Strategic Marketing: Haier Analysis

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STRATEGIC MARKETING
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STRATEGIC MARKETING
Table of Contents
1.0 Introduction...........................................................................................................................................4
2.0 Company Background...........................................................................................................................4
3.0 Value Chain Analysis..............................................................................................................................5
3.1 Inbound Logistics...............................................................................................................................6
3.2 Operation..........................................................................................................................................6
3.3 Outbound Logistics............................................................................................................................6
3.4 Marketing and Sales..........................................................................................................................6
3.5 Service...............................................................................................................................................7
3.6 Infrastructure.....................................................................................................................................7
3.7 Human Resource Management.........................................................................................................7
3.8 Technology Development..................................................................................................................7
3.9 Procurement......................................................................................................................................7
4.0 Competitor Analysis..............................................................................................................................8
4.1 Direct Competitors............................................................................................................................8
4.1.1 Videocon.....................................................................................................................................8
4.1.2 Hitachi........................................................................................................................................9
4.1.3 Target Store................................................................................................................................9
4.2 Indirect Competitors..........................................................................................................................9
5.0 Customer Analysis...............................................................................................................................10
5.1 Market Segmentation......................................................................................................................10
5.1.1 Geographic Segmentation.........................................................................................................11
5.1.2 Demographic Segmentation......................................................................................................11
5.1.3 Psychographic Segmentation....................................................................................................11
5.1.4 Behavioral Segmentation..........................................................................................................12
6.0 Customer trends...................................................................................................................................12
7.0 Challenges faced by Haier...................................................................................................................12
8.0 Growth strategy...................................................................................................................................13
8.1 Directional Strategies.......................................................................................................................13
8.2 Boston Consulting Group Growth Share Matrix..............................................................................14
8.3 Ansoff’s Growth Matrix....................................................................................................................15
9.0 Positioning Strategy.............................................................................................................................16
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9.1 Product Positioning..........................................................................................................................16
9.2 Pricing Positioning...........................................................................................................................17
9.3 Brand Positioning.............................................................................................................................17
9.4 Positioning Error and Risk................................................................................................................17
10.0 Customer Value Creation..................................................................................................................18
11.0 Product Life Cycle.............................................................................................................................19
11.1 Introduction Stage.........................................................................................................................19
11.2 Growth stage.................................................................................................................................19
11.3 Maturity stage...............................................................................................................................20
11.4 Decline Stage.................................................................................................................................20
12.0 Branding............................................................................................................................................20
13.0 Innovation..........................................................................................................................................21
14.0 Social and ethical strategies...............................................................................................................23
15.0 Conclusion.........................................................................................................................................25
References............................................................................................................................................26
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1.0 Introduction
Today, all over the world people are more concerned with the utilization of appliances in their
homes and offices. Appliances may vary from home appliances, kitchen appliances to electronic
appliances. In general, most of the time people use electronic appliances in their daily lives. The
assignment is based upon the strategic management of HAIER. The selected organization is the
fastest growing provider of appliances all over the world. The company has held the largest
worldwide shares in market regarding appliances from the year 2011. It is very significant for the
appliance selling organizations to think about the strategic management of the business for a
smooth running of business. The assignment is divided into two parts. The first part is concerned
with the strategic analysis of HAIER. The second part is concerned with other strategies like
growth strategies, branding strategies, social and ethical strategies and relationship strategies.
Moreover, the company HAIER sells products like refrigerator, air conditioner, washing machine
and so on. During summer time, people prefers to stay in an air conditioned room and use fridge
and that is why it is important for organizations like HAIER to take care of the demands of the
customers. Therefore, the appliance company must make strategies and marketing plans to
perform a good marketing to their potential customers.
2.0 Company Background
Haier is a Chinese multinational organization which sells electronic household appliances.
Headquarter is located in Qingdao Shandong province in China. The origins of Haier was long
before the actual establishment of the company (Ansoff, 2014). During the year 1920s, a
refrigerator factory was built in Qingdao to source the Chinese market. After the 1949
establishment of the People's Republic of China, this factory was then taken over and turned into
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STRATEGIC MARKETING
an initiative of a state. During the year 2008, the organization has surpassed rival Whirlpool as
the world’s top refrigerator producer according to the terms of sales. During the tear 2012, the
electronic based appliance company has bought the New Zealand appliance manufacturing
company called Fisher and Paykel.
3.0 Value Chain Analysis
Source: https://www.google.co.in/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiIvdWE79DT
AhWBro8KHSZCDLsQjRwIBw&url=https%3A%2F%2Fbettyfeng.wordpress.com%2Ftag
%2Fvalue-chain-analysis%2F&psig=AFQjCNH7F1Vli1AxguOgg-
NY_B8OZdpLPQ&ust=1493802729594855
The above diagram is the diagram of Porter’s value chain model. A value chain analysis is
implemented by most of the companies for customer satisfaction. First of all it is significant to
know the concept of value chain analysis. A procedure where an organization identifies its prime
and support undertakings that adds value to its final product is known as value chain analysis or
VCA. In value chain analysis, the product of HAIER will be analyzed for the reduction of costs
as well as increase differentiation. Porter’s value chain model consists of inbound logistics,
operations, services, marketing and sales as well as outbound logistics(Masette, 2013). These are
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the primary activities. The support activities of Porter’s value chain model includes human
resource management, technology, procurement and firm infrastructure. HAIER needs more
production in the United States and therefore it is recommended for the business firm to
implement primary activities as it adds value to the production procedure. The supporting
activities of the value chain model will help HAIER to achieve competitive advantage. The
competitive advantage can be accomplished by using innovative technologies in the
manufacturing process of products. The fridge, washing machine and air conditioner should be
made in an innovative manner to attract new customer and retain the old ones(Fearne, Garcia
Martinez and Dent, 2012).
3.1 Inbound Logistics
With the help of inbound logistics, the management of Haier can build co-operative relationship
between internal employees as inbound officers or executives.
3.2 Operation
Operations like production process, sales process and distribution process are performed by
Haier for long term sustainability in this competitive appliance market.
3.3 Outbound Logistics
Mainly distributers and marketing repairing teams are included in the outbound logistics of
Haier.
3.4 Marketing and Sales
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