Bets high on innovative technology combining two appliances in one device.
Godrej appliances have found a new strategy to woo customers — offering better value deals by converging two products into one device.
Kamal Nandi, VP, sales and marketing, Godrej appliances says: “Convergence of two products has been our key focus area for innovations across all categories. In the last five years, every quarter we have come out with innovative products which are relevant to Indian consumers’ lifestyles and habits depending on the seasons.”
“Our products are doing well as we offer relevant technology adapted to consumers’ lifestyles and habits. If we are able to provide higher value to consumers for the price they pay, they will definitely buy.”
For example, last summer Godrej planned innovative line of refrigerators and air conditioners. During monsoons, the company offered a new range of washing machines and during the festive season, it came out with innovations in microwaves and televisions.
Complying with the same strategy, Godrej has launched India’s first music-enabled refrigerator this month –‘Edge SX MuziPlay’– with inbuilt FM radio and MP3 player. The music system is built on the top of the refrigerator. It is targeted at housewives living in Tier-I, II, III and IV towns, who spend most of their time in the kitchen. Besides entertaining, it comes with the ‘stay cool’ technology that delivers 24-hour cooling retention despite power cuts. “This prevents ice melting and food spoilage during power cuts,” says Nandi.
“In the refrigerator’s category, today’s consumers want features more than just cooling like freshness, storage efficiency, stylish exteriors and technological innovations. This innovation is targeted at single door entry level in tier I, II, III and IV towns, available across 19,000 outlets across India. We have converted refrigerators from being a ‘passive appliance’ in your kitchen into an active entertainer.”
The company is aiming at 3-5 per cent increase in market share in refrigerators category with the launch. Godrej will be promoting these refrigerators this summer with a 360-degree media campaign and consumer engagement programme. In the direct cool category, Godrej enjoys 20 per cent market share whereas in the frost free category, it has 15 per cent share.
While Godrej is expecting 35 per cent increase in its top line next year, they are betting high on their innovative products that would contribute 20 per cent to their total turnover by next year. It’s noteworthy that in 2009, Godrej came out with its breakthrough innovation – ‘ChotuKool’ (small refrigerators) – priced at Rs 3,250, targeting rural India. The product consumes half the power consumed by other refrigerators and uses high-end insulation to stay cool for hours without power.
Godrej has 20 per cent market share in single door refrigerators, 15 per cent share in double door refrigerators, eight per cent share in ACs and 10 per cent share in washing machines. They are looking at 20-25 per cent, 40 per cent and 45-50 per cent growth in refrigerators, air conditioners and washing machines categories, respectively, this financial year.
Last year, Godrej had converged LCD TVs with gaming consoles, priced Rs 5,000 more than ordinary LCDs. Nandi adds: “In a price-sensitive market like India, there are lot of opportunities and potential existing for converged products. A video gaming console comes at about Rs 22,000 whereas an LCD costs you about Rs 32,000-40,000. We offer the LCD-cum-gaming-console in one unit at just Rs 5,000 more than a normal LCD.”
Last year, Godrej and Boyce Mfg Co Ltd’s total turnover was Rs 2,000 crore. Of this, 95 per cent was contributed by appliances. Nandi says: “Refrigerators and air conditioners will be the key growth drivers for us. They contribute 60 and 18 per cent, respectively, to our revenue.”
“We will also be coming out with water purifiers inbuilt with latest technology across all segment- storage, UV, RO in December this year. We are currently testing its technology and promoting it through our door-to-door marketing channel. If our technology test and value offering prove to be better than others, our pricing would be higher than them. Our price points in appliances category are either higher or on par with competitors.”
Godrej launched a colour television range in September 2008 in South and West Indian markets. They would now be launching it in the North and Central markets.
