【品牌战略】老麦帮三星对海尔的分析

1、White Goods Competitor Assessment Haier Samsung Electronics China (SEC China)August, 2001CONFIDENTIALThis report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKi

2、nsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.1CONTENTS 1. Background informationLocationStarting yearIPO date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain

3、strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureSales Profit 2. Strategy 3. Product/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeograp

4、hic focusPricing2CONTENTS 1. Background informationLocationStarting yearIPO date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (c

5、hannel and sales force)Organization structureSales Profit 2. Strategy 3. Product/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeographic focusPricing3BACKGROUND INFORMATION Source: Annual report; analyst reports; web site; Yuegang Information Daily Loca

6、tion: QingdaoStarting year: 1984IPO date: Listed refrigerator business in November, 1993Brand value (2000): RMB 30 billionMarket share: Refrigerator: 31%; Washing machine: 29%; Air Conditioner: 20%; Microwave: 2%Number of employees: 30,000Equity structure:Key shareholdersPercentageHaier GroupHaier E

7、lectronic International Co,. Ltd 31.44%17.93%Sales Revenue (2000): RMB 40.6 billion4HAIERs DEVELOPMENT WENT THROUGH THREE STAGESSource: Haiers website, literature searchBrandingDiversification and expansionGlobalization1984 - 19911992 - 19981998 - Key initiativeBuilt a strong brand name in refrigera

8、tors through a well deve-loped TQC systemDiversified the product portfolio to avoid having all the com-panys eggs in one basket through mer-gers and acquisitionsTo build an international brand name Aspires to become fortune 500Key resultsWon the first prize in the most favorite light industry produc

9、ts refrigerators” 5 years in a rowWon the state prize for quality managementPresented with the customer satisfaction cup by Chinas customer satisfaction movement congressAcquired 14 enterprises under the eating dormant fish strategy. Successfully turned these businesses around by leveraging Haiers b

10、rand and introducing Haiers OEC managementExpanded product portfolio from 1 product to over 9,000 products in 42 categoriesSold products to over 160 countries and regions and established more than 38,000 sales outlets across the world5Haiers brand value in 2000: RMB 30 billionHAIERs BRAND BECAME TRE

11、MENDOUS INTANGIBLE ASSETSource: Literature search, web siteExamples of Haiers successful investment with its brandAcquired Qingdao Red Star Electronic Company and changed its washing machines brand into Haier. With the help of OEC management, quickly turned the company into a profitable business. Ha

12、ier became the No. 1 brand for washing machine the next year and enjoyed the highest market shareAcquired controlling shares of Shunde Washing Machine Factory with Haier brand and quickly turned around the businessTook controlling shares of Hangzhou Haier Electronic Company with Haier brand and deve

13、loped Haier series of color TV6 Source: WebsiteKitchen appliances RefrigeratorFreezerMicrowaveGas range Small appliances Electric ironVacuum cleaner Ventilating appliancesAir conditionerRange hoodAir purifier Cleaning appliancesWashing machineElectric water heater HAIER OFFERS BROAD RANGE OF PRODUCT

14、S Haiers key product offerings Mobile handset Telecommunications Brown goods Color TVVCDTelephonePCPDA IT7HAIER HAS SUCCESSFULLY EXPANDED INTO GLOBAL MARKETSource: Annual reportDevelop global distribution network62 distributors and around 38,000 outlets across the worldSet up production facilities o

15、verseasSet up plants in Indonesia, Philippines, Malaysia, East Europe, US1999 exportsRefrigerator: 568,000 unitsAir conditioner: 200,000 unitsWashing machine: 190,000 unitsRefrigerator market share in US (2000) 124 L: 30.1%183 - 266L: 35.88%8CONTENTS 1. Background informationLocationStarting yearIPO

16、 date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureSales Profit 2. Strategy 3. Pr

17、oduct/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeographic focusPricing9HAIERs STRATEGIC FOCUS IN 2001 Source: Haiers annual report Value war instead of price warFocus on improving technical contents in products Produce individualized productsGlobal

