8737285-brand-management

8/7/2019 8737285-brand-management

1/37

BRANDBRAND

Brand: name, term, sign, symbol, design, or some combination that identifies the

products of a firm while differentiating them from the competitions

Branding is the process of creating that identity.

Buyers respond to branding by making repeat purchases because they identify the

item with the name of its producer.

Brand Loyalty

Brand recognition: Consumer awareness and identification of a brand.

Brand preference: Consumer reliance on previous experiences with a product to choose

that product again.

Brand insistence: Consumer refusals of alternatives and extensive search for desired

merchandise.

Types of Brands

Generic product: item characterized by plain label, with no advertising and no brand

name

Manufacturers brand or National Brand: brand name owned by a manufacturer or

other producer

Private brands: brand name placed on products marketed by wholesalers and retailers

Captive brands: national brands that are sold exclusively by a retail chain

Family brand: brand name that identifies several related products


2/37

Individual brand: unique brand name that identifies a specific offering within a firms

product line and that is not grouped under a family brand

The Role of Category and Brand Managers

Brand manager: Marketing professional charged with planning and implementing

marketing strategies and tactics for a brand

Category management: Product management system in which a category manager

with profit and loss responsibilityoversees a product line.

BRAND IDENTIFICATION:

Brand name: part of a brand consisting of words or letters that form a name that

identifies and distinguishes a firms offering from those of its competitors

Brand mark: symbol or pictorial design that identifies a product

Generic name: branded name that has become a generically descriptive term for a class

of products (e.g., nylon, aspirin, kerosene, and zipper)

Trademark: legal protection which confers the exclusive right to user brand name, trade

mark, and any slogan or product name abbreviation

Trade Dress: visual cues used in branding to create an overall look

The distinctive shape of Philips light bulbs and the McDonalds arches

provide an example of trade dress

Developing Global Brand Names and Trademarks

Potentially an acute problem for international marketers

An excellent brand name or symbol in one country may prove disastrous in another


3/37

Trademarks that are effective in their home countries may fare less well in other cultures

Packaging

A package serves three major objectives:

Protection against damage, spoilage, and pilferage

Assistance in marketing the product

Cost effectiveness

Labeling

Label

Universal Product Code (UPC)

Brand extension: application of a popular brand name to a new product in an unrelated

product category

Line extensions refers to new sizes, styles, or related products

Brand licensing: practice allowing other companies to use a brand name in exchange for

a payment

New Product Planning

As a firms offerings enter the maturity and decline stages of the product life cycle, it

must add new items to continue to prosper

Alternative Product Development Strategies

Product Development Strategies


4/37

Product positioning: consumers perceptions of a products attributes,

uses, quality, and advantages and disadvantages in relation to those of

competing brands

Cannibalization: a loss of sales of the current product due to competition

from a new product in the same line

Market-penetrationstrategy

Product-developmentstrategy

developmentstrategy

Market-

(Diversificationstrategy)

The Consumer Adoption Process

Adoption process: Stages that consumers go through in learning about a new

product, trying it, and deciding whether to purchase it again.

Awareness

Interest

Evaluation

Trial

Adoption or rejection

Consumer innovator: People who purchase new products almost as soon as the

products reach the market

Diffusion process: Process by which new goods or services are accepted in the

marketplace

Categories of Adopters Based on Relative Times of Adoption


5/37

Identifying Early Adopters

Substantial benefits may be obtained by locating the likely first buyers of

new products (innovators and early adopters)

Suggestions for modifying the product may be obtained from these

individuals

Acceptance or rejection of the innovation by innovators and early adopters

can help forecast sales

Rate of Adoption Determinants

Characteristics of a product innovation that influence its adoption rate

include:

Relative advantage

Compatibility

Complexity

Possibility of trial use

Observability

Organizing for New Product Development

New-Product Committees

New-Product Departments


6/37

Product Managers

Venture Teams

Task forces

BRAND MANAGEMENTBRAND MANAGEMENT

The discipline ofbrand management was started at Procter & Gamble PLC as a result

of a famous memo by Neil H. McElroy.

Brand management is the application of marketing techniques to a specific product,

product line, or brand. It seeks to increase the product's perceived value to the customer

and thereby increase brand franchise and brand equity. Marketers see a brand as an

implied promise that the level of quality people have come to expect from a brand will

continue with present and future purchases of the same product. This may increase sales

by making a comparison with competing products more favorable. It may also enable the

manufacturer to charge more for the product. The value of the brand is determined by the

amount of profit it generates for the manufacturer. This results from a combination of

increased sales and increased price.

