Electrolux launches microwave ovens; eyes 10% market share

Looking to position itself as a complete home appliances company, white goods giant Electrolux India has launched two top-end microwave oven models.

With the launch of two top-end microwave oven models, white goods giant Electrolux India Limited has signaled its entry into the fiercely competitive microwave oven market. The Swedish major's move is a clear attempt to consolidate its position in India as a complete home appliances company.

Earlier this year, the company also launched three models of ‘chest-type' deep freezers (in 100-lt, 280-lt and 425-lt capacities), a dishwasher and a cooking range. These, along with the microwave ovens, give Electrolux's product portfolio that much-needed ‘roundedness'.

The domestic microwave oven market - estimated at approximately 1.2 lakh units per annum and growing at around 25 per cent - is already cluttered, with numerous players fighting for market share. While traditionally BPL has been a strong player, recent entrants such as Kenstar and Koreans LG and Samsung have managed grabbing sizeable chunks of the pie. Add to this Videocon, IFB, National and more recently, Whirlpool, and the market is chock-a-block.

However, Electrolux sees itself in direct competition with LG and Samsung, mainly due to its ‘image'. "Research has shown that consumers tend to club these three brands together at the top-end," explains Anand Bhardwaj, executive vice-president, marketing & marketing services, Electrolux India. Obviously, this does not apply to microwaves alone.

Although the microwave oven market is burgeoning, there is an inherent dichotomy here. According to P.V.V. Srinivasa Rao, assistant general manager, Electrolux India, qualitative research has shown that though the market for microwaves is growing, usage of microwave ovens is still limited to the purpose of heating food. "People are still not using microwaves to cook food," he reveals. "And that's primarily because people are not aware of the full potential of microwaves."

Under these circumstances, it is evident that bigger market shares will accrue only when marketers take pains to grow the market. And Electrolux, which is gunning for a10-per cent market share by the end of year one, appears to have realized this.

Electrolux is, in fact, taking steps to address this issue through some intelligent below-the-line activities. The company has flagged off cooking classes every second and fourth Sunday at Delhi's Hyatt Regency hotel. And sometime later this month, these classes - branded ‘Great Indian Microwave Secrets' - will start in Mumbai, Chennai and Bangalore too.

But no amount of growing the market can substitute for a good product. Which is where Electrolux claims to have the edge. The company, which has launched its microwave ovens in 20-lt and 28-lt capacities, retailed at Rs 13,500 and Rs 16,500, respectively, insists its offerings are top-drawer. Says Bhardwaj, "One of the biggest USPs of our microwaves is the ceramic coating along the interiors."

Unlike the conventional stainless steel coating commonly used in most microwaves, the ceramic coating is superior in two respects. Being a poor heat conductor, ceramic absorbs a relatively small amount of heat, enabling the food to cook faster. "This enhances the preservation of nutrients in the food," Bhardwaj explains. Further, the ceramic is scratch-resistant, increasing the product's durability.

Talking about the marketing strategy, Rao said, "The positioning is in line with Electrolux's new baseline which centers at the platform of freshness." Incidentally, Electrolux abandoned its old baseline - The Best You Get To Live - in favour of the new baseline - Fresh Ideas to Keep You Fresh - as it wanted to make its positioning "more strong and tangible".

"When it comes to food cooked in microwaves," explains Rao, "freshness has two dimensions. One is the logical freshness relating to freshly cooked, hot food. The other is the fact that that the food must retain the texture and taste of conventionally cooked food."

The advertising account for microwaves is with TBWA Anthem. While ad spends are not available, big-budget advertising is highly unlikely, given the nature and size of the market.

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