Ipek Kagit maintains its clear leadership in the Turkish tissue
paper market despite renewed competition in the sector. Export
sales contributed significantly to this performance.
Top supplier of tissue paper products
in Turkey
A 50:50 joint venture with Georgia Pacific, Ipek Kagit is
the foremost supplier of tissue paper products to the Turkish
market and a major exporter of semi-finished and finished
products to European, Middle Eastern, Central Asian and Caucasian
markets.
Ipek Kagit primarily manufactures toilet rolls, napkins, handkerchiefs,
towels and facial tissues for home and commercial use. Its
plant in Altınova, 150 kilometers east of Istanbul, ranks
among the leading production sites in Europe in terms of capacity,
technological infrastructure and quality. This position was
consolidated in 2000 with the installation of a third tissue
paper line, which increased Ipek Kagit's capacity from 37,000
to 100,000 tons and enhanced its ability to produce sophisticated
multi-layer products.
Committed to remaining the industry leader in Turkey, Ipek
Kagit will add a new kitchen towel rewinder to its facility
in 2006 that will double its capacity in this area. It is
also preparing to initiate a new plant investment that will
increase its production capacity to 160,000 tons. This $ 100
million investment is expected to come on stream in three
years' time.
Growing international activity
Competing with Kimberly Clark, SCA and other global tissue
paper manufacturers, Ipek Kagit has become the largest exporter
of semi-finished products to the Middle East market.
For about 15 years, Ipek Kagit has exported both semi-finished
and final tissue paper products to more than 30 countries
in five continents. Now, it is beginning a new phase of export
activity that builds on its brands. To this end, Ipek Kagit
has begun advertising and promotion activities in Kazakhstan
and the Caucasus for its leading brand, Selpak.
With the long-term goal of becoming the leader in the Central
Asian market, Ipek Kagit has developed a "Geographical Expansion
Project" for the region that envisions the establishment of
a number of local operations. The first of these is a small
production site in Kazakhstan that will come on stream in
mid 2006.
Continuous and strong marketing
support
To sustain its leadership position in Turkey and encourage
tissue paper consumption among current users and non-users,
Ipek Kagit provides continuous advertising and nationwide
promotional support to its brands. It is the only company
in the tissue paper industry that does this.
In 2005, Ipek Kagit implemented a number of advertising campaigns
designed to appeal to, and create an emotional bond with,
young target group. All of Selpak Kitchen Towel and Selpak
Hanky communication efforts were built on this rejuvenation
strategy.
Ipek Kagit regularly carries out consumer research to track
changes in consumer expectations and plans its marketing activities
accordingly. Aside from introducing new products and developing
existing products to satisfy changing consumer expectations,
Ipek Kagit develops products that meet the specific needs
of sales channels. In 2005, for example, it delivered a greater
variety of "larger economical SKUs" to the market in response
to consumers' shifting preference towards larger economy packs.
Even as the clear market leader, Ipek Kagit strives to develop
new sales channels that strengthen further its position. In
2005, for example, it launched Turkey's first hanky vending
machines, this way increasing extra-supermarket sales while
providing exposure to the Selpak brand.
