Fanning Success
Q] Crompton’s latest TVC campaign, ‘Energy-saving ka waada’ focuses on the functionality of the product. However, when you look at a category such as ceiling fans from a consumer perspective, one fan does not differ much from another. So how do you make your brand stand apart from others in the market? Q] Another concern is that BLDC fans are costlier than regular fans. How do you justify the extra cost at a time when consumers are already wary of discretionary spends? Q] What is your market share in the ceiling fans category today? Also, what percentage of your annual sales and revenue can be attributed to the summer season? Q] How much are you allocating to Digital versus TV and other traditional mediums this season? Are you focussed on e-commerce? Q] Recently, Crompton announced a merger with Butterfly Gandhimathi Appliances, manufacturer of cookers and other kitchen appliances. What does the company hope to gain from this union? Q] Can you provide an overview of the company’s future plans? PROFILE ABOUT THE BRAND
We have identified certain basic qualifiers that make our fans stand out, and the top three are energy efficiency, aesthetics, and silence. These are the three equity builders, which we have built over time to distinguish ourselves from the competition.
Fans contribute up to 15% of an electricity bill, and therefore invariably consume energy. So any savings on that is welcome. But because there are now so many BLDC model fans that are energy efficient, we are concerned with how Crompton can provide that superior experience? When we compared our products to those that are generally available as energy-efficient fans in the market, we found them delivering a higher value proposition in terms of providing better air delivery. So in this campaign, we are talking about our ‘active BLDC technology,’ which has superior air delivery, unlike other products available in the market. We are also highlighting the brand’s energy efficiency.
Fans stay on with consumers for years, it’s not an appliance that one buys for a year or two and then gets it replaced. So, the cost of buying at the outset could seem a little higher, but we must also look at the fact that it forms about 15% of your electricity bills. If you look at the average one-star rated fans and five-star rated fans, the energy efficiency or superior savings our fans provide is about 1500 rupees per year. Considering that a fan’s life is beyond five years, it pays off the incremental cost in the first two years itself.
We are the leading player in the fans category with a market share upward of 27%. The category accounts for close to 50% of Crompton’s ECD segment sales annually, which is our core business. Lighting, appliances, and residential pumps make up the others. Summer accounts for about 29 to 30% of our annual sales and revenue for the category.
Our category is fans, and because its penetration in the country is above 90%, the TV spend invariably remains a little higher.
As far as e-commerce is concerned, we are going aggressive. But for us e-commerce is more than just selling. We are also present on e-commerce channels to create consideration for the product. Our research says that 80% of the product evaluation happens online, including on e-commerce platforms, which makes for about 67% influence of the consumer consideration set. That’s why we are present in the top 2 or 3 positions on e-commerce platforms. But major sales in this category actually happens offline. Online is still in single digits as a percentage of it.
We’ve seen a remarkable growth in the appliance’s category within Crompton. This has been our fastest growing segment, giving us the confidence to go a little deeper into the appliances category. This seemed like a natural merger to happen because it gives a good foothold into the product portfolio, where we have seen initial success in terms of appliances. Butterfly seemed to be a good bet, considering the equity they have in the category, and their dominant share in some of the categories where we wanted to extend our portfolio.
We are looking at innovation as a key driver across all categories, whether it is for fans or the newly expanded categories in appliances. We are looking at brand excellence as another pillar, and are planning to continue from where we started the journey sometime back. We’ve almost tripled advertising spend and consumer outreach. Next year we’ve plans to double it compared to the previous year. While online channels will become a high priority for us in terms of percentage growth, our strategy for rural markets will also be critical, in addition to what we have for tier one and tier two markets. It’s a ‘Rurban’ strategy which is basically ‘rural-cum-urban’ as we are seeing huge growth in those geographies as well. It can be attributed to high brand salience and electrification going up.
Pragya BIjalwan is the Chief Marketing Officer for Crompton where she is responsible for developing winning brand propositions and adapt the brand to the ever-evolving consumer needs. Her goal is to strengthen the brand position in key categories and accelerate growth in new categories through meaningful innovation supported by integrated consumer communications. Prior to joining Crompton in April 2021, BIjalwan worked with Castrol India Ltd. where she led product innovations, brand campaigns and technology based innovative solutions.
With a brand legacy of 80+ years, Crompton Greaves Consumer Electricals Ltd. is India’s market leader in the category of fans and residential pumps. Over the years, the organization has continuously strived to produce a range of innovative products that cater to the modern consumer, including superior quality and high-performance water heaters, anti-dust fans, antibacterial LED bulbs and a range of other categories like air coolers, food processors like mixer grinders, electric kettles and garment care like irons. The company has further invested in brand and innovation to not only better understand and meet consumer needs, but to also help drive energy efficiency.
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