AN ASSIGNMENT

MARKETING MANAGEMENT

PROJECT/ASSIGNMENT SUBMITTED

IN PARTIAL FULFILLMENT OF ODD SEMESTER INTERNAL

EVALUATION

SUBMITTED TO

ICFAI LAW SCHOOL

ICFAI UNIVERSITY DEHRADUN

ACADEMIC SESSION 2020-21

SUBMITTED BY: SUBMITTED TO:

NAME: AVIRAL MRS. AMITA SHAMRA

COURSE: BBA. LLB. (HONS) 2NDYEAR

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 Introduction

This is a situational Analysis on the Company Voltas. Voltas Limited, is

an Indian multinational Home appliances company specialising in air conditioning and cooling
technology. The company is broadly structured into projects and products business. The projects
business is divided into Domestic Projects Group (DPG) and International Operations Business
Group (IOBG). Meanwhile, the products business is classified into Unitary Products Business
Group (UPBG), Mining & Construction Equipment Division (MCED), and Textile Machinery
Division (TMD).

The company was incorporated on 6 September 1954 in Mumbai. It was a collaboration between
Tata Sons and Volkart Brothers. The Chairman of the company is Mr. Noel N Tata and the
Managing Director and Chief Executive Officer of the company is Mr. Pradeep Bakshi. Its
shares are traded on the Bombay Stock Exchange under symbol 50057.1

1
https://en.wikipedia.org/wiki/Voltas

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 Index

1. About the company………………………………………………………………………4

2. About current product range……………………………………………………………..5
3. About the market…………………………………………………………………………8
4. About the environment…………………………………………………………………..10
5. Nature of demand………………………………………………………………………..14
6. Market segmentation…………………………………………………………………….15
7. Reason of success/ failure in the past…………………………………………………....15
8. Distributors……………………………………………………………………………....17
9. Promotions……………………………………………………………………………….17
10. Other relevant information……………………………………………………………....24
11. References………………………………………………………………………………..26

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1. About the Company

1.1 Details about the promoters of the Company

Voltas Limited, is an Indian Home appliances company specialising in air conditioning and
cooling technology. The company is broadly structured into projects and products business. The
company was incorporated on 6 September 1954 in Mumbai. It was a collaboration between Tata
Sons and Volkart Brothers. The Chairman of the company is Mr. Noel N Tata and the Managing
Director and Chief Executive Officer of the company is Mr. Pradeep Bakshi.

1.2 Vision of the Company

Driving value through smart engineering

1.3 Mission about the Company

We will offer our customers appropriate engineering solutions in the form of products, projects
and services of superior values in our areas of expertise and experience- air conditioning,
refrigeration, electro- mechanical works, water management, electrical and industrial capital
equipment so as to build and sustain market leadership.

1.4 Historical Background of the Company

On 6th September 1954, Voltas Ltd. was incorporated in Mumbai. The company is jointly
promoted by Switzerland’s Volkart Brothers and India’s Tata Sons Pvt Ltd. The first step
towards being a nation-builder, Voltas won the contract to build power plants & use earth-
moving machinery at the Tungabhadra Dam. Bringing Cooling to India, India’s first room AC is
developed, India’s first climatizer is launched: heating in winter and cooling in summer. Across
engineering, chemical and pharmaceutical industries, marketing & distribution commences.
Voltas begins to develop and manufacture products in-house.

1.5 Business Plans for next 3-5 years;

The ACs industry grew 29% YoY while Voltas grew 35% in FY2020. Voltas stands to benefit in
the long run due to its scale and distribution reach. Inverter AC accelerated in demand and now

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forms 43% of the total AC sales as compared to 36% last year. The Air coolers market share
stood at 11.2% (No. 3 in the segment) and grew by more than 100% last year. The market share
is expected to increase in these categories even though volumes may decline in the coming years.
Overall the company can see a temporary revenue decline in FY 2021 but still have solid
fundamentals and good growth prospects in the long term. Therefore this category gets 4 stars in
Voltas fundamental analysis.2

2. About the Current product Range

2.1 Current Range of Product

1. Cooling and Refrigeration

2. Home Appliances
3. Textile Machinery
4. Mining and construction equipment

2.2 Details of Each Product (Composition/price/pack size) etc.

1. Cooling and refrigeration
1.1 Air Conditioners- Different kinds of air conditioners made by Voltas include Inverter
Ac, Split Ac, window Ac. The top of the line inverter Ac model costs Rs.69,999.

