Locks by Godrej & Boyce eyes market dominance with new pricing strategies, aims 3.5-4% on ad spends in 2024

Godrej Locks, now known as Locks by Godrej & Boyce was founded by Ardeshir Godrej and Pirojsha Burjorji Godrej in 1897. It was the first in India to introduce locks with lever technology.

It gained prominence in the Indian manufacturing industry as a symbol of the Swadeshi movement. During the British colonial period, when India was striving for independence, the demand for locally made products surged. Godrej Locks, being an Indian brand, became a preferred choice for many Indians, representing self-reliance and patriotism.

Over the decades, Locks by Godrej & Boyce has undergone significant changes in its marketing strategies, adapting to the evolving consumer landscape. Initially known for its robust and reliable locks, the brand gradually expanded its product line to include a variety of security solutions, including digital locks and smart security systems.

Shyam Motwani, business head of locks and architectural fittings and systems at Godrej & Boyce, part of the Godrej Enterprises Group, notes that when discussing locks and safety solutions, the focus has increasingly shifted to digital safety.

He adds that by catering to sectors such as hospitality, education, healthcare, residential, and real estate, there has been a noticeable increase in consumer interest in smart locks. People are seeking premium, smart, and keyless solutions for their homes, offices, hotels, schools, colleges, universities, hospitals, and commercial establishments.

“Digital solutions offer various advantages beyond superior safety. Users can program access to their homes, offices, commercial establishments, and public places based on authorisation levels and preferred access methods. These options include fingerprint, biometric, mobile-operated smart locks, and Bluetooth Low Energy (BLE). We are excited about these emerging trends and are focussed on decoding them to provide solutions that meet the evolving needs and expectations of upwardly mobile consumers in metro cities,” he adds.

Locks by Godrej & Boyce also has a range of new digital products in the marketplace, with some launching in 2024 and others in the following years. Motwani highlights that the company is exploring technologies familiar to consumers, such as facial recognition, voice recognition, and integration with Alexa and Google Assistant.

Quick-commerce and E-commerce

Motwani says that while digital locks are heavily featured in e-retail, the company is also present on quick-commerce platforms. However, these platforms are typically preferred for low-ticket items.

He shares that products like padlocks and specialised knives, which are often needed on short notice, are successfully sold through quick-commerce platforms. Larger ticket items, including digital locks, kitchen fittings, bed fittings, wardrobe fittings, mechanical locks, and internal door handles, are primarily available on larger e-marketplaces rather than quick-commerce sites.

“We are pitching for major products like digital locks to be available on quick-commerce in the future, but there is a bit of hesitation on the part of the quick-commerce marketplace as it takes a bit of time to install the same and educate consumers. I think it is a matter of time before we will migrate to it,” he says.

Ad and marketing spends

Locks by Godrej & Boyce is ramping up its marketing strategies and product offerings for 2024. The company plans to maintain a strong presence in both digital and traditional advertising, sustaining its ad and marketing spend at 3.5-4% of revenue for 2024, consistent with the 4% it spent in 2023.

Motwani explains that in 2023, the company launched its Go Live Freely digital locks campaign on social media and participated in major events such as the Asia Cup and the World Cup. It also took part in key exhibitions and has been involved in National Home Safety Day on November 15 for the past six years.

The company also engages in various promotional activities, including demos in housing colonies and rural signage on arterial roads, highways, state highways, and other expressways.

Looking ahead, Locks by Godrej & Boyce will soon launch a new campaign for architectural fittings and solutions. Motwani adds that the company will also participate in upcoming exhibitions from October to December and continue its home safety tours.

“We have set up over a thousand premium stores in major cities, showcasing high-end products with targeted digital messaging, and have done a lot of in-shop merchandising for all our products including digital locks. We want to ensure that our brand stays prominent,” he comments.

According to Motwani, Locks by Godrej & Boyce holds over one-third of the branded locks market and commands more than 20% of the architectural fittings and solutions sector, positioning itself as a close second to the leading brand.

Discussing the company’s strategic approach to marketing, he says, “One dimension of our strategy is the new in-consumer pricing we have implemented. The other aspect is significantly enhancing our margins for retailers and distributors. We’ve achieved two things: improved overall profit margins for our distributors and retail partners, and reduced prices for our end consumers.”

With this approach, the company aims to drive substantial increases in market share, targeting growth from its current 30% to 50% over the next 2-3 years.