Beat the summer the Haier way

By , agencyfaqs!, New Delhi | In Advertising | March 07, 2008
Haier intends to spend a little more than the usual 10 per cent of its revenues on promotions and brand building initiatives this year

Haier, which & #BANNER1 & # recently locked on Grey Worldwide as its creative partner, has unleashed its first advertising campaign of the summer. The campaign talks about Haier's energy efficient 2008 range of air conditioners and refrigerators, which were launched in the Indian market yesterday.

Haier plans to reinforce its product offerings across categories and consolidate its position in the Indian market. Its new refrigerator range, which comprises nine new models in both the frost free and direct cool categories, is aimed at further consolidating its position as the No.1 BMR (bottom mounted refrigerator) brand in the Indian market. Its new air conditioner range comprises 16 split AC models and nine window AC models.

Haier's advertising will concentrate on its products; there are no plans at present to bring on board a brand ambassador. Its marketing strategy aims to create differentiation and localisation through its products and services.

Pranay Dhabhai, whole-time director and chief operating officer, Haier Appliances India, says, "Haier products are the brand ambassadors. We do not need any outside force or a celebrity to endorse Haier products."

The new TV commercials for the refrigerator and air conditioner launches revolve totally around product qualities. For instance, the commercial for the frost free refrigerator with the bottom freezer talks about the freezer placed at the bottom, instead of the top as in most refrigerators. The commercial for the air conditioner talks about its ability to save power by as much as 51 per cent and its comparative noiselessness.

Dhabhai says, "Our introduction of refrigerators with a bottom freezer is a clear demonstration of our commitment towards providing products keeping user convenience in mind. We are now set to enhance our range of cooling products, comprising ACs and refrigerators, with one of a kind features."

Haier is targeting a 7-8 per cent market share in refrigerators and 9-10 per cent market share in air conditioners in fiscal 2009. It plans to strengthen its air conditioner and refrigerator business through an aggressive sales channel expansion and by expanding and consolidating its dealer and after-sales service network across the country to ensure complete customer satisfaction. Haier's revenue for 2007 was Rs 325 crore, and it expects to touch Rs 500 crore by the end of 2008. The ad spend for the next two months will be close to Rs 30 crore.

A 0.75 tonne Haier AC costs Rs 11,990, while a 1.5 tonne AC with DC inverter technology costs Rs 15,990. The Haier refrigerators are priced at Rs 7,500 for the mini bar model and Rs 7,300 and more for the direct cool refrigerators. The side by side refrigerator is priced at Rs 1,35,000 and the Haier BMRs are priced between Rs 15,990 and Rs 23,500.

RT Rajan, director, sales and marketing, Haier Appliances India, says, "2007 was a year of consolidation for Haier. Having established the distribution network and understood the requirements of the Indian market over the past three years, it is now time for us to get more aggressive in the Indian market. So far, we had been spending around 10 per cent of our revenue on promotions and brand building initiatives. We will be spending a lot more beginning this quarter."