A good brand name should:

be legally protectable

be easy to pronounce

be easy to remember

be easy to recognize

attract attention suggest product benefits (e.g.: Easy-Off) or suggest usage

suggest the company or product image

distinguish the product's positioning relative to the competition.

Premium Brand typically costs more than other products in the category.


7/37

Economy Brand is a brand targeted to a high price elasticity market segment.

Fighting Brand is a brand created specifically to counter a competitive threat. When a

company's name is used as a product brand name, this is referred to as corporate

branding. When one brand name is used for several related products, this is referred to as

family branding. When all a company's products are given different brand names, this is

referred to as individual branding. When a company uses the brand equity associated with

an existing brand name to introduce a new product or product line, this is referred to as

Brand Leveraging. When large retailers buy products in bulk from manufacturers and

put their own brand name on them, this is called private branding, store brand, or private

label. Private brands can be differentiated from Manufacturers' Brands (also referred to

as National Brands). When two or more brands work together to market their products,

this is referred to as Co-Branding. When a company sells the rights to use a brand name

to another company for use on a non-competing product or in another geographical area,

this is referred to as Brand Licensing.

Brand Rationalization refers to reducing the number of brands marketed by a company.

Companies tend to create more brands and product variations within a brand than

economies of scale suggest they should. Frequently they will create a specific product or

brand for each market that they target. They also do this to gain precious retail shelf space

(and also reduce the amount of shelf space allocated to competing brands). But this can

be a very inefficient strategy so a company may decide to rationalize their portfolio of

brands from time to time. They may also decide to rationalize their brand portfolio as part

of an overall corporate downsizing.

A recurring issue for brand managers is "How to build a consistent brand image while

keeping the message fresh and relevant." Most brand managers agree that it is easier and

less costly to build on the equity established in an existing brand than to start a new brand

from nothing. Repositioning a brand (sometimes called rebranding), wastes the brand

equity built up in the past, and also confuses the target market with multiple brand

positions. But old brand images may get stale with time. The challenge for the brand

manager is to revitalize the brand using the existing brand equity as leverage.


8/37

Positioning (marketing)Positioning (marketing)

In marketing, positioning is the technique by which marketers try to create an image or

identity in the minds of their target market for its product, brand, or organization. It is the'relative competitive comparison' your product occupies in a given market as perceived

by the target market.

Positioning is something (perception) that is done in the minds ofthe target market.

A product's position is how potential buyers see the product. Positioning is expressed

relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack

Trout in the paper"Positioning" is a game people play in todays me-too market place"inthe publication Industrial Marketing.

Re-positioning involves changing the identity of a product, relative to the identity of

competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products,

relative to the identity of your own product, in the collective minds of the target market.

Positioning statement

To (The Target), Brand (X) is the (Frame of Reference) which provides a (Point of

Difference)

Functional Benefit

The convincing and visible reasons to believe that the brand is superior on its

stated point-of-difference

The key drivers behind this point-of-difference

Emotional Benefit

Personality of the brand

The characteristics of the brand that help drive an emotional connection with

the target
http://en.wikipedia.org/w/index.php?title=Al_Ries&action=edithttp://en.wikipedia.org/w/index.php?title=Al_Ries&action=edit


9/37

NEW BRAND DEVELOPMENT PROCESSNEW BRAND DEVELOPMENT PROCESS

Because introducing new products on a consistent basis is important to the future success

of many organizations, marketers in charge of product decisions often follow set

procedures for bringing products to market. In the scientific area that may mean the

establishment of ongoing laboratory research programs for discovering new products

(e.g., medicines) while less scientific companies may pull together resources for product

development on a less structured timetable.

Step 1. IDEA GENERATION The first step of new product development requires

gathering ideas to be evaluated as potential product options. For many companies idea

generation is an ongoing process with contributions from inside and outside the

organization. Many market research techniques are used to encourage ideas including:

running focus groups with consumers, channel members, and the companys sales force;

encouraging customer comments and suggestions via toll-free telephone numbers and

website forms; and gaining insight on competitive product developments through

secondary data sources. One important research technique used to generate ideas is

brainstorming where open-minded, creative thinkers from inside and outside the

company gather and share ideas. The dynamic nature of group members floating ideas,

where one idea often sparks another idea, can yield a wide range of possible products that

can be further pursued.