2
https://billiondollarvaluation.com/voltas-fundamental-analysis-and-future-outlook/

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1.2 Air coolers- The different types of coolers include Tower Coolers, Desert Coolers,
Personal coolers and window coolers. Tower coolers cost 8990 while the personal
coolers starts at 7490. Desert coolers and window coolers cost 14990 and 8990
respectively.

1.3 Commercial refrigerators- It includes deep freezers, chest coolers, combo coolers, visi
coolers, water coolers, chocolate coolers.

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2. Air purifiers- Voltas also makes air purifiers.

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 3. Water dispensers- Bottom loaded, floor mounted, table top are available starting at 8990.

2.3 Brand Names

Universal Comfort Products Limited
Auto Aircon (India) Limited

2.4 Past Sales data/future projections (Value/Volume)

In the year 2016, voltas made an income of Rs. 5124 Cr with a profit of Rs. 350 Cr. In 2017,
the income was Rs. 5410 Cr with a profit of Rs. 486 Cr. In 2018, the income was Rs. 5800 Cr
with a profit of Rs. 500 Cr. In 2019, the total income was Rs.6693 with profit of Rs. 464 Cr.
In 2020, the income recorded was Rs. 7357 Cr with a profit of Rs. 570 Cr.
having sold around 1.3 lakh units during the same period.

3. About the Market (for the Product Range)

3.1 Current Size of the Market (Value/Volume)

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The freshly released report reflects Voltas to be the clear leader, both in Volume and Value in
multi-brand outlets (MBOs), with an 18.3%market share, leaving LG in the second place at
17.7%. 

3.2 Growth Rate of the Market

Voltas managed to generate business worth Rs. 46 Cr as opposed to Rs. 8 Cr business during the
same quarter last year. The segment revenue increased by 19% and was Rs 526 Cr as compared
to Rs. 441 Cr in the corresponding quarter last year.

3.3 Current Market Shares of Competitors

India air conditioners market is controlled by these major players, namely Voltas Limited,
Daikin Air conditioning India Pvt. Ltd., Blue Star Ltd., LG Electronics India Pvt. Ltd.,
Johnson Controls-Hitachi Air Conditioning India Limited, Havells India Limited, Samsung
India Electronics Private Limited, Carrier Midea India Private Limited, Panasonic India
Private Limited, and Videocon Industries Limited.

3.4 Growth rates of Competitors

Blue Star is India’s leading air conditioning and commercial refrigeration company, with a
network of 32 offices, 5 modern manufacturing facilities, 2800 employees, and 2900 channel
partners.

 Total Sales: Rs 5,657 Cr

 Market Cap:  8,037 Cr.
 ROE: 22.72 %
 Sales Growth (3Yrs): 11.29 %

Johnson Controls–Hitachi Air Conditioning was established on October 1st, 2015 as a joint

venture between Hitachi Appliances, Inc. (now Hitachi Global Life Solutions, Inc.) and Johnson
Controls, Inc.

3.5 Current Marketing program of each competitor

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Lg- With air-conditioners showing the most promising growth in the consumer durables
segment, LG Electronics India has already chalked out its strategy for the next year. Apart from
launching a gamut of new products, the company will follow a different approach by identifying
niche segments and targeting them individually. A major thrust next year, for instance, will be
the commercial air-conditioners segment. In the earlier phases, LG’s focus was primarily on
retail and corporate sales of windows/split ACs. However, LG has started aggressively targeting
at the commercial ACs segment. It aims to capture about 20 per cent market share in the segment
in the next calendar year. The entire range of commercial air-conditioners will be available from
LG by December this year, which would include four models in ductables and three in cassettes.
Though currently the moulds for these ACs are being imported from Korea, LG may commence
manufacturing these here, depending on the market response. At present the domestic
commercial air-conditioners market is growing at about 8-10 per cent per annum, and the major
players in the segment include Voltas, Blue Star and Carrier. The company will also be coming
out with customized products for certain high-growth segments such as telecom companies, bank
ATMs and so on. For windows and splits, LG will also launch products catering to different
segments of the market. LG also plans to launch a range of Internet-enabled air-conditioners for
the premium-end. LG is looking at sales of three lakh units next year from the estimated two lakh
this year, as well as improve its market share by five per cent to 35 per cent next year.3

