Page 21

Jotun Group Report 2014

19 OUR BUSINESS Building our global brand With more than 7 000 retail shops around the world, Jotun is considered a leading consumer brand in many countries where we are active. By working more closely with real-estate developers, government officials, architects and consultants, the company has growing success in the project market and continues to paint iconic buildings recognised internationally. In 2014, Jotun achieved satisfactory growth in the Decorative segment, driven primarily by strong sales in the Middle East, South East Asia and Turkey. Despite fierce competition and challenging market conditions, Jotun’s results in Scandinavia improved over 2013. Regional product innovation Jotun remains committed to developing new products to meet consumer demand for better ways to protect and beautify their homes. By catering to the needs of developers and architects, Jotun ensures that remarkable buildings retain their appearance for years after opening to the public. In 2014, Jotun successfully completed launches of two new products. In South East Asia, Jotun launched a premium interior paint, Majestic True Beauty and in the Middle East, Jotun introduced a new series of premium exterior products; Jotashield ColourLast and Jotashield ColourXtreme. Jotun has also renewed its focus on improving the shopping experience of homeowners and contractors who visit stores carrying Jotun products. In 2013, Jotun provided retail shops with enhanced service and in-shop tools and material. And in 2014, Jotun produced a series of global TV commercials that aired in multiple countries simultaneously. The company has also strengthened awareness and knowledge of the Jotun brand through social media campaigns and billboards coordinated regional launches to maximise press coverage for new products. Growth in the project market While the backbone of Jotun’s business in the Decorative segment is in the Buy-it-Yourself (BIY) and Do-it-Yourself (DIY) homeowner market, a significant portion of our business is derived from the project market, which includes malls, hotels, large housing projects, airports and hospitals, etc. To secure these contracts, Jotun has a structured approach to win and manage these projects. Jotun also coordinates activities across the Decorative, Protective and Powder Coatings segments to offer Jotun´s Single Source Solutions. It should be noted that large-scale construction projects are subject to government spending or economic conditions in individual countries. By contrast, the retail market is a more stable and consistent source of revenue. So while Jotun will continue to seek more contracts in the project market, the company’s primary focus will be to expand its global retail network, provide improved sales support to shop keepers and build more awareness of the Jotun brand. DECORATIVE PAINTS JOTUN DECORATIVE PAINTS Sales per region Sales in billion NOK 28% SCA 2% WE 3% EECA 46% MEIA 19% SEAP 2% NEA - AM 28% SCA 2% WE 3% EECA 46% MEIA 19% SEAP 2% NEA - AM 0 1 2 3 4 5 6 7 2014 2013 2012 2011 2010


Jotun Group Report 2014
To see the actual publication please follow the link above