HAIER _Beat the Heat

Emerald Emerald Emerging Markets Markets Case Case Studi es HAIER: “Beat the Heat” Ian Michael Meerah Ketait Sarah Al Qassimi Azza Al Nuaimi

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HAIER: ‘‘Beat the Heat’’ Ian Michael, Meerah Ketait, Sarah Al Qassimi and Azza Al Nuaimi

) T P ( 6 1 0 2 r e b o t c O 7 0 6 1 : 3 0 t A N A T S I K A P Y T I S R E V I N U R I A y b d e d a o l n w o D

Ian Michael is Professor of Marketing, Zayed University, Dubai, United Arab Emirates. Meerah Ketait, Sarah Al Qassimi and Azza Al Nuaimi are all graduates of Zayed University, Dubai, United Arab Emirates.

Aamer Khan, Managing Director Hafet Electrical LLC, the sole distributor for of Haier in UAE was reviewing their half yearly results. Among the more unconventional strategies they had adopted was one where they used community engagement to get an insight into the local market and develop brand awarenessas a caringtop quality brand. The CEOof Haier, Zhang Ruimin stressed that ‘‘quality is andwill remainthe essence of businesssustainable, whether in thepast,presentor future’’. Aamer was evaluating the effectivenessof the strategyand considering its impact. Should he use a similar strategy next year?

1.1. Company background This case was written by Dr Ian Michael, Azza Al Nuaimi, Meerah Ketait and Sarah Al Qassimi. It was prepared using company information and interviews and its intention was to provide material for class discussion throughpublication.Theauthors do not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Copyright q Michael, Al Nuaimi, Ketait and Al Qassimi (2012). This case is provided courtesy of the AIB-MENA. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.

DOI 10.1108/20450621111192799

The world leading business intelligencefirm Euromonitor International has ranked Haier as the No. 1 brand of major appliances in the world, with 6.1 per cent retail market share in 2010. The company extended its global brand market share by almost 20 per cent from 2009[1]. At the 21st anniversary of the founding of Haier Group on December 26, 2005, Haier announced its focus would be on its fourth strategic developmentstage which is ‘‘global brand building’’. In 1993, Haier brand was officially recognized as a ‘‘famous brand’’. Since 2002, Haier has consecutively beenranked firstas China’s most valuablebrand for itsmanufacture of products that include refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances. Haier was ranked the first of China’s Top 10 Global Brands by the China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing machines[1]. In the refrigeration appliance sector, the company is the No. 1 manufacturer in the world with 12.6 per cent retail volume share. Haier is also theNo. 1 brand in the world for Home Laundry and Electrical Wine Coolers and Chillers. In the year 2010, Haier Group achieved a global turnover of up to RMB 135.7 billion (USD20.7 billion), and their profit growth is eight times more than revenue growth[1]. The company has long attached significance to innovation in satisfying the demands of worldwide consumers, it has obtained more than 7,000 patented technology certificates (1,234 for Haier inventions) and 589 software intellectual property rights. Haier has hosted and taken part in modification of about 100 technological standards. Haier’s technology of safe care water heaters and dual-drive washing machines has been proposed to the International Electrotechnical Commission criteria. In April 2010, Business Week of US published ‘ ‘The world’s 50 most innovative companies’’, which included five Chinese companies, and Haier ranked No. 28 as the only Chinese home appliance brand[1]. Management and economic literature points out that the most valuable strategic resource for firms in the twenty-first century may no longer be physical assets such as land, factories or machines, as was the case at the beginning of the twentieth century, but rather intangible assets such as knowledge, know-how, brand-names and intellectual property rights. According to research conducted investigating products and brands of high-tech industries, it was found that patents and brands (more generally technology-based and market-based