Blue Star - The new advertising campaign seeks to enhance Blue Star's image as the air-
conditioning expert, with a focus on customers by offering customised cooling solutions. The
campaign highlights the key features of air-conditioning ie Indoor air quality, air distribution,
power consumption, etc. The campaign educates the customers on critical design parameters of
air-conditioning and refrigeration which go beyond cooling.4

4. About the Environment

4.1 Social Trends

3
https://www.exchange4media.com/
4
https://www.bluestarindia.com/media/press-releases/blue-star-launches-new-adverstising-campaign

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Continuing to deliver on Voltas’ promise towards a sustainable tomorrow, the Domestic Projects
Team (DPG) in Kolkata successfully commissioned the 182 HP, VXV 6th Generation VRF
System with Treated Fresh Air Units in the COVID Blocks of M R Bangur Hospital, Kolkata
under West Bengal Medical Services Corporation Limited (WBMSCL). This project solution by
Voltas has benefitted 670 beds that have been reserved for Covid-19 patients in M R Bangur
hospital. Since the West Bengal Government assumed power for the first time in 2011, it
launched 34 multispeciality hospitals in the state. Out of these, 20 hospitals have Voltas product
(Chillers) installed with the total installed capacity for the state being 5100 TR. Woodlands
Hospital Kolkata, TATA Medical Centre, SSKM Hospital and Calcutta Medical Research
Institute (CMRI) are some of the hospitals that have utilized Voltas’ expertise in HVAC.
Additionally, the Company also has an ongoing project at AIIMS Kalyani which is a very large
project being executed by Voltas’ DPG team. In addition to healthcare, Voltas DPG has a strong
presence in the Education segment in West Bengal. While the total number of hospitals with
Voltas products is 28, there are 9 educational institutes with Voltas products. Important HVAC
installations have been done by Voltas at Presidency College, Indian Institute Of Management
and Sri Sri Academy, Kolkata. Voltas has also executed a critical HVAC project in Kolkata’s
Asiatic Society, the premier institute for Indology and a well-known heritage building. Voltas is
also helping in the conversion of existing medical facilities such as AIIMS, Bhatinda, and
Guwahati Medical College and Hospital to convert standard wards into Covid-19 isolation wards
using smart ventilation solutions. This includes building test centers to predictive maintenance of
Chillers in Hospitals and Pharmaceutical companies that make life-saving drugs, thus impacting
millions of lives. At Coimbatore the company has built a test centre at Kovai Medical College
and Hospital to help the state contain the Covid-19 outbreak. Earlier a part of the academic
block, the centre is now being used as an isolation ward for Covid-19 patients, after carrying out
the necessary HVAC modifications. Similar conversions are being undertaken by Voltas at
Gauhati Medical College and Hospital, which is also one of the facilities across the country
being upgraded to strengthen India’s fight against the pandemic. Voltas, one of India’s leading
engineering solutions provider, from the house of the Tata Group, today announced the
completion of two Sewage Treatment Plants (STP) in Bihar by Namami Gange (NMCG), funded
by World Bank. The two projects ensure proper treatment of household sewerage to prevent
flowing of untreated sewage to River Ganga. Hon'ble Prime Minister Mr. Narendra Modi is

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scheduled to virtually inaugurate both these Bihar Urban Infrastructure Development
Corporation (BUIDCO) STP projects in Karmalichak and Beur on 15th September 2020. The
virtual inauguration is expected to be graced by dignitaries like Mr. Fagu Chauhan, Governor,
Bihar; Mr. Nitish Kumar, Chief Minister, Bihar; Mr. Ravi Shankar Prasad, Cabinet Minister,
Government of India among others. As part of the Namami Gange mission, Voltas was awarded
the two projects worth Rs.150 Cr. with the capacity of 37 MLD and 43 MLD at Patna, Bihar for
Design, Build and Operation. The foundation stone of these projects was laid by Hon Prime
Minister of India Narendra Modi on 14th October 2017.

