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Haier-Say NO to Detergent
Hsin-Yi Tai
Xiaofeng Wang
Haier Group
build in 1984, entering US market in 1999 3rd global appliance brand over $12 billion worldwide sales Product line
beginning with refrigerators now: general home appliances
Trends Global Products Global Branding Sponsorship of Beijing Olympics 2008
“Green Olympics, Nature Wash”
Environmental concern (legal force)
New U.S. Department of Energy Standards lower rinse-water temperatures reduce water consumption
recycling the dirty wash water into clean rinse water more enzymatic detergents, less foaming detergents
standards will become even stricterin 2007
Haier- Say No to Detergent
1st detergent-free top-load washing machine was launched in Sept. 2003, Sales volume: 200,000 Increase rate: 50% / month
1st detergent-free front-load washing machine was launched in June, 2006
How it works
electrolysis technology:
H2O H+OH- +
alkaline ion: blasts the dirt off fabric with millions of tiny bubbles
acid ion: kills bacteria
Competition
global appliance
brand rank
2005 worldwide revenues
employment
Whirlpool 1 $14.3 billion 66,000
GE 2 $13.8 billion 68,000
Haier 3 $12 billion 30,000
Main competitor Whirlpool GE
Haier “nature wash” vs. GE “ecomagination”
Front-load washer Water savings Energy savings
Front-load washer Water savings Energy savings
Detergent savings Skin care Environmental friendly
strengths
Innovative technology Detergent saving
Skin care Protecting clothing fabrics Energy efficiency: water saving
(60%) Environmental protection
Consumers may not ready- their old habits
Brand awareness
Appearance design
weaknesses
opportunities
New market Market development
Cooperate with Maytag Sponsorship of 2008 Olympics Match the new trend of
environmental concern
High-competitive industry
Competitor intentions
threats
washers 2002 2003 2004 2005 2006
(000) 7,745 8,146 8,832 9,345 9,405
4P
Product: 32 technology patents in 10 countries
Price: around $ 650
Place: SEARS, Lowe's, Wal-Mart, Best Buy, Target, etc. On-line
Promotion “nature wash” “say NO to detergent”
Total'000
Proj'000
PctAcross
PctDown
Index
Total 215,800 9,654 4.5 100 100
18-24 27,962 1,248 4.5 12.9 100
25-34 39,399 2,182 5.5 22.6 124
35-44 43,806 2,109 4.8 21.8 108
45-54 41,262 1,914 4.6 19.8 104
55-64 28,516 1,134 4 11.7 89
65+ 34,856 1,067 3.1 11.1 68
Audience Analysis - age
•Fall 2005 Product Home: Household Appliances & Durables Automatic washing machine Bought in last 12 months
Total'000
Proj'000
PctAcross
PctDown
Index
Total 215,800 9,654 4.5 100 100
Men 18-34 33,852 1,612 4.8 16.7 106
Men 18-49 66,142 3,006 4.5 31.1 102
Men 25-54 61,329 2,970 4.8 30.8 108
Women 18-34
33,509 1,818 5.4 18.8 121
Women 18-49
66,948 3,507 5.2 36.3 117
Women 25-54
63,138 3,235 5.1 33.5 115
Audience Analysis – gender (purchase)
•Fall 2005 Product Home: Household Appliances & Durables Automatic washing machine Bought in last 12 months
Total'000
Proj'000
PctAcross
PctDown
Index
Total 215,800 28,478 13.2 100 100
Men 18-34 33,852 3,687 10.9 12.9 83
Men 18-49 66,142 8,088 12.2 28.4 93
Men 25-54 61,329 7,926 12.9 27.8 98
Women 18-34
33,509 4,548 13.6 16 103
Women 18-49
66,948 10,236 15.3 35.9 116
Women 25-54
63,138 10,432 16.5 36.6 125
Audience Analysis – gender (decision maker)
•Fall 2005 Product Home: Electric Appliances - Decision Maker Yourself (alone or with someone else) Total Adults
Total'000
Proj'000
PctAcross
PctDown Index
Total 215,800 9,654 4.5 100 100
single 53,541 2,078 3.9 21.5 87
married 121,924 6,202 5.1 64.2 114
all others 40,335 1,375 3.4 14.2 76
engaged 10,504 583 5.5 6 124
Audience Analysis – marital status
•Fall 2005 Product Home: Household Appliances & Durables Automatic washing machine Bought in last 12 months
Total'000
Proj'000
PctAcross
PctDown Index
Total 215,800 9,654 4.5 100 100
graduated college+
54,384 2,484 4.6 25.7 102
attended college 58,764 2,801 4.8 29 107
graduated high school
68,518 3,134 4.6 32.5 102
did not graduate HS
34,134 1,235 3.6 12.8 81
post graduate 18,109 895 4.9 9.3 110
no college 102,652 4,370 4.3 45.3 95
Audience Analysis - education
•Fall 2005 Product Home: Household Appliances & Durables Automatic washing machine Bought in last 12 months
Total'000
Proj'000
PctAcross
PctDown Index
Total 215,800 9,654 4.5 100 100
HHI $150,000+ 15,639 928 5.9 9.6 133
HHI $75-149,999 53,890 2,770 5.1 28.7 115
HHI $60-74,999 23,998 1,204 5 12.5 112
HHI $50-59,999 18,693 1,026 5.5 10.6 123
HHI $40-49,999 20,935 961 4.6 10 103
HHI $30-39,999 23,059 866 3.8 9 84
Audience Analysis - income
•Fall 2005 Product Home: Household Appliances & Durables Automatic washing machine Bought in last 12 months
Target Audience
25-34 Married or engaged Female College education or above $40,000+
growing consumer trends
high-end energy efficient “smart” quiet large capacity laundry equipment
Survey
What characteristics do you value most about washing machine? (Please rank in order of importance from 1 to 5, 1 being most important and 5 being least important) Price Energy/water saving Environment-friendly Detergent saving
Cleanliness
There is a new product– detergent-free washing machine, which means it can clean clothes without using any detergent. How likely are you interested in it? Please check one. Not interested A little interested Somewhat interested Quite interested Very interested
Questions and Comments!!
