This document outlines a research project on the air conditioning industry in Pakistan. It introduces Haier, a major appliance manufacturer operating in Pakistan, and discusses their competitors, target markets, and issues faced. It analyzes Haier's placement, distribution network and political, economic, social, technological, legal and environmental factors affecting their business. SWOT analysis is presented on Haier's strengths, weaknesses, opportunities and threats. Recommendations are provided for Haier's growth.
2. Outline of the project
• Brief Overview Of Industry
• Introduction To Haier
• Competitor Analysis
• Demographic And Psychographics Of Target Market
• Several issue that the Haier group faced
• References
Copyright :Tanzeel Mehmood
3. Project Proposal
We were required to carry out a research on the electric appliances
industry of Pakistan gathering an overview of the various products
available in the Pakistani market.
About The main focus of our study being narrowed down tore
specjfically to the air conditioners segment.
With the overall disposable income of the average Pakistani consumer
rising and betterment of life styles, air conditioners are becoming a
basic necessity of life, especially in a country like Pakistan where
temperature is at an extreme.
Copyright :Tanzeel Mehmood
4. Introduction Of Haier
Haier is a globally recognized manufacturer of world-
class electrical home applications.
With Joint venture between Ruba General Trading
Company and Naier Group of China who broght Haier to
Pakistan.
Initial investment of about US $ 35 million.
Commitment to provide world-class innovative
products based op uncompromising quality to the
Pakistani consumer.
Copyright :Tanzeel Mehmood
5. 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 PakistanCopyright :Tanzeel Mehmood
6. 1. Political Factors;
China is a growing economy. The government therefore is
keen interested in to make flourish its growing industries.
The state set several rules and regulations that affect the
electronics industry. The govemment sets different
policies regarding taxes, business establishment, import,
export, excise duties and also about employment. Haier
being operating in the largely populated country has to
follow the rules and regulation of China.
Copyright :Tanzeel Mehmood
7. Есonomic Factors:
Haier operates globally. So the economic development
level of selected countries is very important. The income of
the сustomers is a key factor as they have to use their
resources to buy the used homе аppliances products. By
observing these, еconomic policies needed to be designed
to decide the price to be charge from the customers. One
of the significant factors, which will expand the company, is
the economic stability. It allows achieving the benefits and
improves the quality according to the customer
preferences.
Copyright :Tanzeel Mehmood
8. 3. Socio culture Factors:
These all of the social factors have a combined effect on Haier
operations to enter in the electronics industry. Therefore all should
be deeply analyzed. Роpulation growth, age distribution, Size of
family, soсial behaviors, Consumer lifestyles, education, Religion,
and immigration.The strategy must fоcus on the brand awareness,
meeting consumers, Recognition of brand which will increase the
market shares.
Copyright :Tanzeel Mehmood
9. 4. Тechnological Factors:
The enterprise will be able to develop significantly if it
remains engaged in technical research. Haier produces
electronics products for daily use, so technical production of
advance level of products are very important. Today customers
demand convenient in performing daily tasks like washing
clothes. So Haier needs to produce advanced technological
products at competitive prices. Modern production techniques
can help to manufacture the products speedily at low cost.
Better and improved fact conditions will increase the product
demand, especially in foreign countries. 5. Legal Factors:
Copyright :Tanzeel Mehmood
10. 5. Legal Factors:
Companies follow and observe the global regulations and rules. The
global business environment includes patents, ideas, trademarks and
legal designs. Patents and copyrights help the company to secure its
product from the competitors to сору them. This will decrease the
profits ultimately. Haier should focus on this. Moreover, business
legislations are also included in legal factors Haier should analyze.
It is best to consider legal factors for the dramatic expansion of the
company to international markets.
Copyright :Tanzeel Mehmood
11. 6. Environmental Factors:
Analysis of environmental factors highlights the power of buyуers
and consumers. Selection of countries to be served is very
important. To know the environmental rules and laws set by the
authorities are significant to operate smoothly and profitably.
Moreover producing environment-friendly products are also
demanded by the customers to reduce the pollution from the
environment. In addition to this, the waste disposing of is also an
issue to environment. Нaier needs to pay attention to all factors.
Copyright :Tanzeel Mehmood
12. Swot analysis of Haier
Hаier has qute strong opportunties that can use to expand the market
and have the possibilties to enter new product segments and also to
maintain the positon. In terms to develoр аnd avoid threats
situations, the company should use is strengths and tum threats into
opportunites at the same ime. It can help the company to increase
and expand is position on the market.
