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India based paint manufacturing company Creations and innovation of lewis berger 3rd largest paint manufacturer 2nd decorative paint player Head quarter at kolkata Has 10,000 dealers , across length & breadth of India
CASE IN BRIEF
Berger success contributed to it’s two field
Consumer product •Interior •Exterior •Every surface •Plaster •Metal •Wood • • Industrial product • Protection coating • General industrial Coating Automotive coating Powder coating
1 • WHAT SHOULD BE THE GENERAL PROMOTION STRATEGY TO BE TAKEN BY BERGER FOR ITS INDUSTRIAL CLIENT? .QUESTION NO.
SHOULD BERGER GO FOR INORGANIC GROWTH BY ACQURING THEM? .QUESTION NO. 3 • THERE ARE MANY SMALL REGIONAL PLAYERS IN THE MARKET.
CAN BERGER DIVERSIFY IN NEAR FUTURE? .QUESTION NO. 4 • IN WHAT OTHER AREAS.
Types of Wood Finishes and their Market Share in India Wood Finish Market in India PU 10% Melamine 48% 30% Alkyd 12% Lacquers & Speciality Products .
General Promotion For Industrial Client Berger has 3 types of industrial goods Protection General industrial coating Powder coating .
Water Based PU Wood Finishes Advantages : • Environmentally safe • Brushable • Extra training not essential • No odour (associated with Solvent ) • Not hazardous to health • Does not yellow over time Disadvantages : • Not as durable as Solvent • More Expensive • Less protection from moisture .
Sirca .Pidilite . ICI Paints.Current and Potential Competition • Current Competition: Sheenlac . MRF Tyres • Potential Competition: Goodlass Nerolac. Berger Paints . ICA. Linea Coats.
15 per square feet Rs. 120-150 per square feet Rs. 10 per square feet Rs. 200 per square feet 6) Polyester .Pricing: Type of Wood Finish 1) French polish 2) Alkyd 3) Melamine 4) PU (solvent based) 5) PU (water based) Cost to the customer (Labour+Material) Rs. 30-40 per square feet Rs. 80-120 per square feet Rs.
SWOT Analysis .
) .Strengths • Brand Image of Asian Paints • Market Leadership (44 %) • Distribution Network • Inherent advantages of water based wood finishes (environment friendly etc.
Weaknesses • Low Awareness about wood finishes. • Inherent weaknesses of the product (less protection from moisture etc.) .
Opportunities • Boom in Construction Sector. . especially international styles of living • Consumers becoming conscious in terms of aesthetics and lifestyle.
. • Materials like laminates being used to coat wooden surfaces. used for furniture.Threats • Non-wood materials like plastic. acrylic. wrought iron etc. cane.
INFORMATIVE ( Thinker ) AFFECTIVE (Feeler ) HABIT FORMATION (Doer) SATISFACTION (Reactor) .
Consumer Survey .
Environment and the price they are willing to pay for it. Safety . Health.Consumer Survey Objectives • How Consumers perceive the product on the involvement and thinking/feeling dimensions ? • Who is the influencer / decider ? • Consumers perception of Factors like Durability . .
5) .Survey Details • Sample size: 238 • Conducted in Mumbai. Delhi. Lucknow and Bangalore • Questionnaire Method • Convenience Sampling • Sample profile : SECs A &B • Statistical tool used : SPSS (v 11.
Decision-maker regarding brand Decision-making of the brand of wood-finish 70 60 50 40 30 20 10 0 Family Carpenter /polisher Builder/Architect Friends suggestion Others Cheapest Percent Decision-making of the brand of wood-finish .
Importance of cost of wood finish Ranking of the parameters: Cost of the wood finish 60 50 40 30 20 Percent 10 0 Least Important 2 3 4 Very Important Ranking of the parameters: Cost of the wood finish .
Importance of Brand Brand of the wood-finish 50 40 30 20 Percent 10 0 Least Important 2 3 4 Very Important Brand of the wood-finish .
Preference of Finish Matt vs Gloss 50 40 30 20 Percent 10 0 Matt Finishes 2 3 4 Gloss Finishes Matt vs Gloss .
Importance of durability Durability 60 50 40 30 20 Percent 10 0 2 3 4 Very Important Durability .
Importance of Ease of Application Ease of application 50 40 30 20 Percent 10 0 Least Important 2 3 4 Ease of application .
Health and Environment (SHE). SHE 50 40 30 20 Percent 10 0 Least Important 2 3 4 SHE .Importance of Safety.
Awareness of water-based PU Awareness of water-based 120 100 80 60 40 Percent 20 0 Yes No Awareness of water-based .
Analysis of Consumer Survey • Influencers: Carpenter. Contractor • Low frequency of painting / recoating the house • Low awareness about wood finishes • Very low awareness for Water-based wood finishes . Polisher.
• Majority have concerns over safety . Note: Derived out of the open ended question in the questionnaire . • Matt finish preferred over gloss finish.Analysis (Contd.) • Awareness about real impact of cost not clear. health & environment but are ambivalent on the investment they are willing to make for the same.
