For many Indian consumers, the brand name, Voltas is synonymous with air-conditioners but that changed as the brand took a leap of faith with Beko. Cut to 2024, Voltas Beko now sells a range of consumer durable goods. “We recognised that being known only as an ‘AC brand’ could limit our growth, so we decided to diversify our product offerings. That’s when we collaborated with one of the global majors, Beko. Together, we entered into a 50-50 equity joint venture, combining our technological expertise with their strong distribution network,” Prasenjit Basu, head of marketing, Voltas Beko Appliances India Ltd, told BrandWagon Online.
Voltas Limited — A Tata Enterprise, and Ardutch B.V. (a subsidiary of Arçelik A.S.; part of the Koç Group – Turkey’s largest industrial and services group), established a joint venture company (JVC) in India, to enter the consumer durables market in 2017. With a well-established brand name, Voltas is leveraging its equity to gain market share beyond air conditioning, but this shift requires careful strategising, Basu highlighted.
Capitalising on brand equity for expansion
Voltas Beko’s move to diversify its portfolio is driven by the need to evolve from being seen as a specialist in air conditioning to becoming a broader player in the consumer durables space. This transition is not uncommon in industries where market leaders leverage their established credibility to enter new categories. However, it’s not without challenges, particularly when the core brand is strongly associated with a single product type. Voltas, being a major player in the air conditioner market, faces the task of ensuring its new product lines do not dilute the brand’s reputation while simultaneously expanding consumer perceptions. “While the Voltas name gives us a significant early mover advantage, we must carefully manage that equity. Our new product lines require us to engage a more diverse audience, including women and younger consumers who are more active in making household purchase decisions,” Basu highlighted this delicate balance.
This strategic insight reflects a broader shift in consumer behaviour, especially in the home appliance sector, where decision-making has become more collaborative. Traditionally, air conditioners, being high-involvement purchases, were seen as products purchased with long deliberation, often driven by men. In contrast, appliances such as refrigerators and washing machines are integral to daily household operations and involve both men and women in decision-making. Thus, Voltas’ campaigns for these products aim to emphasise family narratives and inclusive messaging, breaking away from traditional gendered marketing.
Diversification with a focus on localisation
According to the company, its partnership with Beko not only aims to diversify its product offerings but also led to a significant shift in its manufacturing strategy. Initially, products were imported, but the rise of the ‘Make in India’ movement prompted a change. By 2021, 80-90% of Voltas Beko products were being manufactured locally. Voltas Beko states that this localisation offers two major advantages: it aligns with national economic policies encouraging domestic manufacturing and enables the brand to cater more closely to the preferences and needs of Indian consumers. “There are a total of 11 SKUs across Single Door Direct Cool & Double Door Frost-Free Refrigerators. The price ranges from Rs. 16,990 to Rs. 32,990. The products are available across 300+ brand stores and 1200+ multi-brand stores,” Basu mentioned.
Industry experts believe that producing in India also brings operational benefits, particularly in supply chain management. Having local manufacturing facilities allows Voltas Beko to reduce lead times, manage inventory better, and adapt quickly to changes in market demand. Moreover, being perceived as a brand that supports domestic production helps enhance its appeal in an increasingly nationalistic consumer market. As Basu notes, “The ‘Make in India’ movement has resonated deeply with consumers, and being a part of this helps us build stronger connections with our audience.”
Adapting to consumer insights
The shift from air conditioners to home appliances also required a change in how Voltas Beko communicates with its audience. Air conditioners, as a category, typically focus on efficiency, cooling power, and energy savings, while refrigerators and washing machines offer more interactive and personalised experiences. In response, Voltas Beko moved from product-centric advertising to storytelling that highlights everyday household scenarios. “Our campaigns often feature family narratives, where everyone plays a role in using our products. We’ve focused on softer storytelling, integrating social issues like gender equality into our ads.” Basu described the approach. This strategy aligns with the brand’s goal of appealing to modern families, especially women who, despite playing a central role in household decision-making, don’t necessarily respond to gendered or stereotypical product marketing.
The emphasis on storytelling also reflects a broader trend in marketing. Brands are increasingly moving away from direct product placement and opting for narratives that subtly integrate product features. It is believed that this approach is particularly effective in digital campaigns, where consumers engage with content in a more fragmented and distracted manner compared to traditional media. By focusing on relatable stories and social issues, Voltas Beko aims to ensure that its message cuts through the noise and resonates with a broader audience.
Media mixology
A critical part of Voltas Beko’s marketing strategy is balancing traditional and digital media. As Basu explained, each plays a distinct role, “Digital is about building narratives and keeping consumers engaged over the long term, while traditional media is more action-oriented, focusing on immediate impact.” The company allocates 35-40% of its budget to digital media, while traditional media still takes the lion’s share at 60-65%, given its ability to reach mass audiences quickly. “This dual approach is particularly important during the festive season, where timing and reach are crucial. Traditional media like television and print is essential for generating immediate awareness and driving traffic to stores or e-commerce platforms, while digital media is used to build ongoing relationships with consumers,” Basu opined. Voltas Beko’s digital campaigns emphasise engagement through storytelling, influencer partnerships, and interactive social media content, allowing the brand to stay top-of-mind without overwhelming its audience with hard-sell tactics.
The festive season is also a key period for driving sales through promotions maybe by bundling offers or limited-time discounts. “To effectively cut through the clutter during the festive season, the refrigerator brand should focus on its core unique selling proposition (USP) of freshness. The central message must emphasise the ability to keep food fresh for an extended period, ideally up to 30 days. This approach resonates with consumers’ basic needs, particularly as families tend to stock up for celebrations,” Basu said.
One of the emerging focuses for Voltas Beko, as well as other consumer brands, is experiential marketing. This approach involves creating memorable, positive interactions with the brand in real-world settings, such as retail stores. As Basu noted, “We are investing in training and capabilities to improve the in-store experience for consumers. When a consumer walks into a store, their interaction with the ambience, the staff, and the product itself matters greatly.”
Experiential marketing is especially important in the home appliance category, where seeing and testing the product in person can make a significant difference in the consumer’s decision. Creating an engaging retail environment, where consumers can interact with the products in a hands-on manner, helps build confidence in the brand and its offerings. In-store displays that highlight key features, such as freshness in refrigerators or energy efficiency in washing machines, can reinforce the messaging seen in digital and traditional media campaigns.
A competitive market
Voltas’ journey from being an air conditioner specialist to a diversified home appliances brand highlights both the opportunities and challenges of brand expansion. Leveraging its existing equity has allowed the company to enter new categories with a significant head start, but it has required careful management of brand perception. By focusing on inclusive storytelling, emphasising its ‘Make in India’ credentials, and balancing its media mix between traditional and digital platforms, Voltas Beko is aiming to position itself as a key player in the home appliances market.
However, as the market becomes more competitive, particularly during high-spending periods like the festive season, consumer brands will need to continue adapting its strategies. Maintaining its core values while also staying attuned to shifting consumer behaviours, such as the rise of experiential marketing and the growing influence of women in household decision-making, will be critical to sustaining long-term growth in this new segment.