How Does the Brand Strategy Work -A Case Study of the Haier Group--p6论文网|代写CSCD核心EI期刊SCI期刊SSCI期刊ISTP

In the time of market economy, brand has become a important tool for enterprises to occupy the market. With the improving living standard of people, brand is becoming more and more important. In the day of economy globalization, enterprises have to pay emphasis on brand strategy in a strategic height if they want to live on in a global competition.

Brand is a kind of intangible assets to bring premium, produce value-added to the owner of it, and its carrier is a combination of name, terminology, symbol, a sign or design distinguishing itself from other competitors’ products or services. And the source of added-value is from the impression about the carrier formed in the mind of consumers. Now, the brand marketing has gone through “the product supreme”, “the image supreme” and “the localization supreme” stages，and it already entered the age of “value leading”．

In recent years, as a large number of continuous changes emerged in domestic refrigerator industry, a series of brand merger and corporation acquisition made the refrigerator industry unstable greatly. According to the data sent by China's information center in National Bureau of Statistics, Haier, Xinfei and Siemens are in the first three positions in terms of sales. In fact, Haier is always in the first position not only in domestic domain but also across the world, which is a data sheet released by a worldwide authoritative research company called Japan Fuji economy. In fact, the success of Haier is mainly contributed to its successful brand strategy.

In this paper, we will start from researches of brand strategy in western countries and in China, and then review the origins, definitions, functions and sorts of brand strategy. The literatures will provide the academic underpinning for the whole research. The third part of the article will analyze the present situation of brand building in Chinese market. In this part, we will find out the actuality of the brand strategy in our country enterprises and the gap between Chinese brands and the famous brands all over the world．And then analyze the environment of brand building in Chinese market and the trend of the development of brand strategy. The next, by analyzing the case of Haier, we will know how Haier build its brand through carrying out its brand strategy, in the part, we will also know the developing stages of the brand of Haier group, the brand orientation, brand extensions, and the revelatory conclusion for Chinese enterprises building brands. In the end, we will point out that we need the brand strategy plan first at all in Brands Strategy. On the base we should adequately understand the special circumstance of enterprises, and integrate with scientific research, manufacture, sell, promotion and service etc，to make out a seemly policy which is operable.

Also, we consider brand building is a long-term investment, a strategic project and a whole business system．With all these methods, the research hopes to find out the rules of Chinese market and the role brand strategy played in this market.

2.0 Introduction

The forming of economic globalization and big market of the world makes the competition among enterprises fiercely day by day. This kind of competition has already become the comprehensive competition including products, the service and even corporate culture, etc. from the product function competition rising of the earlier stage and formed the stage construction, three-dimensional competition paten that melts. It is named competition of the brand. More and more enterprises have also started to realize this, but a lot of enterprises have problems about brand management and make a lot mistakes.

At present, in the western countries there are a lot of researches about brand strategy. This article will focused on China, the fastest growing market in the world. In the research, the objective is to find out the present situation of brand building.

Speaking of brand building China, we always think of Haier, which made great progress in brand strategy. At present, Haier has become a multinational group from a small factory in Qingdao, which ranked the most valuable brands of China in the past nine years. By 2010, Haier has set up 29 manufacturing bases, 8 comprehensive centers for research and developing, and 19 trading companies overseas. And employees all over the world are more than 70000. In 2010, the global turnover of Haier reached 135.7 billion Yuan, and its brand value reached 85.5 billion Yuan, the most valuable brand in China. In December 2010, Euro Monitor, the authoritative institution of market research released the results of global home appliance market survey: Haier occupied over 6.1 percent of the share in home appliance market, which ranked the top of the world. The author believes that these achievements are linked to and the correct brand strategy of Haier, but how Haier set different brand strategies in different stage to get these achievements?

This article summarizes and analyzes brand strategy of Haler systematically，not only
in the idea, the strategy and the tactic three gradations, but also in “the useful brand”, “the vivid brand” and “the experience brand”, which is oriented by the perception value of customers．It shows the reason for the successful brand establishment of Haier．First, Haier sticks to the market—leading idea in management．Under its instruction, Haier carries on “the war of value”，and gradually sets up the brand strategy, the brand extending (multiplication) strategy and the overseas brand (transnational management) strategy．

These successful experience of Haier has important significance and enlightenment to the brand management of common enterprises．Through the research of Haier, we can not only find out the rules of brand building in Chinese market, but also the trend and orientation of the brand strategy of enterprises in China.

3.0 Researches of Brand Strategy

3.1 Researches of Brand Strategy in Western Countries

Brand is a kind of intangible asset to bring premium, to produce value added to the owners of it, and its carrier is a combination of name, terminology, symbol, a sign or design distinguishing itself from other competitors’ products or services. Brand strategy is a company will regard brand as core competitiveness, and regard brand strategy management as a way to get the competitive value and profit for the enterprise.

The research of brand strategy originated from western countries. Brand theory was first presented by Ogilvy (1950), who defined brand as the integration of many factors such as quality, name, package, price, history, reputation and advertising. The development of brand strategy theory can be divided into three stages. The first stage is classical brand theory stage from 1950s to 1980s which focuses on the concept, meaning and extension of brand. Unique Selling Proposition (USP) theory (Reeves, 1952), Brand Image theory (Ogilvy, 1963), Brand Positioning theory (Trout and Ries, 1972) and Brand Extension theory (Tauber, 1979) are representative theories in this stage. The second stage is from 1980s to 1990s. Brand Equity theory is most important development in the field of brand theory.

Aaker (1991), Kapferer (1998, 2004), Keller (1998, 2002), Davis (1999, 2002), Nilson (1998), Hill and Lederer (2001) are representatives of this theory. In this stage, the brand was thought as a kind of asset. The management of brand and operating models were developed. Then, the brand theory entered the third stage. Brand Relationship theory raises. Schultz and Barnes (1999), Blackston (2000), and Vaidyanathan and Aggarwal (2001) have contributed much to the theory. In this stage, strategic brand management has been paid more and more attention.

Brand theory is closely related with competitive advantage theory. Competitive advantage theory provides a theoretical basis for brand strategy. Porter (1985) is an important representative of competitive advantage theory. He argued competitive advantages can be produced from many discrete activities an enterprise performs in designing, producing, marketing, delivering and supporting its product. Porter built up the famous Five Forces Model to explain competitive advantages including the threat of the entry of new competitors, the intensity of competitive rivalry, the threat of substitute products or services, the bargaining power of customers, and the bargaining power of suppliers. In practice, brand strategy is thought to be a source of competitive advantages

3.2 Researches of Brand Strategies in China

In the past decades, brand theory has been introduced into China and the implementation of brand strategy has been studied by researchers. Zhao (2003) analyzed the brand theory and its application in China from the angle of CIS theory. Chen (2002) made empirical research of brand strategy. Zhang (2009), the director of the Haier Group has also done some research of brand strategy of the enterprise and takes the brand strategy as the source of competitive advantage. Fan (2008) contributed the success of the Haier Group to its brand strategy. Wei (2006) analyzed the position of brand strategy in the Haier Group’s marketing and thought highly of its strategic brand management. Generally speaking, brand strategy and brand management have been paid more and more attention in China. Empirical researches provide evidences for the positive effects of brand strategy. However, the brand strategy research in Chinese market still needs to be pushed forward.

