Friday, February 24, 2017

Racold Water Heaters – Moving an Emotional Way

As on May 2016, the water heater industry in India is valued at Rs 1,500 to Rs 2,000 crore and is expected to grow to about Rs. 12,000- 15,000 crore in the next five to ten years. Thanks to high disposable income, improved standard of living and rising awareness among consumers regarding benefits of branded water heaters. The gradual inclination of consumer towards electric water heaters is a major shift from traditional water heating methods such as boiling, immersion heating rod and gas water heaters. Since the availability of gas is difficult the gas water heater market is somewhat stagnant. Electric water heaters now rule the industry while solar is gaining momentum. 

Racold, over the years placed itself as an undisputed leader in the water heater industry. Even though the market is in a nascent stage the competition has existed from branded as well as unbranded products. The success of Racold is attributed to their product portfolio. Be it any category of water heater viz. electric storage or instant water heaters, solar water heaters or gas water heaters Racold is present there. The pricing is a bit higher from competition but it provides value for money.

The technology of water heaters is not rocket science. So the brand is positioned in an emotional way rather than rational. The target market as per the company is male, between the ages 24-45, belonging to SEC A and B.  The brand never talks about benefits of the product but benefits of hot water which is really a unique approach to sell. By changing their tag line from ‘Hot Water Specialist’ to ‘Reborn Everyday with a Hot Water’ explains the intent of the brand to develop a close knit relationship with the consumer. 

Their new campaign ‘#PowerOfHotShower’ depicts a clear message in line with their positioning. It is always tough to make a rational product like water heater reach out to consumer and convince them to buy. To me Racold have succeeded in doing so and that helps the brand remain in top.


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