Blue
Star expands its range of stylish and differentiated residential water
purifiers with a unique ‘Immuno Boost Technology’; to target 3500 retail
outlets in FY19
Blue Star Limited has announced the
launch of a stylish and differentiated range of residential water purifiers
across various price points with RO, UV, RO+UV and RO+UV+UF technologies. These
include models with an innovative and unique Immuno Boost Technology which provides
alkaline antioxidant water that strengthens the defense mechanism of the human
body and helps the body to stay healthy and function perfectly. The purified water
with Immuno Boost Technology is abundant in alkaline minerals and hydrogen
which help balance the metabolism. It can help in boosting one’s immunity and
keeping away from diseases by nourishing the body with clean, wholesome
ingredients adding essential minerals, raising the pH and making the water
antioxidant.
Blue Star, which completes 75 years of its
existence this year, entered into the residential water purifier business in
October 2016. Given its long association with water due to its offerings comprising
water coolers and bottled water dispensers coupled with the fact that it is perceived
as an aspirational and modern brand, the Company forayed into the residential
water purifier business with the conviction that it would make deep inroads
into this business leveraging the trust that it has built over the years. This
initiative is a part of the Company’s aggressive growth plans to expand its
presence in related new product categories. The Company will gradually enhance
its range to cover commercial water purification systems as well.
Industry
size
The market for pure drinking water has
been on the rise mainly due to deterioration in the quality of water, resulting
in a spurt in water borne diseases. There is an over dependence on ground water
which has significant levels of dissolved impurities. The residential water
purifiers market in the country is pegged at about Rs 4200 crores, increasing at
a CAGR of 15-20%. About 2.6 million units sold every year are electric viz RO,
UV, RO+UV and its variants. In terms of value, due to their higher price
points, electric purifiers contribute to about 85% of the market whilst the
balance comprises gravity-based purifiers.
Line-up
of stylish and differentiated products
Blue Star has launched a range of 35 models
including colour variants in the electric devices category, with select models
offering Immuno Boost technology. The range comprises nine series called
Stella, Prisma, Edge, Imperia, Eleanor, Majesto, Genia, Aristo and Pristina,
with price points varying from Rs 10,900 to Rs 44,900 in the RO and its
variants range; and price points from Rs 7,900 to Rs 8,900 in the UV range. When
the Company forayed into the business, it was with 13 models in limited price
bands. The Company has now extended the range in order to have products across
various price points.
Most of the models offer double stage RO+UV
protection such that the entire water passes through the RO membrane first and
then the UV lamp thereby ensuring that the water is absolutely safe and pure. These
purifiers are highly differentiated and offer attractive features such as hot
and cold water, touch sensors, electronic dispensing, speech assist, taste
enhancer, filter change alerts, aqua taste booster, super efficient RO
membrane, child lock function and aqua mineral infuser, amongst several others.
The Company is also test marketing a
range of commercial water purifiers to cater to the growing demand of purified
water in offices, restaurants, clinics, and other commercial
establishments.
Immuno Boost Technology
The premium models of Stella, Imperia
and Eleanor series offer an innovative Immuno Boost Technology. This technology
enhances the pH level of water, giving alkaline water. The body tries to
naturally maintain the acid-alkaline balance of the blood. But when the body is
overly acidic, the system has to work even harder to maintain that balance and
can lead to interference with the activity of all the cells in the body.
Alkaline water helps by neutralizing the acid levels of the body.
This technology also helps in reducing
the oxidation potential and fights with toxic free radicals. Fruits and
vegetables promote healthy immune function as they provide antioxidants that
help maintain healthy tissues around the areas of infection and support
healing. When free radicals and other damaging molecules are generated in areas
of infection and inflammation, enough antioxidants are needed to fight the
active oxygen.
Immuno Boost Technology has an
antioxidant effect by generating active hydrogen through crystalline media to
scavenge the free radicals that induce the oxidation process in the body
leading to various diseases. This technology slows down or prevents oxidation
thereby delaying the aging process and keeps the body healthy with a spark of
life.
Sales,
Distribution & Service
As regards to distribution, Blue Star
water purifiers are already available in 125 towns with over 250 channel
distributors/dealers including ecommerce channels and modern trade in over 2000
retail points. Plans are on the anvil to increase the presence to over 3500 outlets
in the current year. There are over 400 ‘Star Water Consultants’ across major
outlets for demonstrations and lead generation that have been appointed. In
addition, Blue Star’s Room AC customers are being leveraged for cross-selling
and referrals. Demonstrations of Blue Star water purifiers along with easy EMI
options have been made available across major outlets to help customers buy the
right product with extended payment options. Visual merchandising at high
footfall outlets along with consumer financing options are made available
across major outlets, to help in generation of enquiries.
A robust customer-centric service
network is the backbone of this business with a regular need of replacement of
consumables such as the sediment, carbon as well as RO membrane filters. Considering
that Blue Star is India’s largest AC&R service provider, it believes that
it can offer differentiated service in this business too and create new
benchmarks in the industry. It has appointed over 200 service franchises that
are being supported by a team of trained Company engineers to lead the
installation and service requisites, and strong service processes have been set
up.
Advertising
and Sales Promotion
In terms of advertising and sales
promotion, the Company has plans to invest about Rs 35 crores on water purifiers in FY19. The
value proposition for the segment has been identified as ‘Choose Purity’. The
Company has launched a new TV commercial highlighting its Immuno Boost
technology that not only gives pure water but great immunity as well. It has
chosen babies in all its communication as they are the most vulnerable to a
water borne disease and are considered as the gold standard of purity. This is
being supported by ads in mainline dailies, outdoor, activations as well as
digital, especially in social media and ecommerce channels. Just like other
businesses, Blue Star will be persistent with its strategy of integrated marketing
communication comprising mass media, field promotions, digital platform, Press,
events and social media, apart from one-to-one marketing.
Water
Digest Award 2018
In March 2018, Blue Star water
purifiers were awarded as the ‘Best Domestic RO+UV water purifiers’ in the
country at the Water Digest Awards 2018. This is the second time in a row that
it has won this award. Introduced in 2006, these prestigious awards are
supported by UNESCO and the Ministry of Water Resources in India. Blue Star
emerged winner after clearing a rigorous evaluation process by an eminent jury
comprising members from UNESCO, TERI, IIT Delhi, WASH Institute and NEERI
amongst others.
Way
forward
Speaking to the press at a conference
held in Mumbai, B Thiagarajan, Joint Managing Director, Blue Star Limited adds,
“Since its entry into the residential water purifier business, Blue Star has made
good progress in this segment with its wide range of offerings across various price
points. The Company is committed to make significant investments and wants this
business to set a benchmark in terms of the quality of products as well as customer
service. The range of products launched augur well with our premium brand
personality and have met with a very encouraging response with sales of over 50,000
units. The Company plans to consolidate its presence in this segment with its
enhanced range of products and deeper distribution reach in FY19 and is
targeting to reach a market share of around 10% in about 3 years.”
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