Legrand India's Allzy: A mass market triumph

Legrand India's retail activation campaign for its newly launched product, Allzy, has garnered significant attention across PAN India. This case study delves into Legrand's strategic positioning to target the burgeoning middle-class segment and the remarkable success achieved in a fiercely competitive market.

Leveraging Middle-Class Dynamics:

Legrand's success story is intricately tied to its ability to adapt to the shifting dynamics of India's middle class. The rise of nuclear families and evolving consumption patterns, as highlighted in PRICE's report on "The Rise of the Middle Class" and Kantar's "Consumer Connections 2023" report, presented a unique opportunity. Legrand focused on offering products that seamlessly blended premium brand reputation, quality, excellence, and modern aesthetics, aligning with the evolving tastes of the lifestyle-focused customer demographic. The growth of standard segment product has doubled in the last 5 years. The share of this segment has increased by 5%, and now mass product segment contributes to 54% of the overall share.

Shifting Preferences and Contribution:

Legrand's strategy's success is underscored by the transformation in consumer preferences. The share of modern mechanisms like USB and touch switches has doubled in 2023 in the last 5 years. Electronics/Accessories now account for 5% of overall sales, reflecting the shift towards modern features, recognized safety, and branded products. According to the Ministry of Consumer Affairs, mobile device makers and technology companies in India will have to adopt type-C as a standard charging port for electronic products by March 2025. Legrand USB chargers have already adapted C-type in their range. This will further benefit to boost USB charger sales.

Understanding the Market:

Legrand recognized a substantial opportunity to cater to the changing needs of middle-class consumers. With transformative shifts in semi-urban and non-urban areas, the distinctions between urban and rural preferences were blurring. Branded products were gaining traction even in non-urban regions, thanks to increased exposure to digital media and a shared aspiration for modernity and quality.

Driving brand in the mass segment:

The attractiveness of the mass market and the changing consumer behaviour presented a great opportunity for Legrand to enter this segment. Legrand is a a renowned brand in the premium segment. To build awareness among the mass category segment, it is using the strength of its retail network, penetrated across India. Through the Allzy on-ground activation, the brand is ensuring the placement of Allzy on the entire retail network and expanding it further in the remote areas of the country. Along with this activation, it has kicked off a 360-degree awareness campaign with a hyperlocal approach through OOH, TV, and Digital/OTT. Legrand’s approach in the urban areas has predominantly been digital, and the brand was able to target the mass market of these areas since the exposure is high. With a hybrid approach, the brand built ground-level awareness in Tier 1 and Tier 2 cities. The brand's campaigns were effective in highlighting its physical presence in these cities and encouraging customers to visit its stores.

Allzy Product Launch and Impact:

The launch of the Allzy product marked a pivotal moment for Legrand. By allocating 5% of its revenue to research and development, Legrand ensured that its standard segment products met the demands of discerning middle-class consumers. This success was evident in the doubling of sales in the mass category, with the newly introduced Allzy product driving a rapid increase in the run rate. Legrand focused on appealing to the mass segment by incorporating the multitasking ability of Indians in the communications on digital and offline channels. To meet the growing demands of the mass segment, the distribution strategy was strengthened wherein this strong network of retailers was provided product training through content formats like messages and videos on WhatsApp. Legrand also established a product presence on counters in the retail markets, and the 85 product display boards used in the these markets were sustainable which emphasized Legrand’s commitment to sustainability.

Market Position and Growth:

Legrand's journey from being a prominent player in the premium product segment to becoming a strong second-largest player in the Indian switch market is noteworthy. The company's adaptability and ability to meet the demands of the growing middle-class market have enabled it to achieve an impressive 74% contribution from standard and mass products in overall switch sales.

Conclusion:

Legrand's retail activation campaign for the Allzy product stands as an exemplary case of successful market penetration and brand adaptation. By identifying the evolving preferences of India's middle class and strategically addressing their needs, Legrand achieved substantial growth and redefined its market position. This case study serves as an inspiring example for marketers and businesses aiming to tap into India's dynamic and evolving middle-class market.

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