1. Promotions ManagementExploratory ResearchAir Conditioning IndustryPresented By:Group 6Meesha Siddiqui Mohsin ZebTaimur Alam Butt Saif-Ur Rehman

2. Brief Overview Of IndustryBrief Overview Of IndustryIntroduction To HaierIntroduction To HaierCompetitor AnalysisCompetitor AnalysisDemographic And Psychographics Of Target MarketDemographic And Psychographics Of Target MarketFindings Of Exploratory ResearchFindings Of Exploratory ResearchCreative BriefCreative BriefPrint AdPrint AdMedia PlanMedia PlanOutline of theproject 3. Project ProposalWe were required to carry out a research on the electric appliancesWe were required to carry out a research on the electric appliancesindustry of Pakistan gathering an overview of the various productsindustry of Pakistan gathering an overview of the various productsavailable in the Pakistani market.available in the Pakistani market.The main focus of our study being narrowed down more specificallyThe main focus of our study being narrowed down more specificallyto the air conditioners segment.to the air conditioners segment.With the overall disposable income of the average Pakistani consumerWith the overall disposable income of the average Pakistani consumerrising and betterment of life styles, air conditioners are becoming arising and betterment of life styles, air conditioners are becoming abasic necessity of life, especially in a country like Pakistan wherebasic necessity of life, especially in a country like Pakistan wheretemperature is at an extreme.temperature is at an extreme. 4. ObjectivesTo try and understand the thinking of the consumers whopurchase air-conditioners.Know-how pertaining to the electronics purchased.Purchase Pattern (seasonal variations, events etc.)Attributes considered while purchasingBasis for creative platform and strategy 5. Haier is a globally recognized manufacturer of world-classelectrical home appliances.Joint venture between Ruba General Trading Company andHaier Group of China who brought Haier to Pakistan.Initial investment of about US$35 million.Commitment to provide world-class innovative products basedon uncompromising quality to the Pakistani consumer.Introduction OfIntroduction OfHaierHaier 6. The plant spreads over a vast area of 63 acres with a coveredarea of 0.6 million square feet including a workers colony onRaiwind Road, Lahore.The project is expected to produce 0.9 million pieces of householdappliances per year with plans to export to the Middle East and allover Asia.The roster of products in Pakistan includes Refrigerators, Air-Conditioners (Window & Split), Deep Freezers, WashingMachines, Microwave Ovens and Small Appliances withDishwashers, Vacuum Cleaners, Television SetsIntroduction OfHaier contd. 7. Haier Air-Conditioners:Product Range consists of:Inverter Series ( Environmentally friendly, vitamin - clayer, 50% energy saving)E-Series (Works in extreme temperatures exceeding 52degrees)PKA Series (Economical and powerful) 8. Price RangePrice RangeBrand 1 Ton 1.5 Tons 2 TonsHaier Rs. 21,000 Rs. 28,500 Rs. 43,000 9. Placement:Haier distribution networkconsists of :3 display centers in Lahore,Karachi and QuettaNationwide offices, salesoffices in the following cities ofPakistan are shown.18 Service centers73 authorized dealers all overPakistan 10. Promotions:Use of Billboards, newspaper advertisements, televisioncommercialsHaier s participation at exhibitions such as DawnLifestylesCollaboration with Summer OlympicsCelebration of events:- Mothers day lucky draw andfathers day cricket tournament 11. CompetitorCompetitorAnalysisAnalysis 12. Cool Industries (Pvt) Limited., was established in 1973 and grewto a leading Home Appliances manufacturing Company inPakistan.Cool Industries (Pvt) Limited, products capture over 80% of thelocal market for Refrigerators, Deep Freezers, Air Conditionersand other home appliances.The company manufactures Refrigerators, Deep Freezers, AirConditioners, Washing Machines, Microwave Ovens and manyother quality home appliances, with the production ratio exceedingthe overall production of Pakistans appliances manufacturers.Waves..Waves.. 