4.2 Political Trends

Voltas Limited – a Tata Group enterprise, has announced its intention to start construction of
their new manufacturing facility, spread over 65 acres, in Tirupati. This facility will initially
manufacture and assemble air conditioners and related cooling products with a total capacity of
more than 1 Million units to start with. Continuing its thrust on Research and Development,
Voltas aims to create technologically advanced products which are expected to start rolling out
from the second half of 2020. The Company plans to invest over Rs. 500 Crores while putting
together an OEM base for home appliances, and simultaneously creating local employment
opportunities in the region. This manufacturing facility will be one of the first cooling appliances
unit in the State of Andhra Pradesh. The choice of Andhra Pradesh as the destination for the new
manufacturing unit was due to the State’s ‘ease of doing business’, and growing focus on ‘Make
in India’. The chosen location provides dual benefits of superior market access and cost effective
connectivity via road and port. Voltas, known for its strong countrywide presence and penetrated
sales & distribution network, will cater to the South, West and East markets through this
manufacturing facility. Speaking on the occasion, Mr. Pradeep Bakshi, Managing Director &
CEO, Voltas Limited, said, “We are delighted to have laid the ground for the Voltas
manufacturing plant here in Tirupati. We are thankful to the Government of Andhra Pradesh, and
APIIC officials for all the support extended.

4.3 Economic Trends

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Voltas is Indias No. 1 Room Air Conditioner brand with a market share of over 24%. The
Company is also globally recognised as an engineering solutions provider and a project
specialist. It enjoys a strong presence across India, the Middle East, South East Asia, and
Africa. Despite being considered as the year of economic slowdown by many, 2019-20 fared
well for the Air Conditioning, Air Cooler and Commercial Refrigeration industry. Voltas
consistently outperformed the Room Air Conditioner market, recording a 42% growth in H1
2019-20, and around 30% growth in the overall fiscal. Several industries struggled with sales
due to limited disposable income and consumption. However, Voltas was able to beat the
odds by capitalising on a strong summer, supported by a wide distribution reach, highest
brand equity, technologically advanced green and energy efficient products, and an enhanced
after-sales-service infrastructure. The Company also invested in expanding its manufacturing
facilities to increase indigenous production, and reduce the customs duty impact on its
consumers. A state-of-the-art R&D centre was also opened, in order to be future ready. Voltas
aligned with prominent e-commerce trade partners like Amazon, Flipkart and Tata Cliq. As a
result, Voltas has a 40% share of room AC sales in the e-commerce space, the largest amongst
its peers.

4.4 Technological Trends

Voltas Limited, in response to the ongoing COVID-19 crisis has launched a new line of
Ultraviolet Light (UVC) based surface disinfectant solutions in addition to the engineered UVC
based air and duct disinfectant solutions that the industry leader has been offering its consumers
for the past several years. This is in line with the Tata Group’s commitment towards serving the
community and making a positive social impact. Voltas Limited has always adopted a consumer-
centric approach to fulfill India’s cooling and refrigeration requirements for residential and
commercial applications. The ongoing COVID-19 pandemic has impacted individuals and
organisations alike, forever changing the dynamics of human lifestyle through social distancing.
Amidst all this, there are growing concerns about the myths of using of central Air-Conditioning
systems in offices and commercial spaces, owing to suspicions that the virus is transmitted
through AC vents. Commenting on the launch of the UV-powered solutions, Mr. Pradeep
Bakshi, Managing Director & CEO, Voltas Limited said, “As the Indian economy recovers from
the shock of COVID-19 and people resume work in the ‘new normal’, it is essential for

