Saturday, 2 February 2008

Eureka Forbes plans new retail channels

Eureka Forbes is setting up alternative and new retail channels to increase the penetration of water purification devices.
Its retail division is now extending its products to chemists, CSDs (Canteen Stores Department) and general merchandise stores to reach out to households which do not use water purification devices.

RESIDENTIAL AREAS

Mr Bal Palekar, Senior Vice- President, Marketing, Eureka Forbes, told Business Line, "We have a range of nonpower using products under the Aquasure brand which we are promoting through the new channels set up by the retail division. The purpose is to target 60 million households in urban and rural residential areas which have never used water purifiers.''

PRODUCT RANGE

These would be a range of innovative products such as storage water purifiers which cost Rs 1,800 onwards. Targeting areas such as Sec B&C towns where there is dearth of water and electricity, Eureka Forbes is hoping its new alternative retail channels will help in reaching out to the masses in these parts.

LOW PENETRATION

According to Mr Aslam A. Karmali, Senior Vice President, Consumer Division, Eureka Forbes, "There is low penetration in the business of water and we have to first try and expand the physical reach of our products. Today we are evaluating new ways of reaching our consumers as there is just about 9 per cent penetration in this category."

Meanwhile Eureka Forbes would continue using its traditional sales channels (direct doorstep sales) and traditional outlets to vend its products. "The classification of our outlets comprises the family-owned outlets which are now being professional run and also the key dealers," stated Mr Palekar. The Rs 1000 crore Eureka Forbes has a 62 per cent share in the residential water purification market.

Taken from Business Line

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