3.3 Recent Developments of Brand Strategy

At present, the brand strategy research is more closely with marketing. As the development of marketing theory, companies switch their attention from the useful products to meeting customers’ value enjoyment. In brand strategy research, companies switch their orientation from “the useful brand” to “the experience brand”, which can bring great spirit enjoyment to their customers．Now the brand strategy research will look upon brand as a bridge between enterprise and customer. They hope the brand bring enjoyment of experience for consumers, establish brand loyalty and through the feedback of consumer they can find more accurate position for the brand. Therefore, now the brand strategy research pays more attention to the relationship between the brand and the consumer behavior.

4.0 Theoretical Review of Brand Strategy

4.1 Brand and Brand Strategy

In western countries, Brand is often used as commodity marker, originated in Spain. In nomadic tribes, people printed their brand in the bodies of their cattle with others, to distinguish themselves from others in exchange. Brand, the English word derived from Brandr the ancient Norway meaning "burning". People use this way to mark livestock and other private property which need to be distinguished from others’. In medieval Europe, craftsmen with the method print marks on their handicrafts, so that customers could recognize the origin and the producer. This creates the original brand, and to provide guarantee for consumers, and provide legal protection to producers. In the sixteenth century, early producers of distilled whisky filled whisky into the whiskey barrels with brand name, in case the casks unscrupulous businessmen bait-and-switch. In 1835, Scotland's whiskey producer used the brand "Old Smuggler", in order to maintain the reputation of quality made of special distillation process.

According to the Oxford dictionary, brand is interpreted as "to prove that the ownership, as a symbol of quality or other purposes", in order to prove distinguished quality. With the passing of time, the commercial competition pattern and retail form changed constantly, and brand also has more and more meanings, and even formed a special subject of brand.

Brand is a kind of identification mark, a spiritual symbol, a concept of value, which is the core reflect of the excellent quality. The process of cultivating and creating the brand is also the process of continuous innovation, and when they have the strength of innovation, they could remain invincible in order to consolidate the original brand assets and participate in the competition multi-level, multi-angle and multi-domain. The brand is a kind of intangible assets bringing premium and increment, which carrier is used to distinguish with name, terminology, symbol, a sign or design and their combination of other competitors’ products or services. The source of increment is from the carrier impression of consumer formed in their mind. A deeper level of expression is that the brand from mouth to mouth deserved to be called the real brand.

The definition of brand origin: The brand is a very neutral term; it is not always positive, and negative, which is synergy between the consumers and operators. If defining the brand briefly, brilliantly, clearly from the origin, then the brand should be each soul between brand management (the principal) and consumers (the audience). In short, the brand is the soul of the brand. Stigma is beautiful or ugly, deep or shallow; which determines strong or weak of the brand strength, the amount of brand equity and high or low of brand value.

The brand is defined by American Marketing Association (AMA) as: The brand is a name, term, sign, symbol or graphic design, or their different combinations, to identify products or services of one or a group of sellers in order to be different from the competitors'. Ogilvy (1950) defined brand as the integration of many factors such as quality, name, package, price, history, reputation and advertising.

Defined as the development of brand strategy, the brand is shown as the formation of image recognition, feeling, quality awareness resulted from these elements, a series of marketing activities and customer loyalty. Overall it’s a form of intangible assets. So a brand is as an intangible asset this time, which is holographic enrichment the sum of the main business or brand (including cities, individuals, etc.) all intangible assets, "the concentration" is allowed to be a specific "symbol" to identification.

Visual image of the brand is expression in: First, the part can be read out in brand - words, letters, numbers, phrases or their combination, such as Mercedes-Benz, Haier, Sony, TCL and so on. Second, the part cannot be sound - including the symbols, patterns, obvious color or font. Such as a hook Shape of Nike, Little Swan shape of Swan, font and dark blue color of IBM and so on. Third, the role of the brand: It is the identity to represent the brand using employer or anthropomorphic, such as Haier Brothers, McDonald, Mickey Mouse, Master, etc.

The so-called brand strategy is a management guiding ideology that an enterprise based on their own objective management environment, with effective management method, meets the reality and potential demands of consumer for goods of high quality, to obtain the maximum business profit. The brand goal, brand orientation, brand extending, brand protection set up four aspects of brand strategy.

The development history of the brand strategy reflects the evolution course of market economy. As contemporary economy switches from the seller to the buyer's market, more enterprise has gradually had the sense that they need to implement brand strategy and manage their brands and promote the competitiveness of the brand if they want to win more market share, obtain higher value. Brand strategy is a kind of enterprise strategy combining many kinds of management elements with marketing elements together. If a brand strategy process breaks down into several marketing and management phases, the management personnel should be familiar with and master all of them. And as a complete strategic process, a brand strategy of one brand should contain the stage of creation, the stage of spreading, and the stage of protecting.

As far as the process of brand strategy, brand strategy is an operation strategy that an enterprise regards the creating and spreading of brand as the core, and on the analysis of their own conditions and external environment the enterprise takes some steps to build strong brand, so as to get the value of brand (the brand assets).

4.2 Contents of brand strategy

The brand strategy contains brand goal, brand orientation, brand extending, and brand protection, and these four aspects constitute the executive process of brand strategy.

First, the brand goal is a parameter index which can help set development direction and macro image of a brand, and it includes Brand (name) awareness, brand reputation, brand macro image, brand loyalty four aspects.

Brand awareness is the brand is the social public awareness of the brand and it is also the foundation of the brand image. If the brand is not famous and only a bit of people know it, the brand image cannot survive, so the brand awareness must be set by quantified design in getting brand goal. Brand reputation includes the public reputation, social reputation and industry reputation. Brand reputation is the degree of trust in the brand, and it is the core of the brand goal. If reputation is high and brand awareness is low, the job of the enterprise to complete the brand goal is easy. Instead, if the reputation is low and brand awareness is high, it is much more difficult for the enterprise to complete the brand goal.

Therefore, once a brand image has been formed in the minds of consumers, it is difficult for the enterprise to change it through various measures. The brand image is an individual characteristic showed by an enterprise or its particular brand in the market or in the heart of social public. It shows evaluation and cognitive to the brand from the public especially consumers. Brand image and brand image cannot be divided, because brand image is an expression of the characteristics, reflect the strength and essence of the brand. The brand image includes commodity, packaging design, advertising design, etc. The brand image is the external performance of brand, so enterprises must attach great importance to shape brand image. In addition, products with brand name also have specific industry attribute an area define, so the industry and boundary of brand have to be defined, otherwise the brand would lose its brand goal. Brand loyalty means that in the market exchanges, consumers often show partiality (not optional) behavioral preference to the brand. It is a kind of behavior process, and it is also a kind of psychological (decision and assessment) process. The formation of brand loyalty is not totally depends on the quality of the products, popularity, brand association and spreading, but also the characteristics of consumers. It is closely related to the experience of using the product. Enhancing the brand loyalty, can promote to the development of an enterprise and expand the market share.

Second, brand personality positioning refers to the brand personality style in the consumers' mind and market positioning, including market positioning and brand image positioning.

The brand is always specific and brand image is more personalized. For brand strategy, brand personality and brand adaptability is a pair of contradictory. If the brand personality is too strong, the brand adaptability will be weak. Conversely, if the brand personality is too weak, the adaptability will be strong, but if there is no brand personality, people cannot identify it. Brand personality includes market positioning, such as targeted consumer group positioning, price positioning, regional market positioning, etc, which is the foundation position in brand personality. Besides, brand personality includes brand image positioning and image style positioning.

