BUSINESS LINE's CATALYST
From THE HINDU group of publications
Thursday, November 29, 2001

CATALYST
RESOURCES
BRAND QUEST
HOME
 

Godrej & Boyce embarks on sub-branding strategy

Purvita Chatterjee

MUMBAI, Nov. 28

THE Rs 700-crore, Godrej & Boyce Mfg. Co, is planning to extend its range of products and create sub brands for its Storwel division to become a complete home and office solutions provider.

From steel cupboards for homes under the Storwel sub-brand, the company intends extending its franchise to include more sub-brands such as Storflex (for modular office storage systems), Kit (for kitchen storage systems) and the recently introduced I-space for kids furniture, all under the Godrej umbrella.

Explains Mr Anil Mathur, Vice-President, Storwel Division, Godrej & Boyce, We plan to launch a range of home furniture such as beds and dining tables to become a complete home solutions provider. There will be more sub-brands created to cater to these different products.

The company has stopped advertising for its Storwel division as part of a cost-cutting exercise and instead, it intends beefing up its ad spend to create awareness for its about-to-be-launched sub-brands.

It has appointed two ad agencies FCB Ulka and Madison advertising for its Storwel and I-Space sub-brands.

Today the division specifically wants to reach out to the youth through its campaigns to bring out the uses of storage capacity.

Explains Mr Mathur, We would like consumers to enhance the need for storage systems and bring it into the hierarchy of their purchase needs. New models and bright colours are being brought in by the division to enhance its importance particularly with young people.

The almost 50-year-old division had some of its storage products existing under the Storwel sub-brand apart from its cupboards. The idea is to hive off some these products into separate sub-brands, catering to the needs of each storage segment. So while kitchen and filing cabinets had existed under the Storwel brand, such products would get hived off under a new brand with more products added.

We are expecting a 10 per cent growth within the storage segment and competition has been mainly from regional players, states Mr Mathur. The Storwel division is the second largest division within the company (the biggest being its Rs 200-crore furniture division) with a turnover of Rs 92 crore. This year the division expects to raise its turnover to Rs 120 crore.

Meanwhile, the division intends beefing up its range of products by introducing a knock down concept whereby the storage furniture can be dismantled reducing transportation damage apart from cost. Besides, it has decided to get rid of its liquid-paint technology and has introduced a automatic powder coating plant in its Vikroli facility in the eastern suburb of Mumbai.

The Storwel division is also getting more aesthetically inclined and has decided to bring a wood and steel combination finish to its products. Adds Mathur, We will not simply be using steel for our products. For instance, our steel cupboards will now be offered with wooden shutters for those who prefer the wood and steel combination.

 
• Catalyst • Resources • Brand Quest • Home • 
Copyright © 2001 Business Line

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Business Line