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DM1H 35: HND Global Trade and Business: Graded Unit 2 Yuan

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目录
Chapter One the Structure of a Thesis ............................................................

............... 2
1.1 Prefatory Matter........................................................................................................... 2 1.1.1 Title Page .......................................................................................................... 2 1.1.2 Acknowledgements........................................................................................... 2 1.1.3 Abstract ............................................................................................................. 2 1.1.4 Table of Contents .............................................................................................. 3 1.1.5 List of Tables and Figures ................................................................................ 3

PLANNING STAGE ..................................................................................................... 3
2. The marketing mix of Haier entering into European market ..................................... 3

2.1 The brief ...................................................................................................................... 3 2.1.1 Statement of the issues to be investigated ........................................................ 3 2.1.2Objectives of the project .................................................................................... 4 2.1.3Reasons for the choice of the issue.................................................................... 4 2.1.4 Reasons for choosing the business ................................................................... 5 2.1.5 Sources of information and the corresponding methods .................................. 5 3.1 Secondary research ...................................................................................................... 5 3.1.1 Internet.............................................................................................................. 6 3.1.2 Library .............................................................................................................. 6 3.1.3 Magazine .......................................................................................................... 6 3.2 Primary research .......................................................................................................... 6 3.2.1 Questionnaire.................................................................................................... 6 c. Investigation Timescales..................................................................................... 7

DEVELOPMENT STAGE .......................................................................................... 10

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Chapter One the Structure of a Thesis

1.1 Prefatory Matter
1.1.1 Title Page
The first page of the thesis is a title page which should provide the following information: the title of the manuscript, whether it is a BA thesis, at which university the thesis was written, who wrote the thesis and when the thesis was finished.

1.1.2 Acknowledgements
The acknowledgements page is the place to express the researcher’s gratitude to those who have offered help in the process of research and thesis writing. The thanks are usually expressed to: (a) the supervisor; (b) the teachers and your classmates who once gave you suggestions or advice on your research; (c) persons who helped you collect data and do proof-reading; (d) family and friends who gave you either physical and/or mental support; (e) sources for financial support if there are any; (f) those who kindly permitted you to use their research instruments or other materials.

1.1.3 Abstract
The abstract is a summary of your study and provides information concerning the following aspects: the purpose of the study, the research questions to be addressed, the subjects involved, the instruments used to collect the data, the procedures for collecting and analyzing the data, the findings and the conclusions. Mathematical

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formulae, diagrams, and other illustrative materials are not recommended for the printed abstract. Reference to specific works in the abstract should be avoided.

1.1.4 Table of Contents
The table of contents lists the headings and subheadings of each part of a thesis, including prefatory and postscriptural matters.

1.1.5 List of Tables and Figures
List of tables and figures is a place where the tables and figures spread out in your thesis are now put together. Each table or figure has a page number. Referring to the page number, the reader can quickly make access to the information needed. Figures should be distinguished from tables. A figure may refer to a graph, a chart or a diagram, or a picture while a table must be either a square or a rectangle in which numbers and words are presented in rows and columns.

Planning Stage

2.

The marketing mix of Haier entering into European market

2.1 The brief
2.1.1 Statement of the issues to be investigated
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This report will mainly focus on analyzing the marketing mix of Haier entering into European market. The relative subject of this report is International Marketing.

2.1.2Objectives of the project

The report will be accomplished before 15th November, 2009. In addition, through the analyzing of Haier’s marketing mix, there are sub-objectives below will be done in order to support the objective. To know about Haier’s products categories in European market. And then I searched on the Haier’s home page, and found that there are four of them have been entered into the European market, which are refrigerators, washing machines, flat-panel TV and media players. To get the information about its target markets for the European market, Haier enters Germany first in 19th June, 1991, and then entered Italy, Russia, and Netherlands. To collect the information of promotion channels in Haier. The company advertised on TV, on the Internet, magazines and newspapers to promote their products. To get information about its products’ price. Haier have low price compared with the average level in European market.