13. Waves is the undisputed leader in the market, both inthe residential and commercial sector of Pakistan.Waves split AC are energy savers and provide strongcooling due to its T4 compressor.Waves..Product Range Consists of:WS seriesPlasma Gold Series 14. PricePriceRangeRangeBrand 1 Ton 1.5 Tons 2 TonsWaves Rs. 20,500 Rs. 24,900 Rs. 35,500 15. BahawalpurD.G. KhanFaisalabadGujranwalaHyderabadKarachiLahoreLarkanaMultanPeshawarQuettaRawalpindiSargodhaSialkotSukkurSahiwalPlacement:Waves has display centers in the following cities, namely: 16. Promotion:Promotion:Uses Banners, Newspaper ads, TV commercials, Brochures,catalogs and E-NewsletterSales promotions:Sales promotions:Use of Gift vouchers and special offers. 17. Established in 1956 as the pioneer of Pakistani electricalgoods in technical collaboration with M/s AEG of Germany.In October 1978, the company was taken over by SaigolGroup of Companies.The company comprises of two divisions:Appliances DivisionPower DivisionAppliances Division consists of appliancesmanufacturing namely air conditioners, refrigerators andDeep Freezers:PELPEL.. 18. PEL Air ConditionersPEL Air ConditionersPEL window-type air conditioners were introduced in1981 in technical collaboration with General Corporation ofJapan.PEL air conditioners cooling performance has been testedand approved by Copeland and ITS USA.With the shift of users preference from window type tosplit type air conditioners, PEL has started manufacturingsplit type air conditioners. 19. Product and Price RangeSilver Line QB 1.5 tons Rs 30,300Regal R2 1.5 tons Rs 22,600Challenger C-4 1.5 tons Rs22,600Future F-19 1.5 tons Rs 29,400Dazzler D21 1.5 tons Rs. 29,200Luxury L5 1.5tons Rs. 28,500 20. Placement:Placement:In order to facilitate its customers, Pel has a number ofcenters located in various cities around Pakistan for theease of accessibility by its customers.PEL has the following networks namely:Customer care centersAuthorized service centersArea sales offices 21. Bahawalpur Batkhela Dera Ghazi Khan Burewala Dera Ismail Khan Faisalabad Gojar Khan Gujranwala Gujrat Hyderabad Karachi Lahore Mirpur-AJKMirpur-AJK MultanMultan OkaraOkara PeshawarPeshawar QuettaQuetta Rahim Yar KhanRahim Yar Khan RawalpindiRawalpindi SargodhaSargodha SheikhupuraSheikhupura SialkotSialkot SukkurSukkur WahWahThese are located in the following cities:Placement 22. PromotionsPromotionsUses Banners, Newspaper ads, TV commercials,Brochures, catalogs, magazines and radio commercialsBrand Ambassadors such as Hadiqa Qiyani. 23. BRAND 1 TON 1.5 TONS 2 TONSHaierHaier Rs. 21,000Rs. 21,000 Rs. 28,500Rs. 28,500 Rs. 40,000Rs. 40,000Samsung Rs. 25,000 Rs. 31,000 Rs. 43,500LG Rs. 24,500 Rs.33,000 Rs. 42,500Orient Rs. 21,500 Rs. 28,000 Rs. 42,600PEL Rs. 21,000 Rs. 28,000 Rs. 35,000Panasonic Rs. 26,000 Rs. 36,000 Rs. 45,000Mitsubishi Rs. 27,000 Rs. 36,500 Rs. 45,000Waves RS. 20,500 RS. 24,900 RS. 35,500Prices Of VariousBrands 24. Trends In The Split AirTrends In The Split AirConditioner IndustryConditioner IndustrySplit units consumption and production peaked in the summer of2006.The year 2007 saw the sales of split air conditioners leveling out.This year the consumption and production of splits is down byapproximately 50%, reason being assembly plants being severelyaffected by the electricity crisis and the hike in oil prices.The effect load shedding has had on the sales of split units has beennegative, with sales dipping by 10-20%.Suggesting that if people were buying 10 split units a day beforeload-shedding, now they are buying approx. 