The Fast Moving Electrical Goods Company (FMEG) Havells India Limited is $1.4 Billion Electricals and Home appliances Company which manufactures products ranging from fans to Water purifier in personal grooming business segment to reactive power solutions, cables and other items in the Industrial business segment.
The brand in order to penetrate with the unmatched distribution network has built up 513 exclusive brand showrooms in name of Havells galaxies & Havells Gallery across India which offers products to domestic and commercial businesses.
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Segmentation, targeting, positioning in the Marketing strategy of Havells –
Customers expectations are met by the company by effectively segregating the different groups based on the segments such as those consumers in Urban & Semi-Urban areas and electricians & small retailers in tier-3 & tier -4 cities.
It targets the customers in the middle-income group who uses the products which are Mass-premium. Mass premium is the group of customers who want quality products and forms the major part of the population in the respective region.
The company majorly targets customers who are interested in either electrical or home appliances.
Havells positions itself as a brand easily accessible, convenient to use and are value for money for the customers.
Marketing mix – Here is the Marketing mix of Havells.
Mission of Havells
“To achieve vision through fairness, business ethics, global reach, technological expertise, building long-term relationships with all our associates, customers, partners, and employees”
Vision of Havells
“To be a globally recognized corporation that provides best electrical & lighting solutions, delivered by best-in-class people”
Tagline of Havells
“India: Electrified By Havells”
Competitive advantage in the Marketing strategy of Havells-
Diversified Product line:
Diversified product portfolio in each of the business verticals in the electronic segment has not only helped the company in the establishing its brand in electrical business but it also helped it in establishing & popularising its industrial business segment.
Touchpoints in the market:
In order to directly reach out to the targeted segment company have created 414 Havells Galaxy, 27 Standard Gallery, 72 Havells Gallery stores together contributing 22% of the revenues by reaching out to 280 districts. This strategic advantage has helped the brand in creating the brand experience for the customers and high brand recall.
BCG Matrix in the Marketing strategy of Havells-
Havells operates in the business segment such as switchgear, Cables, LED Lighting & fixtures and electronic consumer durables (ECD) segment.
These four SBU’s of the brand are either ranked 1,2 or 3 in their respective markets like Switchgears hold 19% market share , Cable business is ranked three (market share Domestic-16% & Industrial- 10%), LED Lighting business is ranked 3 and have market share of 12% while ECD business have market share ranging from 10-14%.
Due to the strong share of each business unit in the market, all holds Stars position in the BCG matrix.
Distribution strategy in the Marketing strategy of Havells–
The last mile connect by closely working with Wholesalers, distributors, Retailers, and electricians has resulted in penetration in the tier-3 cities through the omnichannel. The company reaches out to the customers through 7575 direct dealers, 100000+ Retailers, 220000 electricians and 580 channel partners.
The state of the art 12 Manufacturing facilities in tier-2/3 cities is helping the brand in keeping the cost of production low as well as at the same time penetrate to the bottom of the pyramid through these production facilities.
Brand equity in the Marketing strategy of Havells–
Wide product categories supplemented with after sales services has helped it bagging awards & accolades such as Corporate excellence award by Amity University, Readers Digest trusted brand award, Effie Advertising Award Gold and many more.
To ensure the brand Visibility Company spends approximately 3-4% of its revenue in advertisements with regional appeal.
Time to time in order to create visibility in the market through its social duties, Havells have been initiating several CSR activities such as building more than 2000 bio-toilets during the year 2016-17, providing mid-day meal to 57000+ students in Alwar city daily.
Competitive analysis in the Marketing strategy of Havells –
17 business verticals complemented with the deep SKU’s in each of the product lines is what makes the company’s offerings most sought of in the market.
The company’s operational modalities of connecting retailers & electricians through 360 degrees connect program and expansion in tier 3-4 cities are proving instrumental in its competitive ecosystem.
Its various sub-brands such as Lloyd, Crabtree, Standard, REO helps the brand to compete with the renowned brand in the market such as Samsung, Panasonic, Crompton Greaves, Philips etc.
Market analysis in the Marketing strategy of Havells –
Micro factors such as growing middle class, infrastructure development through electrification of around 78% of the population, penetration with the help of unorganized sector, and young demographics who wants technologically driven products with good aesthetic are some of the factors driving the market growth.
Availability of the suppliers and local sourcing is helping the company in keeping its cost low while increasing its operational efficiency through economies of scale by making the products available to the new & untapped markets, sometimes at the cost of high distribution expenses.
Customer analysis in the Marketing strategy of Havells –
Customers of the brand in the Retail segment are from the urban markets while recently company started penetrating to the tier-2, tier-3 cities through which majority of the markets will be covered. Premium perception and high quality are resulting in repeat purchases in the retail segment.
In industrial businesses, it serves B2B customers who have requirements of Switch gears, Cables, Motors, Heavy Duty Fans and professional Lightening.
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