KLeague Crew

Pranav Patki, Nishtha Dogra, Shubham Patil

IIM Kozhikode
Research & Insights Understanding DIYers Market Analysis Future Product Mix Strategy Recommendations

Convenience, quality and inspiration drives the Indian DIY consumer market
Qualitative Insights from Interviews
Nature of work
DIY when estimated time to completion & perceived complication less
Bathroom, kitchen, flooring, tiling work more likely to be given to
contractors over similar perceived duration painting work
Quality over Price
Preference for quality over price, with focus on performance & safety
“AP stands for reliability”
Source of Inspiration
Propsective DIYers find actual demonstrations, people in social circles
and online videos and descriptions helpful to take up DIY projects
Planning Period
DIYers don’t plan projects much in advance: 80%<3 months 95%<6 months
DIY spontaneous or with a higher planning period for interested DIYers

Brand Loyalty Sustainability Focus

Existing and prospective DIYers are not brand loyal and would be Shift in current and interested DIYers towards valuing sustainability
willing to explore more products willingly Increased preference for eco-friendly products.

Numerical Insights from Surveys Only 16% attribute no DIY to cheap labour availability
• Smartphone most prominent device for DIY information search Factors behind engagement in DIY:
(80%) Sources of DIY Inspiration: Breaking For enjoyable For house Bonding
the routine living upkeep activity
60% 48% 41% 34% 58% 54% 51% 51%

Preferred DIY Activities: Secondary Research Insights

Painting Gardening Water- Furniture • High Power Distance cultures like India and China have negative impact on DIY
68% 32% Proofing 26% 26% • High Power Distance effect mitigated by increasing customer commitment
• Male DIY consumers perceive male retail staff as more knowledgeable
• Store needs to be made more inclusive given the rise in female DIYers
Factors behind non-engagement in DIY:
• Light DIY, increased perceived value, makes it easier to sell or rent a house
No Time No Knowledge No inspiration No tools Consumer Consumer Contractor Secondary
50% 42% 31% 30% Survey Interview Interviews Research
 Research & Insights Understanding DIYers Market Analysis Future Product Mix Strategy Recommendations

CUSTOMER SEGMENTATION CONSUMER PROPENSITY

Potential DIY Market = DIY for Fun + DIY for Repair & Maintenance
Segmentation is done on basis of
level of involvement and experience in DIY activities
15% of the respondents undertook DIY for fun and 16% for functional upkeep atleast once a month
since it has the strongest impact on buying behavior

50% of non-DIYers preferred undertaking DIY for maintenance; 50% chose DIY as an expression of creativity
DIY Champions
• Highly involved in DIY DIY products for upkeep would see a rising demand: cost (labour) saving, health concerns & ease-of-use
• Use sophisticated tools
• Have high DIY knowledge DIY products for fun to expand: creation of a WFH cabinet, expression of creativity, desired perfection of output
• Willing to spend more time
• Highly inspired CUSTOMER DECISION MAKING PROCESS
• Confident about their skill
Information Alternative Post-purchase
• DIY for fun, renovation or Need Recognition Purchase
Search Evaluation evaluation
both
• House upkeep • Primarily Online- • Check availability • Durable and • Satisfaction
Fence Sitter DIYers • Fun during the DIY YouTube, Google of options in the environment- with the product
• process and Instagram desired mode friendly products offering and the
Low experience in DIY
• Refreshing break mainly using • Comparison of preferred activity
• Use basic tools
from the routine smartphones price & quality • Motivational outcome
• Have less DIY knowledge •Desirable/ • Offline- inquiring among the existing factors- easy
• Unwilling to spend much time enhanced living as friends options (quality>price) availability, • Convenience
• Low inspiration & skill level end goal • Precedence of • Checking customer extensive options of usage and
• Need based decoration/fun, • Bonding activity easy-to-use tools reviews and how-to- in terms of choice durability
light upkeep DIY over brand videos online and inclusive store evaluated
environment