2.1.3Reasons for the choice of the issue

The market mix was deemed to consist of four major components including product, place, promotion and price, as also known 4ps. The product variable is the aspect of marketing mix that deals with researching consumers’ product wants and designing a product with the desired characteristics. Place is that the aspect of the marketing mix that deals with making products available in the quantities desired to as many customers as possible and keeping the total inventory, transport and storage costs as low as possible. Promotion relates to activities used
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to inform one or more groups of people about an organization and its products. The price refers to establishing pricing policies and determining product prices.

2.1.4 Reasons for choosing the business

Haier enters into European through a well designed marketing mix. Haier manufactures home appliances in over 15,100 different specifications under 96 categories, and sold in over 100 countries around globe. There are four kinds of products that are selling in the European countries, which are refrigerators, washing machines, flat-panel TV and media players. Haier is promoting their products through advertisement and newspapers. From the view of place, Haier target markets which are based on the potential customers. For the European market, Haier entered into Germany first in 19th June, 1991, and then entered Italy, Russia, and Netherlands. The prices are lower than the average level in European market. In summary, Haier is doing quite well in terms of 4Ps, and this encourages me to investigate on how Haier get succeed in the marketing mix.

2.1.5 Sources of information and the corresponding methods

In order to complete the investigation, some sources of information will be used to help me achieve the purpose. Besides, the corresponding methods are given and why each has been selected.

2.2 Secondary research
Secondary information is information which already has been gathered (published information) and therefore can be used. The advantage of a secondary information is that it is easier to collect and not an expensive type of information. Therefore it is common to use the secondary information as a base in a research and then compliment it with primary information.

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2.2.1 Internet

To gather the information from the internet is very convenient. And also there are a large amount of information can be search in a short time and the low cost.
2.2.2 Library

Researching in the library is so clearly to help to find out the information. And there can be find relevant books more easily.
2.2.3 Magazine

The cost of magazine is low and the information is extensive. A great number of positive information can be found.

2.3 Primary research
Primary research, also known as field research consists of obtaining information that preciously did not exist. It is first hand information that is used as a base for the research and the conclusions. Primary information can be used as decision-making material.
2.3.1 Questionnaire

Questionnaire is reasonably effective gauging customers’ attitudes or opinions.

a. Statement of the criteria 6.1 When Haier’s products enter into the European market, how much the market share they would gain. 6.2 The criteria are that can measure whether or not the European market is worth to enter. We also know about that Haier adopt which way to enter and produce how many products and the money should be invested to the market.

b. Plan of the investigation
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The following tables are used to show the timescales which will be carried out to complete the investigation of Haier Company, and to identify the resource that will be used.

c. Investigation Timescales

Source of Methods information secondary realize the Haier in Beijing research 29th September-1stOctober 2ndOctober-5th Log on to the websites October 6th download the annual reports October
8h

Dates

Cost

0

0

October-7th 1

October -11th 0 October

Enquire in library

11th search the information of relevant books

October -1st 20 October

Primary Do questionnaires Research

14th

October -16th 10 October

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d. Writing Timescales

Process

Duration

Activity

Time cost (hours)

21st September—23rd September 25th September—28th September

Decide a topic of investigation Set objectives

4

Planning

3

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Section

28th September—3rd October

Decide Sources of information and methods

6

4th October—7th October 9th October—12th October Developing Section Evaluating Section 13th October—17th October 19thOctober—22nd October 24th October—27th October 29thOctober—1stNovember 3rdNovember—5th November 7th November—19th November this 11th November—13th Report November 14th November Total

Planning Section Modify Planning Section Developing Section Modify Developing Section Evaluating Section Modify Evaluating Section Take commentary

10 5 20 8 15 6 4

Review

Recommendations for future investigations Modify & Evaluate whole report Completed the report

4

5

1 90

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Development Stage

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3. Executive Summary

This report will through analyzing the marketing mix in Haier to know about the business running in the European market successfully. The report should be realized its product categories in European market, the information about Haier’s target markets and promotion channels. And the average prices of its products are lower than the companies in Europe. The information I can gather from the internet and the books which relate to this. And the data can be collected by the questionnaires. There are some concepts such as secondary research and primary research in the book which I learned: International Marketing. And from the internet, I can know about the operational situation, collect the information which is related to the objective and the future of development of the company.

In this report, there are some concepts such as 4ps, SPELT analysis and so on which will be support the whole report.