18、competitive advantageArrange all business processes around order flow Build competitive advantage in quality, cost and lead time through OEC management Product development Develop products that are tailored for different countries and regions Improve technology in large capacity refrigerators and ne

19、twork refrigerators Improve production capability for special refrigerators Human resource Provide rigorous trainings to employees and develop them into industry experts and management experts ServiceBuild extensive and exclusive service network to ensure strong reputation of being a service leader1

20、0CONTENTS 1. Background informationLocationStarting yearIPO date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales

21、 force)Organization structureSales Profit 2. Strategy 3. Product/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeographic focusPricing11HAIERSs KEY WHITE GOODS OFFERING Source: Literature searchWhite goods Wide range of typesSide-by-side Refrigerator Was

22、hing machine Air conditioner Microwave Product type Double chamberDrum Pulsator WindowSplit Packaged Central airGrill and non-grillMechanic and electronic12HAIER WHITE GOODS MARKET SHARE, 2000 Refrigerator Washing machine Air conditioner Percent Source: LIICMicrowave3129210.213* Rongsheng and Kelon

23、combined Source: SINO-MR, GfK, LIIC100%=1998Others 1999200037.432.435.75.728.030.912.38.610.08.826.1Samsung Electrolux Meiling Kelon*Haier Siemens Haier and Kelon are the leading players. However, their market shares are decreasing Although latecomers to the market, Elec

24、trolux and Siemens are quickly building up their positions by focusing on mid-to high-end and high-end markets Compared to other MNC players, Samsungs growth in the market is rather slow Millions units, percent Refrigerator market share of major players in major cities4.5-6.215.6270.7101.23.9-6.9-5.

25、0CAGR(98-00)PercentSamsungHaier/Kelon/Meiling Siemens/Electrolux0.7HAIER IS A LEADING PLAYER IN MOST OF WHITE GOODS MARKETSREFRIGERATOR EXAMPLE14* Kelon and Rongsheng combined Source: SINO-MR, GfK, LIIC100%=North China Others Samsung Electrolux Meiling Kelon*Haier Siemens Electrolu

26、x and Siemens are doing particularly well in Southwest Apart from Southwest, MNC players are doing better in east China and South China, relatively more affluent areas Samsung is relatively strong in East China and South China North East East China Central South South West North West 32.011

27、.1.730.836.65.90.421.926.031.010.53.324.420.411.09.820.833.8Refrigerator market share in major cities by geography, 2000Million units, percentSamsungHaier/Kelon/Meiling Siemens/ElectroluxHAIER HAS DEMONSTRATED STRENGTH

28、 IN MOST GEOGRAPHIC REGIONSREFRIGERATOR EXAMPLE15* Another Kelons brand Source: SINO-MR, GfK, LIIC100%= 4,0002.01.92.017.819.624.80016.04.145.713.828.310.01.318.736.32.03.82.919.326.09.40.44.70.348.10.312.5Rongsheng*0Refrigerator

29、market share in major cities by price band, 2000Million units, percentElectroluxKelon/RongshengSiemensSamsungHAIERS PRODUCTS COVER ALMOST ALL PRICE SEGMENTSREFRIGERATOR EXAMPLE16* Another Kelons brand Source: SINO-MR, GfK, LIIC100%= 100LOthers Samsung Electrolux Meiling Kelon*Haier Siemens 0.21.00.7

30、Haier is leading in most markets Electrolux and Siemens have strong position in mid-to-large capacity markets Samsung is very strong in small capacity ( 300L2.60.03Rongsheng* 40.47.8051.213.401.49.602.821.424.80.84.229.735.511.010.12.922.1

31、7.834.45.013.730.4019.00.20Refrigerator market share in major cities by product type, 2000SamsungHaier/Rongsheng/Kelon Siemens/ElectroluxHAIERS PRODUCTS COVER BROAD RANGE OF TYPESREFRIGERATOR EXAMPLE17CONTENTS 1. Background informationLocationStarti

32、ng yearIPO date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureSales Profit 2. Stra

