Lava commits 40% of annual marketing budget to digital and retail for festive push

The smartphone industry has seen a noticeable uptick as companies increase their marketing efforts to entice customers ahead of the forthcoming festive season. Demands surge around this time of year as more individuals shop to upgrade their devices or get gifts for loved ones. Many businesses are jumping on this bandwagon by releasing new models, slashing prices, and putting a premium on digital and retail channels to boost sales.

Taking the same route, the 15-year-old Indian smartphone manufacturer Lava International is pushing the envelope and releasing cutting-edge products. In the last two-three years, there has been a shift in Lava's overall strategy. To attract a younger demographic, it debuted a new line of smartphones.

Puravansh Maitreya, marketing head at Lava International, shares that the company surveyed youngsters to find out what features, designs, CPUs, and screens they liked. It led to development of three new smartphones: Yuva, Blaze, and its premium Agni series.

The new series of smartphones, he says, target young people, primarily those between the ages of 15 and 24. While psychographics differ from segment to segment, the age group remains the same.

“Yuva’s target demography is the first-time smartphone buyers, typically in the 15 to 20 age bracket, who want a smooth, trouble-free experience. Blaze and Agni, on the other hand, cater to more evolved users who have likely owned smartphones before and are looking for advanced features like better cameras and processing power. So, while our core demographic remains young (18-24 years), the needs and preferences vary across the series,” he explains.

Festive season plans

Lava International is in the midst of releasing the third generation of its premium smartphone, the Agni 3. October 4, 2024 is the date set for the launch event. After the success of Agni 2 in 2023, Maitreya predicts that the third instalment will generate even more buzz.

This festive season, Maitreya says, the company will promote the Agni 3 series. It will also work to boost sales of its Yuva 5G and Blaze X phones, among others, which were released simultaneously.

Since the festive season is Lava's most important quarter, he says that 40% of the company's annual marketing budget will go into it.

“We are focussing heavily on digital and retail marketing, especially with Agni 3 being an Amazon-exclusive launch. We’re working closely with Google, Meta, payment, and gaming apps where our TG is present. Besides, we are also exploring outdoor branding and print for certain key launches. Airport branding and influencer marketing will also play a big role in our strategy,” he adds.

Maitreya highlights that OTT platforms are also a part of Lava’s media mix. It works with platforms such as JioCinema and Disney+ Hotstar, depending on the target group for each smartphone.

Leveraging influencer marketing

Influencer marketing has become a critical component of Lava’s overall strategy. Maitreya believes that it lends more credibility to the brand, especially among the younger generation.

According to him, a significant chunk of the company's yearly marketing budget—about 25%—goes towards influencer marketing, rather than above-the-line (ATL) marketing such as TV and movie commercials. In 2023, the company focussed heavily on influencer marketing on YouTube and Instagram.

Among the top influencers who collaborated with LAVA include YouTubers and vlogger Sourav Joshi. “He is associated with our Yuva and Blaze series. We have also partnered with various tech and lifestyle influencers, depending on the product we launch,” adds Maitreya.

Rise of e-commerce platforms

Lava International built its reputation as a predominant offline player, but the rapid rise of e-commerce has transformed its marketing approach in recent years.

Maitreya says that the brand still has a presence in over 100,000 shops across the country. However, making the Lava Agni series available as an Amazon-exclusive in 2023 helped the brand increase its online revenues by 300%.

On exploring quick-commerce platforms to deliver smartphones, he said the brand is looking forward to working with such platforms, especially to sell its accessories such as Pro Watch and Pro Buds.

“For our smartphones, there are operational aspects to consider, but it is something we are actively looking into,” he says.

Future plans

Speaking on Lava International’s future plans, Maitreya highlights the brand’s growth trajectory. He says the company is expanding. In 2023, it was the fastest growing smartphone brand in the Rs 10,000 - Rs 20,000 market, according to the global technology firm Counterpoint Technology Market Research.

With evolving marketing strategies, Lava International is expanding into new segments and securing high-profile partnerships. “We have had some exciting collaborations, such as with former cricketer Gautam Gambhir for Blaze X. In 2023, we brought in Kartik Aaryan as our brand ambassador, representing our youthful and dynamic identity, and now we have added Joshi on board,” he says.