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4. Introduction:

Haier was formerly known as Qingdao Refrigerator Factory (Quingdao General), a Collective Enterprise (CE) manufacturing refrigerators for sale in China. Today, it is one of the world’s leading white goods home appliance manufacturers. Under the leadership of Chairman and CEO Zhang Ruimin, the products are now sold in over 100 countries around the world which appliances in over 15,100 different specifications under 96 categories. Haier entered into European market, because the market has large potential development and can build their brand name and make additional profits. Haier management realized that purpose of a company to export products was not only for revenue, but also for brand recognition enhancement.

5. Findings: 2.1 Haier background Haier is the world’s 4th largest white goods manufacturer and one of China’s Top 100 IT Companies. It has 240 subsidiary companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world, and it specializes in technology research, manufacture industry, trading and financial services. At the 21st anniversary of the founding of Haier Group on December 26, 2005, Haier announced its 4th strategic development stage of global brand building. Haier was ranked first of China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines. On August 30, 2005, Haier was ranked 1st of China’s Top 10 Global Brands by the Financial Times. Haier has been widely recognized as a leader of 9 products in terms of domestic market shares and the 3rd player of 3 products in the world market and world-class company in the fields of home integration, network appliances, digital and large scale integrated circuits and new materials.

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The company had six manufacturing facilities in China and 13 facilities across the globe including the US, Europe, Middle East, Africa, and South Asia and the sales network was spread across 166 countries. In 2003, the total turnover of Haier group stood at US$ 9.2 billion, which increased to US$ 12.2 billion by 2004. Haier was the only Chinese brand to make it to the list of the World Brand Laboratory 100 most recognizable brands in 2004.

2.2 Analyze the company with SPELT SPELT contains socio-cultural forces, political forces, economic and environment forces, legal forces and technological forces. SPELT analyze the external impact on an organization. This can identify key influences to aid management in planning measures to improve the competitive position of the organization.

2.2.1

Socio-culture force

The socio-culture force is concluded the religion and demographics (the age distribution of the population, impact upon product design, and spending by consumers). The social and cultural influences on business vary from country to country. Haier entered into the European market should consider the culture differentiation among these countries. To know about which products and services the people need. The products of Haier entering into the European market have acceptable attitude by the qualification customers. This presents the customers’ awareness for Haier’s products. In addition, the customers in the European market have their own consuming culture. So according to European customers’ preference, Haier should cater to the habit of consuming to product what they need. There is a research from the internet including a questionnaire named which sizes do you like about home appliance manufacturers. According to the questionnaire, there are 57%
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customers choose big size and 32% customers choose small one. In addition, there are some other requests about color, appearances. So through the analyzing, Haier should produce these products cater to the European customer which different from China.

2.2.2

Political

The political, legal and regulatory forces of the marketing environment are closely interrelated. Legislation and regulations reflect the current political outlook. The political force of the marketing environment has the potential to influence marketing decisions and strategies. The rise inflation in UK was so marked that it forced the Bank of England to write a letter of explanation to the Treasury for the first time in almost 10 years of monetary policy independence. With expectations of higher interest rates across Europe, economists said the market reactions reflected traders seeking the highest yields. Haier enter into the European market should consider that the host government reaction whether or not have threats of quotas. The governments in the European make up the policies which have advantage for Haier development. The market share and interest rate are good for the Haier products entering into the European market.

2.2.3

Economic and Environment

The economic and competitive forces in the marketing environment influence both marketers’ and customers’ decisions and activities. To survive the fierce competition in the European market, Haier adhered to the strategy to exploit market in developed countries first. Haier started globalization strategy in some European countries. After some progress has been made, Haier gained the public recognition for Haier branded refrigerators with Haier product quality.

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When the products of Haier Company enter into the European market, the company should consider the customers’ buying power and competitive with other the same industry in European market. The economics in European develop more quickly than it is in China and the income of European people is higher. Therefore, the most people have the ability to buy the products of Haier. But Haier afford to the competitive with other the same industry and need know about the information of the same industry in European market. Haier can through strengthen of the products in the same trade to adjust for their own products. Haier enter into the European market that can build up their launch in there. This can lead to increase their product cost, because the land and workforce are more expensive. They need high quality employees to make up clearly marketing strategy and use the high technology machine, so Haier products selling in the European market can have a higher price.