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assets) may be viewed as a pair of scissors, one reinforcing and/or substituting for the other over time (Jennewei et al., 2010). In overseas markets, Haier products are sold in KESA, Media Market, Carrefour, Expert and other major European retailers. The company first entered Europe through Germany in 1990, andin addition to a trading comingit nowhas Research & Development (R&D) centers in Italy, Holland, Germany and Denmark[1]. Though Haier is a global firm, its strategy is to be ‘‘local’’ in foreign markets. In the USA and European markets, it does this by using localized design, manufacturing and sales processes. Thecompany hasset up production facilities and plants in the USA, Italy, Pakistan, Jordan and Nigeria. This did not stop Haier from continuing its expansion into other international markets, and they are working hard to strengthen their position in the Middle East market. The company’s global branding strategy aims at positioning the company as a local brand in different world markets in conjunction with enhanced product competitiveness and strong corporate operations[2]. The brand has been successful in distributing and placing its range of products in many European retail chains. According to a Euromonitor report (www.haierksa.com/global.php), the Haier brand has surpassed its rival Whirlpool as the world’s top refrigerator producer in terms of sales. A communication from the company stated that it had sold 12 million refrigerators worldwide in 2010; an increase of 20 per cent over the previous year, its market share reached 6.3 per cent globally. The company’s mission statements states that ‘‘It is to maximize the performance margin profit’’, it believes that maximizing profit is one of its business objectives but definitely not the ultimate goal. In addition, Haier’s management has progressively established a concept of development and business over the last 25 years that revolves aroundpeople; at the heart of Haier’s scale of valuesis customer satisfactionand the greatest aspiration for the company is to win the customer’s heart. Its corporate communications state that the company aims to provide what consumers need in their daily life, and this has made Haier to become the second largest manufacturer of large domestic appliances in the world.


1.2. Haier in the United Arab Emirates (UAE) market In 1993, Haier began selling refrigerators in the Middle East and African markets. It now has established industrial parks, manufacturing facilities and trading companies throughout the Middle East. The company’s products are sold in more than 30 countries including Kingdom of Saudi Arabia, UAE, Jordan and Oman[1]. Hafet Electrical LLC is the sole distributor of Haier in UAE. It focuses on utilizing Dubai’s reputation as a business hub par excellence in entrenching its own credentials in the region. The company caters to the electronics and home appliances market in UAE. Hafet Electrical has its retail outlet (showroom) in the bustling Bur Dubai area of Dubai, in the future and in order to expand its market share, and will be opening out showrooms in each of the other six Emirates soon. The company also has plans to have a class ‘‘A’’ infrastructure for its warehousing and service structure (www.hafet-me.com/aboutus.html). The UAE is a global market that is exposed to international products and brands; this makes the buying decision for consumers more challenging. The bombardment of brands in the UAE make products and services seem similar creating problems for the brands in differentiating themselves, and creating a competitive advantage. Academics of Brand Management like David Aaker and Kevin Lane Kellercall this phenomenon as ‘‘BrandParity’’. The internet is also playing an important role in the UAE when it comes to consumer choices and decision making. In a survey of 750 consumers that was conducted in the UAE, the market research firm YouGovSiraj through their online omnibus service found that a large majority of customers are seeking out product information online and through social media platforms. 70 per cent of those surveyed said that they examined online reviews prior to making a purchasing decision, while more than 80 per cent said they would seek out the seller’s web site. Moreover, 41 per cent of the respondents said that they interacted with their favorite brands via platforms like Twitter, Facebook (FB), YouTube and LinkedIn (www.portal. euromonitor.com.alpha2).

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In this the twenty-first century, consumers in the UAE market are found to be more sophisticated and educated in their buying behavior; as they study the brand, and research about it rather than blindly buying it (www.portal.euromonitor.com.alpha2). Within the electronics industry, intangible dimensions matters for products and brands. These include brand name, reputation and accumulated consumer information. For many products and brands, UAE is considered an emerging market with great opportunities. It is imperative for a marketers to know and understand new markets like the UAE before entering, especially issues pertaining to consumers needs and wants, and detailed information about competition. Being able to understand the potential market and knowing the preferences and choices of consumers, their culture and values, and behaviors; aids immensely in serving and succeeding in a market. Such questions and issues were top-of-mind for Aamer Khan when he discussed engaging with Zayed University to get students involved in a research project for Haier and Hafet. For both the companies, this was seen as part of their corporate social responsibility(CSR) – in building relationships between the industry and the educational sector.


