“WE CREATE COOLING ZONE,

DEEP SATISFACTION &

INTENSE PLEASURE”

PROJECT
ON
HAEIR CEILING FANS
IN INDIA

SUBMITTED TO:
GROUP MEMBERS:

MS. MONICA MOR

DEEPSHIKHA DEV

SUBMITTED BY:
JANAK DEORA

GROUP NO. 11
JNANA RANJAN PATI

NEHA GOYAL

SUDEEP KHOKHAR

SUMESH YADAV
VIJAY KUMAR

INDEX:
1. EXECUTIVE SUMMARY
2. CURRENT SITUATION
2.1MACRO ENVIRONMENT
2.2PEST ANALYSIS
3. MARKET ANALYSIS
3.1MARKET SIZE
3.1.1OVERALL MARKET
3.1.2TARGET POPULATION SIZE

3.2 MARKET SEGMENTATION

3.2.1 DEMOGRAPHIC SEGMENTATION

3.2.2 GEOGRAPHIC SEGMENTATION

3.3 SWOT

4. CURRENT SITUATION

4.1 BACKGROUND

4.2 CORPORATE INFORMATION

4.3 MISSION STATEMENT

4.4 AIM

4.5 VISION

5. MARKETING STRATEGY

5.1 PRODUCT DECISION

5.2 PLC

5.3 FOUR P’S

6. COMPETITOR’S ANALYSIS

6.1 STRENGTHS AND WEAKNESS OF COMPETITORS

6.2 SWOT OF COMPETITOR

6.3 MARKETING PENETRATION

7 BIBLIOGRAPHY

1. EXECUTIVE SUMMARY:
INTRODUCTION:
In a hot country like India fans are a relief. Over the years it has come from being
hand held banana leaves to remote controlled multicolor designer fans fitted with
exotic lights.
The technology involved in the product is low. This has led us to a wide proliferation
of the industry by bringing in fans for the common peoples of India. The competition
from small-scale manufacturers is fierce and a continual worrying factor for us. But
we never let ourselves down and because of which we are successful now.

Some of the major existing companies in this fan industry have shown no longer
interests that they used to do a few years ago in their product structure. But we
have worked on every aspect and are now ready to hit the market with our various
models of fans whose pricing starts from Rs.865 onwards.

On the financial front the industry has suffered from a number of product problems.
Shortages of working capital and high interest rates have constrained their
resources. Rising input costs. The seasonal as well as cyclical nature of the industry
also had an impact. No wonder the production has been erratic.

The fan industry undergoes major seasonal and cyclical changes. A year of growth
is generally followed by year of slump. However the product is generic to every
home the fundamentals of the industry are strong. Essentially being a low
technology industry, unorganized sector occupies the same position as the
organized sector in terms of sales

There is also a major effort to corner the rural markets, which on an average
contributes about 30-40% of the total fan sales in the country. Since any branded
products are taken for granted as trustworthy. The companies are trying hard to
reach the rural market. The future of the industry seems to be bright as new
horizons are added in India every year (any boom in housing constructions will still
be beneficial). However there is not enough room for the players in organized sector
unless they penetrate unorganized sectors market share. Designer fans are here to
stay.

2. CURRENT SITUATION:

2.1 PEST ANALYSIS: A PEST analysis is an analysis of the external

macro-environment that affects our firm. P.E.S.T. is an acronym for the Political,
Economic, Social, and Technological factors of the external macro-environment.
POLITICAL:
 Government type and stability
 Freedom of press, rule of law and levels of bureaucracy and corruption
 Social and employment legislation
 Tax-policy, and trade and tariff controls- If sales tax rate is increased by
the government the sale price of all the input is increased as well as the
final price will be increased subsequently and the demand as well as the
sales of the product will go down.
 Wage legislation-minimum wage and overtime
 Mandatory employee benefits
 Industrial safety regulations
 Product labeling requirements
 Environmental and consumer-protection legislation
 Likely changes in the political environment
 Industry specific regulation
 Funding, grants and initiatives
 Home market lobbying/pressure groups
 Shareholder/ stakeholder needs/ demands

