Havells Marketing Strategy – Marketing Strategy of Havells: Havells India Limited, a Fast Moving Electrical Goods Company is a $1.4 Billion Electricals and Home appliances Company that manufactures products. These products range from fans to water purifiers in the personal grooming segment to reactive power solutions, cables, and various other items in its Industrial business segment.
To penetrate the market with its unmatched distribution network, the brand has set up 513 brand showrooms under the name of Havells galaxies and Havells Gallery in India. These showrooms offer products for both domestic and commercial customers.
Havells At A Glance – Marketing Strategy of Havells
Company : Havells India Ltd
CEO: Anil Rai Gupta
Founder: Qimat Rai Gupta
Year founded: 1958
Annual Revenue: US$930 million
Profit | Net income: US$120 million
Number of employees : 4,017
Products & Services: Industrial & Domestic Circuit Protection Devices | Cables & Wires | Motors | Fans | Modular Switches | Home Appliances | Air Conditioners | Electric Water Heaters | Power Capacitors
Competitors: Maini Precision Products | Bajaj Electricals | CG Power and Industrial Solutions | Exide Industries | ABB India Ltd | Crompton Greaves Consumer Electricals Ltd
Havells Fun Facts: The Company was originally incorporatd as Havell’s India Private Limited on 8th August, under the Companies Act, 1956 and subsequetly the name was changed to Havell’s India Limitd vide certificate dated 31st March, 1992.
Marketing Strategy of Havells
Havells’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Havells? Let us discuss.
Segmentation, Targeting, Positioning – Havells Marketing Strategy
The company meets customers’ expectations by segregating different segments based on their needs, such as urban and semi-urban consumers, small retailers in tier-3 and tier-4 cities, and electricians.
It targets customers from the middle-income bracket who use products that are Mass-premium. Mass premium refers to customers who are looking for quality products and is the largest segment of the local population.
Customers who are interested in electrical or home appliances are the main target of this company.
Havells is a brand that is easy to find, simple to use, and offers value for customers.
Havells Mission Statement
“To achieve the vision through fairness, business ethics, global reach, technological expertise, building long-term relationships with all our associates, customers, partners, and employees”
Havells Vision Statement
“To be a globally recognized corporation that provides best electrical & lighting solutions, delivered by best-in-class people”
“India: Electrified By Havells”
Competitive Advantage – Marketing Strategy of Havells
Diversified Products line: The company’s diversification of product portfolio across all business verticals within the electronic sector has helped to establish its brand in the electrical business and also helped in the establishment & promotion of its industrial business segment.
Touchpoints in Market: To reach the targeted segments, 414 Havells Galaxy, 27 Standard Gallery, and 72 Havells Gallery stores were created. Together, they contributed 22% to the company’s revenues, reaching out to 280 communities. This strategic advantage has allowed the brand to create a brand experience for customers and has resulted in high brand recall.
BCG Matrix – Havells Marketing Strategy
Havells is active in the following business segments: Switchgear, Cables and LED Lighting & Fixtures, and Electronic Consumer Durables (ECD).
These four SBUs are either ranked 1,2 or 3 in their respective markets. Switchgears holds 19% market share, Cable business is ranked three with market share Domestic-16% and Industrial- 10% respectively, LED Lighting business ranks 3 with a market share of 12%, while ECD business has market share between 10-14%.
All hold Stars positions in the BCG matrix due to their strong market share.
Distribution Strategy – Marketing Strategy of Havells
Through the omnichannel, penetration has been achieved in the tier-3 cities by working closely with Wholesalers and Distributors, Retailers, and Electricians. The company connects with customers via 7575 direct dealers and 100000+ retailers, 220000 electricians, and 580 channel partners.
These manufacturing facilities, which are state-of-the-art 12 manufacturing facilities in Tier-2/3 cities, help the brand keep production costs low and allow it to penetrate the lowest levels of the pyramid.
Brand equity – Havells Marketing Strategy
Its wide product ranges, combined with its after-sales services, have helped it win awards & accolades like the Corporate Excellence Award by Amity University and Readers Digest Trusted Brand Award, Effie Advertising Gold, and many others.
The brand Visibility Company invests about 3-4% of its revenues in advertising with a regional appeal to ensure it is a strong brand.
Havells is known for initiating social responsibility activities to increase market visibility. In 2016-17, more than 2000 bio-toilets were built. They also provided mid-day meals to over 57000 students in Alwar every day.
Competitive Analysis – Havells Marketing Strategy
The company’s products are highly sought-after because of its 17 business verticals and deep SKUs in all of the product lines.
Its operations of connecting electricians and retailers through the 360 degrees connect program, as well as expansion into tier 3-4 cities, have been instrumental in creating a competitive ecosystem.
Its sub-brands, such as Lloyd, Crabtree, and Standard, help the brand compete with the most recognizable brands in the market, such as Samsung, Panasonic, Crompton Greaves, Philips, etc.
Market Analysis – Marketing Strategy of Havells
The market growth is driven by micro factors like a growing middle class, infrastructure improvement through electrification, penetration with help from the unorganized sector, and young demographics that want technologically driven products that are good-looking.
The availability of local suppliers is helping the company keep its costs low and increase its operational efficiency by economies which allows the products to be made available to new and untapped markets. Sometimes, this can come at a high cost.
Customer Analysis – Havells Marketing Strategy
The majority of customers of the brand’s Retail segment come from urban markets. However, the company recently started reaching out to tier-2 and tier-3 cities. This will allow them to reach the vast majority of the markets. High quality and premium perception result in repeat sales in the retail segment.
It serves industrial customers B2B who require Switch gears and cables, motors, heavy-duty fans, professional lighting, and heavy-duty fans.
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