The rewards programme to partners spurs growth, says MD
The Indian subsidiary of Spanish sanitary ware products maker Roca has reported double-digit growth during 2018, driven by new product launches and loyalty rewards programme for its mass market Parryware brand, said a top executive.
“Unlike other loyalty programmes, this one enables us to score over others,” said K.E. Ranganathan, MD, Roca Bathroom Products Pvt. Ltd.
Parryware loyalty programmes such as Utsav, Bandhan and Vaibhav reward dealers/retailers, plumbers and salesmen respectively, when they make a purchase or sale. The points can be redeemed any time for any product, when the balance is above 1,000.
It has 10,000 dealers registered under Utsav, 20,000 plumbers under Bandhan and 2,500 salesmen under Vaibhav programmes, respectively.
“A Mysuru dealer has three lakh points and wants to buy an SUV after accumulating five lakh points. This shows the success of our loyalty programme. Some of our competitors tried to replicate it, but failed,” he said.
Posts 15% growth
In 2018, Roca posted more than 15% growth versus industry growth of 8%-9%. “This year, the industry would grow by 10% and ours will be double that,” he said.
In the next two years, Roca plans to invest ₹150 crore in marketing, manufacturing, IT, process, robotics, solar panels and acquisitions, he said. Acquisition of a faucet unit and plastic product-making firm in the north are under consideration.
The investment in the faucet unit would be about ₹50 crore and ₹20 crore for the plastics unit.
Last year, the firm posted a turnover of ₹1,200 crore and hopes to touch ₹2,000 crore soon, possibly, probably aided by a major acquisition, he said.