33、tegy 3. Product/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeographic focusPricing18APART FROM STRONG BRAND, HAIERS KEY STRENGTHS LIE IN STRONG ATTENTION TO R&D, SUCCESSFUL SUPPLY CHAIN AND LOGISTICS MANAGEMENT, WIDE DISTRIBUTION NETWORKS AND QUALITY

34、AFTER-SALES SERVICES Key strengths R&DLeading technologies in high efficiency, inverter, energy-saving, environmental protection, etc. Strong R&D resource (R&D spending accounts for 45% of revenue)Quick commercialization of new technologies (75% commercialization rate)Product design reflecting indiv

35、idualization Founded Haier Central Institute of Research with partners from US, Japan, Germany, etc. Set up 48 R&D entities world wide Set up new product experiment center in each key business unit Build technology alliance with 15 research institutes including Philips, C-Mold and Netscreen Recent d

36、evelopment Logistics Sophisticated supply chain management and highly efficient logistics management Launched “I design my own refrigerator marketing strategy Built ERP, BPP and CRM systems Built Chinas largest and most advanced logistics center in Qingdao Sales and marketing Strong brand recognitio

37、n Invested RMB 0.5 billion in A&P Distribution Highly efficient distribution network (42 distribution centers, and over 9,000 sales outlets)Improved delivery time to 8 hours in hub cities, 24 hours in surrounding areas, 4 days anywhere in the country After-sales service Strong reputation in offering

38、 excellent after-sales service Continue promote the concept customers are always right19HAIER LOGISTICS HAS GAINED RICH EXPERIENCE IN SOPHISTICATED SUPPLY CHAIN MANAGEMENT Source: Literature researchOptimized supply chain managementHaiers operating objectiveZero inventoryZero distanceZero working ca

39、pitalHaier logistics management model: “one-flow and three-net”One flow: order information flowThree netGlobal supplier resource networkGlobal customer resource networkIT networkCurrent capabilitiesHaiers order flow6,000 orders/month15,000 sourcing partsSupplier base978 supplier (58% lower than befo

40、re)20% international suppliers include GE, Emmerson, etc.Internet usage 100% purchasing orders online20% online paymentPurchasing lead time 3 days comparing with 10 days before20HAIERs DISTRIBUTION CENTER HAS A LARGE GEOGRAPHY COVERAGE IN CHINAHaiers distribution networkHaier logistics center (Qingd

41、ao)42 distribu-tion centers1,550 specialty stores and 9,000 sales outletsDistribution network in ChinaInternational presence: DG for air-con related products at Hamburger Harbor, Germany, partnering with HHLAShanghaiBeijingWith established network, Haier has promised a competitive time of delivery8

42、hours within core cities24 hours in adjacent areas of core cities4 days for nationwide distributionTransportation equipment: over 10,000 trucks in China Haiers facilities21HAIER HAS A DISTINCTIVE DISTRIBUTION APPROACH WHICH IS HEAVILY FOCUSING ON DIRECT RETAIL SALES FOR BASE AND HUB CITIES. Source:

43、Field interview; McKinsey analysisSpecialty shoresFirst tier citySecond tier cityThird tier cityHaier shop-in-shopsRetailers in first tier cities Retailers in some large second tier cities Specialty store Haier shop in shops Retailers in second tier cities Specialty store Haier shop in shops Retaile

44、rs in third tier cities Specialty storesHaier A/C sales Co.Haier sales branches in small second tier citiesWholesales in some third tier citiesHaier sales center in first tier citiesHaier sales center in some large second tier citiesHaier sales centers in first and second tier citiesHaier sales bran

45、ches in big third tier citiesEast regionNorth regionWest regionSouth region22CONTENTS 1. Background informationLocationStarting yearIPO date Number of employeesBrand valueMarket shareSales revenue Equity structureEra analysis4. Value chain strategy5. Organization and ownership6. Financial performanceFocus onMarketing, advertising and promotionDistribution (channel and sales force)Organization structureSales Profit 2. Strategy 3. Product/market Corporate strategyKey product offeringsMarket position Key customersValue propositionGeographic focusPricing23HAIE