Third, brand extensions means that the enterprise will make full use of its well-known brand or a successful brand to promote its other nearly similar products not. Because they have owned existing successful brand in the market, they have competitive advantage in introducing new products. The brand extension is closely related with the enterprise industry choice. Whether the brand extension can be successful or not depends on the extent people accept it, the association between the original brand products and the new product and whether the competition is very fierce. First, the extent people accept the original brand determines whether the extension is necessary. If people do not accept it, extensions appear not necessary, and it should build a new brand. Second, the association between the original brand products and the new product determines the degree of difficulty of expansion. Third, the fierceness of competition in the past, could determines marketing difficulty of new product. The brand extension not only can greatly reduce the cost of new product entering the market, but also can enrich and strengthening the connotation of the original brand, to make brand value and market space promoted. But if the extension fails, it not only prevents the new product entering the market, but damages the original brand. Therefore, the enterprise must make clear planning before brand extension.

Fourth, brand protection means that take measures to protect the brand owned by legal user and owner in order to guard against violations from all sides. It includes three components, the brand management protection, brand legal protection and brand social protection. Brand is a kind of intangible asset on the basis of consumers’ trust. Although the value of intangible asset is high, the brand value will suffer a disastrous decline, once it loses the trust of the consumers. Legal protection mainly with full legal means protects the purity of the brand. Brand management protection and brand social protection refers to the protection monitoring and crisis handle it in time.

In brief, the four aspects above compose a complete brand strategy system, which are basic and fundamental.

4.3 Development and Types of Brand Strategy

Fabricating a Brand Strategy

“Typical brand models in the markets have been designed to generate the framework that is aimed to establish a label with much impressiveness that will be in a position to withstand market trends and competition through the test of time. The beginning of any marketing business entails the preliminary steps of brand strategy development. In order to develop a solid brand one needs to take strategic steps to make sure their brand represents the purpose of the business and product.

Branding is a product of intense planning and conceptualization. To come up with innovative marketing ideas and an effective way to brand your merchandise, you need to carefully map your starting point ideas where you are now on toward your destination. By doing this you will also make use of the vital aspects involved in the production of a brand.” (Clark, C, 2010)

What is a Branding Model?

“Here are some basic models used along the way of brand planning. Each of them will cover different scopes and facets of the process to create a sound approach to developing your personal brand. Except for the ability to fabricate a particular brand of your very own, the means of arriving at a certain brand idea, these models will help you understand the behavior of consumers and the need to relate to their responses which is helpful in adjusting old branding plans or acquiring new ones.

All of these traits are key factors in managing and reviewing necessary steps in brand strategy development that should be taken seriously by any company, business or entrepreneur in their branding efforts. These models are ultimately linked but one does impact another.” (Clark, C, 2010)

Positioning in Brand Strategy Development

“This model involves your effort to produce a picture that will have its distinct position on the market. Firmly establishing your brand will help your area of interest that you work in to easily be remembered and opted for within your line of products. This is one aspect of planning wherein you should center on representing or creating a superior brand that eradicates your competition. Here are the preliminary steps:

First of all, you need to decide on an area of interest you would like to represent. One of which you have a genuine interest in learning more about as well as helping others understand what you know. Make a simple list of your top 2 or 3 areas of expertise, interest and talents. Compare those to the needs and wants in the marketplace. This will give you a general idea of the area you want to go in.

Next, identify other brands you are competing against. Then, define the markers of your own brand against your rivals. This will enable you to concentrate your efforts.

Next, your objective is to introduce attributes to your brand that will enable it to stand out from competition. You must understand and present the elements of your brand that will help the consumers or target market perceive "quality" as an association of your brand.

Establish a slogan for your brand that will aim to reaffirm your position and targeted values. This slogan should aim to articulate the goal of the business or service and what the delivered product is promised to the customers. One good example is "Federal Express". There name slogan could not be more trustworthy? They guarantee next day delivery. People generally don't care what they have to pay when they are assured they will be outward the slinger. Fed Ex addresses the need and want of the consumer in one slogan.” (Clark, C, 2010)

Brand Quality

“Developing a professional personal brand is an ongoing process that is critical to long-term growth. Once you're through the stage of creating a distinct place in the market, your next step is to safeguard the loyalty of your consumers. To do that, you need to employ an efficient customer relation service or local and provide a feedback system. This model follows up from the first steps laid out by the brand positioning methods. Now that you have acquired target customers, your next aim is to fortify the relationship between them and your brand. In any case, the majority of the business sales stem from repeat customers.

More than anything, this stage is where you should reinforce the communications firstly conveyed by your brand. Hence, customers will happily continue to engage in business with you because of your level of performance and quality delivered through your brand. Are your methods consistent to the identity of your trademark and its missions? To find out, ask for feedback from your clients and be sure to not offend or be offended. Take that feedback into consideration on your product or service and implement ways on how you can expand or critique operations based on their thoughts. Maybe you don't need to actually change anything, the statements brought forth could just show that you weren't clear in one area and actually several other people shared in that confusion. Therefore, all you need to do is clarify. In the long run you will develop a quality relationship that constitutes trust.” (Clark, C, 2010)

Brand Value Succession

“This one is more focused on the financial impact of your branding efforts. The basic idea of this model is that the value of your brand is consistent throughout your client base. This is where you should be focusing the majority of your branding strategies.

Carefully combining these different aspects will provide a business/entrepreneur a reliable perspective of the different facets involved in brand strategy development. By bringing these areas together into one formula, you will be enabled to easily formulate a structure for your business as well as track progress or problem areas in the branding system.” (Clark, C, 2010)

With the development of market economy, the brand strategy also has its own process of development.

1) Unique Selling Proposition (USP) strategy.

When the market is in short supply, enterprise do not need brand strategy, and how fast and economically can they produce is the core of the enterpris, e management. For example, at the beginning of the 20th century, Ford introduced the "production line" to their plant, and production efficiency was greatly improved, so Ford became the leader of the industry. But along with the development of social production, new technology and product was developed, which leads to more and more supplies, and enterprise surplus greatly increased. At this time, Rosser Reeves(1961) put forward the Unique Selling Proposition (USP) theory, and the brand strategy method emphasize that enterprise should spread the USP of its product, which can bring the fastest and best sales for the enterprise, and can help establish a unique individual character brand.

For instance, in the 1950s, the chocolate produced by M&M , is the first chocolate with outer packet, so the chocolate took "only melt in mouth, don't melt in hand" as its unique selling proposition, and quickly became a leading brand.　　

2) The Brand Image (BI) strategy

Technology updated more and more quickly, and the speed competitors imitated was also very quickly. To find differences from products appeared increasingly difficult, and consumers also had no interest in finding differences between products. In fact, in the 1960s, the American marketing environment generally was in this state, USP theory met problems.

In this kind of marketing environment, David Ogilvy (1963) put forward brand image, which means that when the products become similar and similar and consumers’ experience increases, people began to pay no attention to the product itself. The rational choice of the brand decrease, and the pursuit of sensibility increases, so, the corporate strategy should transfer to the different brand spreading. In this strategy, enterprise can establish unique brand image and attract consumers to buy the products through advertising and other means. This kind of method to build a brand was known as a brand image strategy.

3) Brand Positioning (Positioning) Strategy

The result of the popular brand image is inevitable approximate image of the brand, and it is difficult to distinguish for the consumers. At the same time, because of the development of the society, media and information explosion, consumers had to face many brand images, but they cannot recognize so many at one time that it was necessary for enterprise to establish clear and unique brand image through advertising, while it appeared increasingly difficult. In the United States since the 1970s, brand image strategy was more and more ineffective.

