Strategic Marketing Plan for Fisher & Paykel in China
Fisher & Paykel Appliances
Strategic Marketing Planning Report
School of Marketing and International Business (MARK 311)
Lecturer: (Peter Thirkell & Martyn Gosling)
Submitted by:
Penghui Zhang
ID: 300181135
Tutor: Martyn Gosling
Date of submission: 4/10/2010
Word Count: 3987
Executive Summary
New Zealand based appliances manufacturer Fisher & Paykel has chosen the Chinese Appliances Market for product penetration as a part of their global expansion plan. Considering the fierce competition within the Chinese appliances market, Fisher & Paykel focused on the diffusion of sustainability to educate customer and position their products as “Sustainable Appliances” which require less energy consumption compared to other appliances products. Advanced technology and innovative industry design are the most remarkable advantages for Fisher & Paykel, these two advantages were widely adopted in the marketing mix strategies, as well as the new concept of “Sustainable Appliances”. The key strategies are summarized as follows:
* Production design: simple operation, high technology content, low energy consumption. Recycled materials are widely used. * Pricing strategy: Skimming pricing—begin with a high price, and then gradually drop the price over time. * Promotion strategy: “Education—introduction” strategy. Educate the customers first, and then introduce related products. * Distribution channels: Mix distribution channel adopted. Both direct online marketing and channel intermediaries are used. * Slogan for the marketing campaign: “Live a sustainable life, in an innovative way”
Table of Content
Executive Summary ------------------------------------------ 1
Company Situation Analysis ------------------------------- 4
Target Market Analysis -------------------------------------- 5
Marketing
Strategic Marketing Planning Report
School of Marketing and International Business (MARK 311)
Lecturer: (Peter Thirkell & Martyn Gosling)
Submitted by:
Penghui Zhang
ID: 300181135
Tutor: Martyn Gosling
Date of submission: 4/10/2010
Word Count: 3987
Executive Summary
New Zealand based appliances manufacturer Fisher & Paykel has chosen the Chinese Appliances Market for product penetration as a part of their global expansion plan. Considering the fierce competition within the Chinese appliances market, Fisher & Paykel focused on the diffusion of sustainability to educate customer and position their products as “Sustainable Appliances” which require less energy consumption compared to other appliances products. Advanced technology and innovative industry design are the most remarkable advantages for Fisher & Paykel, these two advantages were widely adopted in the marketing mix strategies, as well as the new concept of “Sustainable Appliances”. The key strategies are summarized as follows:
* Production design: simple operation, high technology content, low energy consumption. Recycled materials are widely used. * Pricing strategy: Skimming pricing—begin with a high price, and then gradually drop the price over time. * Promotion strategy: “Education—introduction” strategy. Educate the customers first, and then introduce related products. * Distribution channels: Mix distribution channel adopted. Both direct online marketing and channel intermediaries are used. * Slogan for the marketing campaign: “Live a sustainable life, in an innovative way”
Table of Content
Executive Summary ------------------------------------------ 1
Company Situation Analysis ------------------------------- 4
Target Market Analysis -------------------------------------- 5
Marketing
References: Anonymous. (2009, September). Whirlpool “Excellence in Sustainability”. Marketing Business Weekly. P 262. Retrieved from: http://www.mckinseyquarterly.com/Marketing/Digital_Marketing/Chinas_Internet_obsession_2546 China Home Appliance Industry Report, 2009—2010 Crain. C.(2006, October). Haier Group capitalizes on materials research. Plastic News. 18 (31); 9. United States. Datamonitor. (2008, April). China—Household Appliances. Datamonitor Industry Market Research. United States. Fisher & Paykel Appliances Holding Limited Annual Report 08/09 Household Appliances—Top 5 Emerging Markets Industry Guide (2009, September). Datamonitor. Retrieved from: http://www.reportlinker.com/p0157585/Household-Appliances-Top-5-Emerging-Markets-Industry-Guide.html Jiang, L., Gao, E., & Regina, L Lebhar—Friedman Inc. (2006, April). Managing the mix: with subtle shifts in merchandising, Lowe 's stays on strategy with updated stores and its refined up-the-continuum product mix. Home Channel News, 32 (5): 20. United States. M2 Communication, Ltd. (2009, November). Research and Markets Offers Report: Domestic Electrical Appliances in China. Wireless News. United Kingdom. Major Consumer Appliance & Electronic Retailing in China, 2009: Market Analysis. Retrieved from: http://www.reportlinker.com/p0131198/Consumer-Appliances-Electrronics-Retailing-in-China-A-Market-Analysis.html Schiffman, L., Bednall, D., O’cass, A., Paladino, A., Ward, S., & Kanuk, L. (2008). Consumer Behaviour. (4th ed.). Pearson Education Australia. White Goods in China: A Market Analysis (2009, July) Retrieved from: http://www.reportlinker.com/p0131199/White-Goods-in-China-A-Market-Analysis.html World Major Household Appliances Market Report (2010, Hanuary) Dishwashers 1.1% Source: Datamonitor Industry Market Research: NA, August 15, 2008