Godrej Appliance's refrigerator business - part of the 105-year-old Godrej conglomerate that makes everything from soap to technology equipment - used to dominate the market. "Godrej refrigerator lost its number one position because of a large number of competitors, both local and multinational,
said Mike Khanna, HTA's chief executive officer.
The relatively recent entry of heavy-spending Korean conglomerates, chiefly Samsung and LG Electronics, served to escalate competition. "The challenge we have is to regain that position. The main competitors are Whirlpool, Kelvinator, LG, Samsung and Electrolux."
Billings have yet to be finalised, but Khanna expected it would be a sizeable spend to match the Koreans. On top of advertising, Khanna said the assignment would cover direct marketing as well as extensive merchandising and retail activities. Godrej zones are likely to be established in stores.
Godrej's fight-back comes in the wake of LG stepping up marketing activities to carve a bigger share of the market.
Last month, LG shifted its US $3.1 million creative account to Capital Advertising's Delhi office. This was preceded by LG consolidating its media account, estimated to be more than US $20 million this year, with Initiative Media. LG said it wanted to capture a 35 per cent share of the market when it rolls out a new DIOS range in the premium segment as well as a print and TV campaign.
Similarly, Godrej has also consolidated its media with HTA last year.
This has since moved to HTA's sister company MindShare after it set up operations in India this year.