At this moment, Jack Trout and Al Ries (1972) put forward the theory of positioning, which solved the difficult problem. Marketing Positioning theory emphasis that when consumers face too much information of brand, they tend to reject and disgust them. Consumers will choose the typical brands in purchasing certain categories or nature of the goods, for example, when buying cola they always choose Coca-Cola. When buying band-aid they choose Bondi, and when buying car they choose Volvo. At this time, the more attention enterprise should not pay to the market, but the mind of consumers. All of our enterprise should make the brand occupy an important position in the mind of consumers, which makes the brand become the representative of the category or characteristics. And the objective of the strategy is that when consumers have demands, your brand is first choice. For instance, Mercedes shows “prestige”, “driving” for BMW, Volvo is “safe” and Ferrari represents “speed”.

In the academic field, Philip Kotler in the 1970s firstly introduced it into the theory of marketing, and took it as the most important “P” in the theory of “4P”, which he thought could lead the direction of marketing activities; In 1980s, Michael Potter introduced positioning into the enterprise strategy, and create a competition strategy, in which positioning is the core.

The types of brand strategy

In the theory of brand strategy today, there are many types of brand strategies. In the enterprise management, it often encountered as follows:

Ø Single-brand strategy: it means all the products of one enterprise will use the same brand at the same time. In this case, the different products of the enterprise can form a strongest cooperation structure of the brand, and make the brand assets get the most out of sharing completely.

Ø Multi-brand strategy: it means an enterprise manages two or more independent brands at the same time, which have no relative and connection with each other. When an enterprise uses many kinds of brands at the same time, it not only can distinguish themselves between the products of other producers, also can distinguish different products of its own. Many independent brand strategies for each brand can help built a growing space for each one.

Ø Sub-brand strategy: it means take a successful brand as the main brand, and make it cover all series of products, while different products can be named by the enterprise after a charming name as a sub-brand, to highlight the product's personality image.

Ø Endorsement-brand strategy: An endorsement brand is often used in consumer goods, to an endorsement brand, its primary role is to reassure consumption again that these products will bring the promised advantage, because the brand is belong to a successful enterprise. When a new product appears, the guarantee of endorsement brand is more meaningful. Consumers will feel some connection from the products because of this, and do not feel strange.

Ø Co-branding strategy: It means that two or more brand highly trusted by consumers combining and interdependent with each other, in order to make "1+1>2". Inter and other famous computer manufacturers are very successful in the cooperation. Intel Company is the largest computer chip producers in the world. The company launched to encourage the computer manufacturers such as IBM, Dell to carry out the joint plan, that is its products was used "Intel Inside" logo freely. As a result, the sign exposed 10 billion times in only 18 months of the implementation scheme, a lot of people realized that they were inclined to buy the computer with logo of "Intel Inside". The cooperation between Intel Company and Each large computer brand is very successful, the computer marked "Intel-Inside" are more recognized and accepted by consumers than the computer none of the sign.

Ø Brand licensing strategy: Brand franchise started in the U.S., it was thriving in China. The franchisor and franchisee use the same brand together; they expanded the brand under the restriction of the same model to achieve a win-win situation. Franchisor provide franchisee a uniform brand, technology, management and marketing mode, at the same time the franchisee pay a fee to the franchisor. The strategy can enforce the brand to expand rapidly, the risk and the cost will be low because the funds. Franchisee is protected by franchisor, but in a reality the brand will never belong to itself. The most successful enterprise implementing the strategy is McDonald. McDonald's franchisees in China have already reached more than 380 ones; moreover there are hundreds thousand in the world.

5.0 Brand Strategy in the Chinese Market

5.1Present situation of brand building in Chinese market

Generally speaking, the implementation of brand strategy and developing brands is still in the stage of germination. This germination is derived from the guiding of government and the practice of the market competition. Especially in the practice of the market, many business enterprises in the increasingly fierce competition of the market can beat their competitors, due to the development of own brands. So many enterprises gradually realize traditional road cannot lead to success, and they should carry out and promote the brand strategy, developing their own brands. But although many business enterprises have already been aware of the brand strategy, in the actual implementation of it, various problems appeared as follows:

First, enterprises know little about brand. Most enterprises simplify the meaning of brand and take the brand just as brand awareness. They think that they can create brand through a large scale advertisements. In fact, although people know a brand, they would not accept it quickly. Advertisements and news events can make a stir effect and rise brand awareness temporarily, but the formation of the famous brand is a long-term investment.

Second, brands lack of core competitiveness. Core competitiveness is the foundation of brand. At present, most industries in China have a strong production capacity, but do not have core technology developing capability. Core technology mainly relies on imports, so the Chinese brand in the domestic and international competition cannot get comparative advantage. More important is that some enterprises do not plan to strengthen technical innovation and management step by step, but invest largely in advertising war.

Third, brands lack of brand core value. For brand, brand core value is the soul. If a brand has not its own clear core value, it is impossible to become a strong brand. The core value is the ultimate pursuit of brand, and the origin of marketing activities. All activities of the enterprises are around the core value of brand. But many Chinese enterprises almost do not have the brand core value positioning, such as casual advertising, transforming images. Despite a large number of advertising to promote product sales, a few years later enterprises found they did not accumulate brand assets.

5.2 Three Stages Chinese Brands Went Through

There were few products in Chinese market before 1988, so all products had their own brands.

During 1988 to 1998, famous brands were created by massive advertisements, so popularity generates brands.

After 1998, Haier created features of consumers’ benefit and value, and reputation contributed to the success of enterprise. Haier’s brand is its lifeline, capital and momentum of development. The characteristic of Haier’s brand is that its products could be sold when products made by other enterprises couldn’t; its products were sold more when products made by other enterprises were sold less; its products could be sold at higher prices when products made by other enterprises were sold in lower prices.

5.3 The SWOT analysis of Brand Building in the Chinese market

This section will identify the key resources and competencies of carrying out brand strategy, and try to find out its core strategic Opportunities. Table 1 presents the SWOT analysis matrix.

Table 1 SWOT Analysis Matrix

Strengths

the fastest growing market

consumers’ awareness of brand

lack of controlling of Monopoly brand

Weakness

lack of strict protection from law system

lack of ability for systematic brand strategy

lack of core completeness

Opportunities

lots of blank areas covered by brand

enterprises’ emphasis on brand strategy

Threats

local protectionism’s damage to national brand

competition from overseas brand and joint venture brand

According to the table above, we can know that Chinese enterprises face both opportunities and challenges in the market as well as in the brand building. In relation to the brand building, Chinese enterprises need to develop their own core completeness and take brand building as important as the enterprise strategy. They ought to study the advanced experience of the building of brand strategy. At the same time, they must carefully study the market, in order to effectively cope with the market potential opponent threats.

6.0 Brand Strategy of the Haier Group

6.1 Haier group and its Brand

Speaking of brand building China, we always think of Haier, which made great progress in the implementation of brand strategy. At present, Haier has become a multinational group from a small factory in Qingdao, which has recently become one of the most valuable brands of China in the past nine years. By 2010, Haier has set up 29 manufacturing bases, 8 comprehensive centers for research and developing, and 19 trading companies overseas. And employees all over the world are more than 70000.

By the end of 2009, Haier has owned 2799 invention patents, remaining top of the Chinese home appliances enterprise. In 2009, Haier applied for 943 patents, in which there are 538 invention patents, on average, 2 invention patents for each working day. Haier is home appliance enterprise which participates most in international standards, national standards and industry standards. Haier is the only enterprise of the developing countries to enter the international electrotechnical commission (IEC), and in June, 2009, IEC choose Haier as the world's first “standard innovation practice base”.

