Philippines Edition 9 Asahi

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THE MARKET

The Climate of the Philippines is tropical and maritime. It is characterized by relatively high temperature, high humidity and abundant rainfall. It is similar in many respects to the climate of the countries of Central America. Temperature, humidity, and rainfall, which are discussed hereunder, are the most important elements of the country's weather and climate. Based on the average of all weather stations in the Philippines, excluding Baguio, the mean annual temperature is 26.6o C. The coolest months fall in January with a mean temperature of 25.5oC while the warmest month occurs in May with a mean temperature of 28.3oC. Latitude is an insignificant factor in the variation of temperature while altitude shows greater contrast in temperature. The difference between the mean annual temperature of the southernmost station in Zamboanga and that of the northern most station in Laoag is insignificant. In other words, there is essentially no difference in the mean annual temperature of places in Luzon, Visayas or Mindanao measured at or near sea level. Humidity refers to the moisture content of the atmosphere. Due to high temperature and the surrounding bodies of water, the Philippines has a high relative humidity. The average monthly relative humidity varies between 71 percent in March and 85 percent in September. The combination of warm temperature and high relative and absolute humidity’s give rise to high sensible temperature throughout the archipelago. It is especially uncomfortable during March to May, when temperature and humidity attain their maximum levels. It is for this very reason; what better place to sell electric fans than in the Philippines? In a land with two seasons — dry and wet, both of which are warm — fans are a joy, quietly whispering the gentle breezes that keep us cool and comfortable. And with the rising cost of electricity, air conditioners are shrinking and being supplemented by Asahi fans, whose comprehensive offering continues to make our lives just that much more comfortable.

ACHIEVEMENTS

Asahi products are Philippine-made and have been recognized with the PS Mark logo, which signifies that Asahi products adhere to the quality guidelines set forth by the Bureau of Product Standards of the Department of Trade and Industry.

High quality has also won Asahi awards from prestigious and national consumer groups. The company was recognized as the Outstanding Manufacturer of Electric Fans by the Consumers’ Union of the Philippines for five consecutive years from 2003 to 2007. This achievement alone made Asahi a Hall of Famer in the Philippines. These accolades result from Asahi’s aggressive quality control and its long time loyalty to the company’s motor supplier of 30 years. Loyalty and attention to detail have achieved a .0003 warranty claim rate. Fans are assembled both in the Philippines and in China, with 10 to 20 of every thousand fans assembled in China completely knocked down to make sure they meet Asahi’s exacting standards. Thanks to many years of continuous growth in quality, Asahi has again been awarded the Superbrand seal for 2012-2013. Asahi won its first Superbrand seal of excellence in 2005.

HISTORY

Mike Chokee Sy gathered a few local and foreign business partners in 1982 to establish Asahi Electrical Manufacturing Corporation. The goal was to 14

give Filipino consumers an alternative choice in home appliances, especially electric fans. Three or four brands dominated the market at the time and their prices were high. Mr Sy, Asahi’s president and chairman, thought consumers deserved something better—something they could afford. So he and his associates started with one product, the Spiro Aire electric fan. Spiro Aire soon attracted consumers as a one-fan-fits-all solution. It worked as a floor fan, desk fan, wall fan and ceiling fan. With its louvered front, giving the appearance of a box fan, Spiro Aire captured the market, boasting convertibility, ease of use, durability and, of course, affordability. Unrelenting, Asahi prospered in its first two years but, as with the rest of the country, it faced frenzy and instability during the People Power Revolution in 1986. Downsizing and belt tightening were the order of the day and the company offices were moved to the residence of one of the owners. This problem was complicated by the plunge in the Peso exchange rate. Asahi’s investors, local and foreign, opted to drop out and sell their shares to Mr Sy. The company had to start all over again. But even faced with these difficulties, Asahi never faltered, adding new products to meet demand in the market for small appliances. The company operated on a small scale for several years, working out of a three-storey building in San Juan. Business was steady, but to allow growth, Asahi moved its plant to Pasig City in 1992, which afforded ample warehousing and greater space. The company’s workforce grew from only four employees in the beginning to over 100, producing more than 1,500 home appliances daily. The company now has 300 employees and is still growing. In 1996, to cater to growing demand in the Visayas, the company set up a depot in Cebu City. A similar warehouse has also been set up in Davao City. Asahi is a 100 percent Filipino-owned family corporation, which has become a market leader in the small appliance industry, with the focus on electric fans. Growth has been steady, averaging 10 percent per annum for several years. Just as when it started out, Asahi continues to produce consistently high-quality home appliances at affordable prices. While the pricing strategy is to remain affordable, high quality is where Asahi chooses to compete, exhibiting superior workmanship and garnering extraordinarily few warranty

claims. High quality and worry-free use justify the higher cost with loyal Asahi customers.

