Unit3:Passage A:Bathtub Battleships from Ivorydale
American mothers have long believed that when it comes to washing out the mouths of naughty children, nothing beats Ivory Soap (a registered trademark of the Proctor & Gamble Company). This is because its reputation for being safe, mild, and pure is as solid and spotless as the marble of the Lincoln Memorial. It doesn't even taste all that bad. And should you drop it into a tubful of cloudy, child-colored water, not to worry - it floats. Ivory Soap is an American institution, about as widely recognized as the Washington Monument and far more well respected than Congress. It had already attained this noble status when Theodore Roosevelt was still a rough-riding cowboy in North Dakota. Introduced in 1879 as an inexpensive white soap intended to rival the quality of imported soaps, it was mass marketed by means of one of the first nationwide advertising campaigns. People were told that Ivory was "so pure that it floats," and the notion took hold. As a result, at least half a dozen generations of Americans have gotten themselves clean with Ivory. So many hands, faces, and baby bottoms have been washed with Ivory that their numbers beat the imagination. Not even Proctor & Gamble knows how many billions of bars of Ivory have been sold. The company keeps a precise count, however, of the billions of dollars it earns. Annual sales of Ivory Soap, Ivory Snow, Crest toothpaste, Folger's coffee, and the hundreds of other products now marketed under the Proctor & Gamble umbrella exceed thirty billion dollars. The company has grown a bit since it was founded in 1837 in Cincinnati, Ohio, by a pair of immigrants named William Proctor and James Gamble, each of whom pledged $3,596.47 to the enterprise. For decades Proctor & Gamble manufactured candles and soap in relatively modest quantities. It took more than twenty years for sales to top one million dollars, which they did shortly before the Civil War . The company's big break came with the introduction of its floating soap and the realization that an elaborate advertising campaign could turn a simple, though high-quality, product into a phenomenon. The soap's brand name was lifted from "out of ivory palaces," a phrase found in the Bible. So successful was this new product and the marketing effort that placed it in the hands of nearly every American that the company soon built an enormous new factory in a place called Ivorydale. Proctor & Gamble never forgot the advertising lessons it learned with Ivory. For instance, it was among the first manufacturers to use radio to reach consumers nationwide. In 1933 Proctor & Gamble's Oxydol soap powder sponsored a radio serial called Ma Perkins, and daytime dramas were forever after known as "soap operas." Over the years the company added dozens of new product lines such as Prell shampoo, Duncan Hines cake mixes, and the ever-present Tide, "new and improved" many a time. To this day, however, Ivory Soap remains a Proctor & Gamble backbone product. Ivory remains a favorite among consumers, too, and no wonder. With a bar of Ivory Soap in your hand, you are holding a chunk of American history. If you like, you can even wash your hands and face with it and be assured that it is "ninety-nine and forty-four-one-hundredths percent pure." And it floats. The latter quality of Ivory Soap is especially attractive to children. Generations of little boys armed with toothpicks, miniature flags, or leftover parts from model ships - there are always a few - have converted bars of Ivory Soap into bathtub battleships. A note of warning for any small boys who may be reading this: Mothers tend to frown on the practice. Proctor & Gamble was not impressively successful in its first 20 years. its successful nationwide advertising campaign Ivory Soap is well-known to Americans compete with high-quality soaps coming from foreign countries Soap operas became known as a result of a P&G sponsored radio serial.
Unit3:Passage B: Haier Seeks Cool U.S. Image
NEW YORK, Aug 2 (Reuters) - For most American shoppers, "Made in China" may still suggest cheap toys, but China's largest household appliance maker has ambitious plans to change that with its sales of a growing range of sleek minibars.
Haier Group Co., which according to some industry estimates is the world's second-biggest maker of refrigerators, is seeking to outflank America's three major appliance makers by competing on image rather than price, and by targeting students in the hope that they will remain loyal as they get older.
And so far the strategy, which may signal the way for future campaign in the U.S. market by other Chinese consumer products companies, may be working - at least according to two arms of the world's largest retailer Wal-Mart Stores Inc.
"It's not about whether they're made in China," said Melissa Berryhill, a spokeswoman for Wal-Mart's Sam's Club, whose last holiday season catalog featured a black Haier cooler with smoked glass doors that is big enough to chill 30 bottles of wine.
"They're an exceptional value," she said of the $300 luxury machine, sold along with the more ordinary Haier chest freezer that costs about $160.
Wal-Mart's main discount operation in April began selling the chest freezers in half of its 2,600 stores, while most of its stores sell at least one of two versions of compact refrigerators made by Haier.
"They're popular and beating our expectations on sales," said Wal-Mart spokesman Rob Phillips, who added that the Haier 4.6 cubic feet and 5 cubic feet freezers cost about the same as General Electric Co.'s comparable products, selling for around $169. COLLEGE TOEHOLD GE, Whirlpool Corp. and Maytag Corp. currently dominate the U.S. marketplace for household appliances but they tend to focus most of their attention on mainstream areas such as large refrigerators and freezers.
Haier, which says it currently sells $200 million worth of appliances in the U.S. annually, now claims more than a 35 percent share of the U.S. market for refrigerators 4 cubic feet and smaller - the minibars found in hotels and college dormitories.
"When those college kids using our little refrigerators grow up and marry, we want them to be thinking of us for their first fridge," said Michael Jemal, Haier America's president, who was Haier's first U.S. distributor before setting up the unit in 1999.
Haier may need to depend less on the Chinese market because it is likely to face an increasing challenge on its own turf. China's entry into the World Trade Organization will open up Chinese manufacturers to greater foreign competition at home.
Haier, which had global revenues of $5 billion last year, spent $30 million setting up a plant late last year in Camden, South Carolina that will make large Haier brand refrigerators. Company officials say they hope initiatives like that will grow U.S. sales to $1 billion by 2004.
"They're building up their learning curve in the U.S., and then picking up niche markets," said Ming-Jer Chen, a professor at the Darden School of Business Administration at the University of Virginia and the author of a new book, Inside Chinese Business.
BROADWAY HEADQUARTERS The company, whose Chief Executive Zhang Ruimin is famous in China for being filmed smashing sub-standard products with a hammer, last week bought a historical bank building on Broadway in Manhattan for $14 million.
"Buying a New York building for $14 million is not what's going to make us," said Jemal. "It's about offering the customers the products the competition doesn't have."
In the third quarter of 2002, for example, the company plans to launch stainless steel Internet-linked appliances with Flash Gordon stylings, such as a home clothes washing machine that can be started via the Internet, he said.
To grow its brand in the U.S., the company has taken out ad space on a case-by-case basis on trolley cars at JFK International Airport in New York and on billboards in Miami and Chicago, but has not yet contracted with any of the big advertising firms. And Haier America is not only battling rival appliance makers in the U.S. - it is also manufacturing for some of them. Haier America does about 20 to 25 percent of its manufacturing on a contract basis for other companies, including big U.S. competitors, who sell its products under their own brand names.
Using its own strategies, Haier is gradually building its brand name in the American market.
Haier focuses on U.S. college students for the purpose of keeping them as future customers.
Haier won't succeed only by the purchase of that building
Haier finds a suitable position in the U.S. market through exploration
a refrigerator with an American brand may be a product of Haier's
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