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Voltas launches ‘India ka dil, India ka AC’ campaign; targets 20 per cent share in 2006

08-March-2006
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Voltas launches ‘India ka dil, India ka AC’ campaign; targets 20 per cent share in 2006

Voltas, the air-conditioning and engineering services company of the Tata group, has announced its multi-pronged strategy to attain a market share of 20 per cent in the 1,500,000 (units) domestic air conditioner market. Voltas’ current market share was 16 per cent, said a company official, of which 70 per cent came from institutional sales.

A Rs 20 crore advertising budget and a Rs 6 crore retail expansion budget have been allocated for Voltas’ new range of window and split ACs. The communication will stress on ‘India ka dil, India ka AC’. Buoyed by research insights that said Indians were increasingly coming back to (and taking pride in owning) Indian products, the new communication strategy has been put in place.

Said K J Jawa, Senior VP, Unitary Business Products Group, Voltas Ltd, “We realised that the big idea must leverage the rising pride in Brand India and Indian brands. A recent survey shows that people are coming back to Indian brands, are realising that among other things, Indian brands are reliable, provide value-for-money, and cared for the customer.”

The new campaign is already visible in the Chennai market. The TVC pleasantly reinforces the Indianness of Voltas, even as it successfully tugs at heartstrings. Euro RSCG is the creative agency on the business, and the film was the work of Prakash Varma of Nirvana Films. Starcom handles the media duties for Voltas.

Jawa explained that the brand was ‘shy’ at first, and had chosen to show its marketing muscle only in the last three years, following the competition from American and Korean brands. In 2002, it took on the line ‘AC with IQ’ and followed it up with subsequent campaigns. Last year, it introduced the sub-Rs 10,000 ACs with a view to be accessible to a larger section of Indian households. The present effort, too, was to reach out to a larger section of Indian households, according to Jawa.

He added, “Over and above the advertising spends and other below the line activities, we would be looking at adding 1,500 dealers, making it a total of 3,500 nationally, apart from strengthening our franchisee spread from 350 to 500 this year.”

The attempt would be to increase the domestic share within its market share to 40 per cent, up from the present 30 per cent. Claiming a growth of 50 per cent last year against an industry average of 22 per cent to 25 per cent, Voltas is optimistic of attaining its target of 300,000 units this year. In the long term, the company is targeting a turnover of Rs 10,000 crore by 2010, growing steadily from last year’s Rs 1,500-crore figure.

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