We’re actively investing in performance & digital marketing techniques: Amit Mathur

In July 1945, two young brothers, PP Chhabria and KP Chhabria, came to Pune from Karachi in search of livelihood and within six months set up a small shop selling electrical cables. The retail business became quite successful. A sizeable order in the mid 1950’s from the Defence Department for wire harnesses for trucks and tanks bolstered their confidence and they decided to manufacture cables themselves.

Since its creation, in 1956, Finolex has followed the strategy of expansion and modernisation, which has placed the company at the forefront of the cables industry.

Today, Finolex Cables Ltd is India’s largest and leading manufacturer of electrical and telecommunication cables, with a turnover in excess of Rs 26 billion (about US$400 million).

In conversation with Adgully, Amit Mathur, President – Sales and Marketing, Finolex Cables, speaks about the company’s marketing and branding strategies, adapting to evolving market dynamics, and more.

What innovative strategies has Finolex Cables employed to effectively reach and engage rural consumers? And how do you ensure a deep understanding of cultural sensitivities when marketing to rural consumers?

Our key approach is the establishment of a robust distribution network in rural areas by partnering with local retailers and distributors to ensure the widespread availability of our products in rural markets. Over the years, we have set up a 200,000-strong retailer network along with 5,000 Channel Partners and over 600 distributors spread across the country. In addition, our distributors also have their own network of DSMs to service their markets. We believe in investing in the local community and arrange to interact with electricians, contractors, architects, and builders by hosting meets and conferences.

To address cultural sensitivities, Finolex Cables invests in market research to gain a deep understanding of rural consumers’ preferences, beliefs, and traditions. By tailoring our marketing communications, to resonate with the local culture, language, and traditions, Finolex Cables ensures that our messages are not only relevant but also relatable to the consumers. For example, we have been regularly supporting the annual Palkhi procession that sees lakhs of pilgrims travel down from the temple towns of Dehu and Alandi to Pandharpur in Maharashtra. This approach helps build wide visibility for the brand and establish trust and a strong connection with rural consumers.

Could you tell us about the competitive landscape and saturation levels in urban markets and the impact of digitalization, e-commerce, and changing consumer behaviour on Finolex Cables’ urban marketing strategies?

In urban markets, the competitive landscape is intense with multiple players vying for the consumer’s wallet. Saturation levels vary across different regions, with some areas experiencing high market penetration, while others present untapped opportunities. The advent of digitalization and e-commerce has had a profound impact on consumer behaviors, with more people now conducting research and making purchases online.

To adapt to these evolving market dynamics, Marketers have recognised the importance of establishing a robust social media presence to tap into the diverse needs of consumers, spanning across all age groups to guide consumers to our website. Leveraging social media marketing, Finolex Cables provides informative content about the brand and its products, generating traction and raising awareness among potential customers.

We are actively investing in performance marketing and digital marketing techniques, including targeted online advertising, to effectively reach urban consumers. By utilising sophisticated digital marketing techniques, we can precisely target specific demographics, interests, and behaviors. This enables us to tailor the marketing messages to the right audience and maximize the impact of our campaigns.

What are the evolving expectations of urban consumers, particularly in terms of personalised experiences, and how does Finolex Cables cater to these preferences?

Urban consumers have evolving expectations, depending on their individual preferences and lifestyle. In response, Finolex Cables emphasises customer-centricity by offering a wide range of products tailored to various urban applications. Our Wire range gives a plethora of options to our end consumers with our premium FRLSH (Flame Retardant Low Smoke Halogen) wires to our ever favorite FR wires. Before introducing any product in the market, Finolex conducts market research to identify consumer needs and preferences so as to meet the consumer requirement.

We have been setting up exclusive Finolex stores, called Finolex Houses, in high-traffic electrical markets to serve as a one-stop destination where customers can explore our entire product range and receive personalised assistance. Furthermore, Finolex Cables enhances the customer experience through after-sales services, warranty programs, and responsive customer support. By prioritising customer satisfaction and addressing individual requirements, Finolex aims to meet the evolving expectations of urban consumers.

We have a customer-friendly website where consumers can access the required details about our product range. In addition, we have developed the Finolex Smart Viz App. It gives an overview of all our products and the consumer an opportunity to use its VR features to superimpose the fans/ water heaters/ switches into his home/office environment to get a composite view.

Today’s urban consumers are increasingly looking for options that make life easygoing, comfortable and give them peace of mind. The current generation is looking for options that are low on maintenance and consume minimum energy. In recognition of today’s consumers’ practical outlook on life, we are in the process of launching Smart Switches and Smart Door locks. The beauty of these smart devices is that they can not only be controlled by touch or voice but also can be used for troubleshooting. These are controlled by smartphones and voice assistants.