8 units 25. Market Share Of Various CompaniesMarket Share Of Various CompaniesProducing Split Units For AirProducing Split Units For AirConditioningConditioning 26. Questions Used For theInterviews ConductedQuestions regarding the air-conditioner usage per day.What are factors which influence your purchase?Which brand cools the most?How do you evaluate your brands competitors from the brand youare using?Which brand did you previously use?Which brands would you prefer to buy?Do advertisements affect your purchase? 27. Age Bracket 25-55Interview duration 15-30 minutesLocation Home, office and universityName of brand used Specifically HaierRole of person Buying authority holderSelection Criteria 28. NAME AGE GENDER PROFESSION S.E.CRaja Tanzeel 26 Years Male Student AMohd. Yousaf 29 Years Male Banker AMohammadIkram35 Years Male Real Estate ADr. Adeel Ashraf 37 Years Male Doctor ADr. GulraizAhmad36 Years Male Professor AMohd. Mubeen 35 Years Male Businessman AZafar Ul Majeed 55 Years Male Govt. Officer ADemographics (SEC A)Demographics (SEC A) 29. Social class A1 & A2Hobbies Music, internet surfing, drivingbuying behavior Moderate/luxuriousDressing Executive (usually)Behavior Friendly & socialInterests Politics, entertainment world.Psychographics (SECPsychographics (SECA)A) 30. Majority of the consumers used A.C at least 8-10 hours daily.These days life without A.C is like going back to 17thcentury.Majority of the people had used Pell, Dawlance and Mitsubishi.The most affective source of media has been TVCs and Billboards.The buying decision are usually in the hand of male head of thefamily.Leakage and medical issues like lack of fresh air causes dullnessand skin diseases.HAIER is preferred brand however the list includes , Pell,Mitsubishi, and Sabro as well.Findings:Findings: 31. It makes you cooler Its the best buy for its price Better than others Live cool Living at its best. 2ndlargest home appliance selling brand worldwideWord About Haier!!!!Word About Haier!!!! 32. NAME AGE GENDER PROFESSION S.E.COmer Maqsood 38 Years Male Teacher BAhsan Ullah 29 Years Male Pharmacist BMrs. Mehtab 54 Years Female House Wife BSana Ullah 49 Years Male LaboratoryAssistantCFareed Bhatti 36 Years Male N.G.O Supervisor CAzam 35 Years Male ComputerProgrammerCDemographics (SEC B &Demographics (SEC B &C)C) 33. Social class B & CHobbies TV Dramas, Indian Movies, socializingbuying behavior consciousDressing Shalwar Qameez. Pant shirt (un formal)Behavior Friendly & socialInterests Family Issues, future concerns/planning/ideasPsychographics (SEC B &C) 34. AC is used for almost 5-6 hours daily and usually in offices. SABRO is the most preferred brand and is considered as thebiggest competitor of HAIER. Leakage and fluctuation problems have been noticed until nowin AC usage. Money is basically the biggest issue in buying and using AC.Findings: 35. Means End ChainMeans End ChainModelModelAttributes:Attributes: Works at lowvoltage Energy saving Cools attemperatures as highas 52 C TechnologicalexpertiseBenefits:Benefits:Creation of relaxed,cool environmentChilled atmospherein 10 minutes.Values:Values: Chilled livingenvironment Pleasure Relaxation Comfort Cooling 36. Creative Brief:Creative Brief: Brand Brand Belief Brand Personality The Problem Is (why are we advertising) So we must say (the differentiating proposition) To these people (target