Leading paint maker, Crown Berger plans to consolidate its grip on the regional paint market by increasing its premium and economy market shares by between 10 per cent and 15 per cent respectively. Currently, the company which commands 65 per cent of the premium market and 10 per cent of the economy segment is posed to increase its market share for middle and lower end products.
The economy paints were introduced into the market in the early 1990s and have continued to generate more revenues for the company. The Group CEO Mr. Rakesh Rao says, “We project that by 2015, we shall command 75 per cent of the Premium market and 25 per cent of the economy segment.”
He continues, Crown Berger has experienced mixed performance in both ends of the market for the last ten years due to high costs of production and raw materials.
As sought further, the Marketing Manager Mr. John Hadley echoed the CEO by revealing the premium market share has experienced mixed performance since the 1990s.Hadley said the premium market hit an all time low of 55 percent in 2005 but has since risen to 65 percent with a projected performance of 75 percent by 2015.
“Our economy paints have had a steady growth since we introduced them into the market. From a 5 per cent growth in 1995 we are now commanding 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 CEO Mr. Rao continues, Crown Berger has done extensive introduction of international innovative technology, as wider sector plans are already in place.
Crown Berger has since 2009 been aggressive with 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 available or lose sales, alternatively stocking the brand leader, gives them credibility, and is an attraction to extra sales, says Rao.
Crown Berger which stands as East Africa’s leading paint maker, recently posted a pre-tax profit of Sh70 million for the six months ended June 30, 2010 an increase of 17.7 percent from a profit of Sh59.5 million reported during a similar period in 2009.
Commenting on the performance Mr. Rao says “The high profitability was due to prudent financial planning, targeted marketing and increased demand for our high quality range of products due to the continued strength of the Kenyan construction sector,” He further said the listed firm at the Nairobi Stock Exchange (NSE) is positive to explore full potential of growth in the East African region.
Crown Berger, which is involved in manufacturing and distributing paint, increased its net profit to Sh42.5 million during the period with turnover increasing by 14 percent from Sh1.2 billion in 2009 to Sh1.4 billion this year. The cash flow of the group also increased to Sh84 million from Sh20 million during the first half of 2010.
Apart from the production plants, Crown Berger which was founded in 1958, operates depots in
Crown Berger boasts of wide range of product line in various segment namely industrial paints, marine paints, automotive paints, resins, adhesives and wood finishes. It is involved in the import of paint from overseas, including international quality brand names like PPG of France, Ferro of South Africa, Asian Paints India and Berger International of Dubai and
Another unique product the company offers to the market is the thermoplastic road marking paint with reflector chips that enables motorists to have visibility at night and during storm rains when they switch on their lights. The CEO though passionate about this product laments it is not widely used by the government in its on going infrastructure projects across the country. He notes, the paint has longer life and will help in reducing accidents and likens a few clients like the
With the ever increasing competition and counterfeiting trauma that faces local manufacturing industry, Rao says, Crown Berger has launched a unique concept termed as a colour gallery. This is a joint venture with leading dealers to address and solve challenges property owners and developers experience while decorating their properties.
Crown Gallery which the company in conjunction with its dealers and partners, Rao says is to offer knowledge and access to customers about its genuine products and proper usage so as to attain a real finish. “Each gallery will be equipped to inform, what to buy, how much, what colour, pricing advice and right product use. The gallery concept also has provision of professional crown apply and supply service” says Rao.
He says more properties needs remedial treatment before decoration and colour advice.
“We are launching this new concept to address all these challenges and situations for any property owner in the region”. He insists location has to be agreed with a dealer and a tailor design is set which clearly demonstrates colour and choice of finish thus offering customers variety of colours.
The CEO sees future in this concept as the arrangement will enhance professionalism in the property industry as the galleries will be fully equipped. “Colour cards, fan swatches and colour computers will be all available for instant selection and immediate collection at no extra cost to our customers,” he adds.
Mr. Rao says the company plans to partner with various dealers across the country in a move aimed at bringing products and services closer to customers. This comes barely after the company enhanced its grip on the regional dominance by boosting its premium and economy market share
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