The Hindu Business Line : Godrej to expand washing machine range

Though 80 per cent of its turnover comes from its refrigerators division, the company is introducing new features and prices for its `Smart Wash' brand of washing machines with an attempt to create more demand in markets with low penetration levels. Mr Soumitra K. Ghatak, Executive Vice-President, Marketing, Sales & Services said, "We intend to expand our range of washing machines and provide more affordable models."

For instance, its models with fuzzy logic technology which were earlier priced in the range of Rs 14,000-15,000 (for its 5 kg tubs) would now be priced between Rs 12,000-13,000. "We would be dropping our prices by 10-15 per cent for our fuzzy logic model while new features such as electronic panels would be incorporated for our twin tub semi-automatic models," he added.

Expecting a 50 per cent volume growth in its washing machines, the company hopes to sell 40,000 units after these new introductions with an increase in market share from the current 6 per cent to 10 per cent.

The company also intends to beef up its distribution network by increasing the number of outlets. Says Mr Ghatak, "We will be increasing our presence in retail outlets from 8,000 to 9,500 outlets this year."

The company has also set aside an ad budget of Rs 5 crore and intends to launch a new campaign once the new models reach the market. The company has shortlisted two agencies (Ambience d'Arcy and HTA Mumbai) to handle its new campaign for washing machines.

Godrej has recently roped in actress Preity Zinta to endorse its Pentacool brand of refrigerators. It is in the process of deciding whether the actress will also stand for its `Smart Wash' brand of washing machines in the future. Mr Ghatak says, "We will take a decision soon, before the monsoons since that is the time when sales increases. It would also depend on which agency we choose for handling the washing machine brand.''

The company, which split with its joint venture partner GE some time ago, has been increasing its ad spend in the recent past. By allocating Rs 20 crore for advertising and by roping in a `young and happening' actress as a brand endorser for the first time, the `heritage' company wants to be perceived as a young brand.

Prior to appointing Preity Zinta, the company even changed its ad agency from HTA to Ambience D'Arcy for a year and then again went back to its erstwhile agency HTA which then devised a new baseline — `Life Jum Jaye' for its refrigerators. Its media buying account is with Mindshare.

The company does not intend to focus on its air-conditioners and prefers selling directly to institutions. There is no advertising happening for this segment either. "It is not a priority area for us," says Mr Ghatak. This year, Godrej Appliances is targeting a turnover of Rs 600 crore.

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