More than NCCS or ISEC, Godrej’s TG is defined by household dynamics: Swati Rathi

Godrej Appliances, part of Godrej & Boyce, the flagship company of the Godrej Group, has launched Eon Vogue, a new series of nature-inspired wood-finish home appliances. The range, comprising advanced Refrigerators and Air Conditioners, offers a unique blend of aesthetics and technology that complements contemporary Indian home décor and lifts it many notches.

According to a survey of Indian households conducted by the brand, over 70% of respondents said that they would like to see more options of appliances that suit their home décor better. More than half said they want everything to be well-matched in their homes.

In an exclusive interaction with Adgully, Swati Rathi, Head of Marketing, Godrej Appliances, speaks at length about the idea behind the Eon Vogue range launch, as well as the unique promotional strategy and campaigns planned for this launch. She also speaks about the growth target for 2024, and leveraging AI and deep tech into the business operations, and more.

What inspired the marketing approach for this new product launch?

Today, we’re introducing something truly unique - the Eon Vogue series. It all started with recognising a gap between what consumers desire in home design and decor, and what the appliance industry currently offers. We found that consumers want appliances that not only look great on their own, but also seamlessly blend into their homes.

Younger consumers, who are increasingly buying new homes, have aspirational design aesthetics and want their homes to reflect their personalities. This led us to develop nature-inspired wood finish appliances.

Moving forward, our goal is to go beyond simply offering beautiful products. We want to help consumers create beautiful homes. That’s why we partnered with India Circus, known for their nature-inspired philosophy, and collaborated with designer Krishna Mehta to showcase stunning homes featuring our products.

Our marketing efforts will focus on guiding consumers in creating their desired aesthetic at home, whether it is minimal, boho, or contemporary. By providing inspiration and guidance, we aim to aid consumers during renovation or when moving into new homes.

With such visually appealing products, our marketing will revolve around showcasing their beauty to consumers.

Could you share any unique promotional strategy or campaigns planned for this launch?

Apart from our collaboration with India Circus, we’ll also focus on in-store and out-of-home marketing to highlight our visually appealing range. Digital platforms will play a key role in showcasing different looks and possibilities. We’ll also prioritise connecting with influencers to help consumers visualise our products in unique ways. Additionally, our products will be available on e-commerce platforms.

How will you leverage digital platforms and social media to amplify awareness and engagement?

Instagram will play a crucial role in reaching younger consumers and leveraging influencers in the design and decor space. YouTube, being the largest video search engine, will also be utilised to showcase multiple looks of the Eon Vogue series. Additionally, we’ll explore avenues such as display campaigns and visualizer tools to help consumers envision the products in their homes.

Are there any specific market segments or demographics that the marketing strategy aims to target for this product?

In terms of placement and access, this product will be widely available across India and various geographies. The bulk of promotions will target metro and Tier 1/ Tier 2 audiences, as these areas drive the majority of sales for frost-free refrigerators and 1.5-ton air conditioners. Thus, the marketing efforts will span from metros to Tier 2 cities.

How does this launch fit into Godrej Appliances’ overall brand narrative and positioning in the market?

The product itself is unique and continues the narrative of “Soch Ke Banaya Hai” thoughtfully. This narrative goes beyond filling functional gaps; aesthetics are just as important as functionality today, especially with the rise of premiumisation and younger consumers making purchasing decisions. By filling this gap, we continue our customer-centric narrative and anticipate needs ahead of others. It seamlessly fits into our brand narrative and caters to the premium aspirations of Indian consumers, resonating with our brand imagery goals.

Other than the product launch, could you talk your growth projections for the year ahead?

We are aiming for a 20% growth in the coming year, significantly higher than the industry average, largely driven by multiple launches in the premium space. This is one of several major launches planned. We anticipate this strategy to contribute to a 20% growth trajectory over the summer as well. Regarding last year’s growth, we will share updated data with you in about a month. In terms of segments and categories, air conditioners have experienced tremendous growth, with over 50% increase. Air coolers and frosty segments have also seen significant growth, particularly in premium segments.

Could you tell us about the Sustainability focus at Godrej? How does it reflect in the company’s marketing strategy?

Green and eco-friendly values have been ingrained in our DNA for a long time across Godrej. For instance, all our products use eco-friendly refrigerants, and our refrigerators come with eco-friendly packaging made from paper instead of thermocol. Both series adhere to these principles.

Our manufacturing practices are entirely green, with our factories being among the greenest in the country. They are water-positive, produce zero waste to landfill, and are solar-powered. These are just a few examples of our eco-friendly initiatives.

We pay attention to every stage of the product cycle, from material sourcing to end-of-life recycling, to ensure our products are environmentally friendly. This commitment to sustainability is evident throughout Godrej.

Recently, MRSI introduced a new socio-economic classification - ISEC. How is Godrej recalibrating its targeting and classification of its TG and focus markets?

It’s early days since the announcement, and we need time to understand how it compares to previous classifications. The introduction of the women factor in this classification is noteworthy, reflecting the increasing role of women in household decision-making and purchasing power.

While we anticipate the classification to be discriminatory across various social classifications, our focus remains on catering to households where women have independent purchasing and decision-making abilities. Our brand’s target audience isn’t strictly defined by classifications like NCCSA or ISEC, but rather by the household dynamics we aim to address.

We believe the classification should accurately reflect the social setup, allowing us to better identify and serve our target households. As we incorporate this classification into our surveys, we’ll assess its effectiveness in accurately classifying households.

There is growing adoption of AI and ML by brands and companies. How is Godrej Appliances leveraging AI and the deep tech available today? How is AI being assimilated in Godrej’s business operations?

It’s still very nascent, and we’re all in the process of learning about the possibilities and how to effectively deploy them to add value to the brand and the consumer. A lot of partnerships in that space are evolving. For example, when we plan our marketing initiatives, we collaborate more deeply with companies like Google Meta to incorporate machine learning capabilities into our campaigns. This has been our approach in the past year as well.

Regarding independent deployment, we’re still in the phase of understanding and evaluating how to do so in a manner that is both brand-safe and IP-safe. There are many considerations in this area, but it’s all a work in progress as we speak.

Most of our deployment has occurred in terms of campaigns and media, while the use of generative AI is still under careful consideration and deployment through our partners.