Consumers tend to purchase large household appliances from retail stores. Haier sells their products through national chain retailers such as Best Buy, Lowe’s, Target, and Sears. In the US consumers purchase appliances rarely on durability but on replacement of an old appliance. When replacing an item, consumers will purchase the same brand more often then not. This is why Haier needs to sell their appliances at a lower cost to attract replacement buyers to purchase their appliances instead of the lead competitors.
Maytag’s has a smaller competitive position in the large household appliance industry in comparison to GE and Whirlpool. In the US alone they hold a 20% market share but Haier is right behind them. Maytag is a Fortune 500 company that designs, manufactures, sells, and services home and commercial appliances in North America and some international markets. Maytag spends the most money out of all its competitors on advertising ranging at about $88.2 million since 2001. It is