Sunil Narula on how Panasonic Life Solutions India engages consumers through an influencer-driven marketing strategy

India’s Electrical Materials market was valued at USD 6550.3 million in 2022 and is anticipated to project growth of 13.82% through the forecast period of 2024 to 2031. Although the products are technical, there is consumer interest in wiring devices, particularly switches that match the aesthetics of their homes. Consumers look for switches that complement the colour of their walls or match the look and feel of their rooms and the advertisements that follow this market emphasise the same. 

As consumer preferences evolve, many households make important decisions about electrical supplies such as wires, cables, switches, and lighting. However, generating excitement among end consumers, such as people renovating or building new houses, can be challenging, as per Sunil Narula, Senior VP – Sales & Marketing, Panasonic Life Solutions India (PLSI).

This is where the B2B business model plays a pivotal role as reaching out to consumers is directed through their network of 'influencers', mainly the electricians, architects, and interior designers, who guide consumer decisions.

While these choices are important to a home's functionality, consumers rely on recommendations from professionals in the electrical construction materials and consumer durable markets. With the B2B model, they are more likely to engage in long-term business relationships with their customers. 

Research suggests that almost 30% of B2B clients are fully engaged, and up to 50% of companies have been using the same vendors over the last five years. The chance of selling to a new customer is 5% to 20%, whereas selling to an existing customer is 60% to 70%. This model helps brands generate up to 30% of its total revenue from existing customers.

In an interaction with Social Samosa, Narula mentions that PLSI focuses on creating awareness and driving demand by offering products that cater to the needs and preferences of both consumers and these influencers. 

The company specialises in Switchgears, Wires, Cables & Tapes, Conduit pipes, Lighting, Solar, Housing, Power Tools and Indoor Air Quality and Narula highlights that influencers play a key role in driving sales. 

Narula shares how, through influencer engagement, tailored marketing campaigns, and a focus on both B2B and B2C channels, Panasonic Life Solutions India is shaping its marketing strategy.

Edited Excerpts:

Sunil, you have 20+ years of experience in the manufacturing and electrical appliances category. How has this journey shaped your approach towards crafting marketing strategies for Panasonic Life Solutions India?

The products we offer at Panasonic are slightly different from those I worked with in the first 15–16 years of my career. We are involved in the manufacturing and marketing of electrical construction materials such as switches, wires, and cables. While these products are driven by consumer demand and there is significant consumer involvement in purchasing decisions, a major aspect of our strategy also involves influencer engagement.

As a marketer, my responsibility is crucial in bringing influencers on board and ensuring that we remain top of mind for them. Influencers play a key role in driving sales. 

In the B2C channel, the main influencer is the electrician, who plays a vital role in ensuring the acceptance of our brand at both the electrician and consumer levels. In the B2B channel, influencers include architects, interior designers, and electrical consultants.

These influencers require different engagement strategies. For electricians, we focus on direct engagement to build brand acceptance. For architects, interior designers, and electrical consultants, we provide platforms such as exhibitions and events to help them understand our product offerings. This is a more evolved audience that requires a different approach.

To summarize, we have two major sets of influencers: in the B2C channel, electricians play a key role; in the B2B channel, architects, interior designers, and electrical consultants are the primary influencers. Our marketing strategies are tailored to meet the needs of each group effectively.

Could you walk me through some of the brand's advertising campaigns and the research and insights that shape these advertising campaigns?

While I have discussed the role of influencers, we can't neglect the end consumer. In India, consumers play a critical role in decision-making, even for technically complex products they may not use regularly. Our marketing strategies are divided into two parts: one focused on consumers and the other on influencers.

To engage with consumers and create brand awareness, we use above-the-line (ATL) advertising. We've conducted multiple campaigns, initially positioning ourselves with the tagline "Naye India Ke Badhte Load Ke Liye" where Anchor by Panasonic was positioned as a brand that supports the increasing load in growing India. Our recent campaign during Diwali was called "Load Lega Leader," emphasizing our leadership in the industry and our ability to tackle challenges for our customers.

On the other hand, we've been active in below-the-line (BTL) activations. We've introduced an app called Smart Saver, available to electricians, which helps them become part of our program. By joining the program, they receive incentives for promoting our products. For example, if an electrician buys a bundle of wire and is part of the Smart Saver program, they can scan the QR code on the wire box to earn points, which can then be converted to cash and transferred to their bank account.

This year, we've enhanced our activation and engagement programs to offer greater benefits to electricians working with our customers. As a result, we've seen significant growth in our active electrician base, from 25,000 at the beginning of the year to over 35,000 by the end of the financial year.

Could you share the target audience based on geographies and segments?

Our target audience is primarily segmented based on geographies and market segments. We cater mainly to the entry-level and mid-range consumers, where most of our products are sold. 

We also have premium offerings, such as wiring devices, aimed at consumers in the premium space. Overall, approximately 90% of our products target the mass market, offering value-for-money products, while the remaining 10% of our business caters to the premium audience, offering products that deliver money for value.

From 'Load Lega Leader' to 'Right Light' and more, could you elaborate on the themes that the brand aims to communicate through its marketing campaigns? Who is your target audience?

As I've mentioned before, our category is heavily influenced by industry professionals. Generating excitement among end consumers, such as people renovating or building new houses, can be challenging. 

When it comes to products like wires, MCBs (Miniature Circuit Breakers), or switches, consumer decision-making is often limited due to the technical aspects involved. Typically, decisions are guided by the recommendations of retailers or electricians involved in the project.

