Norma, of Carvajal group, sells 25% more
Valor Econômico
Norma, one of the three largest companies of stationery products in the country, plans to invest R$ 3 million (US$ 1.8 million) in 2011 in marketing and production improvements. That was the same amount the company invested in 2010, when its earnings, undisclosed, should grow 25% compared to last year. The company belongs to Colombian group Carvajal, in the market for 106 years, with annual earnings of R$ 3.4 billion (US$ 2 billion) and 23 thousand employees. "We have been professionalizing ourselves for the past three years. The [Carvajal] family is going to the Board and it has a trained professional in the group or from the market", says the General Manager of Norma, José Roberto Siqueira.
The Executive began working at Norma earlier this year as part of the goal of the company of professionalizing the management. He chaired the Philips Lighting Division for Latin America. He also went through Tintas Corale Unilever. Nearly 95% of the earnings of Norma is generated by the Division of stationery products, such as notebooks, diaries and backpacks. The other 5% come from the sale of textbooks. Siqueira estimates class C already generates R$ 80 million (US$ 47.1 million) a year with the purchase of notebooks. According to him, the total Brazilian market is at the level of R$ 480 million (US$ 282.4 million) a year.
The Executive says, in 2010, the company increased 30% the number of products with cheaper "entrance" price, with values starting at R$ 1 (US$ 0.59). However, he notices the consumers of class C are migrating from the cheaper products and entering a higher price range with greater added-value. As an example, he mentions the notebook with the picture of singer Luan Santana printed on the cover, which costs from R$ 5 (US$ 2.9) to R$ 6 (US$ 3.5). That product is among those sold the most by Norma in 2010. And, according to Siqueira, there has been great acceptance by the consumer of class C.