevision
  63. 63. Hum TV ARY Digital Geo News Geo Entertainment World Call TelevisionTelevision
  64. 64. Name Rate Size Placement Price (1 day) Jang Rs 3,400/single column cm Q page front page 367,200 Nawa-i-Waqt Rs 2,200/single column cm Q page front page 237,600 Daily Times Rs 1,100/single column cm Q page front page 118,000 News Rs 2,500/single column cm Q page front page 270,000 Dawn Rs 1,900/single column cm Q page front page 205,200 Nation Rs 1,100/single column cm Q page front page 118,000 1,316,000 *15 The cost amounts to Rs 19,740,000 NewspapersNewspapers
  65. 65. NewspapersNewspapers Jang Nawa-i-Waqt News Dawn Nation
  66. 66. Name Rate Frequency Price Me and My Wedding 15,000 Quarterly (2) 30,000 Libas 30,000 Quarterly (2) 60,000 Visage 12,000 Quarterly (2) 24,000 Women’s Own 11,000 Monthly (6) 66,000 Sunday 30,000 Weekly (24) 720,000 900,000 MagazinesMagazines
  67. 67. Name Time Duration Price FM89 7 am to 8am 4 minutes 4,000 5pm to 9pm 12 minutes 12,000 FM100 7am to 8am 4 minutes 4,000 5pm to 9pm 12 minutes 12,000 FM 106.2 5pm to 9pm 12 minutes 12,000 Rs. 44,000 We will air the ads five times a day, which means that 44,000*5=Rs 220,000 Rs 220,000*6 months= Rs 1,320,000 Therefore, the amount equals Rs 1,320,000 RadiRadi oo
  68. 68. RadiRadi oo FM 89 FM 100 FM 106
  69. 69.  The rate for a streamer (both sides) per pole is Rs 1,500 a week. The routes we have chosen are: Route Poles Price Sherpao Bridge-Zafar Ali Road 25 37,500 Kalma Chowk-Liberty Chowk 30 (2)=60 90,000 Kalma Chowk-KFC 30 45,000 Kalma Chowk-Model Town Mor 20 30,000 Kalma Chowk-PU New Campus 30 45,000 Jail Road (Canal)-Mozang Chungi 60 90,000 325,500 StreamerStreamer ss
  70. 70. This amount will be multiplied by six weeks because we plan to put up the streamers in the first week of July, August, September, April, May and June. Therefore, 325,500*6=Rs 1,953,000 StreamerStreamer ss
  71. 71. Allocation Of TheAllocation Of The Media BudgetMedia Budget BillboardsBillboards Rs. 66,000,000Rs. 66,000,000 TVTV Rs. 73,800,000Rs. 73,800,000 NewspapersNewspapers Rs. 19,740,000Rs. 19,740,000 RadioRadio Rs. 900,000Rs. 900,000 Total amount allocatedTotal amount allocated Rs. 165,217,500Rs. 165,217,500 Total amount spentTotal amount spent Rs. 164,440,000Rs. 164,440,000 Amount leftAmount left Rs. 777,500Rs. 777,500
  72. 72. Sales Promotion budget: = 27% of marketing budget = 0.27 * 236,025,000 = Rs 63,726,750 Miscellaneous marketing expenses budget: = 2% of marketing budget = 0.02 * 236,026,000 = Rs 4,720,500 Note: this is for un-forecasted marketing activities
  73. 73. Promotion Budget Allocation:Promotion Budget Allocation: Trade promotion: Increase retailer’s margin from 10% to 12% 1 ton Units sold: 40,000 Price per unit: 21000 Rs Total Sale = 840,000,000 Rs Retailer’s Margin (current) on each 1 ton unit sold = 10% of sale price = 0.10 * 21000 = 2100 Rs Retailer’s Margin (new) on each 1 ton unit sold = 12% of sale price = 0.12 * 21000 = 2520 Difference = Rs 2520 – Rs 2100 = 420 Rs per unit Total Difference in cost: Rs 420 * 40,000 = Rs 16,800,000
  74. 74. 1.5 tons1.5 tons Units sold: 55,000Units sold: 55,000 Price per unit: 28500 RsPrice per unit: 28500 Rs Total Sale = 1,567,500,000 RsTotal Sale = 1,567,500,000 Rs Retailer’s Margin (current) on each 1.5 ton unit soldRetailer’s Margin (current) on each 1.5 ton unit sold = 10% of sale price= 10% of sale price = 0.10 * 28500 = 2850 Rs= 0.10 * 28500 = 2850 Rs Retailer’s Margin (new) on each 1.5 ton unit soldRetailer’s Margin (new) on each 1.5 ton unit sold = 12% of sale price= 12% of sale price = 0.12 * 28500 = 3420 Rs= 0.12 * 28500 = 3420 Rs DifferenceDifference = Rs 3420 – Rs 2850 = 570 Rs per unit= Rs 3420 – Rs 2850 = 570 Rs per unit Total Difference in cost:Total Difference in cost: Rs 570 * 55,000 = Rs 31,350,000Rs 570 * 55,000 = Rs 31,350,000
  75. 75. 2 tons2 tons Units sold: 5,000Units sold: 5,000 Price per unit: 43000 RsPrice per unit: 43000 Rs Total Sale = 215,000,000 RsTotal Sale = 215,000,000 Rs Retailer’s Margin (current) on each 2 ton unit soldRetailer’s Margin (current) on each 2 ton unit sold = 10% of sale price= 10% of sale price = 0.10 * 43000 = 4300 Rs= 0.10 * 43000 = 4300 Rs Retailer’s Margin (new) on each 2 ton unit soldRetailer’s Margin (new) on each 2 ton unit sold = 12% of sale price= 12% of sale price = 0.12 * 43000 = 5160 Rs= 0.12 * 43000 = 5160 Rs DifferenceDifference = Rs 5160 – Rs 4300 = 860 Rs per unit= Rs 5160 – Rs 4300 = 860 Rs per unit
