(1) Haier originated in China in 1984 and is now the world's largest appliance manufacturer. (2) Through innovation and entrepreneurship, Haier has transformed from an insolvent factory to the number one global home appliance brand. (3) In Pakistan, Haier has established a production facility and become the leading home appliance brand through innovative products.

1. Authors Name: Muhammad Naeem, Zulkifal Raza, Muhammad Asad Abbas Lodhi, Muhammad Abid and Muhammad
Sakib
Registration ID: (FA12-MBT-059), (FA12-MBT-093), (FA12-MBT-049), (FA12-MBT-043) and (FA12-MBT- )
Section: A
The topic is concern: Haier Inspired Living
Subject Name: Applied Marketing
Submitted To: Mam Jawaria Fatima Ali
Date: 19/12/2014

2. Haier had been originated as Qingdao
Refrigerator Co. in 1984 by Ruba Sez
group. Haier is a purely Chinese
company which is incorporated by
government of china. Haier is world‟s
No.1 leading brand in appliances
industry. Haier Pakistan is a strong
evidence of Pak-China relationship. The
joint venture between Ruba General
Trading Company and Haier group of
China brought Haier into Pakistan eight
year ago.
Haier was founded in 1984. In the last
30 years, through its entrepreneurial
and innovative spirit, Haier has
transformed itself from an insolvent
collectively-owned factory on the brink
of bankruptcy into the number one
global home appliance brand. In 2013,
Haier‟s global revenue and profit
reached RMB180.3 billion (USD 29.5
billion ) and RMB10.8 billion (USD 1.76
billion ) respectively. Profit growth was 2
times revenue growth. Based on the
statistics of Euro monitor International, a
world leader in strategy research for
Consumer markets, Haier have been
the number one global home appliance
brand for five years in a row. On the
2012 World‟s 50 Most Innovative
Companies list published by the Boston
Consulting Group, Haier was the only
Chinese company in the top 10, as well
as the top-ranked consumer product
retailer.
Company Philosophy & Mission
Haier is known for disruptive innovation
in its product solutions and management
model. As an open platform company,
Haier provides leading home appliance
solutions to its users. Qingdao Haier
(600690.SH), referred to internally to as
the 690 Platform, uses disruptive
innovation to create smart appliances
for its users with the aim of becoming
the leader in the home appliance
industry. Haier‟s five R&D centers
around the world have forged strategic
partnerships with first-class suppliers,
research institutions, and prestigious
universities to create an innovative
ecosystem composed of over 1.2 million
scientists and engineers connected by
virtual and physical networks. To

3. achieve company philosophy Haier has
made its mission statement as following
“To deliver valuable products &
services for the broad satisfaction
of our consumers and maximize
returns for all stakeholders through
ideal use of resources”.
Haier in Pakistan air conditioner
market:
Expecting the massive potential of
Pakistani market, Haier has set up a
state-of-the-art industrialized park at
Raiwind Road Lahore. It has a strong
value chain in Pakistan. Having state of
art technology for production of home
appliances, Haier has proven itself as
No.1 home appliance brand in Pakistan.
Many of home appliances such as
washing machine, air-conditioner and
refrigerators are the leading products in
intensely competitive market of
Pakistan. Haier air conditioners are the
leading product line in the market
despite of having tough competition.
This segment has a large potential for
profit and growth so all home appliances
manufacturers are competing to get
maximum market share. Haier using its
production facility and innovative culture
became successful to be a leading
brand in Pakistan.
Haier entered in Pakistan‟s air
conditioner market by realizing good
marketing environment for the business.
First of all Pakistan and china has a
friendly political relationship and both of
the government encourage trade
relation between each other. In social
perspective Pakistani consumers are
adopting modern life style and use
modern appliance such as air
conditioner for cooling temperature.
Another major opportunity was
environmental condition of Pakistan
where summers season are long and
may remains eight to nine months. At
the peak of season temperature can go
to 45C to 50c. In this condition it
becomes hard to survive without air
conditioner to moderate the
temperature. There was also huge
growth of per capita income in Pakistan
that was about 20 to 25% increases in
last decades so customers have started
to spend on necessary home appliance.
Despite of all these great market
opportunities from macro environment
Haier had to face an intense competitive
market to enter the segment. Air
conditioner market was occupied by
some of the major home appliance
manufacture. Haier faced a tuff
competition in air conditioner market
from
 Mitsubishi
 Pel
 Orient
 Dowlance
 Gree
 General
 Panasonic
 Samsung