Copyright :Tanzeel Mehmood
13. Weakness
High end products are well aceepted. . Good market share in
western India . Strong preseпce in home appliances segment . Big
distributоrs are stocking many of Haier's product
Strengths
Very weak distribution network in central India Weak service agent
network Weak logistics as a result accumulation of trade stocks and
aging stocks. Sales seasonality in specific segment hindering growth.
Copyright :Tanzeel Mehmood
14. Opportunities
North-east a potential market is still largely untapped
Mobiles and celliular phone market offers new growth orortunities.
SPINSituation. Problem. Implication. Need) selling strategy for HEC’s
Consumer electronics segment is booming and set to grow at 14% CAGR,
Ha ier's product offerings catering to this segment are limited.
Small appliance market set to grow
Tie up with big retailers will help in growth.
High disposable income and higher number of Nuclear Families in the
socicty
Copyright :Tanzeel Mehmood
15. There are several issues that the Haier
gropped;
There are several issues that the Haier group faced in their goal to expand into the
American market. The lack of brand recognition can be solved by launching a
very aggresive campaign to advertise their products to the right market segment
that was going to buy their products. An analysis of their marketing campaign
revealed that their partners were using a broader and more aggressive marketing
campaign to attract a larger buying group. To resolve these issues and obtain the
desired goals which is market rehearsal while at the same time, create an
economic policy that can allow the company to develop a distribution and
delivery system and maintain their costs to a profitable level.
Copyright :Tanzeel Mehmood
16. Leadership issues:
Today, the biggest problem at Haier lics in the fact that its leaders are still
embroiled in orational execution issues. The enterprise will beome great when it
is able to operate by itself. with employees acting as their own leaders,
understarnding what to do to satisfy market and customer demand.
Challenges of brand innovation:
I mentioned in the introduction part, brand innovation faces many risks from
different perspectives sach as brand equity, marketing and finance. Secondly,
according to previous research, in the different background of brand portfolio
(i.e., a house of brand, or a branded house), the challenges of brand
innovation a company face is different. In this section. I will determine
types of challenges of brand innovation. In the next section, I will develop a
framework to classify different brand innovation in the different background
of bgand portfolio strategy.Copyright :Tanzeel Mehmood
17. Market Share Of Various
companies producing split
units for air conditioning
Market share of various brands
Copyright :Tanzeel Mehmood
18. Cultural challenges that Haier company
faculty:
In managing its far-Pung enterрrise, two cultural challenges that the company
is likely to face a technological innovation and cultural diversity. I believe it will
be challenging for the company to keep up with technological innovations due
to the backwardnes of those markets.
Challenges from the brand equity
perspective:
Aaker (1991) defined that brand equity is a phrase used in marketing industry
to describe the value of brand. Tauber (1998) refers to brand equity as the
extra value that the market position of brand create, which exceeds the real
asset value Brand equity can reflect value of a firm's brand, so it is meaningful
to investigate the challenges from the brand equity perspective.
Copyright :Tanzeel Mehmood
19. Recommendation:
Haier is a well-known brand in China for manufacturing white goods products and a
leading refrigerator manufacturer worldwide. However. Haier is going global but
still do not want to lose its leading positioning China There is vast improvement for
Haier to grow its business at home because the penetration leveling rural areas is still
very low. That remains a leader, it has to take leverage of self-innovation and
acquisition of new technology. Since many competitors have entered China market
and age providing similar products, Haier has to distinguish itself. I would propose
Naier should take advantage of its innovation to fully exploit the novice "green"
market of applications. In other words, it should strengthen its brand image as energy
efficient and environment-oriented by providing appliances that are environment
friendly.
Copyright :Tanzeel Mehmood
20. References:
Jump up to: On, Shahrat (December 21, 2015), "Wirh encоuagi
oropwe Nair Рakian ro expand moro aooresaivе", The Express
Tribune. Retrieved 2 August 2017
corporate corner, The Nation. August 1, 2017. Retrieved August 2,
2017.
Haier introduces 10 Year Warant, Pakistan Obsever. January 2017.
Haier sells 270000 refrigerators this year dunya news 11 July 2017
Retrieved August August 2017.
Hashmi, Nabeel (December 3, 2015)” Rektnn SuperLeaue Seen
Comparies fiht about biu francheses: The Express Tribune
Retrieved3 December 2015.
Husain, Amir (May 9, 2016) niJy Alted on Pakigtan crcku, PSL and
Shahid Atriss's Ature" Sport360 .com. Retrieved 1 Augusr 2017.
Copyright :Tanzeel Mehmood