The company (Haier) has an impressive CSR record especially in China. It built and donated 51 primary schools in China for the 51 Olympic gold medals won by Chinese athletes. Of these,15 schools were to be built in Beichuan,the Sichuan Countythat wasdevastated by the May 12, 2008 earthquake. The company announced its ‘‘One Gold Medal, One Olympic Hope School’’ program in 2007. This venture was in partnership with Project Hope, a non-governmental organization sponsored by the China Youth Development Foundation. Haier hasbeen a long time partnerof Project Hope and contributed more than USD3 million in funds and USD19.56 million in materials for the Hope Project (www.chinacsr.com/en/2008/ 09/02/2995-haier-will-build-51-olympic-hope-schools/). By the end of 2007, Haier had built 77 primary schools in 24 provinces, allowing 40,000 students to return to school. The research on CSR and the impact it has on marketing, has found that consumers are likely to buy more or pay a higher price for products from a socially responsible company (Trudel and Cotte, 2009). Similarly, recent research in the USA suggests that CSR actions can give a company an inimitable upper hand in the war for talent (Bhattacharya et al., 2009). Haier CSR activities support charitable causes in other countries around the world too, the company donated money and its products like refrigerators, TVs and computers to the Cuban people when the country experienced hurricanes Gustav and Ike. It supported the Sydney Breast Cancer Foundation and donated towards the ASEAN Tsunami relief in 2005[1]. At a meeting between Hafet, Haier, and the faculty and students of Zayed, it was decided that three marketing students from the College of Business Sciences of Zayed University’s Dubai campuswould do a primaryresearch about thebuying behavior of Emirati consumersas part of their final year capstone project. Some key research objectives were to find out: B

What white-goods products and brands do Emiratis buy?

B

Their decision-making process when buying.

B

Whether and what type of effect does the brand’s country-of-origin have on the Emirati consumer?

The latter issue was considered very relevant to a brand like Haier, which is a Chinese brand; furthermore various studies (as discussed in the literature below) show that Asian brands struggle with the country-of-origin effect especially when introduced as new brands to new markets like the UAE. The three students were extremely enthusiastic with this research project and they did not want to stop with a pure primary research study, but considered creating a unique event to create brand awareness for Haier. This is highlighted and discussed in the case.

1.3. Community engagement outcomes 1.3.1. Research insights A key objective of the capstone research project at Zayed University was to investigate and find out the perceptions among Emirati consumers towards a Chinese brand like Haier. There

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is adequate research in the field of marketing to suggest that consumers form a perception towards a product or a brand, and these perceptions play an important role in consumer’s buying behavior. Research into branding has found that attitudes toward a product or brand depend on both its tangible and intangible characteristics, such as quality, price, function, service, image and awareness (Zhuang et al., 2007). Other research has found that the ‘‘Made in Label’’ affects consumers in many ways, including ‘‘product evaluation, quality perception and purchase intention’’, and customers focus on the country in which a product is manufactured and they treat it as a signal of quality (Zhuang et al., 2007). One other purpose of this research study was to provide and recommend a marketing, (specifically a communication) strategy to Haier to positively position the brand in consumer’s mind. If the research discovered that Chinese brands like Haier have a poor perception in Emirati consumer’s minds, due to the country-of-origin effect, then an outcome or question would be – ‘‘How could a brand like Haier position itselfin theUAE andMiddle East and North Africa (MENA) markets? The research project utilized both quantitative and qualitative methods of data collection. Two common tools namely the survey (over a 100 questionnaires were filled) and in-depth interviews techniques were used to collect the data. A convenient sample of respondents mainly among family, friends and others who were decision makers of consumer durable products. Students used secondary sources to build a knowledge base about brands, especially how ‘‘country-of-origin’’ affects branding, and its further role in consumer decision-making.