10/37

Step 2. SCREENING In Step 2 the ideas generated in Step 1 are critically evaluated

by company personnel to isolate the most attractive options. Depending on the number

of ideas, screening may be done in rounds with the first round involving company

executives judging the feasibility of ideas while successive rounds may utilize moreadvanced research techniques. As the ideas are whittled down to a few attractive options,

rough estimates are made of an ideas potential in terms of sales, production costs, profit

potential, and competitors response if the product is introduced. Acceptable ideas move

on to the next step.

Step 3. CONCEPT DEVELOPMENT AND TESTING With a few ideas in hand the

marketer now attempts to obtain initial feedback from customers, distributors and its own

employees. Generally, focus groups are convened where the ideas are presented to a

group, often in the form of concept board presentations (i.e., storyboards) and not in

actual working form. For instance, customers may be shown a concept board displaying

drawings of a product idea or even an advertisement featuring the product. In some cases

focus groups are exposed to a mock-up of the ideas, which is a physical but generally

non-functional version of product idea. During focus groups with customers the marketer

seeks information that may include: likes and dislike of the concept; level of interest in

purchasing the product; frequency of purchase (used to help forecast demand); and pricepoints to determine how much customers are willing to spend to acquire the product

Step 4. BUSINESS ANALYSIS At this point in the new product development process

the marketer has reduced a potentially large number of ideas down to one or two options.

Now in Step 4 the process becomes very dependent on market research as efforts are

made to analyze the viability of the product ideas. (Note, in many cases the product has

not been produced and still remains only an idea.) The key objective at this stage is to

obtain useful forecasts of market size (e.g., overall demand), operational costs (e.g.,

production costs) and financial projections (e.g., sales and profits). Additionally, the

organization must determine if the product will fit within the companys overall mission

and strategy. Much effort is directed at both internal research, such as discussions with


11/37

production and purchasing personnel, and external marketing research, such as customer

and distributor surveys, secondary research, and competitor analysis.

Step 5. PRODUCT AND MARKETING MIX DEVELOPMENT Ideas passing

through business analysis are given serious consideration for development. Companies

direct their research and development teams to construct an initial design or prototype of

the idea. Marketers also begin to construct a marketing plan for the product. Once the

prototype is ready the marketer seeks customer input. However, unlike the concept

testing stage where customers were only exposed to the idea, in this step the customer

gets to experience the real product as well as other aspects of the marketing mix, such as

advertising, pricing, and distribution options (e.g., retail store, direct from company,

etc.). Favorable customer reaction helps solidify the marketers decision to introduce the

product and also provides other valuable information such as estimated purchase rates

and understanding how the product will be used by the customer. Reaction that is less

favorable may suggest the need for adjustments to elements of the marketing mix. Once

these are made the marketer may again have the customer test the product. In addition to

gaining customer feedback, this step is used to gauge the feasibility of large-scale, cost

effective production for manufactured products.

Step 6. MARKET TESTING Products surviving to Step 6 are ready to be tested as

real products. In some cases the marketer accepts what was learned from concept testing

and skips over market testing to launch the idea as a fully marketed product. But other

companies may seek more input from a larger group before moving to

commercialization. The most common type of market testing makes the product

available to a selective small segment of the target market (e.g., one city), which is

exposed to the full marketing effort as they would be to any product they could purchase.

In some cases, especially with consumer products sold at retail stores, the marketer must

work hard to get the product into the test market by convincing distributors to agree to

purchase and place the product on their store shelves. In more controlled test markets

distributors may be paid a fee if they agree to place the product on their shelves to allow

for testing. Another form of market testing found with consumer products is even more


12/37

controlled with customers recruited to a laboratory store where they are given shopping

instructions. Product interest can then be measured based on customers shopping

response. Finally, there are several high-tech approaches to market testing including

virtual reality and computer simulations. With virtual reality testing customers areexposed to a computer-projected environment, such as a store, and are asked to locate and

select products. With computer simulations customers may not be directly involved at

all. Instead certain variables are entered into a sophisticated computer program and

estimates of a target markets response are calculated.

Step 7. COMMERCIALIZATION If market testing displays promising results the

product is ready to be introduced to a wider market. Some firms introduce or roll-out the

product in waves with parts of the market receiving the product on different schedules.

This allows the company to ramp up production in a more controlled way and to fine tune

the marketing mix as the product is distributed to new areas.

