Saturday, April 03, 2010

Wipro Smartlite : Savings Account

Brand : Wipro Smartlite
Company : Wipro
Ad Agency : Orchard Advertising

Brand Analysis Count # 448


Wipro Smartlite is an interesting brand. Interesting because of the patience with which the company is nurturing the brand and also for the consistency of positioning which is now a rare feature in the current Indian marketing world.

Wipro Smartlite was launched in 2001 marking the foray of Wipro Lighting division into the CFL market. After 9 years, Smartlite is India's fifth largest CFL brand. The Indian CFL market is estimated to be around Rs 700 crore and is expected to grow fast because of the current trend towards energy efficient products. The lighting market is dominated by the incandescent bulbs which sells around 90-95 crore units every year.

The CFL market was growing slowly because of the significant price differential compared to incandescent bulbs. While the ordinary bulb costs Rs 10-15, CFL used to cost between Rs 110-115. This huge price differential made CFL to be considered as a luxury rather than a value for money product.

The entire CFL market become the center of focus in the last couple of years due to strong campaign from Government and NGOs. Despite the higher cost, CFL is considered to reduce the electricity consumption to a large extent thereby provide continuous savings . Such campaigns increased the awareness of utility of CFL among the general public.

Wipro Smartlite has positioned itself on the savings platform. The brand has adopted the tagline " Savings Account of your house " and uses the benefits like (a) Saves 40% electricity (b) lasts longer (c) better lighting ,to reinforce the positioning . The brand has roped in celebrities like Paresh Rawal and Jayaram in its campaigns.

Watch the campaign here : Wipro Smartlite

The CFL market faces the issue of cheap imports from China. The market is full of cheap low quality China CFLs which are sold at a ridiculously low prices. The margins of these China CFLs are so high that retailers push these products to the consumers.

The next few years will witness a tremendous growth in the CFL market in India. Consumers are becoming more conscious about energy saving products and are convinced about the value proposition of CFL. The high profile promotions of players like Wipro, Philips, CG , Havells etc will further expand the market for CFL.