2.2.4

Legal force

The legal forces, such as product safety influences design, and the trading practices influence how businesses conduct themselves in the market. An umbrella law covers language regulation in relation to product safety. If a product poses risks in certain conditions, then the language used must be clear and presented in the official language of the country in which it is sold. The General Product Safety Directive 2001/95/EC Article 8-1-B-1 states: “For any product that could pose risks in certain conditions: to require that it be marked with suitable, clearly worded and easily comprehensible warnings, in the official languages of the Member State in which the product is marketed, on the risks it may present (Sophie Hurst, 2006).” So Haier enter into the European market should know about the legal clearly in order to avoid disobey activities. They should sign their products’ feather clearly, and let European people know about when there is risk about their products in the official languages of the member state.

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2.2.5

Technological force

Technological forces have been defined as the application of knowledge and tools to solve problems and perform tasks more efficiently. This contains the transportation influences market penetration and product costs, and the information technology influences production methods. Haier has currently obtained more than 7,000patented technology certificates and 589 software intellectual property rights. Haier has hosted and taken part in modification of about 100 technological standards. Haier technology of safe care water heaters and dual drive washing machines has been proposed to the IEC Criteria. Haier products have competitive with the same industry in European

market, so their products should be had innovation to meet the customer needs. The development of new technology may result in alternations to economic performance. Technological development will clearly have an impact on buyers’ and marketers’ decisions. The customers’ technological knowledge influences their desire for goods and services. The technological factor is important for Haier’s long-term survival. If Haier that makes wrong decision may lose out to the competition. Poor decisions about technological forces may drive Haier out of business. 2.3 Analyze Haier entering European market with 4Ps The 4Ps contain product, place, price and promotion. When Haier entered into the European market, the four elements should be considered by the marketing department of Haier. According to these, they can have research to find what kinds of products sell to the European market, make up what price is suitable for the customers and at which place to produce the products. Haier can through the local situation to adapt what kinds of promotion ways to sell their products. The products selling need research customers’ product needs and design a product with the desired characteristics. The products price can establish price policy and that can make decision to products prices. The place where Haier set up in European market should consider the cost as low as possible. Haier can organize a group of people to make a

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marketing strategy to promote their products which according to the situation of the European market.

2.3.1

Products

Haier’s product categories range from refrigerators, refrigerating cabinets, air conditioners, washing machines, televisions, mobile phones, home theatre systems, computers, water heaters, DVD players and integrated furniture, among which 9 are ranked market leaders in China, and 3 are ranked among the top 3 worldwide in their respective industries. Haier is also a world leader in the technology domains of intelligent integrated home furniture, networked home appliances, digitalization and large scale integrated circuits. There are three strategic product issues facing Haier Company. The first is quality. The second is product specialization. The third is product innovation. Quality improvement can make Haier more competitive in the market for standard products, like refrigerators, cell phones and TVs. Product specialization can get Haier into the high performance segment of product categories. This means higher prices and better margins. The third stage is product innovation, which enables Haier to not only get the highest prices and margins from early adopters of advanced technology, but also positions companies for market dominance. Haier believes that it is not enough to

only focus upon product quality, but satisfaction of local consumers' demands. Haier energy efficient Freon-free refrigerator is a good example as this product did not only meet international environmental protection criteria, but also satisfy consumers' needs. The product consumes 50% less power than any other model as a result of incorporating advanced technology and gains world recognition. This refrigerator meets Germany Class a Criterion and consumers of this model product in Germany may receive government subsidy. By April 2006, the Haier Group has obtained 6,189 patented technology certificates
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and 589 software intellectual property rights. Haier’s proposal for safe care water heater technology initiative was accepted at the 66th IEC Conference in 2002 and Haier dual drive washing machine technology was included in the 2006 IEC standard proposal. This clearly demonstrates Haier’s world-class innovation capabilities in product R&D.

