Betting big on the B2B segment, Panasonic India plans to enter a few new segments this year. “In the healthcare segment, Panasonic will launch products such as ECG machines, blood bank refrigerators and diabetes detectors while solar powered, rechargeable batteries will be introduced in the energy segment. In security, Panasonic will focus on CCTV cameras and interactive whiteboards for education vertical,” says Mr Manish Sharma, MD, Consumer Product Division, Panasonic India.
Speaking to Business Line , he reveals the company's strategies in a slowing market.
How is the company coping with the slowdown?
With the rising cost of fuel and power, the number of households using energy efficient products has risen sharply in recent years.
The company is making efforts to communicate Panasonic as a leader in environmental actions, focusing on energy saving features.
How were your sales for the fiscal ending March 2012 in the white goods space? What is your expectation from this year?
Despite market conditions, Panasonic has registered sales revenue of Rs 5,500 crore for fiscal 2011-12.
And we are aiming at turnover of Rs 10,000 crore in the current fiscal. The company has set a target of growing our business by 70 per cent year-on-year.
By how much have you hiked prices in the last one year?
This is the third time within a year when prices of consumer durables are increasing due to rupee depreciation and escalation in raw material costs.
We are also forced to increase the product prices from first week of July. On white goods the hike will be about 4 per cent and the increment on televisions will be about 2-3 per cent. We had earlier increased the prices by 4 per cent in January due to higher input costs.
Are you streamlining your marketing strategy?
In the days to come, we are betting on flat panel televisions that bring in over 40 per cent of revenue, while air conditioners and digital cameras will be the other two focus areas.
In tier 1 markets, primarily products such as large screen flat panel televisions; inverter-based home appliances and digital cameras are promoted.
And in the tier 2 and 3 markets, the range of LCD televisions, direct cool refrigerators and entry level home theatre systems are promoted.
What is your marketing budget for this fiscal?
We are investing over Rs 400 crore in 2012 in consumer division alone for advertising, promotion and brand building. Our focus will remain on utilising all the promotional channels – print, electronic and social media.