ECONOMIC:
 Home economic situation
 Home economy trends
 General taxation issues
 Taxation changes specific to product/services
 Seasonality/weather issues
 Market and trade cycles
 Specific industry factors
 Market routes and distribution trends
 Customer/end-user drivers
 International trade/monetary issues
 Disposable income
 Labor costs
 Job growth/unemployment
 Discretionary income
 Tariffs
 Inflation rate
 Interest rates
 Consumer confidence index
 Import/export ratios
 Production level
 Internal cash flow
 Business cycle stage(e.g. prosperity, recession, recovery)
 Skill level of workforce
  Exchange rates and stability of host country currency
 Efficiency of financial markets
 Impact of globalization
 Infrastructure quality
 Government intervention
 Economic growth rate

SOCIO-CULTURAL:
 Population growth rate
 Population employment patterns, job market freedom
 Public opinion
 Lifestyle choices and attitudes to these
 Consumer attitudes and opinions
 Media views
 Brand, company, technology image
 Major events and influences
 Buying access and trends
 Advertising and publicity
 Demographics (family size)
 Trends
 Diversity
 Living standards
 Housing trends
 Attitudes to people
 Occupations
 Earning capacity of people
 Staff attitudes

TECHNOLOGICAL:
 Competitive technology development
 Research funding
 Impact of value chain structure
 Impact of cost structure
 Associated/dependent technologies
 Replacement technology/solutions
 Maturity of technology
 Manufacturing maturity and capacity
 Information and communications
 Consumer buying mechanisms/technology
 Technology legislation
 Innovation potential
  Technology access, licensing, patents
 Intellectual property issues
 Inventions
 Innovations
 Research
 Energy uses/sources/fuels
 Manufacturing advances
 Information technology
 Internet
 Transportation
 Waste removal/recycling
 Email
 Software changes
3. CURRENT SITUATION:
3.1 MARKET ANALYSIS:
3.1.1MARKET SIZE:
3.1.2.OVERALL MARKET- Metro cities with higher income
group people with the taste of style and uniqueness.
3.1.3. TARGET POPULATION SIZE-20000-30000 each metro
city

Our present target population size is 20000-30000 people but in future times
we have better opportunities because more and more youth are moving
towards service sector and are earning wealthily.
For example- We may take an example of Gurgaon, Haryana. As more and
more service class/business class people here are of 25-35 age groups and
 are very conscious about their status symbols. They want luxury and comfort.
So, Haier will serve their needs and wants at best.

POORLY SERVED NEEDS THAT OUR PRODUCT WILL SERVE

• Ceiling fans with good performance

• Accessible with remote
• Soundless
• Innovative and advanced oscillating features
• Exciting colours
• Floral patterns in accordance with the design of walls
• When not in use, the blades of the fan can be folded so as to get it
protected from the dust. And after folding, it acquires the shape of the
flower or a lamp for the image of uniqueness and style.

BENEFITS OFFERED
• 18 months warranty
• Energy saver
• Free Liquid wash for good care of fan blades
• Good customer care service
• Door to door fan service facility

3.1MARKET SEGMENTATION:
TARGET SEGMENT
• BUSINESS CLASS
• HIGHER INCOME CLASS
• HIGHER MIDDLE CLASS

• Market segmentation is the process in marketing of dividing a market into

distinct subsets (segments) that behave in the same way or have similar
needs

• Variables Used for Segmentation

3.2.1 DEMOGRAPHIC SEGMENTATION:-

• Its for all age group.

• Income – low, middle & high end consumer

• Occupation – all types of working and non-working people

 3.2.2 GEOGRAPHIC SEGMENTATION: has no set
geographic target area. By leveraging the benefits of liberalization
and integration of the markets of the world, Itwill seek to serve both
domestic and international customers.

• Metropolitan Cities, major cities of the states, and towns.