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organizations to give utmost priority to the health and safety of personnel and their families. We
have always been committed to contributing to the health, comfort and well-being of the society
and it is the need of the hour to develop solutions that curbs the pandemic that brought the entire
world to a standstill. Our UV-powered offerings for Duct, Air and Surface disinfectants
compliment the immediate and long-term need for safety in shared spaces like malls, waiting
rooms and offices, thereby reiterating Voltas’ position as the leading HVAC brand that is always
looking for ways to deliver the very best to the nation.” As an industry leader, the brand has once
again led by example by promptly collaboration with its engineering partners to increase its
portfolio of UVC based products to address the survival of the COVID19 virus on surfaces. The
new bouquet of products include: 1) RUKS CoiloTron, that ensures near total elimination of
Mold, Fungi, and Microbes on Cooling Coil and Drain Pan. 2) Handheld: HandHeld is a portable
disinfection unit, designed for rapid sanitation of any surface. 3) UV Cart System: UV Cart
System is designed to deliver high germicidal intensity, adequate to sanitize the area and
inactivate the micro-organisms in a short time. 4) RUKS GermiTron: The RUKS GermiTron
Ultraviolet Germicidal Irradiation (UGVI) System can kill 90% of bacteria and virus, per pass.
This indoor air quality and bactericidal management system has a scientifically proven design
with computerized selection to assure delivery of specified or target kill rate.

Voltas Limited, has been taking proactive measures and initiatives to help the nation fight
against the COVID-19 pandemic. The No. 1 AC brand, from the house of the Tata’s, has further
reinforced its leadership position in the Cooling Products space, by launching the new Voltas
PureAir AC, a UV based split inverter AC. The Voltas Maha Adjustable PureAir AC comes with
state of the art LED system, with peak emission wavelength of 180nm to 280nm, which quickly
disinfects the indoor air by killing germs and pathogens like virus and bacteria. Voltas PureAir
AC also has TIO2 (Titanium Oxide) coated air filtration system, which removes harmful gases
and VOC (Volatile organic compounds) from indoor air to make the air perfectly healthy for
human consumption. Tested at a NABL Accredited Lab, the Voltas PureAir AC has been found
to be effective in killing 99.9% viruses, bacteria, Fungal, Yeast & Mould.5

5. Nature of Demand

5.1 Brand Awareness/Loyalty

5
https://www.voltas.com/media-overview

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Voltbek Home Appliances Private Limited (Voltbek) - a JV between India’s No. 1 AC Brand,
Voltas and Europe’s leading free standing consumer durables player, Arçelik, has launched a
new digital video commercial (DVC)- "#IAmEnough". Launched on the occasion of Mother’s
Day, this DVC is a tribute to the single mothers who make invaluable sacrifices and embrace
multiple roles in order to raise their children, especially during this period of lockdown. The
"#IAmEnough" video, conceptualized by Momspresso, is inspired by single moms – those
amazing mothers who have the strength to raise their child alone and the courage to never give
up even in face of the greatest challenges. With this DVC, Voltas Beko is reinforcing its
commitment as the ‘partners of everyday happiness’ to mothers across India.

This is one of the ways in which Voltas is creating awareness among customers.

6. Market Segmentation

6.1 Demographic (Age/sex/Income/Occupation/Education)

The buyer is from the age group 28 to 55 with an average income of 41,000.

6.2 Psychographics (Attitudes/Behavior)

7. Reason of Success /Failures in the past

From 1954 to 1992, Voltas dominated the domestic AC market, with 40% share. The foreign
players were less in numbers, making the game easier for this homegrown brand. Voltas, then,
had to compete with players like Blue Star, Fedders Loyd and Acro. The industry was small
scale and unstructured, but managed to tap lucrative profit margins. The dark clouds hit the
brand in 1993 when the American AC giant Carrier entered the Indian market. Carrier launched a
new range of ACs, with modern technology and distinct looks that dethroned Voltas. The
situation for the company deteriorated when the Korean and Japanese brands like LG, Samsung,
Electrolux, and Whirlpool entered the Indian market. With the dawning of this century, Voltas
found itself at the bottom of the list. With a meager 7% market share, it could hardly stand strong
against foreign competitors. Voltas made serious efforts to revive its lost position. The
regeneration team of Voltas tried to understand the changing market dynamics, consumer
insights, business strategies, competitors, and future course of action by consulting with Tata
Strategic Management Group. The resolution was made; Voltas needed to shift from an