1.3.2. Brand perceptions, positioning and ‘‘country-of-origin’’ effects: some secondary research findings Research has revealed that most customers focus on the country in which a product is manufactured, and they treat this as a signal of quality. The brand’s ‘‘Made in Label’’ affects consumers in many ways, including ‘‘product evaluation, quality perception and purchase intention’’ (Zhuanget al., 2007). The ‘‘country-of-origin’’ effecthasa stronginfluenceon consumer behavior in the international market as well, ‘‘as it is associated with mass communication, personal experience and views of national opinion leaders’’ (Cai, 1994). A brand consists of a name, logo and ingredients that represents the unique benefits of the product, in previous research on the ‘‘country of origin effects’’ it was found that consumers in less developed economies prefer foreign brands from more developed countries or regions, because these brands are thought to represent high-quality and fashionable styles (Zhuang et al., 2007). Research conducted by Josiassen and Assaf (2010) found that demographics played an important role in the ‘‘country-of-origin’’ effect. In their study, female consumers tended to rate foreign products more favorably than males. Further to this, they found that young consumers tend to be more optimistic about international products, in comparison to older customers. Cai (1994), found that when making buying decisions, consumers link country-oforiginto personal memories,then to national identities andto feelings of pride associated with the possession of products from certain countries. Typically, this behavior is very popular in Japan where the Japanesepeople are very loyal toanything that is‘‘Made in Japan’’and for a foreign brand to enter their market is a major challenge. A brand is considered having a ‘‘strong brand position’’, when it has a unique, credible, sustainable and valued place in the customer’s mind. Brands typically revolve around a benefit that helps your product or service stand apart from the competition (Blackett, 2007). Accordingly, people buy brands not products. Hence the brand is considered an important element when launching a product or a service into the market. Brands are important to consumers, because it is easier to identify the source of the product and it is a signal of quality. The brand name is the oneaspect that never changes, and is considered an essential factorof marketing. Accordingto Blackett (2007), brands‘‘symbolizethe sumof theattributes that make up the product and it quickly becomes synonymous with the satisfactions that the brand delivers’’ (Blackett, 2007). A brand name is what differentiates one product from another, in addition, advertisements, logos, sizes, colors and taglines also what makes a product unique from others. When all the elements blend together, marketers must come up

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with a name forthe product that describesit. Thebrand name performs a numberof keyroles. First, it identifies the product or service, and allows the consumer to specify, reject or recommendbrands to their familyand friends. Second, it delivers messages to theconsumer. Third,‘‘it functionsas a particular piece of legal property in which a manufacturercan sensibly invest and which, through law, is protected from competitive attack or trespass’’. Therefore, the brand name becomes a valuable asset with an important legal role (Blackett, 2007). Consumers minds are inundated with advertisements and promotions of brands throughout the day, brands that work the best are the ones that are able to position themselves in the customers’ minds according to the personality they are adopting. Usually high-end luxurious brandsposition themselves with prestige and price premiums to express theirexclusivity and their choice of target market. While the reasonable prices brands that tend to attract the middle to low-income customers position themselves by being affordable and approachable brands. The way a customer appeals to those brands depends on the inner wants and needs as well as the way the brand displays itself. 1.3.3. Some primary research findings


The research found that the Emirati female was the decision maker when it came to home appliances; as in the Arabicic cultural context, the woman is responsible for the home while the father is considered the provider (Figure 1). Not only are females the decision makers when it comes to buying appliances for the household, they also decide the product and brand based on recommendations by neighbors and other family member. Though the respondents for the research belonged to different ages, the focus was on young Emiratis, since this demographic group are a great potential market for electronic products, they are at a time in life when they marry and move into their own homes and begin to live independent lives. This group is ready to explore the market and try new brands that are technologically advanced and have greater offers. The youth is the major potential target market and because the UAE is newly formed and established country, most of its nationals and citizens are young adults range, it is imperative therefor for a marketer to understand and then target them. The size of an average Emirati local family is about six to nine members. For Haier, this is good news as the larger the family size, the more need for consumer electronics. This insight was important as most Chinese families often only have three members in the family. Another important consumer insight was that most Emirati households had a minimum of two kitchens and two laundry rooms suggesting that they would buy in doubles – two fridges, two dish washers, two microwaves, two washing machines and twice as many air conditioners. In addition,most rooms have televisions and DVD players. Hence,Haier hasa great opportunity to market its products and brands to the Emirati household consumer. Another interesting finding was that many Emirati families own more than one home; many have holiday homes at the Palm, apartments in Jumeirah Beach Residence (JBR), or beach houses in Fujairah and other emirates. Though the scope of this research included only the Emiratis, our background readings found that even expatriates that live in the UAE have recently been shifting from apartments to villas for more space convenience. This means that this group would need larger and more electronic gadgets. According to Jude, ‘‘It was getting too noisy to live near the JBR Figure 1 Gender Division

