YORK, Pa. (AdAge.com) -- Home is where Haier America's heart -- or
at least its marketing spending -- is this summer.
The brand once synonymous with dorm refrigerators and room air
conditioners has amassed a full portfolio of appliances and
electronics in its 10 years in the United States. And it wants to
command attention for that suite of products.
So the China-based company has created a moveable home filled with
Haier appliances that will travel to fairs and events that draw
more than 1 million people, such as the Ohio State Fair and the
California State Fair. It kicked off this past weekend at food
festival Taste of Chicago, managed by Haier agency Escalate, New
York.
Until now, Haier America's marketing has centered on a just-expired
four-year sponsorship deal with the NBA. But it's clearly
diversifying its efforts.
Haier America Aims to Mirror Success of Samsung, LG
At the helm is Richard Block, a former Westwood One executive and
Nobody Beats the Wiz VP-advertising, who joined Haier as
VP-marketing three years ago. His goal, he said, is to guide Haier
down the path of other foreign electronics brands such as Samsung
and LG, which entered the U.S. market with little recognition and
few products but have grown into household names.
He talked with Ad Age about the goals of the home tour, gaining
brand recognition in the U.S. and diversifying Haier's marketing
strategy.
Where did the idea for the home tour come
from?
Our two biggest customers are Walmart and Target. If you open up a
Target circular on any given Sunday, you'll find a Haier product,
but there are very few places you'll see them all. We go to three
or four trade shows a year, but there's not even one place where we
show all our wares at once. So this is really a great opportunity
to do that.
Because we don't have the kind of marketing budget some of our
competitors do, we really wanted to do a good job with PR. We did a
smaller tour last year, but it was more one-dimensional -- just
eight or nine cities -- but it was so successful that we decided to
roll it out to a dozen cities this year. Last year, it was for also
just for one product: our new convertible refrigerator. But this
year it's a whole house. And it's showing 15 or 20 different
products.
What is the strategy and thinking behind the
tour?
I say this sort of tongue-in-cheek, that I'm just an advertising
guy. To me there really shouldn't be just one strategy. If it's
brand awareness, great. If it's educational to get people to be
aware of our product, that's fine. If it's selling with our local
retail partner -- because we have a retail tent outside where
they'll be couponing and bouncing back to the store in the city
we're in, so if we do sales, that's great too. There's a wide range
of different things that we're trying to accomplish during the
tour.
Haier has mainly focused marketing on an extensive
partnership with the NBA. How has that relationship been and is
this your first departure from it?
We are just winding down our initial foray with the NBA. We've had
a four-year relationship with them, and we are involved in an
ongoing conversation to determine if we're going to continue with
that. Those conversations are positive and ongoing.
When I got here, one of the first things that we needed to do was
get the NBA relationship off on the right foot. I also felt there
were other things that needed to be done. The first thing was to
relaunch the website. We completely changed our trade-show program.
It had been a little bit smaller; I made the footprint at the shows
bigger and much more comprehensive. We got the NBA involved with
some player appearances and other things that made sense depending
on the show.
So the NBA relationship, the trade-show program, relaunching the
website -- those are some of the first things that we did [that
were a departure]. We produced some TV commercials as well, which
was really our first foray into TV. And then two years ago we went
into magazines, and then this past year we took a very strong
position with Meredith, and people have taken some notice.
The Haier brand is huge in China and other parts of the
world, but in the U.S. it's almost like building a brand from the
ground up, right?
There's no question that Haier is 26 or 27 years old in China, and
we're just going into our 10th year here. For the longest time we
were known as room air conditioners and dorm/office refrigerators.
Over the past five years, we've really gone into full-size
refrigerators, washers, dryers, dishwashers, major appliances, and
in the last several years we've gone into LCD TVs in a pretty
significant way.
A lot of people have Haier products; they don't necessarily know it
or are aware of it, but I think we're beginning to have some aha
moments, like, "Oh, I didn't realize that's who it was -- I have a
Haier air conditioner. Wow, you're the guys who make the LCD
TVs."
Where do think the Haier brand is in the American mind-set
right now and where would you like it to be in a few
years?
We've done a hell of a job in a couple of years getting the Haier
brand out. We have a long way to go, but being the official HDTV of
the NBA and being an official marketing partner of the league has
really helped put us on the map. We're still pushing the rock up
the hill, but we've made tremendous inroads. Our retail partners
are very comfortable with us. Now it's a question of helping people
get to know us even better. Some of our competitors, a Samsung or
an LG, did terrific work in the last 10 or 20 years. We're
certainly trying to go down a similar path, and I hope to be as
successful as they are. That's the goal, that's the plan and that's
the aspiration.
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