In a candid interaction with the DQ Channels, Gopal Pansari, Director of Savera Marketing Agency shares his market strategies to take up the distribution house to the national level.
Started as a regional distributor in eastern India, Savera Marketing is now contemplating to go to the national level. After West, what are your strategies to foray into southern India?
Gopal Pansari: We have very clear marketing strategy to increase our brand visibility across the regions. South India is one of the key growth markets for us. We are planning to enter Southern market by opening new branches. This is to increase the reach in remote locations, to create satellite branches which will align with main branch on those states which pull products with the association of new partners. As a part of our strategy, we will open our first south branch in Chennai this quarter and then expand in other cities like Hyderabad and Bangalore.
As an expansion strategy, you are aggressively focusing in Western India. What are the business potentials in this region?
Gopal Pansari: Western region is far better than East and it is always better place for business. All the major vendors and distributors have their head offices in this part of the country. West alone consist around 35 to 40 percent market share all over India. Therefore, it is very significant region for us in terms of growth and business scalability. We forayed in the western part last year and we are concentrating heavily on increasing our footprints in the region with expanding our business operations across the cities.
Now a day, hardware distributors are also endorsing software solutions. Do you also intend to enter in software selling?
Gopal Pansari: Being into storage Biz with Hitachi & Adata, we are also looking into enterprise biz. We will definitely attempt to provide total solution for our customers. If we get an opportunity to work on a project, Cloud computing will be the part of that. We will execute it in deal-to- deal basis.
Some of National Distributors are entering into manufacturing. Do you also plan to come up with your own product line?
Gopal Pansari: We are a pure distribution house and we believe to distribute third party products only. We will be doing only the distribution business under Savera banner. Hardware is our core area of business. We have also started distribution of storage solutions with joining hands with ADATA and Hitachi. We are also planning to enter in enterprise business. We will have our manpower which will go to channel partners.
Being a distributor, how will you address the issue of predatory pricing by online sales sides?
Gopal Pansari: E-commerce in India has been in news for both good and bad reasons. It is really good to know that Indian e-commerce players have started making their own mark in the e-commerce sphere. However, it is equally alarming that e-commerce websites of India are not following the e-commerce laws of India. As a result e-commerce frauds in India have significantly increased and there is an urgent need to regulate and punish such e-commerce offences and crimes in India.
E-commerce websites and technology companies are also under the scanner of taxation and regulatory authorities around the world. For instance, some believe that few site are playing with the U.K. tax laws. Similarly, foreign companies and e-commerce portals would be required to register in India and comply with Indian laws. Indian government has also proposed establishment of Income Tax Overseas Units (ITOUs) of India in foreign countries to deal with evasion of taxes.
Can you shed light on your go to market strategy?
Gopal Pansari: We have grown hygienically in terms expansion and turnover. We expanded our presence in West India during last fiscal by opening branches in Mumbai and Nagpur. We also introduced few new products and expanded our existing product line. We are growing at the rate of 20 percent CAGR every year and all the product lines doing well for us. We have recently tied up with Hitachi & Hunt key. We are expecting still more assignments to cater more market share & to increase Savera product basket. We will continue our channel initiatives.