2.3.2

Price

For years Chinese brands have been waging a price war. Profitability has been driven down in industries like appliances, television, and computing equipment. Leading Haier threatened by competitors in the European market have used price cuts to maintain their dominance, while over-productive industries like appliances have

suffered through a “natural selection” process prior to the expected consolidation around 2-3 domestic brands. Pricing strategies usually change as the product passes through its life cycle. The introductory stage is especially challenging. Haier bringing out a new product face the challenge of setting prices for the first time. They can choose between two broad strategies: market-skimming pricing and market-penetration pricing. When Haier enter into the European market, the two factors can be chosen to analyse. The products of Haier belong to new products for the European market, so price skimming could be used. Haier enter into the European is this model, so Haier enter into the European market can use this way. Market skimming makes sense only under certain conditions. First, the product's quality and image must support its higher price, and enough buyers must want the product at that price. Second, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. Finally, competitors should not be able to enter the market easily and undercut the high price.

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Rather than setting a high initial price to skim off small but profitable market segments, some companies use market-penetration pricing. They set a low initial price in order to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share. The high sales volume results in falling costs, allowing the company to cut its price even further. Several conditions must be met for this low-price strategy to work. First, the market must be highly price sensitive so that a low price produces more market growth. Second, production and distribution costs must fall as sales volume increases. Finally, the low price must help keep out the competition, and the penetration price must maintain its low-price position—otherwise, the price advantage may be only temporary. Penetration pricing is the reverse of skimming and involves the manufacturer setting a low price to gain market share. In supermarkets penetration pricing is also used on new products to the store to raise awareness. Use this way can take the form of in-store promotions. After this period of the promotion, the price can be increased. This strategy is also used to discourage competitors in the market. From the analyzing, Haier also can chose this way to entry into the European market, which can help Haier gain more customers easier, and discourage their competitors. 2.3.3 Promotion

Haier should according to the European market environment and the habit of customers to make up promotion plan to distribute their products. There are some various ways to promote the products of Haier. Haier through examine the products which are the customers in European market needs. The marketers have to decide what type of segmentation process to adopt. Haier need to plan for this over a five-year period. If Haier do not have promotional strategies in place suppliers will be reluctant to take their goods and will not give the product the marketing effort it may need to become established. To consider about the distributors, distributors are normally appointed for specific markets. There are some advantages and
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disadvantages of distributors. The advantages are that the cash flow is good, the distributor normally has good local market knowledge, the distributor is committed to selling the goods, and also the distributor can handle import formalities. The disadvantages of distributor are that maybe Haier will face the exporter loses control, the distributors deal with many companies and therefore have only a limited time with each, and also maybe the exporter gains no first-hand knowledge of the market. There are some partners that Haier has established an extensive sales network around the globe. The key partners in perspective markets include cooperation with KESA, Media Market and Carrefour. Haier’s international promotion framework encompasses global networks for design, production, distribution and after-sales services. Haier has established 18 design institutes, 10 industrial complexes, 22 overseas production factories and 58,800 sales agents worldwide. Haier products are marketed in 12 out of 15 European chain supermarkets. Haier design, production and sales facilities in some European countries are staffed by local employees. All Haier overseas factories are in operation. To implement its globalization strategy, Haier has established multilateral cooperation with many international rivals.

2.3.4

Place

The distribution has three main methods of entry into an overseas market, which are the selective distribution, exclusive distribution, and the intensive distribution. The method selected depends on the following criteria: the level of expertise needed for that particular product. The more exclusive the product, the greater the price is likely to be. All of these products need to be targeted at the right people. Their distribution channel is likely to be exclusive. They may be sold through dealerships, and the dealer should be appointed by the manufacturer in the target export place. The sales volume is another
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factor of the criteria to decide to use which way to enter into the European market. The higher the volume of sales, then the more likely it is that the exporter will go for intensive distribution. If Haier aim at mass markets, it means using every intermediary available. If Haier want to use intermediaries to sell their product, then they should control the intermediaries very well. To consider about these factors, Haier should use the selective distribution to enter into the European market. The selective distribution means appointing more than a few intermediaries but not all available intermediaries. It is possible for the producer to develop a good working relationship with on distributor or wholesaler. This means there is a grater than average selling effort, which leads in turn to increased profitability and reduced distribution costs as compared with intensive distribution. Selective distribution is used firstly by manufacturer who produces consumer durables such as televisions and washing machines. This method is ideal if the consumer shows this type of buying behavior. Haier is the company who product these kinds of things, so we can know that this way is very suitable for Haier to use. And also this way do not need the huge communication effort that intensive coverage needs and is therefore cheaper. This way is very easy for the exporter to build rapport with the selected intermediary and still retain some control over the export process.

