Decorative paint firm Jotun aims to be No 1

The move is a bid to build its brand, create marketing activities and increase its sales staff and dealerships.

The brand is currently among the top three in the Bt12-billion decorative-paint market, but its 12-per-cent share is restricted to only the middle and premium segments.

Managing director Eric Mallace yesterday said the Jotun brand could not expand its share of the decorative-paint market on the basis of its existing leadership in producing protective coatings and marine paints.

"We have to create brand strength in order to attract consumers. We'll increase both our sales staff and dealerships, as well as promote the Jotun brand," he said.

Over the next five years, the company will build its distribution channels around the country, mainly by doubling the number of its dealers to 1,000. It has already committed Bt50 million to marketing activities in its first big promotional drive.

"We believe the campaign - both above the line and increasing our sales staff - will lead us to achieve our goal of market leadership in the next three to five years," he said.

Jotun expects revenue growth this year of about 20 per cent over last year's sales of US$20 million (Bt687 million) and continuing growth of 12-18 per cent a year over the next three to five years.

Mallace said decorative paints were likely to enjoy stable growth this year, because of the strength of the protective-coating and marine segment, which is expected to grow 10 per cent.

"The rising oil price this year have led oil firms to invest in oil-drilling platforms, and this has benefited the protective-coating and marine segment very much," he said.

Jotun is the market leader in protective coatings and marine paints, with market shares of 25 per cent and 35 per cent, respectively. It plans to launch a new product called Jotamastic 80 into the protective-coating and marine-paint market this quarter.