Pintura

Corporation
Submitted by : Group 9
Aman S (PGP10128)
B.S. Sravanthi (PGP10140)
Monika (PGP10155)
Prithwi Banerjee (PGP10164)
Rohan Kamath (PGP10167)
Sakshi Choudhary (PGP10168)
Introduction
● Pintura develops, manufactures and distributes high-quality paint, coatings and related products to industrial, commercial, professional, and retail
customers. They have an annual revenue of $4 billion, 20 brands and 600 items in its product portfolio. It has an explicit goal of producing more
environmentally friendly products. Lopez (Vice President of product development) plans to introduce a new product “Lema” that addresses
consumer needs, mirror shifts in market growth, adhere to environmental regulations in a profitable manner.
Pintura is organised into:
The Industrial Finishes Group (IFG) – 25% of Pintura’s sales
The Consumer Product Group (CPG) – 35% of Pintura’s sales
Pintura International (PI) – 40% of Pintura’s sales
IFG’s current position
IFG has an explicit goal of increasing revenue by 5% annually. It makes 25% of Pintura Corporation's sales. Solds GIC directly to large
manufacturers and indirectly through industrial distributors. It does a majority of the research and development in the company, primarily focuses
❖ organised
on GICs. Some of itsbyfeatures-
end users ❖ IFG’s current GIC customers: ❖ Pricing (derived using standard bulk units):
substrates as follows: ● Furniture (30%) ➢ Solvent based wood coating
○ Plastic coatings ■ 28$ per unit
● Flooring (25%)
■ COGS of 14.28$
○ ● Cabinetry (20%) ■
Metal Coating Waste is 12% to 30%
○ ● Others(25%) ➢
❖ Hybrid channelWood Coatings
of distribution: Water based wood coatings
➢ Inhouse salesforce (100) ■ 34$ per unit
➢ Network of distributors ■ COGS of $21.08
■ Dependent(300) ■ Waste is 12% to 30%
■ Independent
Distributors accounted for 51% of total sales of wood coatings. Also
distributors charges 21% selling and fulfilment fee
Sales estimate after launch of Lena
Cannibalization potential of Lena to IFG’s existing product lines

● Lena would cannibalize a sales amount of $222.3 million, which is approximately 34.2% of the current total
revenue in IFG’s wood coating sales
● IFG has an explicit goal of increasing revenue by 5% annually, which sets a target for Lena to achieve a sales
revenue of $254.8 million in the first year, the prospect of which is quite positive due to Lena’s high
contribution margin of 42% and a 10% annual demand growth in powder-based paints
LENA: Marketing Mix
● Powder based coating product ( Increase in annual sales by 10 %)
● Environment friendly product

01 PRODUCT ●
●
First mover advantage
Versatile and durable
● Cost effective

● Cost effectiveness

02 PRICE ●
●
Selling price at $38/unit and COG at $22.04/unit
Pricing contributes a margin of $15.96/unit

● In- house salesforce focusing on manufacturer

● Indirect sales to independent distributor

03 PLACE ●
●
300 distributor with good market coverage
Salesforce include expert who provided demonstration, testing and
recommendation for improved applications

● Investment of $2 million in first 12 months and $1 million in next 12

04 PROMOTION ●
months
Promotional tools include: Salesforce ($5,00,000), Distributors
($7,00,000), Publicity ($5,00,000), and electronic media ($7,00,000)

As there is increase in revenue and contribution, therefore IFG should introduce LENA focusing on
product differentiation.
Thank you