4. Haier had to face several threats from
industry forces; there was a strong
rivalry among the competitor. All the
players in the market were seeking for
largest share in this profitable segment.
Another major threat was high
bargaining power of customers. As
customer have a lot of choices to buy an
Air conditioner which they needed.
This tough competition brought several
benefit for the customers. Such an
intense competition requires air
conditioner manufacturers to
differentiate their products by offering
innovative and more efficient air
conditioners to compete in such a
competitive market. This competition
enabled customers to have a variety in
air conditioners features and functions.
It also helped customers to have a
choice in features and functions of air-
conditioners. Such a variety in demand
made consumer behavior more complex
and sophisticated like now they don‟t
only need an air conditioner for cooling
purpose or for their core need but they
also demand for more efficient, smarter,
advanced and ecofriendly air
conditioners. This has put a pressure on
manufacturers to make a more
customized product line to satisfy
customer needs and wants. Following
diagram shows what features and
functions are demanded in air
conditioner market that put pressure on
manufacturers to produce differentiated
products.
To face difficulties of tough competition
and sophisticated consumer needs
Haier needed to develop a wide product
line of air conditioners to meet different
consumer needs and to compete with
differentiated products. Haier used its
line of air conditioners to meet the need
of their customer. Product line consists
of different models of air conditioners
varying in features and functions.
In Air conditioner market Haier
segmented there customers on the
basis of lifestyle, benefits, user status,
readiness stage and income level for in
consumer segment and it also
segmented commercial segment. Haier
carefully targeted consumer and
commercial market to satisfy there
needs. Consumer segment is
considered to be more profitable as it
has more growth potential in pakistan.in
commercial segment it provides
solutions to its corporate customers. In
consumer segment Haier position itself
asHaier positioned itself as a trend
setter with a tag line “think different, tell
different & deliver different. It also
positions itself as one of the leading
brand of Pakistan. Haier AC Product line
tries to satisfy diverse needs of
customer. Haier has largest marketing
share in consumer segment due to their

5. differentiated and variety products.
Haier uses line filling strategy to make
their product line complete and to make
it a demanded line. Line stretching also
enables Haier to serve all type of
consumer in air conditioners segment.
Haier also use product bundling in
dowry packages as dowry is a major
cultural and social need on wedding
occasions in Pakistan.
Haier offers following different types of
product in their air conditioning line.
 DC invertors
 Long throw
 150 V
 20% saving
 Rapid cooling
 Cabinet
Pricing is a major decision to compete in
this market as most customers are price
sensitive in Pakistan. Another major
price factor is due to nature of the
product. As air conditioners are
seasonal product and most of the
demand is created in peak of summer

6. season. Another time for demand is
wedding season when people are
purchasing air conditioner for dowry.
Haier price their products on seasonal
basis as they sell their air conditioners
at high price for their differentiated
products in summer season and reduce
prices in winter. Haier also uses special
event pricing such as in wedding season
they price their product at maximum
price as it sees a great demand in this
season. Haier also use bundling price in
dowry packages.This different type of
pricing according to demand played a
vital role in success of Haier‟s air
conditioner product line.
Haier has a wide and strongdistribution
network in Pakistan. They have 1,000
sales outlets, 15 large experience
shops, 305 exclusive shops, 17 service
centers, more than 120 service outlets,
a call service centerhad been
established in Pakistan besides the
amazingly improved marketing network
too. Haier Pakistan‟s sale service
network always stands in front to supply
the most convince service and provides
a strong and beneficial relation to their
distributors.Haier makes their product
available to consumer segment through
placing their products at maximum
retailers of home appliances. Haier
make it sure that their product become
available to consumer at their
convenient point of purchase.. Haier
offers persuasive sale incentives to
attract retailers and place their air
conditioner in their stores. High price
models are mostly placed in urban area
where there is a demand for such high
priced air conditioners. Economic and
regular models of air conditioners are
placed at sub urban and rural area
To be a successful brand an efficient
promotional strategy is needed so Haier
successfully implemented their
promotional strategy to make their brand
better recognized as a leading and
innovative brand.Haier use different
types of promotional tools. . 40%
spending of their budget is Print Media,
20% goes on TV, 20% on Outdoor
activity and balance 20% on Sales
Promotion activity. They believe that
print media andoutdoor activity help
them to reach to their target customer.
Company can use these tools for
promotion purpose
 Advertising
 Sales promotion
 Personal Selling
 Direct Marketing
Due to excellently designed and
executed product mix Haier has
generated good brand equity. It has
proven itself as major player in air
conditioner market. It remained
successful in generating a favorable

7. image in mind of customer through their innovative product features and functions.
Haier uses marketing research to make
sure that their products are updated as
customer is demanding. Additionally
Research and development plays a vital
role in success story. Haier always
inspire their customers through
innovative and efficient home
appliances due to strong research and
development focus. The competitive
advantage of Haier group is the
improvement being the crucial point of
the company‟s mission as well as their
high-quality in consumer satisfaction.
The core competitive strategy is
satisfying consumer needs through
innovative products and a strong
relationship with the distributors. By
sponsoring sport teams, they are
showing the community their attention in
the social events.
Conclusion
Haier is a leading global brand that
recognizes and respects the realities
and circumstances of its customers and
responds to these by rewarding them
with inspiring solutions they can always
rely on. Haier comes from the belief that
progress lies in continued technological
advancement in order to make
customers‟ lives easier, more efficient
and more productive and it will continue
making all the efforts to excel in the
market. As Haier is moving towards
Eco-Life which will be very effective in
making customers‟ life more convenient
in terms of products usage & efficiency.
The idea of Eco-Life will reflect the Haier
promise of „Smarter Life, Better Planet‟
for the masses in Pakistan.