• Density of Area: Semi-urban, Rural.

3.3 SWOT ANALYSIS: SWOT analysis is a framework for analyzing

your strengths and weaknesses, and the opportunities and threats you face. This
will help you to focus on your strengths, minimize weaknesses, and take the
greatest possible advantage of opportunities available.

STRENGTH:
 We are able to respond very quickly as we have no red tape, no need for
higher management approval, etc.
 Our biggest strength is our market segmentation.
 We have low priced fans
 Not only is this we also cater to the needs of the middle class consumers.
Hence it is catering to the needs of both the segments.
 Thus we have reduced its risk by not targeting only one kind of the
market. We have launched many economy fans
 This helped them remain loyal to their high-end customers.
 We are also known for our designs and varieties.
 We are able to give really good customer care, as the current small
amount of work means we have plenty of time to devote to customers
 Our lead consultant has strong reputation within the market
 We can change direction quickly if we find that our marketing is not
working
 We have little overhead, so can offer good value to customers

WEAKNESSES:
 Our company has no market presence or reputation
 We have a small staff with a shallow skills base in many areas
 We are vulnerable to vital staff being sick, leaving, etc.
 Our cash flow will be unreliable in the early stages
 Though the quality and performance of HAEIR fans has been reasonably
good it is not at par with orient or Compton.

OPPORTUNITIES:
 Our business sector is expanding, with many future opportunities for
success
  Our local council wants to encourage local businesses with work where
possible
 Our competitors may be slow to adopt new technologies
 It is expected that there will be 15% growth in demand for fans with a
boom in the real estate sector and the market is looking for different
models suiting the new pattern for decor and housing arrangements. Thus
given its variety and designer models HAEIR has great opportunity over
the years to come.
 Moreover Chinese influx in Indian market is likely to end with Chinese
government withdrawing manufacturing incentives and appreciating RMB
by 10%. This would give Indian manufacturers a more competitive edge
domestically as well as globally. HAEIR has a good opportunity for tapping
a large percentage of unorganized sector in which the cheap Chinese
assembled fans play a major role. It is also widening its distribution
network by opening various retail outlets in many parts of the country. In
fact HAEIR is targeting 22% of the Indian market by 2010.

THREATS:
 Will developments in technology change this market beyond our ability to
adapt?
 A small change in focus of a large competitor might wipe out any market
position we achieve
 The consultancy might therefore decide to specialize in rapid response,
good value services to local businesses. Marketing would be in selected
local publications, to get the greatest possible market presence for a set
advertising budget. The consultancy should keep up-to-date with changes
in technology where possible.
 A growing unorganized sector is a continual worry for HAEIR. The current
share of the organized sector is 50% and is increasing at a rapid rate.
HAEIR has to be constantly on its toes to advertise their products better at
the same time keep the prices low. Otherwise the unorganized sector may
eat up its market share. Unorganized sector is a big threat to the
company.
3. CURRENT SITUATION:
4.1 BACKGROUND:
Rapid development of industries, construction and infrastructure fields augured
necessity for various electrical devices and equipments. Electrical devices,
accessories and equipments are prerequisite in every Industry and field for diverse
operations.

4.2 CORPORATE INFO:

Holding the true spirit of commitment to customer satisfaction - Haeir India pvt.
Lmt. is enriching lives of people with the same ingenuity and enthusiasm as its
parent company Haeir America.

4.3 CORPORATE MISSION STATEMENT:

Our mission is to “Be second to none. Get it right the first time. Do it quicker
and better.”Being second to none requires appropriate planning, investment in
most up-to-date technology and best technical people having thorough knowledge,
experience of the industry. So we need to combine quality, innovation and style for
the comfort and convenience of your home.

