Leading paint maker, Crown Paints plans to increase its grip on the regional paint market by boosting its premium and economy market shares by between 10 per cent and 15 per cent respectively.
Currently, the company commands 65 per cent of the premium market and 10 per cent of the economy segment.
“We project that by 2015, we shall consolidate about 75 per cent of the Premium market and 25 per cent of the economy segment,” said Group CEO Mr. Rakesh Rao.
The paint maker has experienced mixed performance in both ends of the market for the last ten years due to high costs of production and raw materials.
Crown Paints introduced the economy paints into the market in the early 1990s which has continued to generate some revenues for the company.
According to the Marketing Manager, Mr. John Hadley the premium market share has experienced mixed performance since the 1990s due to market dynamics.
Hadley said the premium market hit an all-time low of 55 per cent in 2004 but has since risen to 65 per cent with a projected performance of about 75 per cent by 2015.
“Our economy paints have had steady growth since we introduced them into the market. From a 5 per cent growth in 1995 we are now estimating a 15 per cent market share in this segment,” said Hadley.
He attributed steady growth in the market share to robust construction industry growth and increase in sales.
The marketing manager said Crown Paints had already introduced several international innovative technologies and wider plans are already in place.
Crown Paints has since 2009 been aggressive with the meaningful customer a loyalty scheme which has allowed growth at all sizes of dealership, principally by widening the customer base.
Dealers who preferred to stock brands, as alternatives to the brand leader, have now begun to realize that they must have the Crown Paints available or lose sales, alternatively stocking the brand leader, gives them credibility, and is an attraction to extra sales Hadley concluded.