New Delhi: Amtrex Hitachi Appliances Ltd (AHA) has set an aggressive target this year for itself: the company aims to achieve a 100 per cent volume growth and increase its current marketshare of 12.5 per cent to 15 per cent in 2001."We plan to consolidate our close to 12 per cent share in the domestic AC market to about 15 per cent and achieve a turnover of Rs 400 crore,'' Amtrex Hitachi Appliances' managing director Mr Naishadh Parikh said at the company's latest launch of air conditioners-the Logicool range.
The new marketing plan chalked out by the company comprises a renewed focus on the household retail segment; a realignment and expansion of its sales force and distribution network and over a 100 per cent jump in its advertising budget.
To start with, AHA-as part of its focus on household buyer-has vertically split its sales, services and distribution network into two separate teams to focus on retail and institutional sales,respectively.
It also plans to have 13 retail branches and separate manpower to cater to the household buyer segment. The company is also expanding its distribution network: from 300 outlets, it is increasing its presence in about 1,000 retail outlets. The company's decision to focus on the household buyer segment is prompted by the fact that the segment is currently the fastest growing segment in the AC market. ``The segment is estimated to be growing at the rate of 20 to 40 per cent and is predicted to grow at 50 per cent by the year 2002,'' AHA's retail products head Mr Anil Gupta said.
In a related move, the company has hiked its advertising and promotional budget this year by over 100 per cent, taking it up from Rs 8.5 crore spent last year to Rs 20 crore in order to mount an aggressive brand- building exercise for its air conditioners. "We plan to strengthen the Hitachi brand name in India. So, we have hiked our advertising budget from Rs 8 crore last year to Rs 20 crore for 2001-02," Mr Gupta said. The company is currently in talks with financing majors such as ICICI, Citibank, Countrywide, and GE to offer financing options to consumers. According to Mr Gupta, the total air conditioner market was expected to touch nine lakh units in 2001-02, and was one of the few consumer sectors which was growing at 30 per cent per annum.
AHA claims number three position in the Indian AC market after Carrier and LG. ``The gaps are narrowing, though,'' Mr Parikh added.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