4.4 CORPORATE AIM:

• To serve clients with utmost dedication and integrity so that we exceed
their expectations and build enduring relationships.
• To offer unparalleled quality of service through complete knowledge of
products, constant innovation in services and use of the latest technology.
• To always give honest and unbiased financial advice and earn our clients'
everlasting trust.
• To serve the community by educating individuals on the merits of
financial planning and in turn help shape a financially strong society.
• To create value for all stake holders by ensuring profitable growth.
• To build an amicable environment that accords respect to every individual
and permits their personal growth.
• To utilize the power of team work to function as a family and build a
seamless organization.

4.5 CORPORATE VISION STATEMENT:

“To be the most admired brand in India providing innovative, state of the art, user
friendly products of lasting value to our customers, to make their today better than
yesterday“.

3. MARKETING STRATEGY:
 Specific- We would be specific towards our goal and try our level best to
achieve it.
 Measurable-we would try to achieve the desired goal.
 Achievable- The objective is achievable with all available resources and
through dedication to work.
 Realistic- We have all the resources like men, money, material to achieve our
objective.
 Timed- we would achieve our targets by one year of launch.

Examples of smart objectives:

 1. Profitability objective: To achieve a 30% return on capital employed within
a year of launching the product.
2. Market share objectives: To gain 35% of the market share within a year of
launching.
3. Promotional objective: To promote our product to fullest through all types
of mass communication.
4. Objective for survival: To survive the current double-dip depression.

5.1 PRODUCT DECISIONS:

FEATURES:
Features of all the Haier fans are different. But these are some a prominent feature
for which Haier is well known:
• Cost effective
• Large variety
• Less power consumption
• Nice all round performance
• Strong regulators
• Effective air movement to suit exact requirement for ventilation
• Low temperature rise leading to longer bearing life
• Specially designed blades for better performance and non-overloading
characteristics
• Stable speed voltage motor characteristics leading to excellent low voltage
performance
• Designed to comply with abnormal test conditions as per international safety
standards
• Higher Air Delivery Power Ratio (ADPR) for ultimate performance.

5.2 PRODUCT LIFE CYCLE

Our product lies in introduction stage.

• Slow sales

• Products are non existent

• Heavy expenses incurred with product introduction

• High costs per customer

• Profits are negative

• Less competitors

• Customers are innovative

5.3 FOUR P’S OF MARKETING

1. PRODUCT
The prices of all kinds of product differ. The prices differ on the bases of size,
features, and looks.

PRODUCT LINE EXTENSION:

Haier has extensive range of product line. Haier manufactures different types of
ceiling fans with improved features being added to the product line. The very
recent addition is the companies’ low priced fan “PAWAN”. Haier not only offers
ceiling fans but also ceiling fan’s accessories such as Resistance type
Regulators, “CAPCON” capacitor type regulator, CHANDY (four way light
attachment), PRETTY (single dome light attachment).

Haier manufactures fans of various sizes to meet the consumer and the room
requirements.
Ceiling fans:
The Ceiling fans are available in the following sweep sizes:
1600mm, 1400mm, 1350mm are suitable for large Room size.
1100mm is suitable for medium room size.
500mm is the smallest size Haier offers.

2 PLACE:- every part of India-Rural and urban which includes all small
and large cities of the country.

3 PROMOTION:

• Mass advertising – TV

• Trade promotions – in store display, samples

• Hoardings

• Campaigning activities

• Sponsorship activities

• Road shows

• Banner and hoardings with a tag line “Sabse halka par sabse tej”
 2 PRICE:
It would be different from model to model like more would be the price of
high class of models and less of low class of model. Designer fans would be
costlier of all.

Distribution Channel

0 Level: HAIER Customers (Through its own showrooms)

1 Level: HAIER  Retailer  Customer

2 Level: HAIER  Wholesale distributor  Retailer  Customers

3 Level: HAIER  Wholesale distributor  Retailer  Customers

CHANNELS OF DISTRIBUTION:
As a company, dealers and distributors play a major role in serving customers, while
growing and sustaining markets. Haier has a network of strong and dedicated
distributors and dealers. A network that has helped HAIER’s name and its promise
of reliable quality to every part of the country. The power of this highly efficient and
motivated network goes a long way to create goodwill for Haier brand among
countless consumers besides creating availability and after sales services.
There are 2 channels of distribution one among them is a direct dealer network. A
direct dealer is a dealer who is authorized to purchase the product directly from the
company and sell. They have yearly targets given to them by the company .If they
succeed in achieving those targets then there is a certain discount, which is offered
to them. They are also rewarded on the basis of per fan sold. New plans launch
ideas and sales strategies are shared with them at frequent meetings. The same
goes with the distributors. The distributor has many dealers under him the
distributor commands his margin on sales. Hence the price is likely to be slightly
high.