Managing Existing Products

Marketing strategies developed for initial product introduction almost certainly need to

be revised as the product settles into the market. While commercialization may be the

last step in the new product development process it is just the beginning of managing the

product. Adjusting the products marketing strategy is required for many reasons

including:

Changing customer tastes

Domestic and foreign competitors

Economic conditions

Technological advances

To stay on top of all possible threats the marketer must monitor all aspects of the

marketing mix and make changes as needed. Such efforts require the marketer to develop

and refine the products marketing plan on a regular basis. In fact, as we will discuss in a

later section of this tutorial, marketing strategies change as a product moves through time

leading to the concept called the Product Life Cycle (PLC).


13/37

D e m o g r a p h i c , P s y c h o g r a p h i c , H i s t o r y

P r o m o t i o n

P l a c e

P r i c e

P r o d u c t

C r e a t i o n o f M a r k e t i n g M i x

T a r g e t A u d i e n c e S e g m e n t a t i o n s

M a r k e t R e s e a r c h

A s s e s s T a r g e t A u d i e n c e N e e d s a n d E x p e c t a t i o n s

T a r g e t A u d i e n c e D e f i n i t i o n

I n s t i t u t i o n a l M i s s i o n , V i s i o n , a n d S t r a t e g i c P l a n


14/37

INTRODUCTION

OF

COMPANY


15/37

Chief Executive Mr. Shah Faisal

Haier was incorporated in 1984 only producing household refrigerators. Over the past 20

years, the company has witnessed significant prosperity and is now a transnational

organization widely recognized in the world community. Haier currently manufactures a

wide range of household electrical appliances, 15,100 varieties of items in 96 product

lines, and exports products to more than 100 countries. In 2004, Haiers global sales hit

RMB100.9 billion and Haier brand, valued at RMB61.6 billion, topped all Chinese

trademarks at a nationwide survey. Haier was ranked first in the row of Chinas Top 10

Global Brands August 30, 2005 on the Financial Times. Haier CEO Zhang Ruimin was

placed 26th of the Worlds 50 Most Respected Business Leaders on 17th November, 2005

on Financial Times. Zhang Ruimin was ranked 6th of the Asias 25 Most Powerful People

in Business on Fortune in August, 2004 and first of the 25 Most Powerful Business

Leaders inside China on the Chinese Edition of Fortune in April 2005.

Haiers international promotion framework encompasses global networks for design,

procurement, production, distribution and after-sales services. Haier has established 15

manufacture complexes, 30 overseas production factories, 8 design centers and 58,800

sales agents worldwide.

From Zhongyikang Statistics, Haiers leadership position in Chinese home appliance

industry has been solidified by obtaining the domestic market share of 21% for overall

appliances, far ahead of all its competitors, 34% for white goods, exceeding globally

recognized domination line, and 14% for small electric appliances, overtaking all

previous competitive rivals.In the world market, Haier has gained first place in the United States for sales of compact

refrigerators and wine coolers, in Iran for washing machines and Cyprus for air

conditioners.

From Euro-monitor Statistics, Haier is currently ranked fourth among the global white


16/37

goods makers by revenue and Haiers goal is to play a leading role in the world white

goods industry.

On March 4, 2002, Haier unveiled its American headquarters in the landmark neo-

classical building, the former offices of the Greenwich Savings Bank, on Broadway,Manhattan, New York, an indication that Haier had moved into a new phase for

globalization of product design, manufacture and sales and had a strong determination for

long-term development in the United States. On August 20, 2003, Haier erected an

electric billboard in the shopping district of Ginza, Tokyo, symbolizing that Haiers

determination to reach Japanese marketplace.

Facing the challenges brought by E-commerce and Chinas accession to the WTO, Haier

began a management restructuring program in 1998 backed by the efficient Haier

Market-chain System practice. During first 5 years, Haier focused on the organization

restructuring, management decentralizing with application of advanced information and

network systems in order fulfillment, Market-chain performance logistics, capital

operation, after-sales service, product inventory and operational cost reduction. During

second 5 year period from 2003, Haier carried out the SBU (strategic business unit)

management to stimulate the enthusiasm of every employee and to enhance Haiers

competitiveness in global marketplace.

Over the past 20 years, Haier provided more than 100 million appliances to worldwide

consumers and paid cumulatively a total tax of RMB13.6 billion, of which RMB2 billion

in 2004, RMB5.5 million per day on average.

Haier has scheduled to finance 100 Project Hope primary schools, of which 47 are put

into operation. Haier has 51,000 full time employees and hires 175,000 contract service

personnel, providing a total of 230,000 job opportunities.