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engineering sector to a marketing company. Voltas designed a Big Bang strategy which helped
them revamp product portfolio, marketing techniques, brand promotions, costs etc. The main aim
of Voltas was to increase volume generations, increase sales by cutting the manufacturing and
product costs. Voltas did not leave any leaf unturned to increase the sales of AC in the market. In
2001, Voltas entered in a 50/50 joint venture with American Fedders International, for producing
technologically advanced and visually appealing ACs, keeping low manufacturing costs. The
R&D centres of Fedders in Florida and Singapore were accessible to Voltas. It could learn about
the new product variants, product promotion and launching strategies etc. New features like
purification filters, ionisers, electricity-saving modes etc were incorporated in the later models of
Voltas. The company became well equipped to compete with powerful foreign companies.
Between 2001 and 2004, Voltas launched above 70 ranges of products including 1.5 tonne AC,
which became a staple product in the market. Voltas could become the lowest cost manufacturer
in India due to its global sourcing. The components of AC like compressors and copper tube
were all sourced by Fedders at a low cost. Within 2005, the price of window AC dropped by
20%, which contributed to increasing the sales of the Voltas AC. Since 2001, Voltas had
focussed towards maintaining a dealer friendly policy. It ousted the non-performing dealers and
rewarded the performers with credit extensions and incentives, boosting their
morale. Revamping the promotions were necessary. Voltas started promoting features like
uniform cooling, air filters, electricity-saving mode. The advertisements helped to increase the
household penetration, which at the time was merely 2%, hinting towards a huge scope of
improvement. The campaign “ACs with Intelligence” gained momentum among the masses,
celebrities like Shah Rukh Khan promoted the brand and it was an instant success. By 2006, the
image of Voltas changed to “India ka AC”, and is targeted to reach the “aam admi”. Voltas
invested around Rs 50 crores for brand revamping and Rs 17 crores for marketing. All these
were done to increase the market share of the company and reach more and more users. Since
these reforms and techniques, Voltas has been performing well in the AC segment, especially
with the exit of LG from the AC segment in 2017. During demonetization in 2016, the company
had to bear the pain due to declined sales, but the situation was not that critical for this
homegrown giant, which is the Tata Enterprise. Voltas plans to continue focusing on distribution,
quality, and product portfolio for retaining its position in the market.

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Gain consumer insights: Voltas started focussing on in-depth market research and started
understanding the demands of the consumers. The ad which portrayed a retired couple hesitant to
use the AC sent by their son ultimately enjoys the cooling of the AC due to the low electricity
consumption. The mantra is to show that even a retired couple with a financial constraint can use
the AC conveniently. The marketing techniques, features and price brackets are determined to
keep the consumers in mind.

Be well aware of the competition: Since the liberalization, when foreign companies gained
access in the Indian market, Voltas had to face difficulties. But then, keeping the technology and
the retail segment in mind, it entered a joint ventured with American brand Fedders International
for manufacturing components at a low cost. This way, Voltas could match the competition,
maintaining the product quality at a low cost.
Adapt to the market dynamics: Voltas did not delay in adapting to the changing market
dynamics. The company accepts its mistake of neglecting the retail AC segment. But it did not
take too long to change the failure into success. Voltas Vertis, All-Weather AC are some of the
successful models targeted for the common man for his home.

8. Distributors

8.1 Nature of Distributors

Voltas has a widespread network for its manufacturing units and product offerings. It has a well-
designed website which serves as the perfect catalogue for all kinds of customers. 

8.2 Numbers of Distributors/Location work

Voltas has its head office in Mumbai and zonal offices in Mumbai, Delhi, Chennai and Kolkata.
Its branch offices are in all major cities of India. It has one of the largest distribution networks in
India with more than 15,000 touch points in FY20.

8.3 Criteria for Selection

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8.4 Terms of Engagement, Margins etc. Vis-a-Vis Competitors

9. Promotions

9.1 Current promotion of Brand Vis a Vis Competition

Earlier this year, Voltas has launched a Maha-Adjustable campaign for its new range of ACs that
could adjust between multiple tonnage modes. And since the lockdown, the words 'Maha-
Adjustable' have been reborn with a very different message at their heart.’

