News
Sravanthi Challapalli
Rs 30 crore earmarked for advertising, marketing
Chennai, April 12, 2007: Parryware Roca aims to capture 20 per cent of the premium sanitaryware and bath fittings market. To this end, it has hastened plans for the Spanish Roca brand. It has begun seeding the market with imports from Spain - originally, it had planned to market it after manufacturing it in its new factory at Perundurai in Tamil Nadu. Ten exclusive showrooms for this brand are already up and running and 25 more are expected to come up in the next six to nine months.
Mr K.E. Ranganathan, Managing Director, Parryware Roca, told Business Line that the company wants to be aggressive as the other players had begun eyeing Parryware's 46 per cent market share, till now present in the sub-premium and budget segments. Now that it has Roca in the premium segment, it does not want to lose out on market share, he explained, adding that this market is growing at 25 per cent every year.
The premium segment in the country accounts for Rs 100 crore in a larger market of Rs 900 crore. While there is no clear leader, several players including Kohler, American Standard, Toto, Villeroy & Boch are present in India. The sub-premium segment, in which the Parryware brand operates, is estimated at Rs 350 crore. Johnson & Pedder is the company's budget brand, a market estimated at Rs 150 crore.
Now that Parryware is a joint venture with Roca of Spain, it needs to "shout louder," said Mr Ranganathan, adding that advertising and marketing spend is being doubled from Rs 15 crore to Rs 30 crore. The company has shifted its advertising account from long-time partner JWT to Ogilvy & Mather. The decision to do so was driven by the need for fresh ideas, he said. Ogilvy & Mather will focus on creating awareness for Roca and strengthen the emotional connect for Parryware with a new brand campaign slated to break next month. The company also plans to strengthen regional advertising.
Of the Rs 30 crore earmarked for advertising and marketing, Rs 18 crore will go into advertising and the rest will be spent on showrooms.
Parryware Roca will open another 20 experience centres but these will be in partnership with dealers. Currently, sales are not conducted in the centres but the new ones will facilitate sales as well.