Marketing Strategy of Haier – Haier Marketing Strategy: In 1984, the Chinese Multinational Consumer Electronics & Home Appliance Company was founded. It sells a wide range of electronics goods as well as white goods, such as mobile phones, computers, and kitchen appliances.
Haier held the largest market share for white goods from the last 6 years to 2017. The Haier Group also operates with brands like Casarte and Leader, RRS.com., AQUA, Fisher & Paykel, and RRS.com.
Haier At A Glance – Marketing Strategy of Haier
Company : Haier
CEO: Zhang Ruimin
Founder: Zhang Ruimin
Year founded: December 26, 1984, Qingdao, China
Headquarters: Qingdao, Shandong, China
Annual Revenue: $27.7 billion
Products & Services: Major appliances, Small appliances, Commercial heating, and cooling systems, Consumer electronics-Haier Appliances create reliable, affordable air conditioners, refrigerators, televisions, washers, and home appliances designed for small space living.
Haier Fun Fact: The key to Haier’s success outside China, and why many other Chinese brands have failed in the same markets, is because Haier has focused on building and maintaining a brand image – one that is separate from the negative image many consumers hold of China and Chinese products.
Marketing Strategy of Haier
Haier’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Haier? Let us discuss.
Haier Marketing Strategy – Segmentation, Targeting, Positioning
The company uses segmentation variables, such as income, gender, age, and social class, geographic variables (Region and country), and psychographic variables like lifestyle and personality traits to segregate the population.
Haier employs differentiating strategy in order to highlight the benefits of the products for each customer segment.
The bank uses a customer benefit and value-based positioning strategy to project a technologically advanced image in the minds of customers.
Haier Mission Statement
“To be the leader in the industry and users’ first choice, as well as the first competitive solution provider for a good life”
Haier Vision Statement
Haier Marketing Strategy – Competitive Advantage
Haier recognized the opportunity to make its products accessible across all emerging and developed countries.
Integrated supply chain:
The company has an in-house logistics division that supports the business. It ensures timely distribution and efficient marketing of its products.
Haier Marketing Strategy – BCG Matrix
The company is involved in business segments like white goods, which sells home appliances and other electronic products. It also operates in the Logistics vertical, which provides services such as pick-up, repair, transport, and truck-loading.
Both the operating segments and the company are featured in the BCG matrix.
Haier Marketing Strategy – Distribution Strategy
The Company’s offerings are distributed by more than 60000 employees worldwide and through distributors around the world.
To support its main business, the Company has 5 R&D centers, 21 industrial parks, and 66 trading companies around the world.
The company’s products are made available to the market through the use of mixed channels of distribution. This means it uses distributors/ wholesalers and retailers’ eCommerce websites as well as resellers.
Haier Marketing Strategy – Brand equity
The brand was ranked 730 on Forbes magazine’s list of global 2000 companies and 352 on Forbes list of World’s Top Employers. According to the market capitalization value method, the brand is valued at $ 10.6 Billion. It generates revenue of $ 16.99 billion.
It was ranked first by companies and number one on the Global brand share list published by Euromonitor. Also, US World Brand Lab ranked it 50 on the list of top 500 brands.
Haier Marketing Strategy – Competitive Analysis
The majority of companies in the consumer goods and appliances market compete on the basis of product Portfolio, market availability, price, design, and innovative products.
Haier is competing with Philips, Panasonic, and Videocon.
Haier Marketing Strategy – Market Analysis
Companies in this industry are affected by the following factors: Increased alternatives, increased bargaining power of customers; Customers’ perception of a cheap Chinese brand; Supply-side dominance; Changes in lifestyle of people; Automation in the industry; Increasing purchasing power parity; decreasing margins.
Companies are seeking market expansion by entering innovative products into emerging economies due to the saturation of developed nations.
Haier Marketing Strategy – Customer Analysis
Haier’s customers include distributors, corporate businesses, resellers, and government agencies in a variety of industries.
The customers of the brand retail segment are between 20-40 years old, with the majority being in their mid-life or newly married. They want white goods in the home.
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