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CHENNAI
NOVEMBER 13, 2006
Memory major Kingston, which set up office three months ago in the country,
is aiming for the top slot in the memory module business by the year 2008.
The company is working on a larger game plan, which includes setting up of a
three-tier channel structure.
“India is getting a special focus on our global operations considering its
sheer size and growth in PC, mobile and entertainment segments. Although we only
have a small base in India we are bullish about the market. It is just a matter
of time before we ramp up our operations and become a leader by 2008,” said
Rajesh Panicker, Country Manager - India, Kingston Technology.
According to Rajesh, when Kingston entered China market about five years
back, the situation was similar, but attained No.1 position within two years.
Kingston has a range of products in its stable which include PC memory,
server memory, laptop memory, USB drives, flash cards for cameras and mobile.
Recently, it introduced a new product called K-PEX, which is a personal
entertainment device. The company distributes products in India through AA
Infoways, Avnet India, Ingram Micro, Kobian Electronics and Transtek Infoways.
“We are working on a three-tier model by creating new layers such as regional
distributors (in metros) and master resellers (in upcountry markets). We want to
create value for everyone in our distribution chain and ensure a good price for
the customer,” informed Panicker.
When asked about the high price of Kingston memory than its competition, he
said, “Our direct presence would ensure product availability and better
inventory management, which will eventually bring down the cost in coming
months.” According to Panicker, Memory is a highly volatile market and good
inventory management will keep the cost under control.
Kingston is aiming for 25 percent marketshare by 2007 and will gun for No. 1
position in the subsequent year. Mobile will be the biggest target segment for
them, followed by PC and gaming. “Now, Kingston has many advantages to become
the leader in the market with direct office presence, service support, sales
team, quality products and more,” said Nitin Malhotra, Distribution Manager -
India, Kingston Technology. The company recently appointed Accel Frontline as
their warranty support partner in India.
Talking about brand consciousness among consumers in the memory segment,
Malhotra said, “Presently, brand awareness is very low among users
(end-customers) and Kingston wants to change that situation. We will invest
significantly on brand building and educate the customers to ask for specific
brand while buying the products. We are also looking at retail stores to sell
our products and create visibility in the market.”
Kingston will launch certificate and loyalty programs among channels, to
recognize and reward the resellers.
Kingston's head office in India is located at Mumbai, with branches in New
Delhi and Bangalore. Chennai is also on the cards of the company. Page(s) 1
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