Background Information
All businesses are affected by their immediate environment. Many factors influence them, for example, the location of the business premises, availability of labor, labor costs, and availability of raw materials and so on. Premises refer to house or other buildings with its out buildings etc. Among them, location is important particularly for businesses, which allows businesses to situate themselves somewhere where they can be noticed by their target customers.
Text B Entering a market
Background Information
Haier is the world’s fourth largest white goods manufacturer and is the official home appliances sponsor of the Beijing 2008 Olympic Games. As of 2007, the Haier Group has established a total of 64 trading companies(19 located overseas), 29 manufacturing plants(24 overseas), 8 design centers(5 overseas)and 16 industrial parks(4 overseas). Consistent with Haier’s position as a global brand, the company employs over 50 000 people around the world. In addition, Haier boasts a 58 800-p sales network which last year accounted for a global turnover of 118 billion RMB (16.2 billion USD). Guided by the branding strategy of CEO Zhang Ruimin, Haier has advanced through the "grand building", "diversification", and "internationalization" stages, and since 2005 has embarked on the fourth stage: "global Branding". Haier has enjoyed a growing international reputation over the past 24 years.
Haier Aims to Be a Mainstream Brand in the US
An exclusive interview of CEO of Haier Group
Zhang Ruimin, CEO of Haier Group
Haier is well on the way towards achieving its goal of being a mainstream brand in the US. Haier has successfully penetrated the Top-10 chain groups in the US. Whenever Haier enters the global procurement system of big chain, this makes Haier one step closer to entering the mainstream US market. Haier has also won awards such as "best supplier" and "exam-free supplier" by several retailer chains. Haier has international service centers in more than 50 states of the US and has opened a toll-free hotline.
According to Zhang Ruimin, CEO Haier Group, Haier knew that its entry into the US would be very difficult at first, but would get easier as the company learned from its mistakes. The company adopted a "market first and then factory" approach. Haier invested in a global brand strategy with the objective of letting products, capital and brands go global. From the single and niche products at the early days of entering the US market, to the current differentiated product family, with products such as the independent cocktail cabinet and Haier 37T88, Haier’s mainstream products are now very competitive. Haier’s products can be found in big channel outlets as SEARS, Lowe’s, HOME DEPOT, Best Buy, PC-RICHARD, Wal-Mart, Sam’s, Costco, Brand Smart, and Target. Haier has obtained the praise and trust of its channel partners, and has successfully transformed itself from a niche to a mainstream brand provider.
In the internationalization process, Haier has been focusing on developing its corporate culture and ensuring culture compatibility. To ensure rapid localization, Haier implemented an innovative modus operandi [(拉丁语]运作方法] of "financing, pooling-in-wisdom, compatibility with local culture and forging a noted local brand". All designing and marketing personnel are employed locally. In addition, 95% of Haier’s North American management team are locals.
In April 2006, Haier became a strategic partner of NBA and the first global appliance brand to sponsor the NBA. Haier believes this partnership has accelerated its step towards becoming a mainstream brand in the US.
NBA sponsorship is a key initiative for Haier as it attempts to implement its global brand strategy. Since becoming the global strategic partner of NBA, Haier has utilized NBA’s market assets, media platform and programs in the US and China to display the innovative technology of Haier’s refrigerator and TV products. Through its broad media assets, including NBA TV’s HD program, the eye-catching NBA matches and extensive NBA thematic retail and publicity activities, Haier can display its most advanced products. Under the guise of its consumer-oriented brand marketing strategy, Haier will continue to integrate its culture with local mainstream culture.
The objective of Haier in North America is to become a mainstream brand of consumer electronic products and a mainstream competitor in the market. Haier has planned fresh new electronic products for the North American market. Music and video players with wireless downloading functions are a new generation of music player equipment jointly launched with AOL(American On-Line美国在线)recently, the company is partnering with Amazon and plans to launch the 1st generation of products soon. At the CES exhibition, the T-series and K-series products of Blueline high-end series will be launched by Haier as are products that Haier displayed at IFA, Canton Fair and Hong Kong Electronic Fair. These products are mainly developed for mid and high-end consumers and Haier believes they will meet the personalized requirements of consumers in US market.
Haier has nine products which are "in the front half of the market" and three products which are among top 3 in the industry in terms of market presence. In addition, the company is a world leader in advanced technological fields such as intelligent house integration, network appliance, digitalization, large-scale integrated circuits and new materials. The "innovation-boosted" Haier Group is devoted to providing solutions for global consumers. By late 2006, Haier has applied for over 7 000 patents(of which 1 234 are invention patents). Haier also presided over or participated in the formulation and amendment of nearly 100 State standards. Of which, Haier water heater firewall technology and Haier double-driver washing machine are included in IEC international standard draft, testifying that Haier’s innovation ability in world-class.
Haier’s channels in North American are mainly concentrated on high-end markets. Haler has strategic cooperation with Top 10 channel partners in the US and won the "Best Supplier" Award from a big channel partner. In the future, Haier’s approach will be to cooperate with channel partners and dealers that share the same strategy of customer-focus to forge a win-win situation.
Exercises
integrate