THE PRODUCT

Asahi sells more than 800,000 appliances a year. Its range of products is wide, with the focus on fans. Every fan and other appliance from Asahi is manufactured in strict compliance with government and international specifications. All efforts are concentrated on meeting established standards for quality and safety. With high quality leading the way as the company’s standardization regarding all its product, Asahi produces more than 40 models of electric fans. Asahi fans are not ordinary. Many boast unique high-tech features. Customers choose Asahi fans for their bright colors and user-friendly designs. And, more important, customers come back to Asahi fans for their next purchase because of the faultless, silent performance delivered by its aluminum motors. Featuring Japanese-quality magnetic wire windings, a carbon steel shaft, brass bushings and carbon steel rotor and stator, an Asahi motor delivers safe, worry-free performance for many years. It is no surprise that Asahi motors carry a five-year warranty. Other makers guarantee five years for selected models. With Asahi, it’s all models. Outstanding quality and socially responsible features come to mind when discussing Asahi fans and the company’s other appliances. Asahi was the first company to introduce the Ionizer electric fan, answering demand for products that promote health and wellness. The Ionizer fan produces ions, which fight pollution with elements that combat airborne allergens. These anti-pollution elements help prevent allergic reactions such as bronchial asthma, atopic dermatitis and allergic rhinitis. Laboratory tests reveal that ionizers are effective in converting stagnant air into the fresh air we enjoy in a morning breeze or by a waterfall. And we don’t even have to get off the couch to enjoy it. Ordinary fans merely blow dirty air around. Ionizer fans remove the dirt and blow clean air.

Another first for Asahi was the introduction of an ice and water cooling fan. It is not an air conditioner, as it has no compressor, but it lowers room temperature by one to two degrees centigrade. It does this simply with water and ice. Electricity is a big issue and will only get even more expensive while Asahi filters the opportunity to reduce our utility cost. To this end, the company improved the timer feature in high-end, remotely controlled electric fans. Ordinary timers merely switch off the fan at a specified time. Asahi’s programmable timer does more. Yes, it not only switches off at a specified time, but it also can be set to switch on at a specified time. With this feature, consumers can coordinate times for air conditioning to switch off and the Asahi fan to switch on. And it all happens while they sleep.

RECENT DEVELOPMENTS

A significant innovation found in Asahi highend fans is an artificial intelligence function. Based on a built-in LED temperature sensor, this function causes the fan to spin faster or slower, depending on the ambient temperature. And Asahi motors, with their aluminum housing, run cool—48 hours continuously and longer. Innovation never ends at Asahi. The company rolled out a Tower Fan in 2008 with three oscillating motions, one that covers 360 degrees. It also has a fan that has three selections are left and right, up and down, and infinite oscillation that combines the first two selections. The following year, 2009, was also a banner year for innovative products, one of which became the company’s best seller. This industrial stand fan features plastic banana-shaped blades and became a consumer favorite. Another new Asahi product in 2009 was an all-stainless-steel rice cooker, which answered modern consumer demand for appliances that are attractive and easy to clean. More new products appeared in

2010, all with especially designed features. The company also has Twingo, a double-headed stand fan, a desk fan with double blades, and a cooling fan that produces refreshingly cool air without the need for water or ice. Beyond fans, Asahi also has a new Mosquito Killer that zaps dengue mosquitoes after attracting them with ultra-violet light, then sucking them in with a fan to be zapped by grills. It is unique in the industry.

PROMOTION

Asahi lets its products speak for themselves. The quality, reliability and affordability of Asahi fans are the best advertisement the company can have. And the reputation Asahi fans enjoy among people that use them is priceless. Customers just keep on coming back for more. And they bring in new buyers through word-ofmouth testimonials: “You want a fan, buy Asahi”. Even so, not every consumer can keep up with the pace of innovation in Asahi products, so the company likes to keep the public informed. One way it does this is by using its large stable of “promodisers” assigned to large appliance stores across the country. (“Promodiser” is a contrived word used in the Philippines. It combines “promo” with “merchandiser”, so you can guess what a promodiser does.)

BRAND VALUES

Asahi is a Japanese word that means Rising Sun. The name represents the optimism and growth that characterizes the company’s vision. The Asahi brand has become a byword for growth of the home appliance industry. The name symbolizes the company’s forwardlooking approach and the need to continually look for new ways to improve. Indeed, Asahi is widely recognized to be synonymous with high technology, and to be associated with efforts to introduce the latest know-how and methods in home appliance manufacturing. Asahi also lives to serve, with an after-sales service program that is continuously being updated and improved. Asahi parts and service centers can be found far beyond Metro Manila, covering Luzon, the Visayas and major cities in Mindanao. Things rarely go wrong with Asahi appliances, but when they do, technicians are on call and parts are available to put things right. Parts are replaced and units are repaired and returned as good as new, as soon as possible. Asahi is a Superbrand with its consistent delivery of the brand promise, making it the brand as it is. Integrity is what we are all about.

THINGS YOU DIDN’T KNOW ABOUT ASAHI m Having achieved a warranty claims rate as low as 0.0003 percent, the company’s Quality Assurance Department still works double time to improve quality and meet all objectives. m Asahi also offers many other home appliances. These include LPG stoves, electric stoves, rice cookers, hotdog waffle makers, oven toasters, electric kettles, blenders and flat irons. The company even makes weighing scales and pressure cookers. And don’t forget the dengue mosquito killer. 15