2.4 The Criteria

When the haier decide to use which way to enter, they should some of the factors as follows. If the company can control the market well and have the enough resources. There are two kinds of entry modal, which are the indirect export and the direct export. I think haier are more likely to use the way of direct exporting. Because haier has the ability to control its own market and has the enough recourse. Haier should use this way to sale their products directly to the overseas customers who may the wholesaler,
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retailer or end user. When haier chose the way of direct exporting, then there are some kinds of ways, which are the direct exporting, sale to final user, agents, distributors, and the direct sale. In these kinds of ways, I think the way of distributors is more likely to be chosen. This modal can reduce the risk of political instability, particularly expropriation of assets. Haier can through this way to make profit and lower their risk.

2.4.1How much market share Haier can gain The European market has a large potential market for Haier Company to gain the market share with the same industry competition in terms of brand and products. Haier Europe coordinates marketing and sales of Haier brand home appliances in 17 European countries: United Kingdom, Ireland, Germany, Netherlands, Belgium, France, Luxembourg, Greece, Spain, Portugal, Switzerland, Austria, Italy, Denmark, Norway, Finland and Sweden. When Haier enter into the European market, using this way can gain the market shares. Haier should product the things that concluded a lot of technology factors, and then the company can gain the market share easier. Though this Haier can gain more contracts for itself, and then gain the market shares in European market. Haier can through do these kinds of things to built-up their brand name, and then they can gain more market shares of the European market. Haier’s 4 leading product categories - refrigerators, refrigerating cabinets, air conditioners and washing machines - have over 30% market share. In overseas markets, Haier products are available in 12 of the top 15 chain stores in Europe. Haier is now approaching its goal of being “local” in European markets via localized design, manufacturing and sales processes. In addition, Haier has set up production facilities and plants in the European market.

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2.4.2 How much money should be invested on the production of the new things if Haier enter into the European market If Haier want to product some things that concluded a lot of technology factor, then the company should spent millions of money, Biomedical Equipment Division of Haier Group has launched the Refrigerator with short message alarm system and remote network control features. The refrigerator is also the first ultra-low temperature refrigerator in the world genuinely adapting to the requirements in the Information Era. It breaks technological monopoly of foreign companies and has been used in many science and medical research institutes such as Chinese Academy of Sciences. The Ultra-low Temperature Refrigerator adopts the technologies of Haier U-home. It can give an alarm immediately in the form of short message or via network when an unexpected temperature rise is detected. It can be connected with the after-sale system so as to reduce spoilage of stored food under temperature fluctuation. On 8th January and 20th February, 2002, Haier signed agreements with Sanyo and SAMPO for win-win development and benefit utilizing joint investment and combined resources.

3. Conclusion Through the analyzing of SPELT, 4Ps, and the critics analyzing, we can know that Haier can enter into the European market. Though enter into this market, Haier can not only gain lot money and also can build-up their brand name.

4. Recommendation
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Through this analyzing of SPELT, and the 4Ps analyze, Haier can know that they can enter into the European market; this market can build their brand name, and gain profits for them. When Haier enter into the European market, they should consider about the social factor, the economic factor, the technology factor, and so on. So they should product the high technology level product. To consider about their competitors, they should pay attention when the price set down, and also should try their best to sell the good quality products at the lower price than their competitors. Haier should use these way to gain the market share, then to gain the loyal customers, so last they can make a lot of profit.

5. Reference Haier, available: www.haier.com Available: 18th March, 2010 Last update: 18th March, 2010 Accessed data: 18th March, 2010

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Available: http://www.haier.com/products/index.asp Last update:, 25th March, 2010 Accessed data: 26th March, 2010

Sophie Hurst, Are you Linguistically Legal for European Business? Available: http://www.sdl.com/cn Last updated: 8th March, 2010 Accessed data: 9th March, 2010

Haier Group, Haier - The Chinese Global Competition Available: http://www.icmr.icfai.org Last updated: 13th March, 2010 Accessed data: 13th March, 2010