market) Who will believe it because (the support) So that this happens (desired outcome) 37. Creation of a localized brandFocus speed and differentiationIntroducing new productsBrand BeliefBrandBrandBeliefBelief 38. Unmatched home appliancesInnovator: With over 6000 patented technologycertificates and 590 software intellectual propertyrightsFriend and companion foreverThinking globally and acting locallyBrand PersonalityBrand Personality 39. Lack of awareness about the new line of Haier AirConditioners.Quality perceived is low as it is a Chinese Made AirConditioner.Competition has strong market presence.Salesmen in the outlets try to push Mitsubishi and LG AirConditioners due to higher commissions from thesecompaniesThe Problem Is (why are weThe Problem Is (why are weadvertising)advertising) 40. Providing good Value for money with the Newmodels of Air Conditioners very Powerful, being ableto work at 52 degree Celsius and at low voltagesSo We Must Say (TheSo We Must Say (TheDifferentiating PropositionDifferentiating Proposition 41. SEC A using Air Conditioners up to 10 to 15 hoursHealthy and comfortable livingEnvironmentally awareIndoors luxurious lifestyle during summerThose that consider life without an Air ConditionerunimaginableSEC B using Air Conditioners up to 5 to 8 hoursEconomic aspects considered importantTo These People (Target Market)To These People (Target Market) 42. Who Will Believe ItBecause (The Support)Haier is producing quality products in over 100countriesOfficial sponsors of 2008 Beijing OlympicsThird best Chinese brand globallyNumber 1 Chinese home appliances brand accordingto surveys by Interbrand, Business Week and BrandChannel 43. Increased awareness of the New models of the AirConditioner and its unique features that willEncourage Non users to try the Air ConditionerSo That This Happens (DesiredSo That This Happens (DesiredOutcomeOutcome )) 44. Executional Framework DramatizationExecutionalExecutionalFrameworkFramework 45. Story BoardStory Board 46. Story BoardStory Board 47. In the final scene, he will sit on his chair, cool, calmand relaxed. As he puts the remote on the sidetable, a snow flake will fall on his hand.HAIERInspired livingStory BoardStory Board 48. MediaMediaPlanPlan 49. To Create Awareness ByInforming Consumers In OrderTo Gain Wider Acceptance AndRecognition In The Market.Campaign StatusCampaign Status 50. SEC A using AC 10 to 15 hours dailyHealthy and comfortable livingEnvironmentally awareLuxurious lifestyleThose that consider life without an AC unimaginableSEC B using AC 5 to 8 hours dailyEconomic aspects considered to be importantWho have conscious buying behaviorTargetTargetAudienceAudience 51. Increase market share by 5%Increase sales volume by 15%MarketingMarketingObjectivesObjectives 52. Advertising Objectives Provide information PersuasionMedia Objectives Create awareness among 80% of the targetaudience Create interest in the brand among 65% of thetarget audience 53. The Marketing Budgets allocation has been basedon its previous years sales which are as follows:Capacity Units sold Price/unit Rs. Sales Rs.1 ton 40,000 21,000 840,000,0001.5 tons 55,000 28,500 1,567,500,0002 tons 5,000 43,000 215,000,000Total 100,000 2,622,500,000*Source:- Mr. Ahmad Hammad, Product Manager Haier ( Split A/C Units)BudgetBudget 54. CCalculation ofalculation ofMMarketingarketing BBudgetudget9% of Sales = 2,622,500,000 x.09= Rs. 236,025,000MMediaedia BBudgetudget70% of marketing budget = 0.7 *236,025,00= Rs.165,217,500 55. The media plan includes six mediums including: Newspapers Magazines Billboards Streamers Radios TV channelsWe plan to spend over two quarters, i.e. July, august