80

Female

Male

60 40 20 0 Female

Male

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Walk, with the young crowdpartying all night long. Wewere seeking a quiet lifestyle with a good community feel’’. In addition, ‘‘today, villa prices are slightly lower than what was quoted a few years ago. It made sense to own a villa rather than put our money into someone else’s pocket’’. 80 per cent of people in the survey mentioned that they prefer to buy their electronics from electronic specialists like Sharaf DJ, Jumbo Electronics and Plug-Ins, rather than super, hypermarkets and directly from dealers. The reason behind this was that the level of trust increases when it is a specialized store and people perceive the electronic specialist as one that provides guarantees andwarrantees andhas a greater variety of choicein comparison to hypermarkets. Most respondents stated that employees at electronic specialty stores know more about their products and the brands and they cannot only explain all the functions of a washing machine but also demonstrate how to use it. This suits the Emirati female who is the target market, as this makes her feel secure about being able to use the appliance. The research found that 70 per cent of those surveyed do not have a specific time of the year to buy electronics. Most often people buy appliances when they need them. They can be classifiedas essentialproductsin every household; hence peoplebuy them based on a need and not a specific time. This fact is very important to Haier as sales are not seasonal but ongoing throughout the year. Some respondents mentioned that they bought appliances and white-goods during a sale period like Dubai Shopping Festival, Summer Surprises and Eid in Dubai as they get more promotions and even a chance to be part of sweep stakes to win free gifts. When asked about the price, they are willing to pay for electronic goods, it was found that close to 60 per cent are willing to around Dhs. 10,000, further around 25 per cent are willing to pay around the Dhs. 20,000. Those figures indicate that Emirati people of the UAE are not looking necessarily for cheap and low-cost products and brands.


One of the more important research questions was whether advertisements and promotions built trust into a brand. Around 60 per cent of respondents stated that ‘‘Yes’’ they (advertisements and promotions) make them trust a brand more. It is a psychological process that the more you see of something and the more you hear about something, the more you will get used to it and probably end up buying it. Consumers tend to think that a brand that is displayed more and has many promotions can be is trusted because it has confidence in its products and wants people to try it and buy it. Further, consumers prefer to buy something that is well known and that people are familiar with and constantly hear about it, the brand be seen in different places rather than being an unknown brand which is viewed by consumers seen as an untrustworthy brand. On the other hand, around 40 per cent were not interested in promotions and excessive products display, and they felt that trusting the brand and seeing it on advertisements are two irrelevant topics. Most people that formed part of the surveygroup for this research were 35 years and below, and more than 50 per cent of them use Social Media like FB, Twitter and YouTube. The level of technological advancement in theUAE is high andpeople areup to date with thelatest ways and means to communicate online with each other. The education in the UAE and the growth of English as a language in schools, universities, in business and socially helped people learn more, andget used to these newtoolsof communication. Socialnetworking is thenew marketing tool of the twenty-first century, it is being used to target the younger generation. The younger generation can access these social network sites via their mobile phones and I-Pads, it makes it convenient for them to stay tuned to news and updates. These days, it is quite popular for UAE Emiratis to log into their Twitter or FB account and accessproduct and brand information. Online communication is an easier methodfor peopleto share ideas and communicate; this reflects the influence the internet has got on society. Marketers should know that to target this demographic group communicating via the internet by using social media could be more valuable than the traditional way of placing advertisements in newspaper and television. A key question for this research project for the Haier brand was what role did the ‘‘country-of-origin’’ have on the Emirati consumer. Around 60 per cent of respondents mentioned that they were negative about the idea of buying an electronic product that was made in China, and they preferred products produced in other countries (Figure 2). On further questioning to investigate, we found that Emirati consumers maintained a negative

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Figure 2 Does a product "Made in China" affect your buying decision?

