Marketing Mix of Haier and 4Ps (Updated 2023)

The Marketing mix of Haier analyses the 4Ps of Haier, which includes the Product, Price, Place, and Promotion of Haier. Haier is a public company of Chinese origins. It is associated with the consumer electronics and home appliances industry and is headquartered in Qingdao, China. Brand Haier was founded in 1984 and, by 2014, had the largest share of the market in terms of white goods. Some of its main competitors are as follows –

• General Electric
• Electrolux
• Samsung Electronics
• Whirlpool

About Haier

• Type: Multinational consumer electronics and home appliances
• Industry: Consumer electronics, home appliances
• Founded: 1984
• Founder: Zhang Ruimin
• Headquarters: Qingdao, Shandong, China
• Area served: Over 160 countries and regions
• Key people: Zhang Ruimin (Chairman) and Yu Chunjiang (CEO)
• Number of employees: 130,000

Haier Product Strategy

Haier is a multinational organization that sells, manufactures, develops, and designs several electronic goods. The brand started its operations as a manufacturing unit of refrigerators and, with time, has expanded its product range into ninety-six categories and includes nearly 15,100 models.

It is a world-class company that offers products in large-scale and digital integrated circuits, logistics, bio-pharmaceuticals, network appliances, and home integration. Following are some of the products in its kitty-

Consumer Products include

• Microwave Ovens
• Water Heaters
• Air Conditioner
• Television
• Washing Machine
• Refrigerator
• Computers
• Mobile Phones

Commercial products include

• Commercial Freezers
• Commercial Air Conditioners

The product mix of Haier in 2023 is as follows(Source)

1. Home Appliances: Refrigerators, Washing Machines, Dishwashers, Freezers, Air Conditioners, Microwave Ovens, Stoves and Cooktops
2. Consumer Electronics: Televisions, Audio Systems, DVD and Blu-ray Players
3. Small Appliances: Vacuum Cleaners, Coffee Makers, Toasters, Air Purifiers, Irons
4. Commercial Appliances: Commercial Refrigeration, Commercial Laundry Equipment, Professional Kitchen Equipment
5. Smart Home Products: Smart Home Appliances (IoT-enabled), Home Automation Solutions
6. Medical Devices: Haier Biomedical Products (such as laboratory freezers and refrigerators)
7. Industrial and Business Solutions: Haier Industrial Equipment and Services
8. Logistics and Supply Chain Services: Haier’s logistics and supply chain management services for businesses

Haier Place Strategy

Haier has a solid international presence, including countries like Malaysia, the Philippines, Indonesia, Japan, India, Australia, Pakistan, United Kingdom, France, Norway, Chile, New Zealand and the United States.

Its first overseas production facility was established in Indonesia in 1996 and in 1997 in Malaysia and the Philippines. Later, production plants were also located in Italy, the United States, Asian countries, and some African countries like Egypt, Algeria, Tunisia, and South Africa.

Haier has a strong distribution network comprising an efficient and capable workforce of nearly 70,000 employees, five R&D centers, eight design centers, 24 industrial parks, 1 43,330 sales stores, 30 factories for overseas production, and 66 trading companies.

Its extensive sales network is dependent on that particular region, In China, it has a strategic alliance with chain stores, in Europe it works alongside with KESA, in Japan with top retailers and in America with cooperation from retailers like Best Buy, Home Depot and Wal-Mart. Haier products are readily available in supermarkets, malls, and hypermarkets.

Here are five key elements of Haier’s place strategy:

1. Global Presence: Haier has established a strong global presence with a widespread distribution network. The company operates in multiple countries and regions, ensuring its products are accessible to consumers worldwide through various channels.
2. Retail Partnerships: Haier collaborates with various retail partners, both online and brick-and-mortar stores, to make its products readily available to consumers. This includes partnerships with major electronics and appliance retailers to showcase and sell its products.
3. E-commerce: Haier has a significant online presence through its official website and e-commerce platforms. The company leverages digital channels to reach a broader audience, offer convenience, and facilitate direct sales to consumers.
4. Authorized Dealers and Service Centers: Haier maintains a network of authorized dealers and service centers to provide after-sales support, including maintenance and repairs. This enhances customer satisfaction and ensures product availability even in remote areas.
5. Customized Distribution: Haier tailors its distribution strategies to suit the local market conditions and consumer preferences. This might involve different product offerings, pricing strategies, and distribution channels in various regions to meet specific customer needs.

Haier Pricing Strategy

Haier has projected its estimated revenues to be 32.8 billion and its net income to be 2.45 billion US dollars by the end of 2014. As a relatively new company, it wanted to face its competitors successfully, penetrate deeper markets, and create a solid customer base. Haier adopted a competitor-orientated and penetrating pricing strategy, setting its product prices marginally lower than rival companies.

Low prices or economic pricing helped the company attract a vast and thriving customer base and increase its share in the consumer market. The production cost of Haier products is less than other brands because of cheap labor; hence, they can easily afford the economical pricing system and still generate good revenues.

Here’s an overview of Haier’s price strategy:

1. Value-Based Pricing: Haier focuses on offering products that provide exceptional value for customers. The company carefully assesses its appliances’ and electronics’ features, quality, and benefits, aligning pricing with the perceived value. This approach ensures that customers receive quality products at a fair price.
2. Competitive Pricing: Haier is aware of the competitive landscape within the appliance and electronics industry. The company regularly monitors key competitors’ pricing strategies and adjusts its pricing to remain competitive.
3. Segmented Pricing: Haier recognizes that different customer segments have varying price sensitivities and preferences. The company often employs segmented pricing strategies to cater to a diverse customer base.
4. Promotions and Discounts: Haier strategically utilizes promotional campaigns and discounts to stimulate demand during crucial selling seasons or product launches. These promotions can include limited-time discounts, bundle offers, cashback incentives, or trade-in programs, providing customers with added value.
5. Skimming and Penetration Pricing: Haier may implement skimming or penetration pricing strategies depending on the product category and market maturity. Skimming involves initially setting higher prices for innovative or premium products and gradually lowering them over time.

Haier Promotion Strategy

Haier has adopted a global strategy of branding and marketing that has helped it immensely in creating a positive brand influence in the consumer market. It has been an enthusiastic partner in social work. It is a part of Project Hope and has taken the initiative to provide education to underprivileged and deprived children. Nearly one hundred and eighty-six schools have benefitted from this project.

Brand Haier has been quite vocal in expressing its concern over the ecological status of our world. It has promoted the concept of green ideas and has been a part of a community that actively supports planting trees. Haier has also taken part in charity programs and sports events. It promotes its products via several advertising campaigns.

Haier employs an integrated promotion strategy that includes digital marketing, social media engagement, and strategic partnerships. The company leverages online advertising, influencer marketing, and customer reviews to build brand awareness and trust. Haier also runs seasonal promotions and product launches to engage consumers and drive sales.

Commercials are shown through electronic media on radio and different television channels, through print media on billboards, household magazines, and newspapers. It has started advertising through social media and taken the help of several platforms like Twitter, Facebook, and YouTube. It also has a personalized website to provide necessary information to its interested customers.

Some Recent Video ads and Print ads of Haier are:

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