This document provides an overview of exploratory research conducted on the air conditioning industry in Pakistan. It introduces Haier as a major brand in the market and analyzes its competitors including Waves, Cool Industries, and PEL. Demographic and psychographic research targeted higher income consumers in SEC A. Findings showed people use AC 8-10 hours daily and purchase decisions are made primarily by males. Haier was the preferred brand for its price and performance compared to alternatives. A print ad concept and media plan are proposed to promote Haier air conditioners.

1. Promotions Management
Exploratory Research
Air Conditioning Industry
Presented By:
Group 6
Meesha Siddiqui Mohsin Zeb
Taimur Alam Butt Saif-Ur Rehman

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. 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. 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. 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. 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. 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. Price RangePrice Range
Brand 1 Ton 1.5 Tons 2 Tons
Haier Rs. 21,000 Rs. 28,500 Rs. 43,000

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. 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. CompetitorCompetitor
AnalysisAnalysis

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. 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. PricePrice
RangeRange
Brand 1 Ton 1.5 Tons 2 Tons
Waves Rs. 20,500 Rs. 24,900 Rs. 35,500

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. 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. 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. 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. 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. 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.  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. PromotionsPromotions
Uses Banners, Newspaper ads, TV commercials,
Brochures, catalogs, magazines and radio commercials
Brand Ambassadors such as Hadiqa Qiyani.

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. 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. Market Share Of Various CompaniesMarket Share Of Various Companies
Producing Split Units For AirProducing Split Units For Air
ConditioningConditioning

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. 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. 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. 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. 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.  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. 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. 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.  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. 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. 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. Creation of a localized brand
Focus speed and differentiation
Introducing new products
Brand Belief
BrandBrand
BeliefBelief

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. 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. 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. 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. 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.  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.  Executional Framework
 Dramatization
ExecutionalExecutional
FrameworkFramework

47. Story BoardStory Board

48. Story BoardStory Board

49.  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

50. MediaMedia
PlanPlan

51. To Create Awareness By
Informing Consumers In Order
To Gain Wider Acceptance And
Recognition In The Market.
Campaign StatusCampaign Status

52. 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

53. Increase market share by 5%
Increase sales volume by 15%
MarketingMarketing
ObjectivesObjectives

54. 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

55.  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

56. 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

57. 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

58. 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

59. 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

60. 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

61. 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

62.  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

63.  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

64. 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

65. Hum TV
ARY Digital
Geo News
Geo Entertainment
World Call
TelevisionTelevision

66. 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

67. NewspapersNewspapers
Jang
Nawa-i-Waqt
News
Dawn
Nation

68. 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

69. 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

70. RadiRadi
oo
FM 89
FM 100
FM 106

71.  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

72. 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

73. 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

74. 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

75. 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

76. 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

77. 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

78. 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

79. 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

80. 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

81. 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

82. 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

83. 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

84. 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

85. 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

86. 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

87. 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

88. THANK YOU!THANK YOU!