Blue Star- Blue Star announced its new marketing strategy for the Company's room air
conditioners by launching a new advertising campaign. With summer and the preceding festival
season having taken off on a good note for the Company, Blue Star is now looking at setting a
highly positive tone for the upcoming festival season. The company has rolled out the new
festive campaign, conceptualised by 'FCB Interface,' which unveils Virat Kohli's association with
Blue Star's room air conditioners. The new TV commercial highlights the Company's new range
of room air conditioners which can deliver up to 30% extra cooling when needed with an
endorsement Owned by Virat, Loved by Virat

9.2 Advertising Media used /spends etc

Voltas Limited has unveiled its new campaign, "Thande Dimag Se Soche," which will hit media
on Saturday. Euro RSCG has created the campaign and the company has pumped in Rs 20 crore
for this promotion. The campaign is aimed at boosting the sales of the just-launched 0.8-tonne
split AC model priced at Rs 15,990.

On the sales target, K D Virmani, General Manager, said, "We are looking at reaching Rs 450
crore this financial year. Last year, we closed at Rs 325 crore." The company has a 32 per cent
market share and its main competitors are LG and Bluestar.

The campaign revolves around the theme of 'value for money.' "We are talking of 'faida' (benefit)
of buying Voltas ACs. Unlike last year, when the campaign's focus was on affordability, this

18
time we have talked about more aspects like end-to-end service, low running costs, brand history
and pricing," he said.

On the creative brief, he said, "The concept was to reach out to the common man and address
that this air conditioner fits into his budget."

The campaign will appear on print, television, radio and outdoors. "Only 20 per cent of the
budget has been spent on the television commercial. In fact we are concentrating more on
outdoors," he said.

On future plans, Virmani said that the company has plans to set up a manufacturing facility in the
excise-free zones of Uttaranchal or Himachal Pradesh. "The location is not certain but this is a
greenfield project and should happen towards year-end," he said. Around Rs 70 to 80 crore is the
investment that will go into this project, he said. At present, Voltas has a plant in Hyderabad set
up with an investment of more than Rs 100 crore and another in Dadra, which is a joint venture
with Fedders.

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9.3 Samples of the Ads /Other Promotional Material

20
21
9.4 Others forms of Promotion used

Voltas follows Tata Code of conduct for its employees and associates. Voltas has a dedicated
‘Green” mission to minimize waste energy consumption and other sustainable practices. Also its
CSR activities are spread across vocational and skill development, education, health and disaster
relief typically in the vicinity of its manufacturing units. These activities help in promoting good
‘word of mouth’ and a good image as per the company’s mission and vision.6

9.5 Strength of the Field Force /Sales Force

Voltas has around 8261 employees working for it and a total of 15000 touch points all over
India.

9.6 Online Activity Vis-a-Vis Competition

Voltas aligned with prominent e-commerce trade partners like Amazon, Flipkart and Tata
Cliq. As a result, Voltas has a 40% share of room AC sales in the e-commerce space, the
largest amongst its peers.

6
https://www.mbaskool.com/

22
Deba Ghoshal, vice‐president, marketing and key accounts, Voltas said that their festive
promotion strategy will be based on a combination of search marketing and activation. "We have
observed consumer researching online and in store activation will work well in the festive
season. It will be supported by campaigns across television purely for the new category we have
launched," he noted. 7

Tahir Hakeem, head, brand and retail marketing, LG Electronics India said that digital will be a
key awareness generating platform where we talk about usage, features and utility of products.
"Microwave and dishwasher penetration will go up as consumers better understand its benefits.
We will take an integrated approach heavy on digital media to create awareness about products.
Television and print will further aid in creating demand. Ad spends will be higher than last year
as we have launched new products which needs to be promoted," he added.
Shirish Agarwal, head of marketing and brand, Panasonic India said that consumers are
researching online and then making purchase decisions, therefore our investments are led by
performance marketing.
7
https://www.livemint.com/

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"Marketing mix for consumer durables firms will change with digital taking the lead as it has
become the most important touch point for the category. Social media, influencer marketing,
content marketing which drives usage of products will be our focus. Currently, online contributes
to 40% of our overall sales and we expect this to go up," he said at a recently held Mint webinar
'CMO Dialogues'.