Haiers management has been worldwide recognized. Haiers experience has been

introduced in 16 case studies in business merger, financial management and corporate

culture by 7 foreign educational institutes, including Harvard University, University of

Southern California, Lausanne Management College, the European Business College and

Kobe University. Haier has been recommended to the EU Case Studies by Lausanne

Management College for Haier Market-chain Management.


17/37

Haiers goal is to become a global recognizable brand.


18/37


19/37


20/37

NEW BRAND HRT MAX

A bulletproof spec sheet sets it right in the thick of all-in-one action. Full-house

connectivity and multimedia prowess topped with a massive OLED screen to die for.

POSITIONING STATEMENT:

HAIER TECHNOLOGIES
http://www.gsmarena.com/htc_touch_hd-review-293.php


21/37

TARGET: To all people with a message to communicate

BRAND: HRT MAX

FRAME: Is the way to communicate special feelings

DIFFERENCE: That always says the best about the send

SLOGAN: Talk your Talk

KEY FETHERS:

3G:

3G Stands for 3rd-generation. Analog cellular phones were the first generation. Digital

marked the second generation.

3G is loosely defined, but generally includes high data speeds, always-on data access, and

greater voice capacity. The high data speeds are possibly the most prominent feature, and

certainly the most hyped. They enable such advanced features as live, streaming video.

There are several different 3G technology standards. The most prevalent is UMTS, which

is based on WCDMA. (WCDMA and UMTS are often used interchangeably.)

Alarm:

An alarm feature which can be set for a specific time and date or can used as a daily

alarm.

If the phone has a calendar feature, the alarm feature may be integrated with that (in some

Motorola phones for example), so an alarm is simply a calendar event. Although some

phones with a calendar feature also have a separate alarm feature.


22/37

Alphanumeric Display:

A display capable of containing letters and numbers, but not graphics.

Bluetooth:

A wireless personal area network (PAN) specification that connects phones, computers,

appliances, etc. over short distances without wires by using low power radio frequencies.

Bluetooth allows you to leave your phone in your pocket, while talking on your phone

with a Bluetooth headset - with no wires. You can also exchange contact or scheduling

information with other Bluetooth-enabled phones nearby, or send such information to a

nearby Bluetooth-enabled printer.

Calendar:Calendar feature allows you to store scheduling and event information in your phone.

Some phones also offer the ability to sound an alert to remind you of upcoming events.

CDMA:

Code Division Multiple Access. A type of digital wireless technology that allows large

amounts of voice and data to be transmitted on the same frequency. CDMA is second-

generation cellular technology (or 2G) and is available in Canada, the United States,

Pacific Asia, and Latin America. Most CDMA service providers will migrate to a high-

speed data technology called 1xRTT.

The CDMA phones are not listed on GSMArena.com.

Dual-band:

Phones that can switch between two different bands of frequencies.

In Europe Dual-band usually means GSM900/GSM1800 capable phone, while in USA it

might mean GSM850/GSM1900 or combination of two other bands.

EDGE:

Enhanced Data rates for Global Evolution. A technology being promoted by the TDMA

and GSM communities that is capable of both voice and 3G data rates up to 384 Kbps.

The standard is based on GSM standard and uses TDMA multiplexing technology.


23/37

EMS :

Enhanced Message Service. An extension of SMS that enables the sending of a

combination of simple melodies, images, sounds, animations and formatted text as a

message to another EMS-compatible phone

GPRS :

General Packet Radio Service. A packet-switched technology that enables high-speed

wireless Internet and other data communications. GPRS offers a tenfold increase in data

speed over previous technologies, up to 115kbit/s (in theory). Typical real-world speeds

are around 30-40 Kbps. Using a packet switching, subscribers are always connected and

always on-line.

GPRS is considered a 2.5G technology.

GPS :

Global Positioning System. A system of satellites, computers, and receivers that is able to

determine the latitude and longitude of a receiver on Earth by calculating the time

difference for signals from different satellites to reach the receiver.

GSM :

Global System for Mobile communications. The international digital radio standard

created by the European Telecommunications Standards Institute. GSM is currently the

dominant 2G digital mobile phone standard for most of the world.

HSCSD :

High Speed Circuit Switched Data. An enhancement to GSM networks that enables data

speeds to be boosted from 9.6 kbps in multiples up to 57.6 kbps.

IMEI :

International Mobile Equipment Identity. A unique serial number used on digital mobile

phones.

Infrared port (IrDA) :

Allows cell phones, PDAs, and other devices to connect to each other for various


24/37

purposes. Infrared is a wireless technology that uses a beam of invisible light to transmit

information.

