Racold is focusing on the online model of business: Mohit Narula, Ariston Thermo India
Mohit Narula, Managing Director, Ariston Thermo India, says the online medium has the potential to grow and for the new products digital will be the key platform to engage with target audience
The water heater industry in India has been valued at Rs 2,700-2,800 crore and is growing at a CAGR of 8 per cent, said Mohit Narula, Managing Director, Ariston Thermo India Pvt. Ltd. “Our brand performance last year was higher than the industry growth. We aim to grow at a higher double digit this year,” Narula said at the launch of Racold’s two new products - Omnis and Aures - for the Indian market.
According to Narula, “Omnis will be top-of-the-line storage water heater from Racold. It has been developed with a highly advanced technology to give a seamless experience, while Aures is our new product in the category, which is expanding.”
The brand plans to first market the Aureus product in cities like Delhi, Mumbai, Pune, Bangalore, and gradually expand to other parts depending on the performance. However, the brand is confident to make its presence felt across India, like in the case of Omnis.
The Racold brand is licensed to Ariston Thermo India Private Ltd., which is responsible for marketing, sales and service of Racold products in India.
Asked about the percentage of sales coming from online, he said, “In online it’s around 8-10 per cent, but we are seeing a significant growth from the last two quarters.”
“The online medium has a potential to grow. This category will improve and it can reach out to 20-25% in the next 4-5 years,” he added.
On being asked about the kind of marketing approach the brand will follow to strengthen its position in the market, he replied: “For Aureus primarily, digital will be the key platform to engage with the target audience, there will be print advertising also in certain markets. The key reason behind digital is because the product caters to the younger generation and the particular category is still evolving.”
“For Omnis, we look at TV, print and digital for promotions. We will have a pan-India campaign in October. Our matrix to evaluate media is based on Cost V/s Reach. We are very particular about reaching out to the right kind of target audience, with right media vehicles. 70 per cent of the marketing caters to TV and Print, because it still has the highest reach while 30 per cent denotes to the online medium.”
The brand’s idea is to invest in the online medium. “We are focusing on the online model of business as well. Our premium products are doing well. We are investing to bring out the visibility of the brand and leverage it to build the brand.”
Asked, if there are any plans to bring a celebrity face for the brand, he said: “That’s a strategic brand call we need to take, but right now we don’t feel. A brand goes to a celebrity to either launch a brand or if you want the celebrity to become the face of the brand. For us, we have a strong equity in the trade as well as with the consumers.”