In 2010, the global turnover of Haier reached 135.7 billion Yuan, and its brand value reached 85.5 billion Yuan, the most valuable brand in China. In December 2010, Euro monitor, the authoritative institution of market research released the results of global home appliance market survey: Haier occupied over 6.1 percent of the share in home appliance market, which ranked the top of the world.

Haier put forward the slogan of “To be true forever and then of Wing innovation”, and it is the brand strategy of Haier all the time.

Since Changhong was the monopolist in television industry, the prices of television decrease by thirty percent and this is the cause of first TV price war in China. In TV industry, more than ten TV manufactures promoted sales by cutting prices. Thus, it seems that decreasing prices had become the most effective tool to achieve a greater market share. However, it is not hard to see that Haier, as the leader in appliance, never promoted its sales by decreasing prices, for the prices of its products always keep in a high level. The prices of Haier’s refrigerators are always 300 to 500 RMB higher than other domestic brands. Even some televisions made by Haier do not have obvious advantages compared to other brands; they are also sold in a price that is 200 RMB higher than other brands.

Innovation of Haier’s products is its unique developing way, which is called innovation of conception and functions. This is to say, the functions of products should be innovated continuously. Health care products sold in market, such as products used for weight loss, enriching the blood and hairdressing, are all concept products, and consumers care more about their functional values. In the past 17 years, the determining factor of Haier’s rapid development is its brand strategy. Haier had a vital measure to promote its brand value in brand strategy, and the measure is to improve its value system continuously. For example, Haier’s products had the features of innovation, radiation-proof, water-saving, electricity-saving, security guarantee and so on.

Providing five-star service is also a way to show value and a well-designed service system. The establishment of Haier’s brand is the result of their 15-year hard work, which is reflected in the process from development strategy to core management system. The rapid development of Haier is mainly due to consumers’ identification with its brand and employees. Haier’s rapid development is the successful result of its brand strategy.

Then, how can Haier take China’s market share? In some main household electrical appliance industry, such as refrigerators, air-conditioners, and washing machines, and so on, Haier kept in the first three sales positions. As to the majority of high technology market, Haier showed the best performance of sales. Overall, all the achievement is due to the implementation of brand strategy.

Brand strategy is to regard brand as the first factor for corporation’s development, and then establish corporation and brand image. The effect of brand strategy is to make consumers trust the quality of the products, which guarantees that consumers are willing to buy Haier’s products to obtain a comprehensive production assurance, even when they know there is no evident advantages of Haier’s products. Many enterprises confuse brands with famous brands, but in fact, there are huge differences between them. Famous brand is supposed to be an influential brand. There are differences between brands and famous brands. The products made by Haier have obvious features for consumers.

6.2 The Developing Stages of Haier’s Brand

The brand strategy of Haier experienced three important stages are as follows:

The first stage (1984 to 1991), to establish brand:

In 1985, the event of “hit the refrigerator” is beginning symbol of the stage. In the year of 1991, Haier won a well-known trademark is the end of this stage. In 1985, Zhang Ruimin hit off the production of unqualified refrigerator himself, to prove his quality improvement determination to consumer and his staff. This event and the series of brand operation won the good brand awareness and brand reputation for Haier. Haier not only changed its passive situation, but also began the process from a small factory on the brink of bankruptcy gradually to the domestic famous enterprises and famous brand.

The second stage (1992 to 1998), rapid expansion stage:

1992 to 1998 years for rapid expansion stage.

During this period, on the “eat shock fish” theoretical basis, Haier expand its scale and enjoy unprecedented expansion due to the merger of other 18 defective enterprises. And during this period Haier developed a diversified management to make Haier change from a refrigerator factory into a home appliance enterprise with various kinds of products. Due to the expansion of the scale and brand building, the brand reputation of Haier was further improved, and Haier group became one of the leading enterprises in the industry.

The third stage (1999 to now), international ascension stage:

In domestic Haier remained the top of all brands after the second stage. After the year of 1999, Haier began to enter the new stage of international operation. Zhang Ruimin had said there was no famous brand if all the brands were just known in domestic. Its requirement of the brands also was put forward as “from brand internationalization to international brand”. The main characteristics of the stage is not only its own products would occupy the markets overseas, but also Haier wanted to build its own distribution and production agency all over the world. During this period Haier’s targets is in the three aspects: domestic production was sold in domestic; domestic production was sold overseas sales; foreign production was sold abroad. Haier preliminary became famous international brand through constant efforts in international ascension stage.

Through the facts above, we can see that the brand growth of Haier is not achieved overnight. Haier made the appropriate policy objectives and strategies in each stage of growth to suit the conditions at that time, which is just the reason for its rapid growth.

6.3 Haier’s Brand Superiority

Obviously, in face of the huge strike, the difference between brands is very obvious. These brands that have great strengths can stand in an invincible position while Haier is the most typical one. These years, Haier, as the leader in refrigerator industry, had always been the champion in sales and played a leading role in refrigerator industry even in the unstable marketing situation, which fully indicates the powerful comprehensive ability of Haier. In 1980s when refrigerator industry just thrived in China, Haier, as a new brand, had been better than other brands by importing advanced technologies and focusing on product quality. In the following twenty years, other refrigerator brands always made frequent changes and concept of speculation, but Haier still persevered in producing its products stably. In the process of gathering valuable experience, Haier had been playing a leading role in refrigerator industry and a series of products that could meet consumers’ demands were sold abroad. Even though the competition in electric industry became fiercer and fiercer across the world and growth rate slowed down, Haier’s products always made good sales and showed advantages in the competition with other worldwide famous brands. The search shown above is the best evidence of Haier’s achievement. Some experts believe that Haier have stepped into global brand strategy stage and is going to have the direct competition with each market and international corporation worldwide. With Haier’s further implementation of global brand strategy, there is no denying that Haier will still be in the leading position in refrigerator industry.

6.4 Core Value of the Brand

The fast development and maturity of electronic products brings a huge challenge to all the electronic enterprises. In the end of 1990s, Haier began to upgrade the core value of the brand strategy. Therefore, Haier put forward the new advertisement slogan in time, which is “Wing innovation”. As the new slogan was put forward, the competition opponents had to face the insuperable barriers. Because of advanced technology and innovation, Haier conveys a concept of continuously transcend to consumers. After being the absolute leader in household electrical appliance industry, Haier has invested a lot of human resource and funds into science research and technical innovation. For example, in 2000, Haier made an investment of more than 1.8 billion RMB into science research. What is more, Haier has established research and designing centers in Japan and America. Many international companies have cooperated with Haier to do science research by using international technical resources. All of these actions and behaviors contributed to Haier’s own advantages of core technique. With the help of these advantages, Haier is given a jump on its competitors to take a leading role in production quality and techniques, and promote the faith from consumers on its products. The two slogans, “To be true forever” and “Wing innovation”, are both elegant; however, this is also the two slogans that has not only become the core of Haier’s brand strategy, but also those move consumers, and finally help gain the success for Haier persevere in implementing its promise to the public as the two slogans indicate.

Brand can be regarded as: others can’t sell their products, but Haier can; others sell fewer products, but Haier sells more; others sell cheap products, but Haier sells expensive ones. –said by Zhang Ruimin. So many Chinese household electronic appliance corporations refer to brand strategy, but only Haier truly regarded brand as the basic strategy of corporation.

●Try to guarantee quality and image of brand, even at expense of production amount and benefit

● Fight price war but keep benefit, in case of going bankrupt

● do not give up brand and try to decrease the loss of benefit, and ignore the measure of price war.