Java (J2ME) :

Java 2 Micro Edition. A feature that allows the device to run specially-written

applications. J2ME applications can provide specific functions such as a tip calulator,

they can be games, or they can be custom-written corporate applications. Some phones

allow you to download new applications directly from Internet while others require a data

cable to transfer the applications from a PC.

LCD :

Liquid Crystal Display. LCD displays utilize two sheets of polarizing material with aliquid crystal solution between them. An electric current passed through the liquid causes

the crystals to align so that light cannot pass through them.

Monochrome LCDs in phones usually have both a backlight and a reflective backing,

allowing them to be equally usable in both bright light and complete darkness.

Color LCDs come in many types. STN, TFT, and TFD are several common technologies

used.

Li-Ion battery :

Lithium-Ion type of battery, often used to power wireless communication devices.

Considered superior to NiCd and NiMH batteries - they are lighter weight, have a

relatively long cycle life and generally do not suffer from "memory" effect.

Li-Po battery :

Lithium Polymer type of battery. Similar to Li-Ion batteries, but slightely lighter and the

batteries can be molded to any shape.

MMS :

Multimedia Messaging Service. A further extension of SMS and EMS. MMS is designed

to make use of newer and quicker mobile transmission methods such as GPRS, HSCSD,


25/37

EDGE and UMTS, involving the attachment of multimedia extensions to messages, such

as video and sound.

OLED :

Organic Light-Emitting Diode. A next-generation display technology that consists of

small dots of organic polymer that emit light when charged with electricity. OLED

displays are thinner, lighter, brighter, cheaper to manufacture and consume less power

than the current LCD displays.

Polyphonic Ringtones :

Polyphonic ringtones can create multiple tones simultaneously. This produces a more

natural and realistic sound for melodies.

Predictive Text Input :

A technology which allows you to enter text by pressing only one key per letter. The

phone will automatically compare all of the possible letter combinations against a built-in

dictionary of words. The current Predictive Text Input implementations are T9, iTAP and

eZiText.

SIM :Subscriber Identity Module. The smart card used in digital phones. It carries the user's

identity for accessing the network and receiving calls and also stores personal

infromation, such as phone directory and received SMS messages.

SMS :

Short Message Service. A service that enables subscribers to send short text messages

(usually about 160 characters) to and from mobile phones.

Speakerphone :

or Build-in Handsfree. Allows the phone to be used at a short distance, without the phone

being held next to the face.


26/37

STN:

Super Twisted Nematic. A type of LCD display technology. STN uses less power and is

less costly than TFT technology, but at the expense of image quality and response time.

T9:

Look at Predictive Text Input.

TFD :

Thin Film Diode. A type of LCD display technology. TFD technology combines the

excellent image quality and fast response times of TFT, with the low power consumption

and low cost of STN.

TFT :

Thin Film Transistor. A type of LCD display technology. Compared to other types of

LCD technology, TFT features excellent image quality and response time, but uses more

power, and is more expensive.

UMTS :

Universal Mobile Telecommunications System. A third-generation (3G) wireless

communications technology and the next generation of GSM. UMTS is a wirelessstandard approved by the International Telecommunications Union and is intended for

advanced wireless communications.

UMTS uses WCDMA technology, and the two terms are often used interchangeably with

each other.

Voice dial:

A feature that allows a user to dial a phone number by spoken commands.

WCDMA :

Wideband Code Division Multiple Access. An approved third-generation (3G) wireless

standard which utilizes one 5 MHz channel for both voice and data, offering data speeds

of 144 Kbps to 2 Mbps.


27/37

PRICE :

When HAIER operating in international markets it will be follow extension, adaptation,

and invention approaches in pricing. In the extension approach, a HAIER follows the

same price throughout the world. When following adoptation approach allows its regional

managers to fix the product prices based on the circumstances in which they operate. But

while the company will follow a invention approach takes a medium position between

fixing a single price worldwide and fixing different prices based on the requirements of

subsidiaries.

International Pricing for HRT MAX

OBJETIVES OF PRICE SETTING(HRT MAX)

Generally the pricing objectives will be: survival, profit, return on investment,

market share, status quo, and product quality.

International pricing strategies can be classified into three forms: market

skimming, market penetration, and market holding. But the company will be only

follows the market penetration strategies mean at the starting the product will be

sale out at low prices but not at the lowest prices.

Pricing decisions are influenced by different factors such as inflation, nature of

product or industry and competitive behavior, devaluation and revaluation, market

demand, and transfer pricing.