andSeptember (2008) and April, may and June (2009). Thismeans that quarter 1 and quarter 4 for the fiscal year2008-09.Media StrategyMedia Strategy 56. BillboardsCity Location Size Price MonthPeshawar Arbab Road 60*20 Rs 3,000,000 AprilGujranwala 60*20 Rs 3,000,000 AprilSialkot 60*20 Rs 3,000,000 AprilFaisalabad 90*30Rs 7,000,000 AprilQuetta Sariab Road 60*20 Rs 3,000,000 AprilIslamabad Constitution Ave 90*30Rs 7,000,000 AprilRawalpindi Peshawar Road 60*20 Rs 3,000,000 AprilLahore Liberty Market 90*30 Rs 7,000,000 July, Aug, SepMozang Chungi 90*30 Rs 7,000,00 JulySherpao Bridge 60*20 Rs 3,000,000 JulyJinnah Bridge 60*20 Rs 3,000,000 JulyLink Road 60*20 Rs 3,000,000 JulyRs 66,000,000 57. BillboardsLahoreLahorePeshawarPeshawarGujranwalaGujranwalaSialkotSialkotQuettaQuettaRawalpindiIslamabad2008July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31Aug 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Sept 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 312009April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 58. Channel Prime Time Rate/minuteHum TV 8pm to 10pm Rs 50,000 We will air eight Haier advertisements every Friday, Saturday andSunday. This means that in three days we will air the ad 24 times. Thead will be aired 4 times a month and the months it will be aired will beJuly, April and May.This means that:50,000*24=1,200,0001,200,000*4=4,800,0004,800,000*3=14,400,000TelevisionTelevision 59. Channel Prime Time Rate/minuteARY Digital 8pm to 10pm Rs 50,000 We will air eight Haier advertisements every Friday, Saturday andSunday. This means that in three days we will air the ad 24 times.The ad will be aired 4 times a month and the months it will be airedwill be July, April and May. This means that:50,000*24=1,200,0001,200,000*4=4,800,0004,800,000*3=14,400,000TelevisionTelevision 60. Geo News 8pm to 10pm Rs 175,000 We will air four Haier advertisements every Friday, Saturday andSunday. This means that in three days we will air the ad 12 times.The ad will be aired 4 times a month and the months it will be airedwill be July, April and May. This means that:175,000*12=2,100,0002,100,000*4=8,400,0008,400,000*3=25,200,000TelevisionTelevision 61. Geo Entertainment 8pm to 10pm Rs 125,000 We will air four Haier advertisements every Friday, Saturdayand Sunday. This means that in three days we will air the ad 12times. The ad will be aired 4 times a month and the months it willbe aired will be July, April and May. This means that:125,000*12=1,500,0001,500,000*4=6,000,0006,000,000*3=18,000,000TelevisionTelevision 62. World Call8pm to 10pm Rs 500We will air 10 Haier advertisements every Friday, Saturday andSunday. This means that in three days we will air the ad 30times. The ad will be aired 4 times a month and the months itwill be aired will be July, April and May.This means that:500*10=5,0005,000*30=150,000150,000*4=600,000600,000*3=1,800,000The costs amounts to Rs 73,800,000TelevisionTelevision 63. Hum TVARY DigitalGeo NewsGeo EntertainmentWorld CallTelevisionTelevision 64. Name Rate Size Placement Price(1 day)Jang Rs 3,400/single column cm Q page front page 367,200Nawa-i-Waqt Rs 2,200/single column cm Q page front page 237,600Daily Times Rs 1,100/single column cm Q page front page 118,000News Rs 2,500/single column cm Q page front page 270,000Dawn Rs 1,900/single column cm Q page front page 205,200Nation Rs 1,100/single column cm Q page front page 118,0001,316,000 *15The cost amounts to Rs 19,740,000NewspapersNewspapers 65. NewspapersNewspapersJangNawa-i-WaqtNewsDawnNation 66. Name Rate Frequency PriceMe and My Wedding 15,000 Quarterly (2) 30,000Libas 30,000 Quarterly (2) 60,000Visage 12,000 Quarterly (2) 24,000Womens