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Godrej aims 25% of refrigerator market, plans to focus on distribution

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Godrej aims 25% of refrigerator market, plans to focus on distribution

After the first round of marketing blitz that rode on the back of pretty Priety Zinta, Godrej Appliances is now gearing up to tackle the other end of the market for its refrigerators: Distribution.

The company plans to expand their distribution network by increasing the number of distributors. According to sources in the company a plan has been chalked out in a bid to increase its market-share in the Rs. 3,100 cr refrigeration market. Says Soumitra K. Ghatak, executive vice president (marketing, sales and service), "We plan to increase our distributor network to 9,000 by October this year from the present 7,500. This will comprise sole distributors as well as multi-brand dealers. The expansion of the network is slated to take across the country."

As reported by exchange4media earlier the Rs 600-crore Godrej Appliances Ltd., had embarked on a slew of marketing initiatives to promote its entire range of refrigerators and washing machines this summer.

The company plans to use a mix of mass media, ''micro-marketing'' initiatives - local advertising, on-ground promotions in key and important markets. Alongside direct marketing initiatives and in-shop merchandising is being implemented. The company plans to invest about Rs.18-20cr for the current ad campaign, spending 65% of the budget on TV and rest on print.

The fresh thrust on distribution comes in the wake of the company''s plan to up its market-share in the refrigeration segment to 25% from 23% recorded last year. " We are already are close to 24% and our plan is to reach the 25% mark in 2002-03", adds Ghatak.

To meet the sales target, the company is also planning to set up new merchandise at select 100 dealer showrooms across the country at an investment of Rs 50 lakh to Rs 1 crore this year.


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