Bajaj Electricals Ltd has recently implemented umbrella branding for ‘Bajaj’ lighting with the concept of ‘Bajaj Lighting Chale Sabse Jyada’. The company has recently launched a clutter-breaking ad which has a simple story to tell and the company feels the ad will go a long way in ensuring stronger consumer franchise for Bajaj lighting, Bajaj Electricals Ltd president and COO R Ramakrishnan told FE.
The company launched ‘Jab Mein Chotta Baccha Thaa’ several years back. It has not advertised for quite sometime now. This is because the company’s thrust was on distribution-laid activities with focus on point-of-purchase material and other channel-led activities.
Now that the entire lighting category has got commoditised, Bajaj Electricals has felt the need to differentiate and give the customers a reason to prefer Bajaj lighting. This is also because the small-scale industry today constitutes 50 per cent of the lighting market and quality is not comparable to what is given by the big players, he said.
On the company’s new plans, said Mr Ramakrishnan: “We will soon be supplementing this activity with significant retail expansion plans whereby we are planning to widen the distribution reach for Bajaj lighting from 1.25 lakh to 2.5 lakh retail outlets. In addition, we are also planning to expand kirana stores from 1 lakh to 2 lakh stores in order to promote Bajaj lighting.
According to Mr Ramakrishnan: “The lighting market is growing at the rate of 5% to 6% at present and we hope to grow at double the rate of market growth. In the Rs 3,000-crore lighting market, Bajaj stands at number two. Also, as part of an emerging trend, the lamp market is under pressure for growth. This is because there is an erosion in pricing of CFLs from say Rs 300 to Rs 110 because of competition. Also CFLs are becoming more popular. The CFL market is growing at the rate of 25% to 30%. With higher consumption, there is more economies of scale, lowering pricing options and increasing consumption.”
As part of for its exports thrust, Bajaj Electricals is planning to foray into countries such as the UK and Middle-East for lighting and the UAE for luminaires soon. Currently, the company exports its lighting products to South Africa. “With the new initiatives, we hope the contribution of Bajaj lighting to grow from Rs 250 crore to Rs 300 crore within a year,” summed up Mr Ramakrishnan.