Own 11,000 Monthly (6) 66,000Sunday 30,000 Weekly (24) 720,000900,000MagazinesMagazines 67. Name Time Duration PriceFM89 7 am to 8am 4 minutes 4,0005pm to 9pm 12 minutes 12,000FM100 7am to 8am 4 minutes 4,0005pm to 9pm 12 minutes 12,000FM 106.2 5pm to 9pm 12 minutes 12,000Rs. 44,000We will air the ads five times a day, which means that44,000*5=Rs 220,000Rs 220,000*6 months= Rs 1,320,000Therefore, the amount equals Rs 1,320,000RadiRadioo 68. RadiRadiooFM 89FM 100FM 106 69. The rate for a streamer (both sides) per pole isRs 1,500 a week.The routes we have chosen are:Route Poles PriceSherpao Bridge-Zafar Ali Road 25 37,500Kalma Chowk-Liberty Chowk 30 (2)=60 90,000Kalma Chowk-KFC 30 45,000Kalma Chowk-Model Town Mor 20 30,000Kalma Chowk-PU New Campus 30 45,000Jail Road (Canal)-Mozang Chungi 60 90,000325,500StreamerStreamerss 70. This amount will be multiplied by six weeks because weplan to put up the streamers in the first week of July,August, September, April, May and June. Therefore,325,500*6=Rs 1,953,000StreamerStreamerss 71. Allocation Of TheAllocation Of TheMedia BudgetMedia BudgetBillboardsBillboards Rs. 66,000,000Rs. 66,000,000TVTV Rs. 73,800,000Rs. 73,800,000NewspapersNewspapers Rs. 19,740,000Rs. 19,740,000RadioRadio Rs. 900,000Rs. 900,000Total amount allocatedTotal amount allocated Rs. 165,217,500Rs. 165,217,500Total amount spentTotal amount spent Rs. 164,440,000Rs. 164,440,000Amount leftAmount left Rs. 777,500Rs. 777,500 72. Sales Promotion budget:= 27% of marketing budget= 0.27 * 236,025,000= Rs 63,726,750Miscellaneousmarketing expensesbudget:= 2% of marketing budget= 0.02 * 236,026,000= Rs 4,720,500Note: this is for un-forecasted marketing activities 73. Promotion Budget Allocation:Promotion Budget Allocation:Trade promotion:Increase retailers margin from 10% to 12%1 tonUnits sold: 40,000Price per unit: 21000 RsTotal Sale = 840,000,000 RsRetailers Margin (current) on each 1 ton unit sold= 10% of sale price= 0.10 * 21000 = 2100 RsRetailers Margin (new) on each 1 ton unit sold= 12% of sale price= 0.12 * 21000 = 2520Difference = Rs 2520 Rs 2100 = 420 Rs per unitTotal Difference in cost:Rs 420 * 40,000 = Rs 16,800,000 74. 1.5 tons1.5 tonsUnits sold: 55,000Units sold: 55,000Price per unit: 28500 RsPrice per unit: 28500 RsTotal Sale = 1,567,500,000 RsTotal Sale = 1,567,500,000 RsRetailers Margin (current) on each 1.5 ton unit soldRetailers Margin (current) on each 1.5 ton unit sold= 10% of sale price= 10% of sale price= 0.10 * 28500 = 2850 Rs= 0.10 * 28500 = 2850 RsRetailers Margin (new) on each 1.5 ton unit soldRetailers Margin (new) on each 1.5 ton unit sold= 12% of sale price= 12% of sale price= 0.12 * 28500 = 3420 Rs= 0.12 * 28500 = 3420 RsDifferenceDifference = Rs 3420 Rs 2850 = 570 Rs per unit= Rs 3420 Rs 2850 = 570 Rs per unitTotal Difference in cost:Total Difference in cost:Rs 570 * 55,000 = Rs 31,350,000Rs 570 * 55,000 = Rs 31,350,000 75. 2 tons2 tonsUnits sold: 5,000Units sold: 5,000Price per unit: 43000 RsPrice per unit: 43000 RsTotal Sale = 215,000,000 RsTotal Sale = 215,000,000 RsRetailers Margin (current) on each 2 ton unit soldRetailers Margin (current) on each 2 ton unit sold= 10% of sale price= 10% of sale price= 0.10 * 43000 = 4300 Rs= 0.10 * 43000 = 4300 RsRetailers Margin (new) on each 2 ton unit soldRetailers Margin (new) on each 2 ton unit sold= 12% of sale price= 12% of sale price= 0.12 * 43000 = 5160 Rs= 0.12 * 43000 = 5160 RsDifferenceDifference = Rs 5160 Rs 4300 = 860 Rs per unit= Rs 5160 Rs 4300 = 860 Rs per unit 76. Total Difference in cost:Rs 860 * 5,000 = Rs 4,300,000Total cost for this promotion:Difference in cost 1 ton = Rs 16,800,000Difference in cost 1.5 ton = Rs 31,350,000Difference