The company is unlikely to increase its spending on advertising and promotional activities this year. It spent close to Rs 45 crore last year and can even drop slightly this year.
The company’s brand repositioning strategy is at an advanced stage of planning and will be announced over the next 3-4 months.
Electrolux Kelvinator is consolidating its various brands and plans to further build each brand individually with different consumer segments in mind.
Electrolux Kelvinator Group India chief executive officer, Ram S Ramasundar told The Financial Express that, “as the maze of multiple legal entities is disappearing now, the company is in the process of repositioning and revisiting its brands.”
The company is in the process of restructuring its brand portfolio. While one brand will be catering to the lower or the value cautious segment, the other would target the niche and premium segment and at the same time all the mass volume will come under another brand.
Mr Ramasundar said that sustaining multiple brands is not a problem the parent company also has got multiple brands under its fold as it grew through acquisitions. “But we are certainly reviewing it,” he said. However, he declined to give further details and said that it will take 3-4 months before the company initiates its new branding strategy.
However, Mr Ramasundar clarified that the brands will not disappear, but the company will restructure the portfolio of all our brands.
“The company is restructuring its brand strategy to essentially rationalise and carefully address the brand requirements of each segment of the society,” he added.
“Our flagship brand, ‘Kelvinator’ has already been rubbed to the ground. We will now give each of our brand- ‘Kelvinator,’ ‘Electrolux,’ ‘Allwyn’ and ‘Maxclean’ undivided attention and build them individually with different consumer segments in mind,” Mr Ramasundar said.
Among the four brands, ‘Kelvinator’ is the single largest contributor to the company.
Over the years, acquisition of Maharaja Appliances and Intron resulted in the formation of multiple legal entities, which have now been merged into a single legal entity. The merged entity, Electrolux Kelvinator Ltd will have a combined turnover of Rs 800 crore in the year 2002. The merger of Electrolux India and Intron with the Indian flagship company, Electrolux Kelvinator has resulted in the parent’s stake going up to around 75 per cent. In the washing machine segment, the company is trying to consolidate its position and the focus area will be the top loading washing machines.