Samsung, LG, Panasonic and others go long on marketing gimmicks
Virus Doctor, Allergy Filter, ‘Eco Navi’ – Indian air conditioner (AC) companies seem to be running out of adjectives in marketing gimmicks this summer. Their enthusiasm is understandable, as the AC market — a 3.6 million unit category — is projected to touch 4.5 million units by the end of this calendar year.
Samsung, which claims to have a market share of about 22 per cent, is looking at over 35 per cent growth just in the split AC segment. “With split AC contribution to our total AC sales expected to grow to 80 per cent, we have roped in actor Priyanka Chopra to talk about our USP this year,” says Ravinder Zutshi, deputy MD, Samsung India.
The USP is what the company calls Virus Doctor technology that eliminates bacteria, fungi and even viruses like H1N1. Samsung Split AC lineup comes with the full high density filter that offers improved filtration by removing even the smallest microscopic dust particles and transforming polluted air into clean energised air, claims Zutshi.
Though such claims have not enthused the market so far (sales in March have been rather slow for all AC companies), others are not far behind in showing off their latest additions. LG, which has set aside a marketing budget of Rs 80 crore, says novelty factor is something the company has never been short of.
“Our AC line-up consists of new features such as energy efficiency, low noise and health-care filters. We are offering technologically advanced health filters like allergy & virus safe filters, plasma filters, triple filters, and anti-bacteria filters,” says Ajay Bajaj, business head (AC) of LG. The company is eyeing Rs 3,500 crore from AC sales this year compared to Rs 2,500 crore last year. And this, despite the around 5 per cent price increase that all AC players have opted for because of the input cost spike.
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Take Daikin India. The company is expecting a two-fold growth in residential AC sales this year on the back of better customer service. Daikin MD Kanwal Jeet Jawa says Daikin meets more than 80 per cent of all installation requests within 12-24 hours. “Our USP is pan-India service centers and an in-house call center dealing in multiple languages,” Jawa adds.
Meanwhile, brands like Panasonic have developed products such as the ‘cube AC’, based on the feedback it has gathered from Indian consumers. Cube AC combines the benefits of a split AC and a window AC, and is available at prices starting Rs 15,500.
With plans to invest 12-15 per cent of its revenue gains during the season in marketing, Manish Sharma, director (Marketing), Panasonic India says, apart from actor Katrina Kaif as brand ambassador, the company is also banking on newer features like ‘Eco Navi’, a smart technology that scans the area for occupancy thereby throwing air only in the area that is occupied. While such new technology products add to the price tag, Panasonic is looking at increasing its market share to 16 per cent in the split AC segment this season.
Smaller players like Electrolux have decided to focus on lifestyle positioning. Sajeev R, COO, Electrolux, PE Electronics, says the Boreas range of air-conditioners from Electrolux comes with interchangeable colour panels that allow the AC to blend in with the décor, theme and personality of the home maker.
All these new features, AC makers hope will see a market growth of at least 35 per cent between April and May.