Fenner’s aggressive marketing strategy

Mr. C. Suresh Kumar

Fenner India, part of the JK Group, an undisputed leader in transmission belt industry, clocked a turnover of over Rs. 320 crores in 2006-07. The company already occupies a much envied position in Power Transmission Products.

It enjoys the patronage of all leading original equipment manufacturers like Tata Motors, Ashok Leyland, Mahindra & Mahindra, Eicher, TAFE, Maruti, Hero Honda, Bajaj and TVS commanding a market share of over 35 per cent in the transmission belts industry.Fenner is also a leading exporter of V-belts in the country to over 50 countries in Europe, Australia and South Africa.

Mr. C. Suresh Kumar, Senior Vice President - Sales & Marketing, says that “much of the growth has happened in the last few years. In the last four years, we have achieved over 70 per cent growth in the domestic market for our polymer division and in 2007-08 we will be doubling our turnover achieved in 2002-03. This means, in the five-year period from 2003-04 to 2007-08, we will be doubling whatever we have achieved in the last 47 years.

The highest growth is achieved in our engineering products division where we trebled the turnover in 2006-07 in a span of four years compared to whatever we achieved till 2002-03. We are trying to provide transmission and sealing solutions rather than merely selling transmission belts or oil seals. We have the capability to provide energy-saving drive solutions to our customers’’.

Fenner is a 50-year-old brand, but in the last few years the company and the brand has become a lot more aggressive. A lot of credit would go to doing things differently, the way the product is manufactured and marketed, innovative marketing campaigns providing solutions to customers and a series of new product launches, etc.

The company has adopted a distinctly different approach towards launching and marketing of products – through fashion shows for the first time in the industry, which has become the talk of the town.Fenner has launched some innovative trade schemes for its channel partners with the idea of enhancing demand for its products. Some of them include the scratch-card scheme for retailers and incentive coupons for mechanics.

Coinciding with the Golden Jubilee celebrations the company launched a scheme for mechanics where they could win a whole lot of gifts, including bikes, color TVs and gold coins. Also conducted is “Own a mechanic”, scheme wherein mechanics in a certain region would be monitored and incentives given based on their average performance.

The company is focusing now on road shows and van campaigns for automotive products in most of the major markets to further penetrate into rural and semi urban areas. The van campaign was conducted in Gujarat and Maharastra in the west for more than 50 days and in Rajasthan, Punjab, Haryana, Delhi and UP in the north for over 60 days.

It has also launched "Market Infrastructure Development Programme" wherein the company is investing to build infrastructure creation with channel partners - showrooms, sales vans etc. No wonder, these have helped Fenner scale greater heights.“We will continue the growth momentum and we are sure to double our turnover in the next 3 years. But the entire turnover may not come from our core business of belts and seals”, says Mr. Suresh Kumar.

Last year, Fenner announced its plans to diversify into the auto component sector also. Being a part of The JK Group, Fenner has the advantage of the JK Brand also. The company has launched JK Pioneer engine mountings and centre joint rubbers for all commercial vehicles and cars.

The company is planning to further expand its product offerings by entering into auto components.”He adds: “On the industrial products business, we are trying to improve and consolidate our relationship with institutional customers. Now we have been meeting our customers at various prominent industrial locations throughout the country, through Fenner Impetus – Seminar on Total Power Trans mission Solutions. These are a series of Technical seminars being organized by us to reassure our customer, our commitment in providing Total Power Transmission solutions, which only Fenner can provide in India.”

Fenner India is embarking on a major expansion plan. The company is setting up a new manufacturing facility in Chennai for manufacturing oil seals which will be commissioned shortly. Fenner is also planning to set up a State- of - the art transmission belt manufacturing facility for cogged and Poly V belts to cater to new generation vehicles.

The company has also purchased land for setting up a Greenfield facility in Uttaranchal. Further, on an ongoing basis, the company has invested substantially in the modernization of its existing facilities. All these projects together with improvement in existing facilities, will involve an investment of over Rs. 100 crores.

Among Fenner’s products, the automotive business contribute close to 45 per cent with industrial products contributing nearly 55% of the Polymer Business division. Exports are at 15% of the total turn over.

The company has recently brought out a media campaign captioned” Rely on the Leader…..Move With Fenner”, both in TV and the print media to reinforce its leadership position in the industry. Fenner’s agenda for the coming years revolves around establishing itself as the most preferred OE supplier by showcasing state-of-the art manufacturing facilities and offering innovative solutions. To maintain the leadership position in the replacement market for its Fenner and Pioneer brands by strengthening the relationship with retailers and mechanics through improved customer contacts and new product offers.