Brands look at 20-30% growth in festive season sales this year
With Diwali just round the corner, the festive season marketing drive by brands has reached a crescendo. After two seasons of low sales and a subdued buying trends, this year has seen consumers loosen their purse-strings with gusto and brands are more than ready to meet the varied customer demands with an array of offers and new offering.
Already, the pre-Diwali sales figures are trickling in and they are quite encouraging for the brands. While relative newcomer LeEco India has recorded pre-Diwali sales to the tune of Rs 200 crore, Panasonic India is aiming for 20 per cent growth in its consumer durables business and Usha International is expecting a growth of 30 per cent over last year.
Adgully gauges the marketer reactions to festive season sales and growth, as well as finds out the various offers and marketing initiatives by brands.
Atul Jain, COO, Smart Electronics Business, LeEco India
Marketing spends for the festive season this year: Festivals are extremely important in India; with consumers looking to invest in newer technology and update their gadgets and also gift their loved ones the latest devices. Which is why, we have employed an aggressive strategy to leverage the same with flash sales on LeMall (our e-commerce platform) and irresistible offers on other e-commerce sites. In addition to this, as part of the festival bonanza, we are offering our flagship Le Max2 Superphone at a special experiential price of Rs 17,999 through LeMall.com, Flipkart, Amazon India and Snapdeal. Since we are not even a year old in the Indian market, we don’t have a yardstick to measure our increased sales vis-a-vis last year; we are hoping to have a number that we can talk about with pride next year though. This is the first ever that we had participated in the popular pre-Diwali sales by leading e-commerce platforms and we are extremely happy to report that we had recorded sales to the tune of Rs 200 crore and sold over 200,000 Superphones and 1,800 SuperTVs.
On countering the competition: Since our India launch in January 2016, we have swiftly introduced five Superphones and three models of SuperTVs, LeEco membership and our ecommerce platform, LeMall. Additionally, to reaffirm our commitment towards Indian market, we have launched first state-of-the-art smartphone manufacturing facility in Greater Noida. We have become the first international smartphone brand that has set up its manufacturing facility within their first year of entering the country. The facility is spread over an area of 200,000 sq. feet and has a capacity of producing close to 60,000 phones per month initially. By the end of 2016 we also plan to have two production lines that will produce 200,000 units on a monthly basis.
Also, the biggest differentiator is our LeEcosystem – which leads the movement in content integration; promises seamless streaming of movies and television shows on our devices – that now includes Super TVs as well.
Sales revenue targeted: We have introduced a plethora of products since our entry into India – most recent being our second generation of devices and our Super3 TVs .We expect our sales to increase by a significant percentage during the entire duration of the festive season, owing to our online and offline retail strategies.
Festive marketing plans that don’t work anymore: Indian consumers are always looking for great value propositions. We feel that all initiatives and promotions that offer real user benefits on superior products like LeEco’s will always click well. Additionally, giving consumers an opportunity to experience the product is important. LeEco’s offline stores and ground activations revolve around offering the best possible experience to our customer.
Marketing spends for the festive season this year: Panasonic will be investing Rs 85 crore towards ATL & BTL activities for the festive season. The company has introduced exciting promotional offers for its customers on all Home Appliances and Panasonic LED TVs: Televisions, Refrigerators, Washing Machines, Purifiers, Air-Conditioners and Microwaves.
On countering the competition: We aim to provide products and services that offer more value to our customers. Adding greater joy on Diwali, this year Panasonic brings in assured gifts offer, extended warranties, attractive financial offers which will be available on all product categories. To make it more exciting for our customers the ‘Assured 2 Win- Gift offer’, on all Home appliances & Panasonic LED TV’s, include Holiday Voucher of 3Days/ 2nights, Swarovski Jewellery worth Rs 4,500, etc. With this year’s festive offers, we wanted to ensure that our customers’ joy lasts long.
Strategies to boost sales and revenues: Apart from our main ‘Assured 2 Win’ special offer, extended warranty and attractive finance deals will be provided on selected products. In addition, the company will also offer interest-free credit and attractive EMI schemes for its customers.
Sales revenue targeted: We are aiming at 20 per cent growth for consumer durables in 2016 from last year's business of Rs 4,000 crore, while our mobile phone is expected to do a turnover of Rs 2,500 crore this year. While its electrical division Anchor was expected to grow around 10 per cent to Rs 2,500 crore from Rs 2,200 crore, the total Panasonic India revenue in 2015 was Rs 8,700 crore.
Festive marketing plans that don’t work anymore: Consumers are not much inclined towards personalised offers. If the customer thinks an offer is intended not just for them, rather for a much larger audience, they believe they have stumbled across a great deal and are likely to pursue it. Nowadays, consumers are not in favour of ‘Buy 1 Get 1 Free’ deals.
Marketing spends for the festive season this year: The festive period marks a critical phase owing to increased demand across the consumer durables industry. Given the importance of this season, BSH will make more marketing spends compare to last year, by continuing to invest in our ‘No Damage’ TVC for our laundry care business. We will also be investing in our other categories like Dishwashers, Cooking appliance & Refrigerators.
