Legrand India's Allzy: Revolutionizing the mass market with strategic adaptation.
Legrand India's retail activation campaign for its newly launched product, Allzy, has garnered significant attention across PAN India. This case study delves into Legrand's strategic positioning to target the burgeoning middle-class segment and the remarkable success achieved in a fiercely competitive market.
Leveraging Middle-Class Dynamics:
Legrand's success story is intricately tied to its ability to adapt to the shifting dynamics of India's middle class. The rise of nuclear families and evolving consumption patterns, as highlighted in PRICE's report on "The Rise of the Middle Class" and Kantar's "Consumer Connections 2023" report, presented a unique opportunity. Legrand focused on offering products that seamlessly blended premium brand reputation, quality, excellence, and modern aesthetics, aligning with the evolving tastes of the lifestyle-focused customer demographic. The growth of standard segment products has doubled in the last 5 years. The share of this segment has increased by 5%, and now the mass product segment contributes to 54% of the overall share.
Shifting Preferences and Contribution:
Legrand's strategy's success is underscored by the transformation in consumer preferences. The share of modern mechanisms like USB and touch switches has doubled in 2023 in the last 5 years. Electronics/Accessories now account for 5% of overall sales, reflecting the shift towards modern features, recognized safety, and branded products. According to the Ministry of Consumer Affairs, mobile device makers and technology companies in India will have to adopt type-C as a standard charging port for electronic products by March 2025. Legrand USB chargers have already adopted C-type in their range. This will further benefit to boost USB charger sales.
Understanding the Market:
Legrand recognized a substantial opportunity to cater to the changing needs of middle-class consumers. With transformative shifts in semi-urban and non-urban areas, the distinctions between urban and rural preferences were blurring. Branded products were gaining traction even in non-urban regions, thanks to increased exposure to digital media and a shared aspiration for modernity and quality.
Driving brand in the mass segment:
The evolving consumer behavior and the vast potential of the mass market provided Legrand with an excellent opportunity to venture into this segment. Legrand is a renowned brand in the premium segment. To build awareness among the mass category segment, it is using the strength of its retail network, penetrated across India. Through the Allzy on-ground activation, the brand is ensuring the placement of Allzy on the entire retail network and expanding it further in the remote areas of the country. Along with this activation, it has kicked off a 360-degree awareness campaign with a hyperlocal approach through OOH, TV, and Digital/OTT. LeGrand has primarily adopted a digital-centric strategy in urban areas, leveraging the extensive visibility to effectively reach the mass market in these regions. Complementing this digital focus, the brand has also strategically cultivated grassroots awareness in Tier 1 and Tier 2 cities. Through well-executed campaigns, LeGrand successfully emphasized its tangible presence in these cities and incentivized customers to engage by visiting its stores.
Allzy Product Launch and Impact:
The launch of the Allzy product marked a pivotal moment for Legrand. By allocating 5% of its revenue to research and development, Legrand ensured that its standard segment products met the demands of discerning middle-class consumers. This success was evident in the doubling of sales in the mass category, with the newly introduced Allzy product driving a rapid increase in the run rate. Legrand strategically targeted the mass market by harnessing Indians' inherent multitasking skills across digital and offline communication channels. In response to the escalating demand within this segment, Legrand bolstered its distribution strategy. This involved imparting product knowledge to its extensive network of retailers through content in the form of messages and videos distributed via WhatsApp. Additionally, Legrand ensured a prominent product presence on retail counters. Notably, the 85 sustainable product display boards deployed in these markets underscored Legrand's unwavering commitment to sustainability.
Market Position and Growth:
Legrand's journey from being a prominent player in the premium product segment to becoming a strong second-largest player in the Indian switch market is noteworthy. The company's adaptability and ability to meet the demands of the growing middle-class market have enabled it to achieve an impressive 74% contribution from standard and mass products in overall switch sales.
Legrand's retail activation campaign for the Allzy product stands as an exemplary case of successful market penetration and brand adaptation. By identifying the evolving preferences of India's middle class and strategically addressing their needs, Legrand achieved substantial growth and redefined its market position. This case study serves as an inspiring example for marketers and businesses aiming to tap into India's dynamic and evolving middle-class market.