In fact, not matter what measures Haier choose, Haier doesn’t have to judge whether the measure chosen is right or not, for there is only one measure that is most suitable for Haier. The reason why Haier gained success may be that it chose the most suitable measure for itself. Haier decided to improve brand value by providing good service and the faith of Haier’s after-sale service is: bring consumers’ trouble away and leave Haier’s sincerity for consumers.

Four Steps of Haier’s Service

● 24 hours phone service—eliminate customer’s troubles

●24 hours after-sale service—control customer’s troubles

● door to door service—remove customer’s troubles

● “Five 1” project—bring customers’ troubles away and leave Haier’s sincerity for consumers

1. Phone call service: phone call service has been 24 hours available, for Haier believes that consumers who bought and intend to buy its products want to give an evaluation when giving a call. Just like a patient coming to hospital and then doctors can help to eliminate his trouble. If he can not find a doctor, he will feel quite anxious. However, when any trouble of household electronic appliance emerges, consumers’ trouble is going to be eliminated, as long as they give a call to Haier.

2. 24 hours after-sale service makes it possible for consumers to receive service in 24 hours. If consumers’ air-conditioner does not work, Haier is going to provide door to door service within 24 hours. For 24 hours is a short time, consumers’ trouble can be controlled by Haier.

3. Door to door service, which can remove consumers’ trouble totally.

4. “Five 1” service project is likely to bring consumers’ trouble away and leave Haier’s sincerity for consumers. The content of “Five 1” project contains:

(1) One pair of shoe cover should be prepared in advance when servicers go to consumers’ home and provide door to door service, in case of making consumers’ home dirty.

(2) A cloth should be prepared in advance, which aims to put air-conditioners on it, in case of making consumer’s home dirty.

(3) A rag prepared can be used to clean the repair area up when servicers finish their job.

(4) A bill should be list to write repair fee clear.

(5) An instruction book should be given to consumers to tell how to use Haier’s production correctly. Therefore, the growth rate of Haier is fast and finally Haier got a reward of Five-star service across the world in 1996.

Many enterprises confuse brands with famous brands, but in fact, there are huge differences between them.

(1) Brand: brand is about a production and service’s name from which consumers are able to get visible and invisible benefit.

(2) Famous brand: famous brand is supposed to be an influential brand. There are differences between brands and famous brands. The products made by Haier have obvious features for consumers.

● Before1996: products and famous brands could be known by consumers through marketing.

● During1996 to 1999: promise to consumers can promote the confidence of consumers on famous brands, and then popularity, credibility and reputation can be formed

● After1999, good products contain more consumer value. Through ten years’ hard working, Haier had become the symbol of value and benefit, which can enhance the rapid development of enterprise.

In short, the core value is reflected in the three aspects below:

● To guarantee quality and image of brand, even at expense of production amount and benefit

● fight price war but keep benefit, in case of going bankrupt

● never give up brand and try to decrease the loss of benefit, and ignore the measure of price war

6.5 Internal and External Factors

In the process of implementing brand strategies, there are two sentences that show indispensible effort. The sentences are slogans from Haier, which are “To be true forever” and “Wing innovation”. These two slogans not only highlight the view of Haier’ brand strategy, but also give a dignity compromise to consumers, and therefore show the good brand image to the public. The embodiment of brand strategy is due to brand association, this is to say, consumers’ ideas and impression about one brand can result in their final purchase decision when they see it at the first sight. In 1980s when Chinese appliance was in rapid developing stage, the majority of domestic appliances had low quality, reliance and lack of completed after-sale service, for the market then was in the marketing transition. However, Haier put forward the slogan of “To be true forever” then and highlighted its brand conception, so the advantages of Haier were established and sincerity of Haier was shown vividly to all. Zhang Ruimin smashed the first group of defective refrigerators in person, which not only shocked the employees, but also made consumers realize the sincerity from Haier. Haier showed its integrity and requirement of products to the public, and made consumers trust the quality of its products as same as Japanese ones. Since then, Haier paid attention to service and regarded service as one important part of brand strategy. It was Haier that first put forward the concept of warranty and five-star service, and established sales centers and after-sale service centers. Nowadays, Haier has more than 20000 employees working for after-sale service, who work at more than 30 call centers in large cities and ten thousand of sales centers located in many place, even in rural areas. This large service system makes it available for consumers to receive faster and more convenient service. Meanwhile, the concept of “To be true forever” is conveyed to the public continuously. Thus, when people refer to Haier, the concept of good service and trustworthiness always come into their mind. Consumers would rather pay hundreds more to buy Haier’s products which have same quality with other brand’s ones, for consumers trust the sincerity of Haier. In the period that lack of good sincerity and service conception, the slogan of “To be true forever” focuses on service. However, when there is little difference between brand’s services, how should brand strategy of Haier be implemented?

6.6 How to Carry Out the Brand Strategy

In the execution of Haier brand strategy, the Haier group has its unique experience. They accumulated valuable experience in aspects of the theory and practice for the brand strategy of other Chinese enterprises.

First, understand thoroughly the essence of brand. This can be seen from Haier's three famous brand appeals. The first appeal is “sincere forever”. Sincere forever is for whom? It is for consumers. Why Haier is sincere forever for the consumers? It is an exchange for the trust and love for Haier of consumers, which is not the love and trust just for a moment, but forever. It explains the basic essence of the brand, which is the relationship between enterprise and the consumer. In its real action Haier also highlights the appeal, so the consumers have brand loyalty to its brand, with lasting and wide range of trust and love. The second appeal is “the pursuit of excellence”. Haier has a concise explanation for “the pursuit of excellence”: do not do it except you can get the top. It is likely to American general electric CEO Welch's point of view. This sentence contains the second relations of a brand, which is the relationship between enterprise and enterprise, especially the relationship between the enterprise and their peers.

Therefore, Haier insist that a famous brand in the industry must never be an ordinary one, but must be outstanding or a leader. The third appeal is “gains after circumstances”. This is one of the important principles in the implementation of Haier brand strategy. It is difficult to explain it very clearly. According to Haier’s method and experience, that is the brand must have tangible assets and intangible assets. The excellent tangible assets can form the excellent circumstances for the company, and the excellent circumstances can help the company get more tangible assets. To sum up, Haier actually caught the essence of the brand, containing the enterprise and the consumer, the relation between the enterprise and enterprise, and the relation between the enterprise internal tangible and intangible assets.

Second, Haier made the appropriate policy objectives and strategies in each stage of growth to suit the conditions at that time, which is just the reason for its rapid growth, especially Haier's still brand globalization strategy in execution. The statements above have proved it.

Third, continuously improvement of the brand core value. The brand core value is the core completeness of a brand. Haier takes many effective measures to improve its brand core value. First of all, Haier reflects its core value with the high quality products. The clear quality require of Haier brand is from the year of 1985, in which Zhang Ruimin hit refrigerator with defects. Through the event Zhang Ruimin wanted to tell everyone producing refrigerator: defective product was trash. In 1988, Haier won the first gold quality medal in the history of Chinese refrigerator industry. The second is to support the core value with comprehensive services. With the market competition became fiercely, domestic home appliances enterprises also began to pay attention to product quality and at this moment the Haier began to improve its service. In service improvement, Haier not only emphasized after-sales service, also stressed pre-sale, service in sale. All general enterprise only emphasize the product maintenance, and Haier think service is not only maintenance, installation, answering questions and so on, but also should understand the opinions of the consumer, the demand for products. The third is to develop the core value via innovative promotion. Haier insist that the problem of consumer is the subject of its development. For this Haier have two principles: the first is humanized design; the second is consumer can use it simply.

