Haier in India Building presence in a Mass Market Beyond China

As a consumer, the major aim is to maximize utility at the highest level possible. However, this goal is normally pursued hand in hand with another goal of cost minimization. Consumer wants to achieve the highest satisfaction but in the lowest cost possible. Due to this reason, consumers therefore, tends to try their level best in various ways to minimize the total cost incurred in taking a product from the producer to final consumption. Apart from the cost of the product, there are other costs accompanied in taking the product for final consumption and this can be none other than the distribution expenses (Updike, 2011). This paper therefore tends to discuss this concept by describing the path a product takes to reach the final consumer in two different countries.

As both online and in-store consumer first stages of purchase decision-making process are need of recognition and information

The research conducted by Cory McAllister, proved to be foundational for this study in that it helped to provide interest in studying product use and purchasing.

The marketing for these electronic products are missing the mark (2011). The advertised product focuses on the technology (2011). To the average consumer this may be quite interesting and at the same time daunting (2011). Manufacturers and advertisers offer the technology as the sells hook for there product (2011). Yet all of this technology causes apprehension among buyers (2011).

purchase decisions (Chevalier & Mayzlin, 2006; Sen & Lerman, 2007). This study will broaden the

One of the most notable challenges in today’s business operation is knowing the buying behavior of customers and how decision makers under peril provision value choices. Decision maker’s decision is based on the evaluation of the data being gathered from survey, interviews and other references regarding the topic.

In the past, the concept of consumer perception on value has been utilized to analyze the decision making of consumers in many phases. The consumers will significance the product from many internal and external factors comparing with what he has to sacrifice. If the perceived value of the product exceeds what he has to give up, then he will choose to buy the product.

No amount of process re-definition could have saved Schindler the pains associated with attempting to move into India with a low-cost strategy. Fundamental assumptions about India just wanting low-cost elevators where customization wasn't a requirement took the effort of creating a subsidiary to learn from.

Buying decision of the customers depends on the individual choice apart from the conditioning of the external factors that have been mentioned. Individual factor is dominated by the demographic identity of the individual as well as the requirement of the person that needs to be

Haier’s relationship with Welbilt granted them access to established distribution channels. This ensured that the target consumers were made aware and given access to Haier products. Not needing to develop their own distribution channels saved resources, which could be focused on other areas in the company such as research and development for product differentiation. Haier’s focus on niche markets facilitated their differentiation from other competitors in the industry. Working with big national retail chains gave Haier access to a large amount of consumer data. This enabled them to accurately predict consumer patterns and, as a result, develop novel products that matched the specific demands

Consumers have preferences about the goods they consume. Therefore, when faced with a choice of goods, the consumer must decide

Once there is the decision to consume or purchase good s or services the common factor then becomes the need for that product which is at times evaluated based on attainability and price. In many situations if consumers are not motivated by the need to purchase then the possibility lies that they will not purchase. There may be different justifications that consumers internalize when making the decision to purchase a particular product at its given price. Different decisions supports the need to purchase a product such as

Country specific advantages are the advantages which can be captured by any producer in that particular country. For LVMH, which is originated from France, can benefit from some privileges of France:

Even though India has been one of the top destinations for shared services, the country is rapidly emerging as a manufacturing location for many foreign corporations. Among the sectors, the highest number of FDI projects in the country was drawn by technology, followed by retail and consumer products. Multinational companies in India have produced higher returns across sectors such as FMCG, and pharmaceutical over the last three years in comparison to their Indian peers. The Indian units of global consumer goods like Hindustan Unilever, Nestle and Colgate-Palmolive have displayed returns of over 95%, 110% and 150%, respectively, on an average during the last three years, double the 35-42% returns stated by Indian companies like Dabur and Godrej Consumer.

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