42% Yes 58%


No

‘‘stereotype’’ about products made in China, that such products were cheap, low in quality, did not last long and had no warranty. Respondents stated that if a label said it was ‘‘Made in Italy’’, that to them is proof of quality and superiority. Past research has found that ‘‘Made in’’ label affects consumers in many ways, including ‘‘product evaluation, quality perception and purchase intention’’ (Zhuang et al., 2007). Other respondents were not very extreme in their views and said they do not mind buying a product from China so as long as they trust the brand name. This viewpoint is interesting and should be noted by a brand like Haier, since consumers aresaying their decision depends on thebrand name. It shows that if a brand can build credibility and reliability it can overcome the negative ‘‘country-of-origin’’ effects. The perception of Chinese products as being cheap is no longer applicable if Nokia was made in China or some parts of Mercedes’ cars are made in China as well. What customers care about are the outcomes and reputation of the brand. To start by promoting a brand as made from China might get negative connotation attached to it but considering people trust Haier and are loyal to it and they are aware of the level of technology and high quality their products acquire then the fact that it is a Chinese product would not matter. A total of 66 per cent of respondents said that they would still buy a brand like Nokia if they knew it was made in China, since the brand was popular and the brand’s country-of-origin was not China but Finland. The conclusion is that consumers are insensitive to the country-of-origin when the brand is well established and popular as well as if it has trust in the marketplace. AlthoughHaier is present in manypopular shoppingmalls and electronic retail outlets in Dubai suchas Sharaf DJin theMall ofthe Emiratesand DubaiMall, consumersarestill notyetaware of theexistence ofthe brandin theUAEmarket (Figure 3).The researchfound that consumersdid not know that Haier is an electronics brand. Being placed in a shop is never enough for a new brand to penetrate and sell in a market, there needs to be more effort via marketing communication to build the brand and encourage consumers to try it and then buy it. Figure 3 Have you heard of the electronic brand Haier? Yes

Yes

No

No 0

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1.4. ‘‘Beat the Heat’’ campaign for ‘‘Yes’’ the ‘‘Young Eager Steps’’ After the student group analyzed the results from the primary and secondary research, they proposed to Hafet and Haier a marketing communication campaign to create awareness for the Haier brand in Dubai. Since philanthropyand CSRwas never explored by any electronics company in the UAE, the group thought it would be a unique and a good way to create awareness for the brand. They came up with an idea to collaborate between a non-profit (www.hamdaalhashimi.wordpress.com/young-eager-steps/) organization called ‘‘Young Eager Steps’’ (of which the students are members of) and Haier. Young Eager Steps (YES) is a group of dynamic and young Emiratis working together to contribute to society. Their immediate goal is to educate orphans and provide them financial and emotional support as well. They create events that involve interaction of the members of YES and the orphans. As their motto suggests ‘‘we play together, work together andlearn from each other’’. Thepeople involved in theYES project arestudentsfrom differentuniversities whocome together with the aim of giving back to their communitythrough focusing on the needs of a certain unprivileged group in the society. The student’s brain-stormed and created the ‘‘Beat the Heat’’ Walkathon campaign at Dubai’s Safa Park. The preparation for the event was very exciting as the students wanted some kind of entertainment and attractive factors so people would be motivated to get involved and join the walk for charity. They created a twitter account called @Beat__heat and started to spread the word through Twitter and FB. The tweets revolved around motivating people and convincing them emotionally reasons to be part of the event. They included quotes about helping orphans, verses from the Quran and these were tweeted in Arabic and English. The tweet messages also included information about Haier and the title tweet was ‘‘Beat the Heat with Haier’’.