Fourth, make full use of various brand strategy to build the brand, for example, the single brand strategy, deputy brand strategy, etc. In long-term production history, its product line gradually introduced washing machine, television, air conditioning and other products, but these all the product category are named after Haier. This is a single brand strategy, making full use of the existing Haier brand awareness and reputation, to lead consumers to accept it and help the product line grow. This way also reduced the expenses Haier spend on brand advertising and brand marketing. In addition, Haier has successfully used the deputy brand strategy. This is the success in the operation technique route of Haier brand strategy. In market, there are all kinds of Haier refrigerator, coolers, air conditioning, TV sets and washing machines. There is not only Haier brand, but Haier’s deputy brand, such as “handsome prince”, “the little prince” and “little superman”. Taking its successful brand as the main brand and covering other series of products with deputy brands can show the social influence of main brand and the different personalities of deputy brands.

To sum up, the Haier group used various tactics to implement its brand strategy.

These effective steps are just a part of the experience.

6.7 Developing Brand Strategy at a Global Stage

In the latest list of “World Top 50 Respective Commercial Leaders”, Zhang Ruimin, the CEO of Haier Group, ranked 26^th, and he was the only one of Chinese enterprisers. The root cause of Haier and Zhang Ruimin’s success is the implementation of oversea market expansion. In 2005, Zhang Ruimin gave an announcement to implement global brand strategy. Let’s look what he said then. He believed: Haier needed a new development strategy, which is global brand strategy that would be implemented in 2006. This is a new subject for Haier even for all the domestic enterprises. Fortunately, Haier had a preparation for all the difficulties. Global economic integration is an inevitable trend for global economy. After entering into WTO, Haier could not find a market across the world which had not been globalized. Before entering into WTO, some domestic enterprisers believed that they could go to rural areas when foreign enterprises came into Chinese market and manipulated Chinese large cities; however, all the places have become a part of international market, no matter where they are. Bengal, as one of the 49 poorest countries worldwide, is also an international marketing place. Therefore, global competition is a difficulty we have to face. Brand plays an important role in global competition, thus a successful brand is able to be global. Furthermore, the form of a global brand depends on the global brand strategy.

The international competitors have advantages of global marketing network and competition quality over our domestic companies, in terms of global operation. Many researches had been done and the last stage was called international strategy stage. There are some similarities between international strategy and global brand strategy, but they have essential differences as well: international strategy is regarded China as the developing center, but global brand strategy aims to generate Haier’s own brand in local regions, which is a huge difference between the two strategies. International strategy stage aims at exporting, but Haier wanted to created local brands abroad.

Haier just seized domestic opportunities since 1984 when it began to do entrepreneurial activity, but many things have to be done to implement global brand strategy. In the stage of global brand strategy, Haier would be in hard time and had to conquer three obstacles at least.

Meanwhile, there are three obstacles Facing Haier:

●The first obstacle is how to step into Finals from Qualification. Modern Chinese enterprises even do not have right to come into global and international market. Without the right, Chinese enterprises can do nothing in the global market.

Rights are essential for establishing manufacturing base. Haier has thirty manufacturing bases all over the world. And Haier needs to make more effort to establish more manufacturing bases in the world. There are many reasons why Haier gained less benefit than before, and without money, it is impossible to do advertisement and establish manufacturing bases abroad.

Foreign companies that enter into Chinese market have established many manufacturing bases in the world and China is their last goal. They can use their hundred-year accumulated funds to invest into Chinese market. However, Haier does not have so many funds to develop foreign market. Foreign corporations have much strength to develop Chinese market but Haier should build Trinitarian marketing system to develop local brand abroad. Therefore, Haier has a long and hard way to go to success. A big foreign company that aimed to avoid suffering loss in the first five years came into Chinese market nine years ago and suffered loss during the period. But this company made benefits this year. It was after nine years that the big foreign company could make benefit finally. How about Haier if Haier come into the foreign markets? Therefore it is a long and hard way for Haier to go in the direction to success. Haier’s global extension strategy had to be impacted and evaluated for a long time on development and benefit.

If Haier want to enter into the Finals in face of global enterprise competition, Haier must improve competence of their products and operation.

Competition of products is about quality and development & research of products. All the Chinese enterprises have a quality management system regarding to quality, but the current system can hardly enter into international market, for these Chinese enterprises just have a small scale production.

What is the current quality standard? It requests that Chinese enterprises should produce large amount, many varieties and new species to meet the demands of consumers from different countries and regions. Only when Chinese enterprises have such a kind of world quality management system, can they enter into the Finals eventually. High management standard is a request for them to enter into international market; without it, Chinese enterprises are not able to make it. For example, Haier’s product sold in New York is sold at the price of 150 dollars, but the average expense for door to door service is about 75 dollars; it is unreasonable for any Chinese enterprises to spend half income to do this. Even though the product is sold at 300 dollars, it is impossible to take half income to do the door to door service. If Haier can not handle this difficulty, it has no right to enter into international market.

As to research & development, only when Haier has basic competition quality, such as patent, standards and so on, can it really enter into international market. Haier has the largest amount of patents and invention patents among Chinese household electronic appliance corporations. Haier is the first Chinese household electronic appliance corporation to meet two international standards that are the basic requirement to enter into international market. Haier needs to use the patents to produce different products to attract consumers, which can fully show international standards. Let take “water wall” water heater as an example. There is no point to take electric security into consideration in developed countries, for the electric system is safe enough; however, according to a survey, 52 percent of Chinese house doesn’t meet standards of electric security standards, and electric lines in some houses are even connected to water pipe, which is undoubtedly extremely dangerous. If the house did not connect to ground for security, water heater is likely to be charged and does harm to users. The “water wall” water heater designed by Haier can handle this issue, for it was designed to guarantee user’s safety.

To what extent can differentiation of Haier’s product be? Is the differentiation regarded to domestic products or global ones? Haier’s goal is to make products different from all the products worldwide. The current washing machine designed by Haier does not need washing powder to wash clothes and is selling well worldwide. And why do so many governments support this product? The reason is that washing powder does harm to environment and Haier’s washing machine can protect environment and save water meanwhile. Currently, Haier is trying to collect all the water samples in the world, for this machine is designed based on local water’s characteristics all over the world. For example, the machine can be sold well in New Delhi, India, but not well in Bombay. Haier needs to solve the water quality issue, so that this product is going to be used and sold well all over the world.

Enterprise operation ability, including material flow, capital flow and information flow plays a vital role in the international competition. Haier is able to handle enterprise operation well in China, but not in the world. Haier is the national demonstration base of material flow evaluated by China Material Institution in China, but the material flow of Haier is not good enough in the world. Global material flow network requires that Haier’s product should be arrived at the destinations in time. The rental fee abroad is so expensive, so it is unwise to rent a storehouse in New Year, for the rental fee for one square is 55 dollars compared to 8 dollars in Qing Dao. In short, Haier can hardly afford the rental fee abroad.

As to the capital flow, positive capital flow is one of standards for Haier to enter into international market. Chinese enterprises have met a lot of troubles now, for the rate of bad debts in China is about 5 percent for export, which is 10 to 20 times higher than it is abroad. The bad debts have become a big obstacle for Chinese enterprises to thrive in the world. Haier is the only domestic enterprise to undertake cash spot in China; however, since Haier does not have much strength abroad, it can hardly do cash spot like it does in China.

Information flow has its own content that every product has unique bar code. No matter where it goes, the product can be traced by the bar code. Haier can do bar code of people; product and order in domestic big cities, but it can hardly do this abroad.

