Focusing aggressively on the rural markets, H&R Johnson India has lined up an investment of Rs 50 crore for promoting 'Marbonite' and 'Johnson' tiles to enhance its share in one of the fastest growing markets. | |
| The marketing campaign is part of the company's ambitious growth plans that include an investment of Rs 250 crore. Of the investment, Rs 200 crore will be used for adding new capacities in a bid to meet the ever-growing demand. |
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| The campaign, which will be rolled out across 80 cities in the country, will cover key towns Jammu and Kashmir. |
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| The objective is to communicate core brand values of Johnson and Marbonite to the consumers and reach out to the target audiences at the grass-root levels. |
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| "The investment is an ongoing process, as new products keep coming in frequently," an industry expert said. |
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| For the last two years, the company has been focusing on the rural markets. It has seen a penetrationof 45 per cent in the areas by setting up strong distribution channels in the B, C and D-class towns. |
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| As a result, its distribution network has grown almost 45 per cent. While the company's dealer network has grown about 20 per cent, its retailer network has gone up by a sturdy 50 per cent over the past two years. |
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| Also, in the last one year, the company has set up full-fledged marketing and sales operations across these towns and cities. This has propelled its sales force over 100 per cent. |
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| Its aggressive pitch in the domestic market has helped the company push up its sales 32 per cent in the last nine months ended December 2005. |
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| The company pegged its sales at Rs 525 crore by the end of the third quarter, while the volume of sales has grown 42 per cent across India. |
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| The company's thrust on the north has helped it achieve volume growth of 106 per cent in sales. It is targeting achieve Rs 750 crore sales by the end of this financial year, which would mean growth of 38 per cent over the last year business. |
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| Having consolidated its leadership in the southern and western markets, H&R Johnson is now targeting the numero uno position in the north by March 2007. |
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| Over the last nine months, the company has increased its presence in the northern cities, by launching a slew of brand-building and sale-promoting activities. |
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