Haier Brilliant Debut of Haier's New Products at Japan Info & Tech Int'l Expothe Chinese Global Competition Available: http://www.haier.com/news/view.asp Last updated: 14th March, 2010 Accessed data: 15th March, 2010 Available: http://zhidao.baidu.com/question/49761777.html Last updated: 16th March, 2010 Accessed data: 16th March, 2010
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Haier’s Global Strategy: Available:http://www.cce360.com/daily/newsview.asp?id=667&leibie=103 Lasted updated: 16th March, 2010 Accessed data: 17th March, 2010

Available: http://www.tradetree.cn/electronics/article/jan2005/16.htm Lasted updated: 18th March, 2010 Accessed data: 18th March, 2010

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EVALUATING STAGE

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DM1H 35: HND Global Trade and Business: Graded Unit 2 Yuan

Cao

1. How well I have met my original objectives The report has been completed well I think, and this meet my original objectives. The objective of the report is search the European market to know about if the market is suitable for Haier to develop to make more profits. The report through analyzing the SPELT, 4ps, and the critical to measure the European market enter. The European market is a potential market for Haier Company. The customers in the European market have the high level of income, so they can afford the high price which the products have lower price than the products in China. Haier can gain good market share. Although through the analyzing of the criteria, we know that Haier should consider some factors to enter the European market. The reason why I chose this topic, because Haier is a big company, which produced a single model of refrigerator, today it is one of the world’s leading white goods home appliance manufacturers. I can find the resource easier. The resources can be searched in the websites and other channels. I chose the topic of Haier entering into the European market, because I familiar with the market area, there are a lot of knowledge can be used in the analyzing process, such as the 4P, SPELT. These concepts are very useful when analyzing the market and the company, which will help the company to know how to do now, and how to do the decision about the future. Give the company a clear present of their work.

2. A commentary on the planning and developing stages which worked effectively or which did not work as effectively as expected

I think in the analyzing of the 4P and the SPELT are very effective. Through these analyzing, Haier can know they should product what kinds of products to the
28

DM1H 35: HND Global Trade and Business: Graded Unit 2 Yuan

Cao

European market, and use which way to enter, also know how to meet the customers need and want, how to compete with the European competitors. Through the online research, I find a lot of useful resource about Haier, and through these, I analyzing the European market well and make Haier know how to do when they enter into the European market. But the primary research is not so well prepared, the questionnaires is not so well prepared, the numbers of the subjects are not enough, and some of them are not so typical, and not so good enough to know the psychology of European customers. When I do the critic analyzing, then first criteria is well analyzing, through the detail analyzing of the first critic, we can know that enter into the European market, Haier should spend a lot of money, but also can gain more profit than they investment. But the second criteria is not be well analyzing, though the analyzing of the second criteria, Haier only know that they can gain the market share through their brand name and good quality of the products, but can not make sure how many market shares they could gain.

3. An assessment of the strengths and weaknesses of the report of the investigation The advantages of the report are that its structure is well. The subheads which I

made in the report can be clearly known about by the readers. And also I make the content page, which make the readers can know the main idea of the report very well, and can know each part talk what kinds of information. Through the good layout, the readers can read the whole article very easy. The disadvantages of the report are that my language is not so good, there is some problems in my grammar part, which may there are some confusions in some of the words. And there also have some problems in the research part, such as the communication. When I do the questionnaires, the numbers of the questions are not so enough to make the Haier to the European market so well.
29

DM1H 35: HND Global Trade and Business: Graded Unit 2 Yuan

Cao

4. Recommendations for future investigations Through this analyzing of the whole process, the ability of my research is being improved. I know how to do the primary research and the secondary research. When do the secondary research, I know how to do the online research, how to find out the relevant information of my topic. When I do the primary research, I know how to make the questionnaires, and how to communicate with the European customers. When I set the deadlines write objective, I will prepare my whole work in process, and can make every part of the work more objectively. Through finish this article, I know how to do this work good in time. And also through the analyzing, I gain some good experiences about how to do the research, how the write the report, how to analyzing the company and the market though the 4P, SPELT. Through write this report, I know how to give the good advice to the company, who want to enter into the suitable market. I will make more work in my weak place in the future, such as the primary research part; I will make my questionnaire more substantiate next time.

30

DM1H 35: HND Global Trade and Business: Graded Unit 2 Yuan

Cao

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