  76. 76. Total Difference in cost: Rs 860 * 5,000 = Rs 4,300,000 Total cost for this promotion: Difference in cost 1 ton = Rs 16,800,000 Difference in cost 1.5 ton = Rs 31,350,000 Difference in cost 2 ton = Rs 4,300,000 Total Difference in cost = Rs 52,450,000
  77. 77. Annual Business-CUM-pleasure trips organized by Haier for its top fifty retailers along with there family with regards to sales at PC Bhurban with all expenses paid. Cost for 1 family for two days and two nights (all inclusive) = Rs 30,000 Cost for 50 families for two days and two nights = Rs 30,000 * 50 = Rs 1,500,000
  78. 78. Placement of vertical flexes of Haier AC (size 5*3), at the entrance of general (non-company owned) sales outlets of electric appliances. Cost of each flex ( 5*3) = Rs 250 Cost for 10,000 flexes = 250 * 10,000 = Rs 2,500,000
  79. 79. Total Trade Promotion CostsTotal Trade Promotion Costs Increase retailers margin from 10 to 12% of sales (note: this cost is accounted for as a promotional expense in current year and will be recognized and charged as a retailers margin from next year only on the success of this campaign) = Rs 52,450,000 Annual Business-CUM-pleasure trips organized by Haier for its top fifty retailers along with there family with regards to sales at PC Bhurban with all expenses paid = Rs 1,500,000 Placement of vertical flexes of Haier AC (size 5*3), at the entrance of general (non-company owned) sales outlets of electric appliances = Rs 2,500,000 Total cost for trade promotion = Rs 56,450,000
  80. 80. Consumer Promotion: 1.With every purchase of 2 ton unit, get a chance to be one of the hundred lucky winners of a 0.5 KW Chinese petrol generator winner. 0.5 KW Chinese generator @ Rs 8,900 per generator 100 * 8,900 = Rs 890,000
  81. 81. With every purchase of Haier 2 ton unit, getWith every purchase of Haier 2 ton unit, get a free wash service of any old unita free wash service of any old unit Cost @ 1 free unit service = Rs 200Cost @ 1 free unit service = Rs 200 Cost of 5000 units = Rs 200 * 5000 = Rs 1,000,000Cost of 5000 units = Rs 200 * 5000 = Rs 1,000,000
  82. 82. With every purchase of 1 and 1.5 ton unit, get aWith every purchase of 1 and 1.5 ton unit, get a chance to go with your family (5 members) tochance to go with your family (5 members) to shangrila Skardu and enjoy free stay for two nightsshangrila Skardu and enjoy free stay for two nights and two days including food and tickets.and two days including food and tickets. Cost @ 1 family = Rs 100,000 Cost @ 10 families = Rs 1,000,000
  83. 83. Total consumer promotionTotal consumer promotion costscosts With every purchase of 2 ton unit, get a chance to be one of the hundred lucky winners of a 0.5 KW Chinese petrol generator winner = Rs 890,000 With every purchase of Haier 2 ton unit, get a free wash service of any old unit = Rs 1,000,000 With every purchase of 1 and 1.5 ton unit, get a chance to go with your family (5 members) to Shangrila Skardu and enjoy free stay for two nights and two days including food and tickets = Rs 1,000,000 Total consumer promotion costs = Rs 2,890,000
  84. 84. Total Sales Promotion Trade promotion = Rs 56,450,000 Consumer promotion = Rs 2,890,000 Total = Rs 59,340,000 Allocated budget Rs 63,726,750 Un-utilized budget = Rs 4,386,750
  85. 85. Intended Promotional CampaignIntended Promotional Campaign 2009 – 2010 (Addition to the 2008-2009 – 2010 (Addition to the 2008- 09 Campaign)09 Campaign) Trade Promotion Offer a free air conditioner for the retailer’s home use in order to stress on immaculate quality (for top 500 with respect to sales) Consumer Promotion Targeting of corporate and government departments by offering bulk discounts Negotiating with contractors or construction of new houses and buildings by offering Price cuts On purchase of 24 units, get 1 free of same capacity •On purchase of 1.5 ton unit, get a free 0.5 KW support UPS •On the purchase of 1 ton unit, get a free rechargeable fan
  86. 86. THANK YOU!THANK YOU!

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