What happens when you cannot let out steam in a saturated market? You diversify. That’s what the Rs 145-crore pressure cooker major, the Chennai-based TTK Prestige is doing.
Over the last few years, like its competitor Hawkins, it has ventured into other kitchen appliances like non-stick cookware, mixers and grinders and gas stoves. As a result, pressure cookers account for only 60 per cent of its revenue today.
Having made its presence felt in the kitchen, Prestige decided to go the whole hog. And with almost every corporate betting on services, Prestige too is extending its equity with the home and housewife.
In-house research showed that consumers are looking for value additions and innovation.
Says senior vice president -marketing, TTK Prestige, M Chandru Kalro, “There has to be a reason for the consumer to purchase one more pressure cooker or any of our products, value additions are the way to do it.”
So Prestige set up a few franchised outlets branded Smart Kitchens in the southern market, its stronghold, to see if this avenue would work. The idea was that customers would walk into the showroom and see how the products work in a kitchen setting.
“We wanted to provide the consumers a good ambience to come and view our entire range of products and have trained staff catering to educate them about our product,” says Kalro.
The response, he claims, has been so encouraging that Prestige is now inviting franchisees across the country to open Smart Kitchens in various large cities.
By year-end, it will have cooked up 50 such outlets, up from the current 20. Apart from the ambience and showcasing the entire range of products, Smart Kitchens also double up as service stations.
Already, in its first year of operations the Smart Kitchens have contributed 4 per cent to 5 per cent of total turnover.
Later this year, Prestige may also tie up with vendors to provide modular kitchens in addition to the range of products. The reason? Consumers can then come to a single outlet for all their kitchen requirements. In other words, it wants to be a one-stop shop for kitchens.