6. COMPETITIVE ANALYSIS:
Identification Of Competitors

PLAYERS IN THE MARKET

6.1 STRENGTHS & WEAKNESSES OF COMPETITOR:

COMPETITORS:
Haier has many competitors in the organized as well as the unorganized sector as
unorganized sector supplies fans very cheap rates. Haier’s three major competitors
in the industry are CROMPTON, USHA and Orient. There are also other product
competitor like Padmini, Khaitanand Bajaj. But they are not so much threat to us
like those three. Crompton and Usha command the highest market share in the
Indian fan industry i.e. 20% each. Followed by ORIENT, which commands 18% in the
industry. Third in the league is Khaitan with a market share of 15%

6.2 SWOT ANALYSIS OF COMPETITORS:

CROMPTON
STRENGTH:
Crompton has acquired super brand status. Super brand is a unique International
recognition that is bestowed on brands that have emerged as icons in their
category. In India, a council comprising eminent professionals from the fields of
advertising, marketing, research and media was formed to determine India's most
respected brands. Crompton is in d list of 134 selected brands. Thus, as a brand
Crompton is much stronger than Haier. Crompton is a market leader with twenty
percent of the market share in organized sector. Crompton enjoys a great brand
loyalty.
WEAKNESS:
Crompton fans are the costliest ones as compared to the other brands.
OPPORTUNITIES:
Crompton has an excellent brand recall. Considering their market image and market
share, there are great opportunities for Crompton as compared to Haier. Crompton
has a good opportunity for tapping a large percentage of unorganized sectors which
contributes almost fifty percent of the total fan sales
THREATS:
A growing unorganized sector is a continual worry for Haier. The current share of
the organized sector is 50% and is increasing at a rapid rate. Haier has to be
constantly on its toes to advertise their products better at the same time keep the
prices low. Otherwise the unorganized sector may eat up its market share.
Unorganized sector is a big threat to the company.

SERVICES
Haier believes in quality without compromise. Haier has always offered excellent
quality and service. Their products are testaments to the belief in excellence and
are duly subject to the most stringent quality standards in the world. And as proof
of their mettle and faith in quality, they took what may be regarded as the boldest-
ever step in the fan industry: the introduction of the Replacement Bond. The
Replacement Bond ensures that the customer always comes first. It is a bond
signed by the Chairman of the Company, promising to replace any Haier fan with a
manufacturing defect, discovered within one year of its purchase, with a new one.
Till today, the idea goes unmatched by any competitor. This confidence in the fans
is a result of dedicated service, commitment to quality and careful attention to
detail.

7. MARKET PENETRATION STRATEGY:

• Finding place in various retail outlets.
• Opening HAIER’s exclusive stores.
• Trying to get more customers through a intensive distribution.

8 BIBLIOGRAPHY:
http://www.haier.com/index.htm

http://www.haierindia.com/

http://www.haier.com/AboutHaier/CorporateProfile/index.asp

http://en.wikipedia.org/wiki/Haier

http://www.bajajelectricals.com/c-205-ceiling-fans.aspx

http://www.cglonline.com/cg/avs/home/fans/ceiling/

http://www.havells.com/fans/ceiling.htm

http://www.ushainternational.com/

http://en.wikipedia.org/wiki/Ceiling_fan

marketing strategy book by walker mullins boyd larreche-5th edition (page-

6,10,11,308)

marketing management by Philip kotler 11th edition