Godrej Appliances summer marketing spends up 25%; focus on CTV, e-comm

New Delhi: Godrej Appliances has set a goal of 50% sales growth in its air conditioner segment this year, well above the industry’s expected 20-25% rise. 

With such growth percentages at the crosshair of the brand, the marketing budget is bound to correspond. Swati Rathi, head of marketing at Godrej Appliances, told BestMediaInfo.com that the company has raised its marketing budget by 25% for the summer season.

The company’s advertising strategy relies on a combination of television and digital channels. E-commerce platforms, traditionally seen as sales outlets, are also being used to promote Godrej’s products. 

The approach leans heavily on digital, with funds directed toward influencer collaborations, e-commerce listings, and automated ad placements. 

A patented anti-leak technology in its air conditioners is a key focus, aimed at distinguishing the brand in a crowded market.

Fastest growth in e-commerce

As per the data provided by Godrej, its ACs have experienced a 2x growth as compared to last year’s statistics. Laying the importance of e-commerce in the overall marketing plan of Godrej, Rathi said, “E-commerce is a significant touchpoint for the industry and for us. Our ACs are experiencing the fastest growth across platforms like Amazon and Flipkart, a trend we've observed closely.” 

Rathi explained that while 85% of all sales in the AC industry are happening at the store, with the remainder attributed to e-commerce, platforms like these “significantly influence those purchases.” 

“While the final purchase may be offline, e-commerce serves as a primary search engine for appliances, offering reviews, ratings, product comparisons, and pricing information. It's a vital evaluation tool,” Rathi said. 

Speaking on the biggest challenge that Godrej sees emanating from e-commerce, Rathi touched upon the tussle between e-commerce and retail stores. 

To mitigate the issue, Godrej has several models from their product chain that are exclusive to e-commerce platforms, while some models are exclusive to retail stores. “Having a vast portfolio, where we can provide exclusive platforms to the platforms, is vital for us,” Rathi said. 

Godrej equally divides ad spends between Connected and Linear TV.

Godrej, on Tuesday, launched a new product line and campaigns constructed around Smart ACs. The product has features like filter cleaning alerts and app-based scheduling controls.

Watch the campaign ad films here: 

The campaign, conceptualised by Lowe Lintas, will be pushed across all video mediums, including CTV. In fact, in the television segment, the allocation of spends for Godrej is equally divided between CTV and linear TV. “Connected TV allows us to speak to those gated audiences, which are difficult to reach using traditional channels.” 

Rathi, here, is addressing the premium, smart AC-seeking audience that tends to be connected to CTV more than other large-screen mediums. 

Godrej is also tactfully using cinema advertising to enhance its reach. However, this medium is very region-specific, as stated by Rathi. She explained that such platforms are more prevalent in regions like Kerala or Andhra Pradesh, where cinema is still a very dominant form of entertainment. 

Gauging the strongest markets for Godrej Appliances, Rathi revealed Kerala and the Northeast as the winners in the category. “Bihar is another strongly growing region for us,” said Rathi. Going forward, the brand is eyeing Gujarat to scale up its sales and brand presence. 

Indian Premier League

IPL is a recurring property for Godrej. The campaigns launched on March 26 will also be part of ad spots during various matches, Rathi told BestMediaInfo.com. Despite premium ad rates, Godrej is going heavy and “impactful” with IPL, allocating 25% of the overall marketing budget to the high-impact cricketing property. 

Experiential aided by technology

Walking us through the functionality of experiential marketing done by Godrej, Rathi stated that the experiential aspect is crucial for Godrej. Showcasing the efforts put in by the brand before, Rathi said, “Last year, we focused on experiential marketing, including innovative displays and airport activations, to showcase our products in unexpected ways. We then amplified these experiences digitally.” 

“Currently, we're using VR-led activations to demonstrate the AI capabilities of our appliances across stores.

We're also integrating our smart EC proposition with in-store tools and demonstrations, showcasing the Google Smart Life app's functionality. Store advisors will be trained to highlight these features. So, we're investing heavily in in-store experiences, similar to last year,” she added. 

She also revealed how these experiences are heavily aided by digital tools, AR-VR tech, and digital platforms. 

Speaking on how digital aids the experiential arm of the brand, Rathi said, “It supports and extends the reach of our in-store activations. Secondly, it drives awareness and education through influencer marketing and social media.” 

Future roadmap

ACs are gradually becoming a part and parcel of life. With the tier-2 and tier-3 regions of the country brimming with demand, Godrej believes that air conditioners, as an opportunity, are huge and are yet to reach their full potential. 

The brand is expecting a harsh summer once again and the AC category doing well this fiscal as well, as explained by Kamal Nandi, Business Head & EVP - Appliances Business, Godrej Enterprise Group. 

Speaking on the outlook, Nandi said, “We anticipate an increase in air conditioner consumption this summer. Notably, consumer preferences are shifting towards energy-efficient and premium products. There's a clear demand for technology-driven features. Consequently, we've developed an exciting portfolio this season, emphasising relevant technologies for our consumers.”