Material flow, capital flow and information flow all need good consumers’ network for support, otherwise it can not work. For example, products sold abroad shall be sent to storehouse first, for consumer’s network can not give enough support yet. If it can, products can be sent to store directly. Therefore, competition ability of corporation, which is production competition and sales competition, is so important in global competition with others. Several monopoly enterprises abroad can control the whole electronic industry; Haier have to make a lot of effort to enter into oversea market, which is a serious and hard obstacle for Haier.

● The second obstacle is: once entering into the Finals, benefit should be gained from opportunity benefit to win-win benefit. Some enterprises just have qualified for competition, but they can not enter into Finals; some enterprises finally come into Finals but they are not competitive. Entering into Finals is not enough, for enterprises are expected to make benefit eventually. The enterprises without competition will quit the Finals for losing benefit, and Haier should gain benefit from opportunity benefit to win-win benefit.

In the beginning, Chinese enterprises can all make benefits well, but they can not do it nowadays, and some of them have even lost benefit in all industries. There are certainly ground reasons for these phenomena.

The benefit made before is brought by the open-up policy, rather than corporation’s competition. There were few brands in the past, so corporations could make benefit then, so did Haier. The benefit then was called opportunity benefit and Haier held it and made benefit then. For instance, in the following ten years after implementing open-up policy, refrigerators can be sold out once being produced. In the beginning, just one air-conditioner industry can make benefit up to one billion RMB in three successive years. Once opportunity is seized, Haier could step into diversification soon and use capital accumulation to come into internationalization. Nowadays, there is no good opportunity for Haier to step into globalization soon, and Haier has to depend on itself to fight for it.

In view of current situation, there is no opportunity benefit from now on, but win-win benefit exists in the future. What good resources Haier has, then what good resources Haier can exchange for. What good resources subcontractors can supply to Haier is dependent on what resource Haier has. Large corporations such as Intel sell resources to Haier, but the amount of the resources depend on Haier’s actual need. If Haier has a promising development and needs a large amount of resource, Intel is going to give resource to Haier in a lower price. If not, the price may be one time higher. Some subcontractors provide their patents and resources to Haier, if the products of Haier are competitive enough.

Corporations facing downstream are in the same situation. If Haier wants to deal with big customers, whether they can provide a sale position to Haier totally depends on the benefit Haier is likely to bring to them. For example, if Haier’s products can bring more benefit than other brands to European stores, these stores are willing to accept Haier’s products instead of others, for the most important factor they believe is the benefit. Therefore, globalization totally depends on Haier’s competition.

As to users, they do car, e about the usage of Haier’s products. Only when consumers are willing to pay for products, can Haier make money eventually. Whether consumers are willing to pay for Haier’s products relies heavily on their practicality and value for consumers. The first important factor is cost performance. Consumers will judge whether they are supposed to purchase Haier’s products at the price. The second important factor is additional value.

●The third obstacle is that when Haier gains benefit, it should change mono-culture into multi-culture, in order to maintain sustainable growth. Win-win ability can guarantee the obtainment of benefit, and then get the real motivation to make development in market. However, only when Haier is able to create more demands in shorter time than other competitors, can win-win situation be made by Haier. The change of cultures depends on people’s competition, but the competition of different people in the world is different. Therefore, one problem about corporation culture emerges: how to change mono-culture into multi-culture?

In view of the process of Haier’s development, it is not hard to notice that external opportunities of Haier were almost same with those of other corporations, and even some corporations, which have already disappeared, had much better external opportunities than Haier. On one hand, the development of Haier is mainly contributed to the support from leaders and the effort of employees; on the other hand, the fact that Haier’s corporation culture is accepted by the public leads to its rapid development as well. The core corporation culture of Haier is innovation.

However, the original corporation culture is rooted in Chinese traditional culture, so Chinese employees are willing to accept it. There are many traditional Chinese elements which had been absorbed by Haier, such as Three Cardinal Guides that is the base of corporation culture. The first guide requires that the relationship in corporation should be transparent. However, transparent relationship, which guarantees that employees’ promotion should depend on competition, can hardly be found in many Chinese corporations. In fact, all the Chinese people want a transparent competition environment but many corporations do not have it, for some small gangs exist in Chinese corporations. When Haier steps into international market, all the competitions are transparent and employees then can work with a cheerful mood. The second guide is innovation. Every people should have innovation spirit. The third one is pursuit. Never give up and try the best. Haier makes its development strategy and spirit based on the three guides, which also guarantees brand of Haier can be accepted by employees in China.

This situation is different in the international market, for cultures abroad are different from Chinese one. In Europe, leisure culture is popular and can not be violated. In the beginning when Haier stepped into American market, Haier got a lot of support from Li Yuxing, a Chinese diplomat. He came to Haier’s factory opening ceremony in the state of South Carolina in person and gave valuable encouragement to Haier. By far, the sale of Haier’s air conditioner is very good. The sales rose from 100 million dollars to 500 million dollars in several short years. However, the integration of culture becomes harder and harder. In Japanese market, local consumers show respect to Haier, but they can hardly accept Haier’s culture, especially the old consumers, for there are big conflicts between different cultures. The same problem occurs as well in East Europe and Middle East. So, Haier tries to make out new corporation spirit and working style, in order to adjust to the development of global brand strategy.

Enterprise spirit is “Create resource, Good reputation to the world”. The biggest difference between current and original enterprise spirits is to radiate to all parts of the world based on China; the new spirit is to stress globalization and good reputation to the world. On condition that Haier can make good resource to the world, the new spirit can be implemented. Peter Drucker, who is an expert on the way of modern organizations, had said: innovation is to create another resource. Materials used in two factories are same, but prices of products are totally different, which is the reason why so many famous manufacturers worldwide came to China for foundry business. The products that Chinese factories produce are worth ten dollars but these famous brands sell them at higher price up to a hundred dollars. The price-gap is resource created by them. Exactly speaking, a famous global brand needs to be maintained through innovation in a long-term strategy.

Nowadays, Haier needs to improve not only its production efficiency, but also the production accuracy, for current economic situation has changed a lot.

"Unification People & Order" aims to solve problem of production efficiency and accuracy. “Order” is the most important marketing competition. People should get used to the competition and handle various difficulties in advance. In this way, Haier can gain commercial opportunities and stand in an inconvincible position in competition with other competitors.

"Unification People & Order" aims to handle the conflicts between the relationships of internal management and external market expansion. In all stages of management, Haier should pay attention to handling the conflicts in a short time, but these stages should not be ignored. The idea of "Unification People & Order" is to regard external market as a center to strengthen internal management.

"Unification People & Order" can be accepted by all kinds of people with different cultural backgrounds, for it is the basic professional ethics. This innovated development model is complimented by many international business managers, but all of them believe it is hard to implement this model in a short-term development.

Overall, Haier is facing tough task; to some extent, Haier is supposed to make more effort in the future, for it is going to face a tough but inevitable development challenge. Although the challenge is extremely tough, Haier has no choice but to try the best to develop oversea market, because there is no short cut to the success of a great corporation.

7.0 Conclusions

In today's market economy, both in academia or in practice, brand strategy has been widely emphasised, and the research of brand strategy is in progress. In China, the country with the fastest economic growth rate of the world, brand strategy caused high attention of enterprise, and the economic environment in China also provides a good foundation for enterprise to build their brands. The brand strategy experience of the Haier group in China also provides good explanation for the brand strategy. We can believe in the near future, the brand strategy will also become indispensable conventional weapons of more and more enterprise, but the enterprise still need to pay more effort to get the brand construction victory.

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