What are some distinct challenges faced when marketing in rural India compared to urban cities for Finolex Cables? How do infrastructure, accessibility, and reach differ between these segments?

The infrastructure in rural areas is often less developed, making accessibility and reach more challenging. Limited availability of reliable transportation and communication networks can hinder distribution and communication efforts. Additionally, rural consumers may have lower literacy rates and less exposure to modern marketing techniques.

Finolex has a 60-year legacy as a result of our submersible cables and winding wires businesses being sold in the interiors, making us a well-recognized brand. To overcome challenges in reaching the rural customer, Finolex Cables adopts a multi-pronged approach. We invest in appointing local channel partners and building infrastructure, such as warehouses and distribution centers, in rural areas to improve accessibility and ensure our products are available as per requirement. We also conduct on-ground promotional activities like Kisan Melas, including rural-focused demonstrations, and community engagements through our distributors and retailers. By leveraging local influencers and word-of-mouth marketing, we effectively reach rural consumers and build trust.

How do consumer behaviour, preferences, and purchasing power differ in the rural and urban areas, and how does Finolex Cables adapt its marketing strategies accordingly?

Consumer behaviours, preferences, and purchasing power exhibit significant differences in rural and urban areas. Rural consumers typically prioritise attributes such as durability, affordability, and ease of installation, while urban consumers tend to seek advanced features, aesthetics, and brand reputation. Moreover, due to lower purchasing power in rural areas, there is a heightened emphasis on obtaining value for money. Finolex Cables acknowledges these disparities and adapts its marketing strategies accordingly by offering distinct product lines tailored to different consumer segments. For example, we have an economy range of switches, sturdy fans, immersion rods, etc., that have been developed for the rural segment.

However, it is worth noting that the influence of television broadcast remains highly impactful across all consumer segments, irrespective of their rural or urban backgrounds. Finolex Cables has successfully leveraged the power of television advertising in our campaign, featuring popular Bollywood superstars Kiara Advani and Kartik Aaryan. This campaign generated significant traction and resonated with both rural and urban audiences. By understanding the unique needs of each consumer segment, Finolex Cables effectively positions its products and communicates the value proposition of No Stress Finolex to maximise its reach and impact. The campaign has been developed on the insight that today’s consumers are stressed and need to relax. With our campaign, we want to assure our consumers that we are providing them with the best electrical solutions (quality and performance) so that they can sit back and live a stress-free life.

Could you share examples of how Finolex Cables has successfully bridged the gap between rural and urban markets?

There are 1,200 + towns in India with a population of 50,000 to 100,000 people. It is potentially a largely untapped market that we are targeting with our VFM range of Finolex Premium Plum Switches.  Our specially designed sturdy range of ceiling and table fans is getting a very good response from the rural market. As the economy booms and the rural segment invests in housing, we expect exponential demand for our wires, lighting, water heater, and other home appliances. Launching products that resonate with both rural and urban consumers constantly helps us to reach out to the market with our brand recall value and to remain close to our consumers.

Additionally, Finolex Cables has implemented targeted advertising campaigns and promotional activities tailored to specific rural and urban contexts. Their recent 360-degree campaign took a holistic approach addressing the entire nation. Utilising TV commercials, they were able to bridge the gap and effectively connect with both rural and urban areas. To ensure effective communication, the campaign incorporated regional languages to make it more relatable to the audiences. By understanding the unique characteristics and preferences of each market segment, Finolex Cables has successfully established a strong brand presence across both rural and urban markets.

Could you provide insights into how Finolex Cables integrates online and offline marketing approaches to establish a comprehensive brand presence?

Finolex Cables maintains an informative and user-friendly website, where consumers can access product details and technical specifications along with reader-friendly blogs. To drive online traffic and engagement, Finolex Cables utilises digital marketing techniques such as search engine optimization (SEO), social media marketing, and targeted online advertising. We also create engaging content, including videos, and informative guides, to educate and attract consumers.

Simultaneously, Finolex Cables maintains a strong offline presence by continuing to heavily advertise on TV, OTT, Radio and Print. We also participate in industry events by collaborating with several State Governments and Developers’ initiatives for showcasing Finolex Cables products. Further, the company believes in nurturing its customer base by conducting workshops, and training sessions for electricians, contractors, and retailers. These offline initiatives help in building direct relationships with customers, providing hands-on experiences with their products, and generating word-of-mouth referrals.

By integrating online and offline marketing approaches, Finolex ensures it can reach consumers through multiple touchpoints, catering to the preferences of its diverse customer base.