Schneider Electric India is gearing up for a significant expansion in its B2C business, driven by the rising demand for smart home solutions and premium electrical products. The company, which has been operating under a ‘Two Brand Two Sales’ strategy in the country with Schneider Electric and L&T Switchgear brands, has recently rebranded L&T Switchgear to Lauritz Knudsen.
As part of its B2C push, the brand is planning to launch a high-decibel integrated marketing campaign to build the Lauritz Knudsen brand.
In a recent interaction with exchange4media, Rajat Abbi, VP-Global Marketing, CMO, Greater India, Schneider Electric also shared that the company is making significant investments in marketing and communications. Its media mix is heavily skewed towards digital, with 60-70% of its spending allocated to digital channels. The remaining budget is split between BTL activities like activations, events, and ATL.
Additionally, the ongoing festive season is also set to witness a range of marketing initiatives by the brand aided by an increase in festive marketing spending this year.
Edited excerpts:
With L&T Switchgear now becoming Laurtiz Knudsen, tell us what’s in store for the brand going forward.
In 2020, we acquired the Electrical and Automation business from Larsen and Toubro. Since then, we have been operating under a ‘Two Brand Two Sales’ strategy in the country with Schneider Electric and L&T Switchgear brands. The name has however now changed from L&T Switchgear to Lauritz Knudsen.
With this brand launch, we are gearing up to roll out a high decibel integrated marketing campaign. Our new brand campaign and film, created by Law & Kenneth Saatchi & Saatchi of Publicis Groupe, will go live across various channels including ATL, BTL, digital, and outdoor marketing to build the Lauritz Knudsen brand in the country.
What about Schneider Electric India? How has your target consumer evolved?
In response to the growing demand for smart homes in India, we launched the Wiser 2.0 Smart Home Automation range of products, allowing consumers to monitor their energy consumption in real time through an app, providing insights into electricity usage for various appliances. Additionally, we introduced ‘Miluz Lara’, a range of switches that can monitor air quality (AQI), a crucial feature for pollution-affected cities like Delhi.
We are also planning five to six city Innovation Days across India, to showcase innovations like ‘Miluz Lara’ and Wiser 2.0, as well as new B2B products, in metros and tier II cities. The idea is to present our offerings to customers before the festive season, which is a peak time for home improvement and electrical upgrades in India.
While this inclination towards a B2C business model helps you trace your consumer’s journey, how are you doing that for B2B?
The majority of our business comes from B2B, which is extremely complex. Unlike B2C, where the end consumer is the decision maker, B2B involves multiple influencers in the decision-making process. This includes end customers, panel builders, electrical consultants, architects, contractors, electricians, and more. So, the journey is extremely complex.
Aligned with this approach, we have identified and defined 9-10 target personas which includes builders, electricians, retailers, distributors, and end customers. In B2B, we have also adopted a digital first strategy. This encompasses having a user-friendly website, deploying sharp sales, and marketing automation, including email marketing etc.
Social media plays a crucial role, with platforms like Instagram gaining momentum in B2B space. While Facebook’s role has diminished, platforms like YouTube, Instagram, and Google search continue to be pivotal. LinkedIn is another significant channel for reaching the C-suite and larger B2B audiences.
We are conducting numerous inbound marketing campaigns. Moment marketing, delivering the right message at the right time, is a key part of our B2B strategy. We are also using ATL in a sharp and targeted way to connect to our Target audiences.
When it comes to B2C, we are becoming more aggressive. We have a clear strategy to expand significantly in this space.
Moving forward, expect to see substantial marketing investments from us, particularly focused on building our brand in the B2C market.
What are you seeing that is making you focus on B2C?
Due to the rising disposable income of people and their appetite for more premium products, their desire for automation and value-added features are increasing.
So what is your total budget for this B2C focus going forward?
I can’t talk about specific numbers, but I can say that a significant percentage of our marketing and communication spending will go towards B2C businesses to create greater customer pull. We will be a more visible brand in the coming months, with special focus on B2C categories. At the same time we will continue to engage with our B2B audiences through 360 degree marcom initiatives.
What about your media mix? Can you share the divide between your ATL, on-ground, and digital spends?
Media is already heavily digital. About 60% to 70% of our spending is on digital, and they will continue to be so. The remaining budget is split between BTL, which includes activations, events, and ATL. It varies from business to business.
For example, with Lauritz Knudsen (formerly L&T Switchgear), we have invested in creating a new advertising campaign by working with leading advertising and media agencies. So, a lot of investment in ATL is going to happen for that brand. But ATL will be very sharp because, at the end of the day, we want minimal wastage.
What about CTV? Where does that stand in your media strategy?
Connected TV is critical. In tier-1 cities, most of the consumers we target use connected TV. It’s significant, and for Schneider Electric, when we did our Women’s Day campaign, connected TV was a key platform.
It will be one of our lead platforms for both Lauritz Knudsen and Schneider Electric brands because it offers a better audience and better conversion rates for our target personas. It fits well into our overall strategy.
Many brands are shifting focus back to brand building and awareness after a heavy focus on performance marketing and digital over the past few years. Is this the case with Schneider Electric as well?
We have a simple mantra for marketing: you have to build the brand and the business. There has to be a balance. For B2B, performance marketing is crucial. We run sharp, targeted campaigns, for instance, targeting data center end-users or influencers via LinkedIn, Google search, and other online platforms. However, with the increasing competition, it’s essential to invest in brand building.
Fortunately, I work for a company that is big on sustainability, a topic everyone wants to discuss.
Building a brand like this involves responsible marketing practices. Last year, we conducted Schneider Electric Innovation Yatra, a six-month carbon-neutral campaign across 60 cities in India. This year, we renewed our partnership with the Rajasthan Royals for the third year in a row as their sustainability partners.
As an impact company, we are seeking associations that align with sustainability to build our brand and business.
Any plans for the festive season particularly?
For the festive season, we plan to make a significant impact with our branding efforts in the electrical markets. You will see unique market activations for both Lauritz Knudsen and Schneider Electric in key electrical markets across the country. Our category heavily relies on ground purchases, where consumers prefer to touch and feel the products. Therefore, we will showcase our new offerings alongside extensive retail branding.
Additionally, we are planning robust digital campaigns, including new digital lead films. For example, we are working on a new film for Wiser 2.0, scheduled for release in late September or early October, right before Navratri.
For Lauritz Knudsen, the festive season presents a prime opportunity to engage with our audience. We will launch a major media campaign during Diwali, focusing on retail markets with outdoor activations and leveraging both traditional and digital media.
As compared to the first half of the year how much increase can we expect in your marketing investments for the festive period?
The festive season will see a significant investment. For us, festivals extend beyond Diwali to include Ganesh Chaturthi in Maharashtra, Onam in Kerala, Durga Puja in West Bengal, and many others. Our investments will be strategically focused, with a substantial portion of our marketing communications centred around these festive times. We are not only increasing our spending but also introducing innovative marketing initiatives, which is why many of our product launches are scheduled during this period.
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