On countering the competition: Known for its German engineering and innovations, BSH product portfolio enjoys a huge consumer recall and loyalty. During this festive season, we have introduced exciting offers across categories. For Bosch Dishwashers, we are running a ‘Money Back offer’, wherein if a customer isn’t satisfied with the appliance, he can return the product within 15 days of purchase and get a refund. Additionally, on the purchase of a Bosch dishwasher, customers will get a free Dishwashing Detergent worth Rs 800 free. Further, there are attractive EMI options across all freestanding appliances of both Bosch and Siemens.
Sales revenue targeted: During the festive season, consumers usually revamp and refurnish their homes as well as upgrade their appliances. In the consumer durables segment, the festive season marks one of the most important times of the year, owing to increased purchase activity and consumer inclination to spends. We are quite optimistic about positive/ healthy sales this festive season.
Recently, Bosch launched its ‘No Damage’ campaign for its new and wide range of products ranging from 6.5 kg to 8 kg within the laundry category. The campaign focused on the insight that Indian consumers often refrain from putting expensive clothes in the washing machine as they fear damage. With the launch of this campaign and new products, we have seen a spurt in sales in the washing machines. With washing machines being one of our highest selling products, we are expecting robust sales this festive season.
Over the years, we have also observed customers making in significant upgrades in their kitchen specifically cooking appliances and cooking ranges including hoods, hobs and ovens. Customers are increasing making their kitchens look more aesthetic and space efficient moving beyond the functionality realm. In the recent year, we have witnessed a surge in built-in appliances under Siemens.
With the launch of our new range of Refrigerators, we are expecting healthy sales from this category as well. Interestingly, we have also witnessing increased demand in the dish care category, with aspirational customers investing in dishwashers to make their lives more convenient. Seeing this change in consumer behaviour, we are expecting growth in the sales in this category as well; we are also actively driving dishwashers in India.
Festive marketing plans that don’t work anymore: Customers these days know what exactly they want to purchase and at what price. More than looking at the offers, they look at the utility of the product. We as a company come up with attractive plans, but if the offers don’t click with customers, they will not favour it.
Consumer durables company Usha International has introduced a combo offer to double the joy of Diwali. This offer is available across Usha kitchen appliances, E-series fans and Usha Janome sewing machines, where an Usha product will be given free on purchase of select products. These offers are valid till October 31, 2016.
Marketing spends for the festive season this year: The festive season marks a great time for retailers in the consumer durables space. Usha International is spending a considerable amount on high decibel marketing campaigns across categories during the festive season. Compared to last year, this year there are multiple launches planned across product categories and marketing campaigns to go with it.
Countering the competition: This festive season started on a positive note this year and we are expecting to grow by 30 per cent from last year. There are many offers and new launches slated for the season in appliances, fans & sewing machines category. Leveraging our already high brand recall, we are ensuring presence across channels and the last mile connectivity for maximum outreach for all our products across categories.
Strategies to boost sales and revenues: Usha has come up with multiple schemes this festive season to cater to the evolving needs of our customers. These offers are valid across categories, including kitchen appliances, fans and sewing machines. To double the joy of this festive season, at Usha International, we have come up with various consumer combo offers for our customers on kitchen appliances such as free Usha On The Go Blender with the Usha InfinitiCook Halogen oven; Usha Smash Mixer Grinder with Usha Ebony Cooktop series; Usha Sandwich Toaster with Usha Food Processor, Usha Pop-Up Toaster with Usha Juicer and many more such offers. These offers are valid across categories including Kitchen appliances, fans and sewing machines.
Moreover, multiple campaigns have been launched for the festive season. ‘Hawa Happy’ campaign for fans, ‘Mom’s Bakery’ campaign for OTG and TVC for combo offer have been launched to leverage the festive season demand.
In addition to the ATL activities, there are in-store demonstrations across cities under BTL activities. In-store product demonstrations are ongoing for NutriPress cold pressed juicer and Usha Infiniti cook Halogen oven in modern retail outlets in cities Mumbai, Pune, Nagpur, Ahmadabad, Surat, Delhi, Noida, Gurgaon, Jaipur, Ghaziabad, Jalandhar, Ludhiana, Calcutta, Patna, Ranch, Bangalore, Mysore, Hyderabad, Chennai and in dealer outlets as well. In all, there are 100+ demonstrators in modern retail outlets and 90 in trade outlets.
Sales revenue targeted: After the slump in the market for the past two years, there is a positive sentiment in the market and the demand for consumer goods is expected to grow up as we have witnessed a healthy monsoon this year. The festival season is estimated to account for around 35 per cent of our annual sales.
Room air conditioning brand Voltas has come up with a plethora of exchange offers, free installation, and other attractive finance schemes on its range of All Star Inverter ACs as part of its ‘Voltas Savings and Celebrations Exchange Offer’ for the festivities. As part of the unique Exchange Offer, customers can bring in their old split AC and get a new Voltas All Star Inverter AC in exchange, along with savings of up to Rs 15,000 to Rs 19,000. This festival offer is valid till October 31, 2016.
