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.. of Voltas AC

1963- First factory was established to manufacture ACs & refrigeration equipment. Later on many plants were set up to manufacture compressors, condensers, chillers, ancillaries, refrigerators etc; 1997-A whole range of new products was launched both in the room air conditioning and split segments. 1998-Voltas commissioned Dadra plant, which has a capacity to produce about 40,000 units per annum if it worked one shift. 2005-Voltas introduces new series of ACs 2008- It launched elegant, new range4/14/12 of Room Air

Facts

Star Rating by BEE(Bureau of Energy Efficiency ) One ton is equal to 12000 BTU per hour The AC market in India has been growing at a compound annual growth rate (CAGR) of 29 per cent

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Star Ratings
Hitachi Air Conditioners ***** Carrier air conditioners **** Panasonic / LG / Voltas air conditioners *** Samsung / Electrolux / Whirlpool air conditioners**

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Changed scenario

Between 2001- 2004 Industry growth 29% Excise duty on Ac reduced from 110% to 60% Many new entries in retail AC market By 2001 voltas came down to 7 position with 6.8% market share With the application of big bang theory

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The Big Bang strategy was very successful. The company ranking in the retail AC market from No.7 to No.2 with in a year. Voltas retail AC 70% of its sales comes from the institutional market. Of the total air-conditioner market in the country, 75 per cent belongs to split, while the remaining is window ACs At present, Voltas with a 19% market share in ACs is second to the Korean brand LG by a small gap.
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Types of Air Conditioners offered by

Window mounted: These are air conditioners that are usually fixed through the windows. Split Air conditioner: These A.C can be installed at floor level ,ceiling or wall. Cassette Air Conditioner: These are air conditioners that are usually fixed into the ceiling. Slim line AirConditioner: These A.C can be easily moved from one room to the other and is 4/14/12 often referred to as a mobile air conditioner.

Voltas

Big Bang Strategy

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Objectives of Big Bang

Strategy

To increase revenue through higher sales. To make Voltas the Lowest-cost manufacturer.

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Initiatives

Introduction of New Products Brand Building Establishment of Widespread Service Network

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Introduction of New Products

To gain a large share in the market they

merge with Fedders International(leading player in US room A.C market) Joint venture named Universal Comfort Products Private Limited The arrangement with Fedders made voltas one of the lowest cost manufactures in India Voltas entered into a Distribution tie-up with Italian A.C. major Unifair
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Launching of New Products Vertis Brand: Value for Money for the customers Venture: Corporate Segment Visionaire: Government Segment

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Brand Building

Initial advertising campaign targeted young couples with the message being American Technology at Chinese Prices It changed its Ad agency from O & M (Ogilvy and Mather) to Euro RSCG In 2004, Voltas unveiled its nationwide marketing campaign- Ab har koi le sake A.C ka mazaa
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Channel and Services

Voltas started working with multiple brand dealers. Signed MoUs(Memorandum of Association)with each dealers specifying operational procedures and norms to be followed In 2002, Voltas set up their exclusive retail outlets known as Voltas Domes
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By 2004, Voltas sold from 1400 multi-brand outlets and 450 sales and service dealers, up from 300 dealers and 600 retail outlets It started offering life-long service through its nation-wide network of service centers called Crystal Care Service Set up call centers to address customer queries and complaints
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Marketing Strategy

Voltas today unveiled their new marketing campaign "India Ka Dil, India Ka AC" nationally Voltas introduced a range of air conditioners below Rs10,000 which were affordable and accessible for a large section of Indian households. Launches a new range of Window ACs and Split air conditioners To earmark 500 million as advertising spends Invested 10million in Retail Expansion

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Price-Wise Segmentation
Voltas Split AC Price List (Cost) Voltas-Vertis GOLD 2.0T SAC 34,500/Voltas-Vertis GOLD 1.5T SAC 30,500/Voltas-Vertis GOLD 1.0T SAC 24,500/Voltas-Vertis GOLD 0.75T SAC 18,500/Voltas-Vertis ELITE 2.0T SAC 33,000/Voltas-Vertis ELITE 1.5T SAC 28,400/Voltas-Vertis ELITE 1.0T SAC 20,100/Voltas-Vertis ELITE 0.75T SAC 16,000/Voltas Windows AC Price List (Cost) Voltas-Vertis Elite 1.5 Ton 21,900/Voltas-Vertis Elite 1.0 Ton 17,000/Voltas-Vertis Elite 0.75 Ton 14,000/Voltas-Vertis Plus -2.0Ton 19,500/Voltas-Vertis Plus -1.5Ton 17,500/Voltas-Vertis Plus -1.0Ton 14,350/Voltas-Vertis Plus -0.75Ton 12,000/Voltas-Vertis Premium 1.5Ton R 16,800/-

Voltas-Vertis PLUS 2.0T SAC 28,500/-Voltas-Vertis Premium 1.5Ton M 16,400/Voltas-Vertis PLUS 1.5T SAC 26,200/-Voltas-Vertis Premium 1.0Ton R

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Market Trend

The Indian air conditioning industry is on a high growth trajectory with an overall volume growth rate of 2025 percent per annum.

In 2010, air conditioner sales were `7,200 crores at 3.88 million units, up from 2.8 million units in 2009.This growth rate is expected to be maintained in 2011 too.

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Promotional Tools

Advertising

Sales Promotion

Publicity

Store Atmosphere

Personal Selling

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Competitors of Voltas

Daikin O General Hitachi Samsung L.G. Whirlpool National Carrier

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Competitive Edge

Launch of Vertis, an air-conditioning range with American quality and Chinese prices, reaffirms the Voltas mantra of delivering cutting-edge technology at great value to the customers. The Vertis range includes whisper-quiet functionality, microprocessor controls and an airpurifying filter under economy mode prices

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Thank You

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