Voltas posted its highest market share in air conditioners in June, weathering rough conditions. The big ask now is to replicate that success in its white goods segment, Voltas Beko, and become a brand for all seasons
Pradeep Bakshi, MD and CEO of Voltas, is banking on the historic grit of the brand.
Graphics: Sameer Pawar
Voltas, reckon marketing experts, stands a bright chance of making a dent in the white goods segment. In spite of entering the game quite late, it has a good sense of this segment, and the needs of consumers, largely because of its history. “In fact, being a late mover gives it an edge,” says Ashita Aggrawal, marketing professor at SP Jain Institute of Management and Research. She explains. When all the players in the washing machine segment are moving towards fully automatic versions—which makes up 35 percent of the market—Voltas Beko is putting its eggs in both baskets: Semi- and fully-automatic. Reason: Semi-automatic is what introduces most of the middle class to the concept of washing machines. Similarly, introduction of countertop dishwashers makes sense as Indian kitchens do not have inbuilt spaces for huge dishwashers. “Being an Indian brand, it knows the pulse of the Indian buyers,” she says, pointing out another example. When the Korean and American players were exiting the window AC segment, or focusing heavily on split ACs, Voltas kept its game intact in the former, which is still the preferred mode in North India. “That again came from an understanding about the structure of houses in North India,” she adds.
Keeping a close tab on the pulse of the consumers, and positioning itself as an Indian brand, helped Voltas come back into the AC game from 2006 onwards. In that year, Voltas had a 10 percent market share. LG and Samsung, during the same period, had 31 and 23 percent, respectively. The fight began by trying to understand the psyche of the Indian buyers, and the first play was emotional. “India ka dil, India ka AC’ was the positioning taken by the brand in 2006. The television (TV) commercial shows a young village girl, who locks cold air from an AC into a glass bottle and takes it to the field where her father is working. The father-daughter relationship works, and the brand makes the most of the emotional connect. “It's an Indian brand to the core. Trust, reliability, and durability are inherent in the brand,” says Deba Ghoshal, vice president and head of marketing at Voltas. The next priority was to highlight the functional aspect. Voltas took the lead in talking about energy efficiency by rolling out star-rated ACs. After a few years, post 2010, came all-weather ACs. Then came adjustable ACs. “We created stories around technology, which were accepted from a consumer perspective,” says Ghoshal, alluding to the popular brand mascot of Murthy, who stayed with the brand for almost seven years. With Voltas Beko, he underscores, Voltas has transformed from a brand for one season to a brand for all seasons. “And for all reasons,” he adds.