Pricing is a value determination process for the product or service that will be

offered for sale. Making pricing decisions in international markets is ridden with

difficulties as it involves multiple currencies, trade barriers, additional cost

considerations, and longer distribution channels. Before setting the prices, the


28/37

marketer must know his target market well. When he is clear about the market he

is serving, he can determine the price appropriately. The pricing policy must be

consistent with the companys overall objectives.

MarketingChannel and

Place Decisionsfor HRTMAX:

Channel

Objectives and

Constraints

Differences

between Countries

in Distribution

Channels

Constraints

Channels in Less

Developed

Countries

Complaints of

Managers

Complaints of

Distributors

Innovations in

International

Channels

Channel Structure

Wholesale

Intermediaries

Merchant


29/37

Intermediaries

Functional

Intermediaries

Channel Strategyfor New Market

Entry

Evaluating

Channel

Alternatives

Select Distributors

Select Distributors

who can Develop

Markets

Treat Local

Distributors as

Long-Term

Partners

Support Market

Entry

Maintain Controlover Marketing

Strategy

Get Detailed

Market and

Financial

Performance Data

from Distributors

Strategic

Decisions

Pertaining to

Distribution

Channels

Marketing channels are created to facilitate the exchange

process, alleviate discrepancies, standardize transactions

and provide customer service. In a normal situation, a

distribution system consists of two levels of players

between the manufacturer and the consumer. These players

are wholesale distributors and retailers. Distribution

channels in different countries are dissimilar in terms of the

retail system, channel length and channel accessibility.

Characteristics of customers, product, intermediaries and

the environment influence the mode of channels. The

characteristics of customers include number of customers,

geographical distribution, income, and shopping habits.


30/37

Product attributes include degree of standardization,

perishable nature of the product, bulk, service requirements

and unit price. The mode of channel is also affected by a

variety of economic, social and political factors. Generally,local markets in less developed countries are regulated or

dominated by networks of local intermediaries.

Internationally operating companies have to partner with

these distributors to gain access to their unique expertise

and knowledge. Channel innovation depends on many

factors like level of economic development of the country in

which the firm is operating, local demographic/geographic

factors, social norms, government actions and competitive

pressures. A properly designed distribution channel will

help a company achieve a sustainable competitive

advantage. Channel structure varies depending on the

customer.

Transactions between parties that do not involve the

ultimate consumer are considered wholesale transactions.

There are two types of wholesale intermediaries: merchant

intermediaries and functional intermediaries. Merchant

intermediaries buy products and resell them. Functional

intermediaries negotiate and just expedite exchange among

producers and resellers. They charge fees and/or

commission. An international firm must take adequate care

when entering into agreements with distributors. This can

make or mar its chances of success. A firm can choose

direct or indirect channel based on requirements. It can

similarly go for selective or intensive distribution depending

on the need.


31/37

Supply Chain

Member

What They Do Provider

country

Raw Material

Suppliers

These companies are generally considered the first

stage in the supply chain and provide basic products

through mining, harvesting, fishing, etc., that are key

ingredients in the production of higher-order

products.

HAIER

GROUP

CHINA

Processed Materialsor Basic Component

Manufacturers

Firms at this level use raw materials to produce more

advanced materials or products contained within

more advanced components.

HAIER

GROUP

PAKISTAN

Advanced

Component

Manufacturers

These companies use basic components to produce

products that offer a significant function needed

within a larger product.

JAPAN

GERMANY

Product

Manufacturers

This market consists of companies that purchase both

basic and advanced components and then assemblethese components into a final product designated for

a user. These products may or may not be sold as

stand-alone products. Some may be included within

larger products.

HAIER

PAKISTAN

Support Service

Firms

These companies offer services at almost any point in

the supply chain and also to the business user

market. Some services are directly related to the

product while others focus on areas of the business

not directly related to production.

PEL

SAMSUNG

LG


32/37

Promotional Decisions for HRT MAX:

Promotional Mix

Advertising

Personal Selling

Elements of the

Personal Selling

Process

Sales Promotion

Publicity

Barriers to

Promotion and

Communication

Language

Differences

Cultural

Differences

Social Differences

Economic
http://www.haier.com.pk/##


33/37

Differences

Legal &

Regulatory

Differences

Competitive

Differenc

Promotional mix is a blend of advertising, personal selling,

sales promotion and public relations, used by a firm to reach

its target market. To meet the objectives of a communication

strategy a marketer has to mix these ingredients

harmoniously.

Advertising is a paid form of non-personal communication

about an organization or its products that is transmitted to a

target audience through a mass/broadcast medium. This type

of promotion allows a marketer to focus on a small, clearly

defined market segment.

