Consumer durables companies are spending more on advertising during the festival season. Their ad budgets have risen by an average 20% compared to last year as they push sales through promotional offers.
?We will spend around Rs 20 crore in marketing festival season offers. Sales are expected to grow 20-25% to around Rs 800 crore between October and November,? said Whirlpool India Asia South VP of corporate affairs & strategy Shantanu Das Gupta . The company has launched two more refrigerator variants, Ace and Striker, in the below Rs 8,000 category.
Apart from the regular discounts that companies offer at this time of the year, most players are unveiling new products with add-ons like free extended warranties and 0% finance schemes. Videocon Industries has increased its advertising budget 120% as it has added mobile phones to its portfolio and, expects to rake in 80% more revenue than last year.
?The season between September and November contributes about 35% of annual sales. We are introducing new models including those of LCD and LED TVs, and washing machines,? Videocon Industries chief marketing officer Jaideep Rathore said
Another consumer durables major, LG Electronics India is spending around Rs 65 crore on festival campaigns.
?We are offering 0% finance, extended warranty on products, exchange and combo offers. We expect a growth of around 45% this festival season,? said an LG India spokesperson. The company is eyeing a turnover of Rs 3,600 crore.