in cost 2 ton = Rs 4,300,000Total Difference in cost = Rs 52,450,000 77. Annual Business-CUM-pleasure trips organized byHaier for its top fifty retailers along with there familywith regards to sales at PC Bhurban with all expensespaid.Cost for 1 family for two days and two nights (all inclusive) = Rs 30,000Cost for 50 families for two days and two nights = Rs 30,000 * 50 = Rs1,500,000 78. Placement of vertical flexes of Haier AC (size 5*3), atthe entrance of general (non-company owned) salesoutlets of electric appliances.Cost of each flex ( 5*3) = Rs 250Cost for 10,000 flexes = 250 * 10,000 = Rs 2,500,000 79. Total Trade Promotion CostsTotal Trade Promotion CostsIncrease retailers margin from 10 to 12% of sales (note: this cost isaccounted for as a promotional expense in current year and will berecognized and charged as a retailers margin from next year only on thesuccess of this campaign) = Rs 52,450,000Annual Business-CUM-pleasure trips organized by Haier for its top fiftyretailers along with there family with regards to sales at PC Bhurbanwith all expenses paid = Rs 1,500,000Placement of vertical flexes of Haier AC (size 5*3), at the entrance ofgeneral (non-company owned) sales outlets of electric appliances = Rs2,500,000Total cost for trade promotion = Rs 56,450,000 80. Consumer Promotion:1.With every purchase of 2 ton unit, get a chance to be oneof the hundred lucky winners of a 0.5 KW Chinese petrolgenerator winner.0.5 KW Chinese generator @ Rs 8,900 per generator100 * 8,900 = Rs 890,000 81. With every purchase of Haier 2 ton unit, getWith every purchase of Haier 2 ton unit, geta free wash service of any old unita free wash service of any old unitCost @ 1 free unit service = Rs 200Cost @ 1 free unit service = Rs 200Cost of 5000 units = Rs 200 * 5000 = Rs 1,000,000Cost of 5000 units = Rs 200 * 5000 = Rs 1,000,000 82. With every purchase of 1 and 1.5 ton unit, get aWith every purchase of 1 and 1.5 ton unit, get achance to go with your family (5 members) tochance to go with your family (5 members) toshangrila Skardu and enjoy free stay for two nightsshangrila Skardu and enjoy free stay for two nightsand two days including food and tickets.and two days including food and tickets.Cost @ 1 family = Rs 100,000Cost @ 10 families = Rs 1,000,000 83. Total consumer promotionTotal consumer promotioncostscostsWith every purchase of 2 ton unit, get a chance to be one of the hundredlucky winners of a 0.5 KW Chinese petrol generator winner = Rs 890,000With every purchase of Haier 2 ton unit, get a free wash service of anyold unit = Rs 1,000,000With every purchase of 1 and 1.5 ton unit, get a chance to go with yourfamily (5 members) to Shangrila Skardu and enjoy free stay for twonights and two days including food and tickets = Rs 1,000,000Total consumer promotion costs = Rs 2,890,000 84. Total Sales PromotionTrade promotion = Rs 56,450,000Consumer promotion = Rs 2,890,000Total = Rs 59,340,000Allocated budget Rs 63,726,750Un-utilized budget = Rs 4,386,750 85. Intended Promotional CampaignIntended Promotional Campaign2009 2010 (Addition to the 2008-2009 2010 (Addition to the 2008-09 Campaign)09 Campaign)Trade PromotionOffer a free air conditioner for the retailers home use in order to stresson immaculate quality (for top 500 with respect to sales)Consumer PromotionTargeting of corporate and government departments by offering bulkdiscountsNegotiating with contractors or construction of new houses andbuildings by offeringPrice cutsOn purchase of 24 units, get 1 free of same capacityOn purchase of 1.5 ton unit, get a free 0.5 KW support UPSOn the purchase of 1 ton unit, get a free rechargeable fan 86. THANK YOU!THANK YOU!