CORPORATE STRATEGIC - JAKARTA. The paint issuer from Tancorp Group, PT Avia Avian Tbk (AVIA) is targeting a consolidated sales growth of between 6%-10% for the year 2024. Avia's optimism is supported by the increasingly complete product portfolio that reaches all segments of society, from the economic class to the premium class.
In addition, Avian Brands also has a wide distribution network that reaches all regions of Indonesia from Sabang to Merauke, supported by the best service to consumers. For information, by the end of 2023, Avian Brands will have as many as 118 own distribution centers, 14 mini distribution centers, and 40 third-party distribution centers.
Head of Investor Relations Avia Avian, Andreas Timothy Hadikrisno added that in achieving these sales targets, AVIA is preparing a strategy by consistently running various expansion, innovation, and marketing and promotion programs.
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In general, in terms of marketing, Avian Brands implements 2 strategies, namely below the line. This program provides incentives to retail customers, namely building material stores, in the form of trade promotion goods, which are of course associated with the sales target performance of building material stores and the timeliness of payments.
"In addition, we also have a training program and incentives for painters by providing coupons that can be exchanged for digital money," said Andreas when contacted by Kontan.co.id, Sunday (18/3).
Meanwhile, the above-the-line strategy is a product marketing program through TV ads, digital media such as Instagram, Youtube, and other media, exhibitions or exhibitions in malls, and advertising media at customer outlets, gathering programs for contractors and architects. For premium products, Avia also appointed two brand ambassadors namely Joe Taslim for the exterior SunguardAll-In-One product and Cinta Laura for the interior paint, Supersilk Anti Stain to increase the popularity of the Avian brand among consumers.
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"Especially for 2024 and onwards, Avian Brands focuses on intensifying above-the-line marketing activities, intending to increase brand awareness," added Andreas.
For expansion plans, Avian Brands also focuses on distribution centers throughout Indonesia. The plan is, that AVIA will add 7-8 own distribution centers this year and the development of new product innovations in various segments (including wall paint, leak-proof coating, and wood & iron paint) that are in line with market needs and developments.
In addition, marketing strategies, both on the project and retail side, are also consistently implemented by making various adjustments to market conditions. As for the expansion of production capacity, AVIA remains on track with the construction of the third factory in Cirebon which is scheduled to be completed by the end of 2025.
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"We will start production at the Cirebon factory at the beginning of 2026 with 50% of the total capacity of the Cirebon factory itself reaching 225,000 metric tons and will be implemented gradually," he said.
In supporting expansion, the company also budgets capital expenditure or capex. The budget for regular capital expenditure in 2024 is maintained at 2% of total sales. The budget for regular capital expenditure is allocated for the improvement of factory facilities, the development of IT networks because with so many branches, a strong and secure IT infrastructure is needed, the addition of trucks and vehicles at owned distribution centers, and the addition of tinting machines for building material stores
"In addition, we also have an additional expenditure budget for the construction of our third factory located in Cirebon in 2024 of about 5% of total sales," he concluded.
