The Hindu Business Line : Top-end tumult

As Samsung’s Zutshi says, “For us, categories that have led growth this year are the flat panels – both LCD and Plasma TVs, twin-door and frost-free refrigerators as well as split ACs. LCD TVs have grown by 365 per cent in the six -month period from January to June 2007, while the Plasma TVs have grown by 115 per cent. The twin-door and frost-free refrigerator categories have grown by around 35 per cent while split AC sales have grown by almost 80 per cent so far in the year.”

The other category to emerge as a blockbuster for Samsung is the flat TV category. The company has experienced a growth of around 40 per cent in the current fiscal so far, and plans to launch seven new models of Slimfit, Ultra Slimfit and Flat TVs in the Indian market, to add further momentum to the rapidly growing segment in the country.

However, burgeoning sales and an exponential increase in demand has only led to cut-throat competition amongst the players, making it extremely difficult to survive in the industry. “It’s all about being one up on the other. If one launches a certain model of television the other has to follow with added value to the product to maintain a hold over the market.

In fact, this is also one reason why advertising and promotional campaigns have become extremely aggressive, with companies also always on the lookout for newer methods of reaching the consumer,” says an expert.

On its marketing and promotions strategy, Whirlpool’s Sukhpreet Singh says, “The key element of Whirlpool’s strategy is to reinforce the unique connect with the Indian homemaker, the woman of the house, through two methods. First, through launch of more innovative products and through upgrading the existing range to provide top-quality products that are relevant to her needs. Second, through mass media communication, supported by sharply targeted media innovations and in-market activation. Whirlpool has also launched MagiClub, a consumer loyalty programme.”

According to Murase, Sony India is in the process of kicking off a multi-pronged plan for brand building and on-ground activities to get closer to our target audiences. “Our plans could involve media and direct marketing initiatives, product demonstrations, road shows, exhibitions and local-level promos such as gaming competitions and contests. Also, at Sony we believe in letting our products do the talking; therefore our communication will be primarily focused on highlighting the convenience, features and aesthetics that our products offer.”

At a time when organised retail is rapidly gaining ground, the companies are increasingly planning to use the medium to not only increase brand visibility but also to conduct several below-the-line promotions. “We are very excited about the opportunity that specialised large-format retail is presenting us. We are seeking to leverage these stores as well as our own brand stores for our high-end, technology-oriented products. This year, we formed a new retail team under Director-Sales, which is headed by a general manager to spearhead our retail initiative. We expect large-format retail to contribute at least 6 per cent of our consumer electronics business,” says Samsung’s Zutshi.

All said and done, with an increase in demand leading to greater competition, the consumer durables industry is going to witness an explosion of technology and innovation in the future that is only going to benefit the crores of consumers whose wallets are also getting fatter.

More Stories on : Strategy | Air-conditioners & Refrigerators | Television Sets

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