10. Any other Relevant Information ( Such as Research done in the past etc) would be useful

Voltas & Ogilvy urge Indians to be Maha Adjustable during lockdown

For most Summer brands this summer has been challenging, quite literally. While Voltas was yet
again all ready to charge towards a blockbuster season, the pandemic hit the world leaving the
market standstill. The nationwide lockdown effected many brands across categories. The real
question left unanswered was, how do brands matter in such times of crisis? How do you
maintain the relevance as a leader brand for when the lockdown is lifted? Yes, the societal good
in the form of providing services to all essential categories like Hospitals, Pharmaceutical
companies, Data Centres, ATMs and Airports, is mighty important in such hard times, and the
country shall remember the deeds performed by Voltas for a good cause. But it was also
important for the brand to show empathy in the everyday life of a consumer, in order to not lose
touch. And for the latter bit, we tried to strike a perfect balance of relevance & positivity, and
created a piece of communication for every Indian. Earlier this year, Voltas launched a Maha-
Adjustable campaign for its new range of ACs that could adjust between multiple tonnage
modes. And since the lockdown, the words “Maha-Adjustable” have been reborn with a very
different message at their heart. A message that urges understanding, compassion and hopes to
decompress the building stress in every home, through the small acts of helping out with
household chores. The video doing the rounds, sees Gajraj Rao speaking to his followers not as
his character in the Voltas films, but as himself. He speaks about how the lockdown has changed
him as a person. He makes light of his pre-lockdown habits, and how he is now a happy and

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willing participant in the domestic chores. In the end, he advises viewers to be more
understanding and adjustable to the needs of their loved ones, in these trying times. The
challenge, objective and the idea: As the quintessential domestic brand for the aspiring middle-
class Indian family, Voltas has time and again captured the slice of life of the common man.
With the entire country under lockdown for over a month, most Indians have felt the heat of
staying home all day long. The new campaign addresses the status quo and offers a way for
viewers to do their bit for each other, while staying indoors. Ritu Sharda, Chief Creative Officer,
Ogilvy India (North): This lockdown really has changed everything. Our Voltas Inverter ACs
were Maha-Adjustable, and now we’ve also become maha adjustable. Not just in what we do in
our homes, but also how so many of us from different cities have managed to come together to
create this beautiful message in the most delightful way. It was an absolute joy to collaborate
with Gajraj and his wonderful team, and his son, Nikhil, who directed this. Its work like this that
makes one also look at all the good this new normal brings. Conceptualised by Ogilvy and co-
created with Gajraj Rao, the new chapter in the Voltas’ Maha-Adjustable story, maintains the
quirky tone of its campaigns. It sends out a social message without being preachy about it. Gajraj
Rao (Creator) had this to say about the campaign: “I feel these are extraordinary times which can
only be overcome with some extra effort in our lives and homes. Ritu Sharda and her team at
Ogilvy Delhi have articulated this spirit in the most brilliant way in this unique film for Voltas.
We are excited to present this special film where we could collaborate with our extended work
family from their homes. The team was quite eager to try their hands in creating this labor of
love with the limited resources at hand during lock-down, while also peeling onions or maybe
washing the dishes from last night.” The campaign is a perfect example of how the Lockdown is
changing Advertising as a whole. Not just in the way the film has been executed, but also in its
message. How brands are more sensitive to the need of the hour. How they are participating in
important conversations, in today's environment, rather than just trying to sell a product. This
DVC is an interesting launch pad for the idea, "Voltas Maha Adjustable Stories", a property
which the brand wants to create, to engage with its audience in the long run; without deviating
from the core brand promise.

References

1. https://www.voltas.com/
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2. https://www.myvoltas.com/
3. https://www.voltas.com/media-overview
4. https://www.exchange4media.com/
5. https://www.glassdoor.co.in/Reviews/Voltas-Sales-Manager-
Reviews-EI_IE440625.0,6_KO7,20.htm
6. https://www.mbaskool.com
7. https://www.bluestarindia.com/media/press-releases/blue-star-
launches-new-adverstising-campaign
8. https://billiondollarvaluation.com/voltas-fundamental-analysis-and-
future-outlook/
9. https://en.wikipedia.org/wiki/Voltas

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