Hero Electronix enters consumer tech category, will spend 20-25% of annual ad budget in festive season

Hero Electronix, a Hero Group company, recently forayed into the consumer technology market with the launch of ‘Qubo’, a range of AI-connected smart devices. As part of the Qubo portfolio, Hero Electronix launched Smart Indoor Camera, Smart Gas Sensor, Smart Smoke Sensor, and Smart Door/Window Sensor in the Indian market.

Rahul Jain

And as part of its marketing strategy, the brand is planning to spend around 20-25% of the annual advertising budget this festive season. “Our majority of the investment is going to be targeted in the first phase of the launch because that is our impact time. And we are going to create a lot of buzz with these properties,” said Rahul Jain, Chief Business Officer, Hero Electronix, in an exclusive chat with BestMediaInfo.com. 

Hero Electronix is targeting digital-savvy customers so it will adopt digital marketing as its go-to strategy. The first campaign will be rolled out through social media and video platforms. But the brand will also roll out a TV commercial towards the end of the month, followed by some out-of-home (OOH) activities like billboards and on-ground activation.

“Our advertising plan is divided into three parts — first the teaser ads will be released, followed by an impact marketing campaign which will primarily be on TV. We will also leverage on some digital properties, followed by a sustained campaign which will be around recall building for the brand,” says Jain.

“Around 65% of the budget will be allocated towards digital in the next one year. But for first three months, it is going to be primarily on TV plus + outdoor activations, in a 50:50 ratio. Over a period of time, we are going to be fairly active on digital,” he adds.

While the products will be available for pre-booking on Amazon.in from September 19, actual deliveries will start from September 29, the first day of Navratra. The brand is looking to reach around 30-35 million households in India in the first three months of the launch.

At present, Hero Group has invested close to Rs 350 crore in Hero Electronix. The brand is planning to invest Rs 150-200 crore in the IoT business over the next couple of years.

Currently, Hero Electronix doesn’t have any customer base, except for some existing B2B customers, since it’s absolutely a new business. However, the brand is expecting a great start as almost 30-35% sale of consumer electronics goods happens during the festive season (approximately two months period).

“Although there is an economic slowdown, we are very bullish about the launch. We deliberately timed it in a manner so that when the product is introduced in the market, there is an immediate pull from the consumer because they are willing to spend money and buy new products. This product can be a great option for gifting. So, we are expecting a great response and a great take-off during the festive season,” says Jain.

But there are quite a few challenges the brand faces today. First, Hero Electronix has to create awareness about the category since there are not too many players. So, it’s going to be an uphill task for the brand. Second, the brand has to create the need for these products in the market. And third, riding on the back of a legacy brand ‘Hero’, Hero Electronix has to win the trust of the customers that the safety and security products from the house of ‘Hero’ are trustworthy. 

While the voice-controlled Qubo Smart Indoor Camera, with Amazon Alexa built-in and powered by Qualcomm® Vision Intelligence Platform, will be available at Rs 13,490, the smart sensors — Qubo Smart Gas Sensor, Smart Smoke Sensor, and the Smart Door & Window Sensor — will be available at Rs 3,000 each. The products will be available for customers on Qubo’s website www.quboworld.com and across major e-commerce sites such as Amazon.in and retail stores.

In terms of building physical infrastructure, the brand has strategised to go ahead in multiple phases. In the first phase, it will target top 20 cities, typically the state capitals. The brand will also have a key focus on urban markets, which include Delhi/NCR, Mumbai, Bangalore, Chennai, Hyderabad and Pune where the majority of the connected devices are currently sold. In the next financial year, the brand plans to further expand into the smaller towns and tier-II cities.

Info@BestMediaInfo.com