For instance, if something goes wrong with your home's electrical system, such as a faulty switch, you'd likely call an electrician to fix it. After paying for the repair, you might not know whether the electrician used the correct amperage for the replacement switch.

Although our products are technical, there is consumer interest in wiring devices, particularly switches that match the aesthetics of the home. Consumers seek switches that complement the colour of their walls or match the look and feel of their rooms, such as their bedroom or living room.

Our marketing campaigns focus on the aesthetics and variety we offer, such as glass plates or colour plates, which appeal to consumers making purchasing decisions during renovation or when buying a new house. By highlighting these features, we aim to engage consumers and encourage them to consider our products.

How does the brand leverage various elements of the marketing mix to maximize its impact? Could you share the mediums utilised for the same?

When it comes to large-scale consumer campaigns, we rely on two major mediums: television and digital. 

Television serves as the primary medium for our campaigns, while digital plays a crucial supporting role, especially when engaging with the new generation of consumers. Additionally, we use a mix of out-of-home advertising and print to supplement our campaigns.

To engage with influencers, we focus on below-the-line activations. These activations primarily occur at retail stores and channel partner locations, driven by our ground sales team in the market. Various activations are conducted by the team to engage with influencers.

These are the main mediums and approaches we use to reach our target audience and maximize the impact of our marketing campaigns.

I read that the brand hiked its overall spends by 2.5x on social media marketing last year. What role does social media play for the brand? Could you share the allocation of ad spends across mediums?

Below-the-line activations account for approximately 70-75% of our budget, while the remaining 25% typically goes to above-the-line (ATL) advertising. 

Within ATL, we've significantly increased our spending on digital media, expanding our digital budget by 2.5 times last year and planning to maintain a similar ratio this year. We may continue increasing our digital spending in the future as the market evolves.

Regarding the increase in social media marketing, although television still has the highest penetration among our target audience, the growing internet audience and widespread smartphone usage mean a large portion of the audience is shifting to digital platforms. People spend significant time on their mobile devices, making it an effective medium for reaching consumers.

However, the limited attention span on small screens presents challenges. Advertisers must determine the most effective methods of delivering messages. We work extensively to find the right campaign duration for platforms like Instagram, Facebook, and WhatsApp to keep the messaging concise and impactful.

Like many other major brands, we are continuously learning how to best engage consumers through social media, focusing on delivering crisp and effective messaging.

In your observation, what are the trends within the consumer durables and electrical equipment category, and how does Panasonic leverage these trends in its product development and marketing strategies?

Over the last two to three years, I've observed two significant trends within the consumer durables and electrical equipment category. The first trend is the rise of regional players. Five or six years ago, competition in our industry was primarily between large national players. 

However, in recent years, many regional players have emerged, increasing competition significantly. This increase has affected both retailer choices and overall price points.

The second trend relates to consumer preferences. There's a clear increase in demand for premium products, with higher sales and interest in that segment. On the other hand, entry-level products are also seeing a surge in demand. 

The middle space, which was stable five to six years ago, has seen a dip in overall revenue and offtake. So, while entry-level and premium products are experiencing growth, the middle market is struggling.

These are the two major trends: the rise of regional players and the changes in price point dynamics.

With events like the Indian Premier League and Elections happening around this time, does the brand plan on leveraging them for its marketing initiatives? If so, how does the brand intend to make the most of these opportunities?

We were part of the previous Cricket World Cup last year and invested significantly in that platform. 

We leveraged it effectively and received positive responses from the audience, resulting in improvements in key parameters such as top-of-mind brand awareness and Net Promoter Score (NPS). Any association with major cricket events in India provides an advantage, and we strongly believe in the impact of such partnerships.

However, we are not participating in this year's Indian Premier League (IPL) or election campaigns. Instead, we are in the process of formulating the right strategy for next year. 

This first quarter may not be very active for us in terms of above-the-line advertising, but we will focus heavily on below-the-line (BTL) initiatives for the next quarter.

Could you elaborate on how you are planning out your marketing strategy for the next quarter?

We are looking at extensively increasing our engagement with our influencers over the next quarter. This includes focusing on electricians, architects, and consultants. 

We are ramping up our investment in the digital platform we've established over the last five years, offering various incentives and on-ground activations for our influencers. This strategy will drive our investment in multiple programs for influencers over the next six to nine months.

As we approach the festive season, around November to December, we plan to launch above-the-line (ATL) campaigns and explore available opportunities for advertising during that period.

What specific skills do you believe are essential for marketers today, particularly in the rapidly evolving landscape of technology and consumer behaviour?

AI has taken the marketing world by storm over the past year. Organizations and individuals are increasingly relying on AI for various tasks, such as generating ideas, crafting small content pieces for stakeholders, and more. AI is becoming a crucial part of marketing strategy, and its applications are expected to expand over time, including market segmentation, consumer behaviour analysis, and research that traditionally relies on external agencies and manual methods.

In terms of essential skills, today's marketers must be tech-savvy. Those who understand technology well and grasp how new-age consumers use it will thrive. 

New-age marketers need to comprehend consumer behaviour and consumption habits, particularly in relation to digital content. Being able to adapt quickly to emerging trends and technologies is important.

Marketers should aim to upgrade their skills every couple of years to stay current with market offerings and technological advancements. This approach mirrors the IT industry, where professionals regularly update their skills to stay competitive. Marketers in today's landscape need to be proactive in keeping their knowledge and skills up to date.