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Eveready to shift focus on appliances; likely to double ad-spends

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Eveready to shift focus on appliances; likely to double ad-spends

Eveready Industries India will launch a new campaign in June–July 2017 focusing on the company’s newly launched small home appliances. The ad spends on the home appliances segment will be double that of the ad spends on the battery segment.

Eveready, a 110-year-old company, is counting on quickly grabbing a significant share of the large and fragmented small appliances market, which has already seen the entry of players like Havells and Polycab, who were primarily dealing in electricals.

Eveready has set its eyes on the market and is gearing up to “prove to be a disruptor very soon. We are paving a path for this and we will definitely become a very powerful player in this market, especially in certain categories like fans, mixers, and irons within the next three years,” said Amitabh Dikshit, Head Appliances, Eveready Industries India Ltd. He added that by 2020, Eveready hopes to capture at least 4–5 per cent of the small appliances segment. Currently, Eveready earns nearly 20 per cent of its revenue from the lighting and electricals segments, which it entered as recently as 2015.

As the brand rolls out its latest ad campaign, Eveready offers branding and advertising lessons on leveraging brand value in a completely new product segment.

Advertising and marketing budget

Eveready is one of those brands that has never really advertised for its product but instead advertised for energy and power. “We have, in the past, done cutting-edge branding and advertising with ‘Give Me Red’. But because Eveready enjoys a very high mindshare, we have been able to survive with very minimal advertising and marketing expenditure for the batteries segment,” said Anil Bajaj, VP Marketing, Eveready Industries India Ltd. He further added that Eveready’s advertising expenditure on the lighting and electrical appliance segment will need to be double that of the advertising expenditure on the batteries segment. This expenditure will be “to connect the Eveready strength to the appliance segment,” he said.

However, this expenditure for Eveready will be far less than that of other new brands entering a new market, according to Bajaj. “A new brand may have to spend around 10 times the cost to create its brand, whereas I will have to spend only twice the amount,” he said.

Branding lessons

As Eveready sets out on its journey to become a disruptor, branding and marketing the new line of products is going to be mainly about leveraging brand Eveready, which is synonymous with batteries in India. “For consumers who have been using Eveready batteries (around 60–65 per cent of the households), Eveready is not a new name. So, all that I need to do is connect the brand name of Eveready with that of the appliance category,” Bajaj said.

He adds that Eveready will be able to tap into the existing brand recognition that it has. “We have a 70 per cent mindshare of the consumer in the torch-battery category; very few brands have such a high mindshare among consumers. So, it has been very easy to pass that mindshare onto another category where we have a good brand fit. While today I may not have a very high recall factor in the appliance category, but we should be able to garner a lot of mindshare even with little effort,” he said.

Strategy talk

Speaking about the advertising strategy, Bajaj said that Eveready will continue to stay in the ‘Give Me Red’ space, maintaining the inherent qualities of ‘Give Me Red’ and in addition to that, talk about the appliances or products the company is selling. “The focus will not be on category education, but on quality assurance or product innovations.” For the kind of messaging that Eveready is looking for, the company will use more of print ads while TVCs will continue to carry brand Eveready communication.

With the diversification into home appliances, Eveready, which so far has used youth-centric imagery, will start involving women and kids in its advertising communication. The advertising media mix will also involve a healthy dose of digital advertising to reach out to the appropriate target audience. The new TVCs will come on air mid-2017 onwards.

Eveready has renewed the contract with actor Akshay Kumar and he will continue to be the brand ambassador for two more years. Bajaj strongly believes that the actor’s image matches that of brand Eveready. “He is the fittest, strongest, youngest, and most relevant brand ambassador. He cuts across languages and age groups and is seen as a dedicated and committed person, which are values we appreciate a lot,” Bajaj said.


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