Carpenters/ Polishers/ Contractors Interviews ( Sample Size : 32 Location : Mumbai ) .
. Finish hi sabse badiya hai…polish to low society ke log karaate hai Aaj Kal koi scheme nahin hai hummare liye Aaj Kal Matt finish ka hi zamana hai … Gloss finish chalta hai …lekin matt finish usse zyada chalta hai Kai Baar Polish karte hue saans ki takleef ho jaati hai..Customer ko nahi maloom…sirf kareegar ko pataa hota hai… Water based wood finish …iske baare mein nahi suna..
Findings • Finishes were considered more durable when compared with polish. Matt effect was better with finish than with polish. • • . Matt finish was preferred over gloss by customers. Both SEC A and SEC B preferred matt finish.
• General opinion was that Customer knowledge about product category was extremely low.
• There was a general view that solvent based wood finish was not safe and lead to allergy etc. • Most respondents had no knowledge of water-based PU wood finish.
INFORMATIVE ( Thinker )
AFFECTIVE (Feeler )
HABIT FORMATION (Doer)
SATISFACTION (Reactor) ASIAN PAINT WOOD FINISHES
Carpenters Polishers Contractors Interior Decorators
End Consumer SECs A & B „Lifestyle-oriented‟ „Quality-conscious‟
Positioning “A premium easy to use wood finish which offers unmatched quality and is in harmony with nature .” Tag Line ‘‘In harmony with nature‟‟ .
.Brand Name : Asian Paints Nature’s Touch A Premium Brushable Water Based PU Wood Finish Rationale: The product is environment friendly and brings out the natural beauty of the wood .
Rationale : • Need to create awareness • Initiate trials • Maybe at later stage of PLC the price can be revised upwards as volumes pick up. .Pricing & Product Pricing : Pricing should be at same level as that of solvent based PU wood finish .
NATURE’S TOUCH .
.Product : Benefits regarding durability must be equivalent to that of solvent based wood finish .
YET COSTEFFECTIVE PROMOTION AND DISTRIBUTION STRATEGY? . CAN YOU THINK OF SOME INNOVATIVE.QUESTION NO. 2 • AT CONSUMER SEGMENT .
. • To initiate trial.PROMOTIONAL STRATEGY Objectives B2B B2C B2B communication strategy • To generate product awareness. •To convert product from low involvement to high involvement. •To involve consumers in the purchase process. B2C communication strategy •To increase knowledge about category. • Give an incentive to influencer to push/suggest product.
General Promotion For Industrial Client Berger has 3 types of industrial goods Protection General industrial coating Powder coating Berger can follow following promotional tools………… PROMOTIONAL TOOLS ADVERTISING Public presentation pervasiveness SALES PROMOTION communication incentive Amplified expressiveness invitation .
Media Selection for Advertising • Magazines Special interest magazines like Inside Outside. • Direct Mail Mailers to customer database already available with the company. . Design and Interior as well as inflight magazines.
– Banners: On related websites like www. – Posters and sign-boards outside furniture markets.com • Outdoor – POP displays.mumbaiconstructions. • Internet – Website: Separate link on the company website. .Contd.
• Conventions/Workshops for Architects and Interior Decorators • Workshop for carpenters – To build awareness and product demonstration and offer incentives to promote usage .Promotion Strategy • Glow-signs and other promotional material at large hardware stores.
• Tie-up with Corporates and Hotels: To initiate talks for getting contracts for revamp and maintenance of their office furniture.to promote product usage in their fully furnished flats on sale. • Tie-Up with major furniture manufacturers/retailers to use the product . DLF. Ansals.Tie Ups • Tie-up with Builders: Hiranandanis.
Press releases and press kits to be issued. no negative effects on health and safety of users and applicators . • Press Publicity : articles in the media about its eco friendliness .PR Activities • Press conference: journalists to be invited for an information and question-answer session.
• Bring about change in consumer behavior. • Establish the positioning. .Creative Strategy The role of Creative Strategy would be to: • Provide information.
10 lacs 20 lacs 10 lacs 5 lacs .Media Budget PR activities Magazines POP Misc.
to provide doorstep service. with Branded uniform. • „Furniture Corners‟ in furniture retail outlets. • Provision of labor.Alternative Distribution Channels • Exclusive “Asian Paints-Furniture Clinics.” • One furniture consultant per Clinic. .
• Large Building Contractors who provide furnished flats .. Home Solutions. Big Bazaar.Contd. Lifestyle etc. • Direct selling through the existing Asian Paints helpline. • Organized retailers like Shoprite.
600 .Give your furniture Nature’s Touch… Call Asian Paints Home Solutions at 1 .5678 Premium Water Based PU Wood Finish .22.
600 .asianpaints.: 1 .5678 Website:http://www.22. For dealership and more detail: Call on Toll free no.com Premium Water Based PU Wood Finish .Has your wood got the Nature’s Touch……………..
THANK YOU PRASHUN BISHVASH RAGHVENDRA JADAUN PRASHU TYAGI RAGHVENDRA KUMAR RAI PRIYANKA NEERAJ .
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