IPL is expensive but it delivers business: B Thiagarajan, Blue Star Ltd

Blue Star Ltd is looking at Rs 85 crore ad spend this financial year to win customers

B Thiagarajan

As the summer season gets into its peak time, air conditioning companies are spending big dollars to reach potential customers.

If we look at the consumer electronics major Blue Star Ltd, the company is looking at Rs 85 crore ad spend this financial year to win customers. It is already spending big on sporting platforms like the on-going Indian Premier League (IPL), and according to B Thiagarajan, Joint Managing Director Blue Star Ltd, it is creating the right impact for the brand’s business.

“IPL delivers for us because its reach is phenomenal. In terms of efficiency, though it is becoming expensive but it is good. In this particular season despite the TRAI’s new provision coming into effect, we still know that IPL delivers business,” said Thiagarajan.

Incidentally IPL this year is clashing with another big event—The Lok Sabha Elections, which in turn drives viewership for TV news channels and gives brands another platform to target consumers effectively. But for Thiagarajan the noise factor on TV channels is a dampener despite the opportunity that it offers.

“On the news channels the noise levels are very high, so during elections many people will be watching it, but the ICC Cricket World Cup which follows elections is more relevant for us. Though the period during which ICC Cricket World Cup is being played is not our season for air conditioners but it matches the season when the demand for water purifiers goes up. So there could be an opportunity and we are evaluating what we need to do.”

Thiagarajan also spoke about 2018 not being a good year for their product category owing to “poor summer”. However he is hopeful that 2019 will see a significant surge in sales for the brand.

“Right now we are very happy that the summer has set in quite a few places in south and west.  Some of our products like the room air conditioners or deep freezers are dependent on weather conditions. So therefore it should be a good year,” said Thiagarajan.

Thiagarajan also spoke about the need to reduce wastage in ad spending. He added that Blue Star Ltd will be spending Rs 85 crore in 2019-20 in ad spends out of which 12 per cent will go to digital and rest to mass media.

“In promoting a product, the wastage is very high and that has become a big challenge for today's brand marketers. So in a huge country like India targeted marketing is very important and Indian brands will have to realise that marketing will become difficult because decision making age is coming down and we have to stay relevant to them,” concluded Thiagarajan.

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