The method is also cost efficient. An organization can

communicate with a large number of prospective customers

at a minimal cost per person. Personal selling is a method of

communication aimed at persuading a prospective customerto buy something, by providing suitable information. It

offers unique benefits to marketers, like quick feedback.

This allows a change of message based on situational

demands. Generally, two types of salespeople are involved

in personal selling -- order getters and order takers.

The personal selling process involves seven steps:

prospecting, evaluating, preparing, approaching the

customer, making the presentation, closing, and follow up.

Sales promotion involves activities and materials that are

meant to catch the attention of prospects. Though gaining a

competitive edge is an important objective of sales

promotion, there are other motives, which induce firms to


34/37

concentrate on this method. Quick returns are an obvious

reason. Also, consumers look forward to sales promotions

before purchase.

Overseas product exhibitions bring together peopleinterested in a particular industry. These events attract

important visitors such as potential customers, distributors,

agents, journalists, politicians and competitors. The events

provide an ideal opportunity to get attention. Publicity is an

important method of promotion. It is primarily informative,

objective and more subdued in tone compared to an

advertisement. Most big firms operating internationally

have dedicated publicists. A publicists basic tool is the

press release.

Other tools include telephone press conferences, in-studio

media tours, multi-component video news releases,

newswire stories, and Internet releases. When firms are

forced to deal with negative publicity, they should first

minimize rumours and misinformation. They should then

make efforts to expedite objective coverage, instead of

blocking it. The effectiveness of the communication process

is determined by external factors such as language, local

economy, laws, socio-cultural factors and competition.

These factors can act as barriers when not dealt with

properly.

COMPETETORS


35/37

HRT

Samsung

Motorola

Lg

Apple

Htc

I-mate

02

Ften

Hp

Asus

Gigabyte

Otek

Palm

Black barry

Voda fone

T-mobiles

Sagem

Alcatel

Philips

Sharp

Toshiba

BenQ- Siemens

BenQ

Panasonic

NEC

WND

Pantech

i-mobile

VK Mobile

Bird
http://www.gsmarena.com/alcatel-phones-5.phphttp://www.gsmarena.com/alcatel-phones-5.phphttp://www.gsmarena.com/philips-phones-11.phphttp://www.gsmarena.com/philips-phones-11.phphttp://www.gsmarena.com/sharp-phones-23.phphttp://www.gsmarena.com/sharp-phones-23.phphttp://www.gsmarena.com/toshiba-phones-44.phphttp://www.gsmarena.com/toshiba-phones-44.phphttp://www.gsmarena.com/benq_siemens-phones-42.phphttp://www.gsmarena.com/benq_siemens-phones-42.phphttp://www.gsmarena.com/benq-phones-31.phphttp://www.gsmarena.com/benq-phones-31.phphttp://www.gsmarena.com/panasonic-phones-6.phphttp://www.gsmarena.com/panasonic-phones-6.phphttp://www.gsmarena.com/nec-phones-12.phphttp://www.gsmarena.com/nec-phones-12.phphttp://www.gsmarena.com/wnd-phones-51.phphttp://www.gsmarena.com/wnd-phones-51.phphttp://www.gsmarena.com/pantech-phones-32.phphttp://www.gsmarena.com/pantech-phones-32.phphttp://www.gsmarena.com/i_mobile-phones-52.phphttp://www.gsmarena.com/i_mobile-phones-52.phphttp://www.gsmarena.com/vk_mobile-phones-37.phphttp://www.gsmarena.com/vk_mobile-phones-37.phphttp://www.gsmarena.com/alcatel-phones-5.phphttp://www.gsmarena.com/philips-phones-11.phphttp://www.gsmarena.com/sharp-phones-23.phphttp://www.gsmarena.com/toshiba-phones-44.phphttp://www.gsmarena.com/benq_siemens-phones-42.phphttp://www.gsmarena.com/benq-phones-31.phphttp://www.gsmarena.com/panasonic-phones-6.phphttp://www.gsmarena.com/nec-phones-12.phphttp://www.gsmarena.com/wnd-phones-51.phphttp://www.gsmarena.com/pantech-phones-32.phphttp://www.gsmarena.com/i_mobile-phones-52.phphttp://www.gsmarena.com/vk_mobile-phones-37.php


36/37


37/37

Date post:	08-Apr-2018
Category:	Documents
Upload:	sachin-ramesh
View:	217 times
Download:	0 times

8737285-brand-management

Documents