Market size

Market size is depend on Target market, is a set of buyers sharing common needs or characteristics that
the company decides to serve.There are several target market segments including undifferentiated
marketing,differentiated marketing, concentrated marketing, and micro marketing. both these combine
provide services to these following areas.

World region or country PAKISTAN

Country region PUNJAB

City MORE THAN 40 CITIES INCLUDINGLAHORE, GUJRANAWALA,Multan,Sibi

Climate hot weather

Because the segmented marketing is a market-coverage strategy in which afirm decides to target several
market segments and designs separate offers for each.This is also the case in AC target marketing.This
target marketing is very apt for the AC because the product is one and dealingwith several segments
existed in the market.

Current home appliances brand in pakistan

LG Pakistan

The history of LG has always been based around the company's desire to create a happier, better
life.LG Electronics has unveiled many new products, applied new technologies in the form of
mobile devices and digital TVs in the 21st century and continues to reinforce its status as a
global company.

Pak Elektron Limited – PEL

Pak Elektron Limited - PEL is the pioneer manufacturer of electrical equipment in Pakistan. PEL
was established in 1956 with technical collaboration with AEG of Germany.

Samsung Pakistan

Since its founding in Suwon, Korea in 1969, Samsung Electronics has grown into a global
information technology leader, managing more than 200 subsidiaries around the world.

The Company’s offerings include Home Appliances such as TVs, Monitors, Refrigerators and Washing
Machines as well as key mobile telecommunications products like Smartphones and Tablets
Dawlance

Dawlance is a household brand of home appliances in Pakistan. Dawlance began its

operations in 1980 and has grown steadily over the past three decades into a company
known for quality and reliability of its products and services.

Orient Group of Companies

Established in Lahore in 1957 with Photo Goods business, today the Orient Group of
Companies is one of the largest consumer goods companies of Pakistan. In 1975, the
company launched its imports division. With hard work, excellent services, honesty and
strongly integrated business ethics, the imports business grew consistently and resulted in
the formation of Orient Enterprises.

Al-Meraj Home Appliances

Managed By: Mr. Muhammad Afzal Bhutta - MDMr. Asad Afzal Bhutta - CEOMr. Adnan Afzal
Bhutta – Director.
Y.O.E: 1979
Business Type: Wholesalers, Manufacturers, Exporters.

Market situation analysis

Similar to any developing economy, consumption and usage of electric goods such as televisions,
refrigerators and air conditioners has increased in Pakistan. However this increase has not been
proportional provincially and demographically. This paper will analyze the previous distribution of
electric goods in Pakistan as well as the future trends that they exhibit with respect to televisions,
air-conditioning, refrigeration and tube light industry.
Television viewership has steadily increased in Pakistan. In Punjab the estimated number of television
sets is more than the combined (estimated) number of televisions in other provinces

Refrigeration industry has exhibited tremendous growth in Pakistan. The demand for refrigerators is
estimated to be at 300,000 per annum for 1994-95 and is expected to grow at the rate of 10% per
annum for the next five years

In aggregate terms the electric goods market has grown tremendously. With an increasing population as
well as GDP growth rate, this industry can easily be estimated to grow more in all arenas. Increasing
competition can also be estimated to increase quality of the product. So as increase the demand
completion also increased, that is a big challenge for companies to maintain his place in country. With
increasing no. of customer number of home appliance production was also increased and bring
something better than other.

As company’s produces better quality of product that enhances production cost that may minimize
profit margin and create some challenges for others.
Pest analysis

Political environment
In Pakistan there is no sustainability in political system of country. There are always conflicts regarding
tax system, budget allocation trade policies. Pakistan is one of the most vulnerable countries of world.
Very few incentives are given to manufacture. Government also increased minimum wage rate.

For haier to combine working with vestle may have regulation policies. But current government has
relaxation on tax system regarding tariff. Current government promotes foreign investment in country
that is good sign to run a business.

Social environment
For haier to run a business in Pakistan may have issue of price wars. In Pakistan air conditions are mostly
used by upper and middle class. People are more conscious about price due to financial crisis. Customer
has started considering split air conditioners as a symbol of status.more demand of split ac due to
energy saving.

Economical environment

With haier operationsit can be affected by the country economic condition.for instance if country
economic growth has declining and going towards inflation,haier,s sale affected because people have no
power to buy their product.however