Crompton Greaves has hiked ad spends from Rs 10 cr to Rs 60 cr in 2 yrs: Mathew Job
Gone are the days when household electronic products like fans, coolers, refrigerators and air-conditioners were bought only for their functional benefits and the price factor. Today, these have become style statements, complementing the home décor, in their hi-tech avatars.
Crompton Greaves Consumer Electricals Ltd, a market leader in fans, has rolled out the ‘Air 360’ fan and the ‘Tricool’ window cooler to tap into the huge demand for such products during the long summer season.
Crompton Greaves Air 360 and the Air 360 Deco range of fans have been built keeping in mind the consumers’ need of getting air from a fan in a larger area. While Air 360 is available at a price point of Rs 2,375, Air 360 Deco is priced at Rs 2,575.
Crompton’s latest innovation in the air cooler segment – the Tricool Window Cooler – can be fitted in a window much like a window AC. The company claims that Tricool Window Cooler delivers 60 per cent better cooling than a standard plastic cooler since it draws air from the outside rather than from inside the room. The cooler is available at a price of Rs 12,500.
Talking about the two new launches, Mathew Job, CEO, Crompton Greaves Consumer Electricals Ltd, said, “We are very excited to bring to market these unique and innovative products. The Air 360 range of fans and the Tricool Window Cooler offer very relevant consumer benefits. We have placed the consumer at the heart of our innovation process and the launch of these ranges after the highly successful anti-dust fans and LED lighting solutions give us the confidence that we are on the right track.”
The company has also rolled out a television campaign for the new products during this IPL season.
Job further said that Crompton Greaves Consumer Electricals Ltd (CGCEL) has been operating as an independent company for about two and a half years now after demerging from Crompton Greaves Ltd. Operating as an independent company, CGCEL had set itself three key financial objectives. “Firstly, we aimed at increasing our sales in the market. Secondly, we wanted to expand the profitability margin. The third was to convert 100 per cent of our profit to cash,” he informed.
Job further said, “If we look at the results of the quarters that we have announced so far post the demerger, typically, the demonetisation and GST quarters, our estimation of masses had gone to 6-8 per cent and we have gone up at the top line in all these quarters by around 11-12 per cent. We have been growing 1.5-2 times faster in the market when you look at the key categories like fans and coolers in the market.”
He added that two years back, the company’s market share in the fans category was roughly 25 per cent, which had gone up to 27 per cent in the October-December quarter. In the LED lights and bulbs category, CGCEL’s market share was 2-3 per cent when it started off, but currently the company has reached close to 9 per cent share. “We have moved from the fifth position in lighting to the No. 2 position,” Job claimed.
He added that 90 per cent share in the fans category was because of the company’s Anti-Dust Fans, which it the premium collection. “We can see similar kind of success that we got with other propositions,” he said.
“With this, we have managed to improve our revenues in the market. We have expanded our profit with the line of sales and also we have managed to convert 100 per cent of our profit to cash. So, according to me, we have covered all the objectives that we had aimed when we started operating as an independent organisation,” he further added.
Shedding more light on the USP of the new products, Job said that last year, the company conducted a research (both qualitative and quantitative) mainly for consumers to understand their behaviour. “The research revealed that the problems with fans are that they provide air in a limited area. When we conducted our research, we got to know that people wanted to have something which can provide air throughout the room. Based on that insight, we launched the Air 360 fan. The biggest advantage of this fan is that it gives air in 50 per cent more space than a normal fan. This has been accomplished by using certain advanced technology. The Tricool” Window Cooler is India’s first window cooler and it provides 60 per cent better cooling as compared to normal plastic coolers,” he added.
As far as marketing is concerned, the company is looking at the combination of all the mediums to promote the products. It wants to generate awareness among people through TV campaigns and has launched its TVC during the ongoing IPL tournament to garner more attention. The company is shoring up its distribution network and is planning to place these products in the right stores and create more visibility for the brand so that more and more people come and sample them.
Job also said that prior to the demerger, the spends on brand building was comparatively at a lower level. “We use to spend Rs 10 crore in a year for ATL advertising, but we have stepped up the spends to Rs 50-60 crore in the last 2 years,” he informed.
Instead of focussing on select markets, the company has a pan-India approach and is selling its products across regions and markets.
Job concluded by saying that the company is building a strong proposition for the brand that is relevant to the consumers, which will help it grow in the long term.
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