With the launch of the first 4K Ultra HD Philips television range, PE Electronics is aiming to reach its goal of 10% market-share in the UHD TV category soon. Neeraj Sethi, CEO of PE Electronics Ltd. talks about promoting the new TV and the company’s communication strategy for the India market
By Saloni Dutta
Q] PE Electronics recently launched the first 4K Ultra HD Philips television range featuring Ambilight technology. What has been the marketing and promotion strategy around the product and its launch?
We are excited to be the first in this category to introduce India to the revolutionary technology of UHD TV with Ambilight which will change the way consumers view television in the country. We are confident that this product driven by pure technology will push the boundaries of the television industry, and we have tried to show that through our TVC which will run across the digital medium too. What we are trying to convey through our campaigns is that this particular TV can turn the entire room into a real immersive experience. The TV becomes a part of the room, and we have patented this feature. Facilities like hue, lounge, wall adaptation feature and more give us advantage over competitors.
We are looking at innovatively promoting these features in the Indian market through our TVC and a unique product experience on the shop floor. We have already earmarked around 20 towns where the product will go on the best of the counters, with possible tie-ups with an excellent sound system. We will use Print only once we are near Diwali or the festive season.
Q] How have your marketing spends changed as compared to last year?
We are a company with around 6% of the market-share. And since these are initial years of our establishing the product in the market, our marketing spends are to the tune of 3.5-4% of our revenue this year.
Q] How do you see the consumer durables market in India and what are some key trends that will shape the market in the next few months?
The consumer is very tech-driven nowadays, but has started filtering technology, as there is too much of technology on offer everywhere. The consumer is interested in the right product technology which is useful and has a day-to-day use. We remain a company which provides all kinds of features in our products and at the same time builds on core and unique offerings like Ambilight. Through consumer-centric features, we aim to give a real and satisfying experience to the consumer. This is how our approach towards the product would be in the next few months.
Q] How does the company plan to stand out in the fiercely competitive consumer durables market in India?
Through the products we offer... For example, Philips Ambilight TV is a flagship product and it gives something new to the consumer. Also, when we had launched our smart TVs, we tied up with Apple, wherein Apple gave us a connecting device which could connect to any Philips smart TV that you buy. Such unique associations are proof of our brand strength. The Apple association had started during Diwali last year and is still active. Such propositions enhance our brand image and supplement and strengthen our marketing communication. We have created a niche and will keep enhancing it.
Q] How do you engage customers using the digital medium?
We are already in the process of refurbishing our website, with the aim of making it much more interactive. Now, it will not only give information about functionalities of the product but also show consumers how the product is faring in the market. We are trying to develop a programme to engage consumers on a regular basis. Even if he/she has bought a product once, we encourage them to share their experiences and in case there is a gap area, we try to plug that through Digital. The moment I engage consumers digitally, my brand is connected with them on Facebook, Twitter, etc. and it is always a two-way interaction, so the good or the bad, it comes back to us as valuable feedback. Also in case of bad, it gives us a chance to address the issue.
Q] Which markets are the strong-play regions for the company, and where do you see scope for growth?
We are targeting the top 75 markets in first five years of operations. Out of that, we already have a market-share of about 8-10% in the top 20 markets, in the less than five years of existence of the company. Talking about regions, we have a strong presence in Karnataka, especially Bangalore. Hyderabad and metros across the country are our strongholds.
Q] What are the company’s plans for the coming few months?
We will keep on surprising the market with new products this year and you will see us celebrating 10% market-share very shortly. That is our objective for next year.
Q] What are the growth opportunities you see in the Indian market?
The market is liberating. In the next five years, the LED category will have a double-digit growth. Most of the buying behaviour is moving towards large screens, and today television has penetrated more than 70% of Indian households. But people still have CRTs and hence LED penetration is less than 8% in India, which means that there is ample opportunity for consumers who want to upgrade to large screens. This will really drive solutions for the Indian market. Brands that can give good consumer proposition with usable features, good quality and after-sale backup will be successful.
About the Brand
PE Electronics Ltd was set up in India in 2010 to bring two internationally renowned brands, Philips in the television domain and Electrolux in the home appliances domain, to the Indian market through a brand licensee agreement. As part of PE Electronics, the Philips television range consists of High Definition LEDs, LCDs and Ultra Slim Color TVs. The Electrolux product range consists of Refrigerators, Washing Machines, Microwave Ovens and Air-Conditioners. PE Electronics aims to deliver meaningful innovations in the television space to the Indian consumer and takes care of all manufacturing, sales, marketing and after-sales service for the brand in accordance with the brand guidelines of Philips. PE Electronics is based out of Mumbai and employs over 1,500 people.
Facts
Creative agency – Concept Communications Ltd
Media agency – Topaki Media Pvt Ltd
Social and digital media marketing agency- MRM McCann Digital
PR agency – Avian Media
Marketing Tip
Speak the consumer’s language and try to understand the consumer.
CMO File
Neeraj Sethi is the Chief Executive Officer of PE Electronics Ltd. He was earlier the COO, responsible for the diverse range of television products from Philips. With over two decades of experience in setting up and scaling up business of top consumer durables brands in India, Sethi has been associated with brands such as Samsung, Videocon, LG and Eureka Forbes Ltd in senior strategic positions. During his stint with Samsung, he one of their youngest Vice-Presidents. Sethi holds a postgraduate degree in Business Management from Jammu University and six sigma certification while working at Samsung. He is an avid reader, passionate about travelling and in his leisure time loves to play golf.
Feedback: saloni.dutta@exchange4media.com
