Pragya Bijalwan, Voltas CMO unpacks the Digital media pulse of India AC Market
Voltas outlines its full-funnel marketing playbook, and heavy IPL spends to capture the evolving, premium AC market.
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Consumers may not fully grasp the intricacies of artificial intelligence and the Internet of Things, but these very features are increasingly driving their choices at the checkout counter, said Pragya Bijalwan, chief marketing officer at Voltas, in an interview with Storyboard18.
“Every brand is in a race to offer air conditioners that deliver personalized solutions,” Ms. Bijalwan said. “While this was happening in a limited way before, it’s poised to scale.”
Voltas, which is among India’s leading consumer electronics companies, plans to roll out AI-enabled products as it bets on artificial intelligence to transform the way customers interact with home appliances.
Edited Excerpts:
How do you anticipate demand levels to be? What are the marketing strategies in place to ensure sales growth during the forthcoming months?
We peak our investments at the beginning of the financial year to stay top-of-mind among clients.
We have taken a full-funnel approach as far as marketing is concerned. Over and above the products we’ve introduced, we have invested heavily in key properties that work very well with our target audience, starting with the IPL (Indian Premier League). In IPL, we participated in more than 90-95 percent of the tournament matches.
Apart from IPL, we’ve been showcased selectively across each channel.
Voltas is strongly positioned on Flipkart and Amazon. We’re also investing in other digital mediums, including OTT and social media platforms. In the social media space, we’ve changed the conversation this year to make it more contemporary.
What is your target group, and how have they evolved over a period of time?
Our target audience is above 25 years of age. Typically, ACs are bought on two occasions: when one purchases or renovates a house, or to upgrade a solution. Hence, millennials matter to us. They have become far wiser in their decisions.
In a cluttered market, how a brand stands out matters to the consumer. Our brand health score for top-of-mind awareness is close to 40 percent. In the overall unaided awareness category (high brand recall without prompting), we are close to 90 percent.
Could you explain the revenue generation model of Voltas?
E-commerce contributes roughly about 10 percent of the overall industry outlays.
That is why both Voltas and the industry have pivoted to modern retail and other traditional retail outlets. In terms of distribution, Voltas is the most widely distributed air-conditioning brand, and we are heavily present in the offline market as well.
Since Voltas is a part of the high-involvement category, a lot of evaluation happens online. That’s why our play on e-commerce and digital platforms is quite strong. But we are also very focused on offline channels, including modern retail, regional retail, and organised trade.
Which is the most lucrative media for Voltas and why?
The penetration of ACs is about 6-7 percent, which shows that very few households today have air conditioners. First-time users account for about 84 percent. We understand that people buying in India are premium consumers, who form a small fraction of the overall population.
Hence, more than being present on all mediums, it’s very important to be present on the right mediums. Voltas’s unaided awareness is the highest.
During the season, targeting high-intent consumers is equally important, which is why our investment in digital and CTV has increased. Between traditional and digital, Voltas’s media spends are almost 50-50.
Apart from television, I also count on in-store spends because people walk in and eventually buy.
This time, we have also chosen to be present in the HDTV segment.
Could you explain the ad spends of Voltas?
When we closed FY24, we stood out as the highest ad spender. We continue to believe in consumer outreach and driving consumer conversations.
Being the market leader, we take it as our prerogative to talk about propositions that matter to the consumer in this category. The end of 2025 will showcase how other brands are also performing.
This year, I can see many other brands coming to mainstream media because growth numbers in this category are very promising.
What trends were witnessed in the consumer electronics space in 2024, and what are your predictions for this year?
First, people are looking for intelligent solutions in cooling.
Very few people understand IoT (Internet of Things) and AI, but when they want to purchase an appliance, they prefer products with integrated IoT and AI.
The same is true for ACs. These days, a comprehensive solution is more about providing IoT and AI-enabled air conditioners. That’s the ongoing trend.
Every brand is fighting to get air conditioners that can deliver personalised solutions. This possibly existed in a small way in the past, but it’s going to get bigger as we move forward.
How will AI transform the consumer electronics space?
It will help in personalising the space.
