The Rs 550- crore Godrej Appliances is planning to expand its portfolio of washing machines and offer inexpensive versions.
Though 80 per cent of its turnover comes from its refrigerators division, the company is introducing new features and prices for its `Smart Wash'' brand of washing machines with an attempt to create more demand in markets with low penetration levels.
Expecting a 50 per cent volume growth in its washing machines, the company hopes to sell 40,000 units after these new introductions with an increase in market share from the current 6 per cent to 10 per cent. The company also intends to beef up its distribution network by increasing the number of outlets.
The company has also set aside an ad budget of Rs 5 crore and intends to launch a new campaign once the new models reach the market. The company has shortlisted two agencies (Ambience d''Arcy and HTA Mumbai) to handle its new campaign for washing machines.
Godrej has recently roped in actress Preity Zinta to endorse its Pentacool brand of refrigerators. It is in the process of deciding whether the actress will also stand for its `Smart Wash'' brand of washing machines in the future.
The company has been increasing its ad spend in the recent past. By allocating Rs 20 crore for advertising and by roping in a `young and happening'' actress as a brand endorser for the first time, the `heritage'' company wants to be perceived as a young brand.
Prior to appointing Preity Zinta, the company even changed its ad agency from HTA to Ambience D''Arcy for a year and then again went back to its erstwhile agency HTA, which then devised a new baseline — `Life Jum Jaye'' for its refrigerators. Its media buying account is with Mindshare.
Source: Business Line