Come festive season and consumer durable companies get busy in formulating their best strategies to boost sales. It’s the same story every year – new product launches, attractive offers, free gifts, the works – everything to make buyers loosen their purse strings.
Talking about new launches, Videocon Industries-Electrolux has recently launched five washing machines priced between Rs 6,990 and Rs 15,090. The company has also added a new range of microwaves to its offerings. Similarly, Whirlpool has also launched a new range of washing machines and refrigerators. Godrej & Boyce Manufacturing Co Ltd recently unveiled its new EON range of frost free refrigerators. Philips Electronics is also gearing up to launch several innovative products during this season.
As if new launches are not enough, companies also come up with catchy promotional taglines. LG kicked off its festive season promotion with the ‘Aishwarya Samruddhi’ offer for Onam in Kerala and ‘Siddhivinayak Namo Namah’ promotion in Maharashtra. Samsung India Electronics Pvt Ltd is riding high on its ‘Puja Jackpot, Gifts Sureshot’ offer. Whirlpool’s Diwali promotion is termed as ‘Magic Ka Maskaa Lagaao’ offer. Godrej & Boyce will be is commencing its promotions from September 15 as ‘Diwali Gold Dhamaka’. Consumers can also try their luck with the ‘Lucky, Luckier and Luckiest’ offer of Haier, which would commence from September 20.
According to Pranay Dhabhai, Whole Time Director and COO, Haier Appliances (India), “The ‘Lucky, Luckier and Luckiest’ offer gives customers a chance to win exciting gifts worth crores during the festive season and we are sure that this attractive offer will be appreciated by our valued customers across the country. We believe that every Haier customer is a lucky person and hence, we have got assured gifts for all buyers on their purchase of Haier products. Customers can also hope to win not just one but many Aveo cars through this offer.”
This year also marks a hike in budgets allocated by the consumer durable companies for the festive season promotions. LGEIL has earmarked a budget of around Rs 100 crore (up by Rs 40 crore) for the festive season this year. Speaking on the expected revenue generation, Girish V Rao, VP, Sales and Marketing, LGEIL, said, “Last year, we had a total turnover of Rs 2,100 crore. This year we have targeted revenues of Rs 2,500 crore.”
Samsung, which expects the growth to come from flat panel televisions and flat televisions, hopes to generate Rs 850 crore in September-October. The total advertising and marketing spend earmarked by Whirlpool for Diwali promotion is in the range of Rs 60 crore. Sharing more on the growth targets, Arvind Uppal, Managing Director, Whirlpool India, said, “We had a very good first half in 2006 and with the festival promotion and new product launches, we are confident of reinforcing our market leadership. We would be looking at a growth of 40 per cent over 2005 this festive season.”
Electrolux, on the other hand, which expects to spend over Rs 25 crore this calendar year, is going to lay equal stress on both ATL and BTL activities. Sharing the growth target, Madhav Nene, Deputy General Manager-Marketing, Electrolux, said, “We expect to do business worth Rs 550 crore in 2006 as against Rs 400 crore last year.”
Speaking on the target set during this festive season, Kamal Nandi, Vice-President, Sales and Marketing, Godrej & Boyce (Appliance Division), said, “Last year, the revenue generated during the festive season was Rs 150 crore, this year we are expecting 30 per cent growth and have targeted about Rs 200 crore.” The company would be laying more stress on ATL activities and the total promotional spend during the festive season, including the new launches, would be to the extent of Rs 30 crore, up from Rs 20 crore last year, informed Nandi.
Gunjan Srivastava, Director – Entertainment Solutions, Consumer Electronics, Philips Electronics India Ltd, said, “Our spends will commensurate with our leadership position.”
The consumer durable companies sure have a busy season ahead and it remains to be seen which brands and companies manage to ‘maska lagao’ (woo) the maximum number of buyers.