As reported by Amna Al Hadad in The National newspaper, ‘‘the walkathon was organized by three young Emirati women – Meerah Ketait, Sarah al Qassimi and Azza al Nuaimi(Al Hadad, 2011). They are studying for their Bachelor’s in Marketing at Zayed University’s Business College and were to create a promotions campaign for Haier, an electronics company. Instead, the students pitched the idea of using a charity event to raise awareness’’. The ‘‘Beat theHeat’’ walkathon took place on June 7, 2011; theevent raisedDh 11,000in donations, and was enough to buy 32 appliances, including 12 air-conditioning units, ten fridges and ten washing machines. The money raised went to support the Judran initiative by Sharjah Social Empowerment Foundation, a project that ensures families with orphans have everything they need in their homes. On June 28, 2011, 18 families received refrigerators and washing machines, and two more families received much-needed appliances, air-conditioning units were also installed for those who needed them. One of those who benefited from the walkathon funds was a mother of 11 children, who has lived in the UAE for 45 years and whose husband died two years ago. She is a Bidoon, or Arab without citizenship. ‘‘It’s very helpful,’’said the woman who received a refrigerator, a washing machine and an air-conditioning unit. ‘‘I want to thank the young girls and I hope Allah rewards them with goodness.’’ Ms Meerah Ketait said the campaign, which was carried out as their final year project for a class in marketing, could not have happened without the support they received from Young Eager Steps, Sharjah Social Empowerment Foundation and Haier Electronics Company. Aamer Khan, the Managing Director of Hafet that represents Haier (Al Hadad, 2011) products in the UAE, said their efforts had been a success. ‘‘These young ladies carried out a real-life project that benefited the company and the community,’’ he said (Al Hadad, 2011). Keywords: Haier, Country of origin, Corporate social responsibility (CSR), Promotion and marketing, Brand management

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Notes 1. Haier Presentation 2011 provided by Aamer Khan, Managing Director, Hafet Electrical LLC, Dubai, UAE, September 12. 2. Haier. International Expansion, available at: www.en.wikipedia.org/wiki/Haier.

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References Al Hadad, A. (2011), The National , July 1, available at: www.thenational.ae/news/uae-news/families-inneed-given-home-appliances-from-walkathon-funds Bhattacharya, C., Korschun, D. and Sen, S. (2009), ‘‘Strengthening stakeholder-company relationships through mutually beneficialcorporate social responsibilityinitiatives’’, Journal of BusinessEthics , Vol.85, pp. 257-72. Blackett, T. (2007), Researching Brand Names , Novamark International, London, available at: www. hamdaalhashimi.wordpress.com/young-eager-steps/ Cai, Y. (1994), ‘‘Country-of-origin effects on consumers’ willingness to buy foreign products: an experiment in consumer decision making’’, available at: www.fcs.uga.edu/ss/docs/cai_yi_200208_ms. pdf Trudel,R. andCotte, J. (2009), ‘‘Does it payto be good?’’, MIT Sloan Management Review , Vol. 50No. 2, pp. 61-8. Zhuang, G., Wang, X., Zhou, L. and Zhou, N. (2007), ‘‘Asymmetric effects of brand origin confusion’’, available at: wwwemeraldinsightcom/0265-1335.htm


Further reading Alexander, J. and Assaf, A. (2010), ‘‘Country-of-origin contingencies: their joint influence on consumer behavior’’, Asia Pacific Journal of Marketing and Logistics , Vol. 22 No. 3, p. 20. Klaus, J., Thomas, D. and Alexander, G. (2010), ‘‘When brands complement patents in securing the returns from technological innovation: the case of Bayer Aspirin’’, International Management , Vol. 14 No. 3, pp. 73-85.

About the authors Dr. Ian Michael is a Professor of Marketing at Zayed University, UAE. He completed a Doctor of Business Administration (DBA) from Victoria University, Melbourne, Australia. He has 18 years’ experience in industry, holding senior positions with sectors like travel and tourism, banking and finance, hospitality, advertising and pharmaceuticals. He has been an academic for the past 13 years in Australia and the UAE. Dr Michael is a Fellow of the Australian Marketing Institute (FAMI) and a Certified Practicing Marketer (CPM). Ian Michael is the corresponding author and can be contacted at: [email protected] Meerah Ketait has successfully completed her Bachelor of Business degree from Zayed University, Dubai campus. This case study is part of her Senior Capstone Research Project. Sarah Al Qassimi has successfully completed her Bachelor of Business degree from Zayed University, Dubai campus. This case study is part of her Senior Capstone Research Project. Azza Alnuaimi has successfully completed her Bachelor of Business degree from Zayed University, Dubai campus. This case study is part of her Senior Capstone Research Project.

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