With the growth in positive consumer sentiments, a good monsoon, and rising disposable incomes this festival season, the brand intends to leverage this opportunity, and is fully geared up to serve customers, who want to upgrade their ACs, while refurbishing their homes.
Pradeep Bakshi, President & Chief Operating Officer (UPBG & MCED), Voltas, commented, “The festival season is an auspicious time, where our customers renovate their homes, and our special offer will make it easier for them to bring home their favourite brand. We believe our special offer this festive season will further strengthen our bond with our customers.”
This Diwali, Sansui, a leading Japanese consumer electronic brand in India, brings to its customers special offers. To allow customers to upgrade to bigger screen sizes, Sansui has rolled out special schemes on its wide range of LEDs. The brand is optimistic about this year’s festive season and is targeting 55 per cent sales growth over the same period last year.
To promote the offers, Sansui has launched special festive advertising campaign spread across TV, print, online, outdoor and radio. The brand is also focussing on in-store display and engagements to capture maximum customer attention. The Diwali Offer by Sansui is valid till October 31, 2016.
Amitabh Tiwari, COO, Sansui, said, “Keeping our promise of offering the very best to our valued customers, we’ve launched this bumper Diwali offer. Our customers will get now extended warranty, which we believe will be an additional benefit to their purchases. This will further strengthen our relation with the customers who will be delighted to bring home our brand during this auspicious time. We foresee a tremendous response from our festive campaign.”
Kansai Nerolac Paints is showering festive cheer and raking in goodwill with its ‘Har Din Diwali’ offer. The offer, which started on September 20, 2016 and will continue till October 30, 2016. As part of the initiative, 100 consumers get a chance to win gifts like JBL speakers, Whirlpool Magic Cook Microwaves and Tissot watches every day. Meanwhile, four winners will get to walk away with Maruti Suzuki Balenos. The offer is applicable on purchase of Kansai Nerolac products worth Rs 7,000 out of which one product should be an emulsion brand.
Speaking about the initiative, Anuj Jain, Director Decorative, Kansai Nerolac Paints, said, “Paints have traditionally been a quasi involvement category with consumers having little or no contact with the product apart from selecting colours and finish. With the growing awareness and acceptance of international designs and decor, we are witnessing a steady rise in consumer involvement. The ‘Har Din Diwali’ offer reaches out to this consumer.”
Diamond company DeBeers, in collaboration with GJEPC, has rolled out an India-specific advertising campaign for the festive season to consolidate and enhance the demand for diamonds in India. The campaign – ‘Ek Heera Aapke Heere Ke Liye’ (Only a diamond is worthy of your diamond) is about the appreciation of a husband for his wife for the little things that she does which makes his life a life worth living. This campaign has been developed and conceptualised by J. Walter Thompson India and produced and directed by Joydeep Sarkar of Native Films.
Talking about the campaign, Sachin Jain, President, Forevermark, commented, “India is one of the top performing markets for diamond consumption in the world. DeBeers and GJEPC have worked closely together to create a campaign for Indian audiences this festive season to sustain and further grow diamond equity in the minds of our audience. This campaign will focus on retaining the consumer preference for diamonds while reinforcing consumer confidence and demand for diamond jewellery, in the market.”
Tista Sen, National Creative Director, JWT India, added here, “Celebrate the woman in your life, this festive season with an exquisite diamond. The silent force by your side and the integral thread that links your family together is the woman of the house. Through this campaign, we applaud women in their everyday avatar and their everyday multiple roles. Authentic and heart-warming, the campaign acknowledges and salutes this essence of womanhood and motherhood.”
The ‘Ek Heera Aap Ke Heere Ke Liye’ campaign has been released in Hindi and local languages like Tamil, Telugu, Malayalam, Bengali, Gujarati, Marathi, and is being aired aired across entertainment, movies and news channels. The campaign will run for a period of three months all through the festive season.
This festive season, Canon has announced the special offer of a Moto Pulse headset with Canon EOS 1300D or EOS 700D.
Speaking about the festive offer announced by Canon India, President & CEO, Kazutada Kobayashi, said, “Festive season is that time of the year when celebrations are in full spirit, it is about spreading happiness in abundance. At Canon, we take pride in contributing towards building memories for life. Our products are designed with diligent focus on the customer requirements. This festive season, we are announcing the special offer of a Moto Pulse headset with Canon EOS 1300D or EOS 700D. We would like our customers across the country to avail the benefits of this offer and celebrate the festivities with increased enthusiasm.”
Changing the clichéd gifting ideas of sweets and soft drinks, big companies are coming up with innovative ideas. Gifting plants to promote green Diwali or giving out holiday packages to fly to different places – there are plenty of new ideas coming up. Borges India, which has Spanish olive oil and products like Pasta, Table olives, Vinegars & sauces, and a variety of nuts in its portfolio, has come up with a noble gifting idea this Diwali.
The company is offering beautifully packed gift hampers comprising its range of almonds, pistachios and walnuts.