No DIY PAIN POINTS IDENTIFIED

• No experience in DIY and
High dependence Requirement of
lack time, skill, knowledge Absence of Lack of options Absence of a
on labour for specific-search
or inspiration for the same expert/guidance for a Lack of availability robust feedback
upkeep and for encountering
renovation DIY kits online confident purchase offline mechanism
 Research & Insights Understanding DIYers
Global DIY Home Improvement
Market is expected to accelerate at a
CAGR of around 4% in the period
2019-2023
Revenue for Toys, Hobby & DIY in India is
expected to grow at CAGR of 11% (2020-2024)
Competitive landscape
Market Share- Indian
32% Paints Industry 2019
39%
Asian Paints
Berger Paints
Kansai Nerolac
Paints
6% AzkoNobel India
Others
11% 12%
‘ezyCR8’ range of
products in Décor,
Product
Repair &
Portfolio
Maintenance and
Health & Hygiene
Range described on
Communication website, How-to-do
Strategy
YouTube videos, DIY
Ideas on website blog
Market Analysis Future Product Mix Strategy Recommendations
Disruptive Potential of DIY in India:
Drivers for Growth- Adoption Barriers for DIY in India:
• Surging demand for urban housing • Easy availability of cheap labor
• Rapidly growing economy with rising • Lack of awareness
middle class • Low recognition for DIY in organized retail
• Growing disposable income • Cultural factors such as high power distance
• Infrastructure growth
Aggregator vs DIY Model:
• Foreign firm like IKEA known for their DIY furniture had to tie up
Fragmented market in DIY space with Asian with an aggregator like UrbanClap in India to help put together
Paints being a major player furniture
• Berger Paints also introduced an aggregator model in order to
increase market share by creating inventory of contractors.
Comparison between major paint companies • Pure DIY is still a niche segment in India and it will take time for
for DIY offerings in India this segment to grow.
Organized retail scenario:
• Firms like Home Depot, Lowe’s drive DIY product sales in USA
No separate • India’s organized retail scenario has players like Reliance Retail
DIY range & and specific home improvement retail chains like Shankara
No separate No separate Building Products and Praxis Home Retail have low recognition
more focus on
DIY range DIY range
Express for DIY products in their stores.
Painting • Mr. DIY is another player from Malaysia which has stores in India.
Dulux India
DIY Category One video on
channels void • Asian Paints has differentiated itself from other paint companies
on website blog YouTube and
of DIY but
with posts once one blog article by creating DIY range of products
present in
in 3 months on website • Although DIY market in India is still in its nascent stage, it could
Dulux UK, Aus
pick up and cause disruption in which case Asian Paints is well
positioned to benefit.
Research & Insights Understanding DIYers
DIY range to be
positioned as ‘go-to’
range for enthusiasts
ezyCR8 Decor
+ +
 Ombre kit- Three shades of
spray cans to create an ombre
effect
 Range of colour glittered paint
sprays that can be used to create
patterns on the walls or furniture;
decoration in festivities
 Temporary tile stickers for
festivities
Market Analysis
Portfolio expansion through new product additions
for
Need based DIY (repair and maintenance) &
Willing DIY (fun and pleasure)
ezyCR8 Range
ezyCR8 Repair & Maintenance
 Wood staining sprays to
enhance/change colour of an old
furniture
 Varnishing cans for wooden
furniture
 Tile glazing spray cans for
restoring the shine and polish
 Spackling paste for holes and
gaps on the walls
 Texture repair spray cans and
primer set
Future Product Mix Strategy Recommendations
Blue Ocean strategy to bring
more customers into the fold with
diverse and appealing range
ezyCR8 Health & Hygiene Enhance the
convenience and
position as a self-
sufficient range
Offer kits comprising
of the necessary
ancillary supplies
+
 Activity set comprising of anti-
bacterial paint and stencils
 Humidity & steam resistant, Enhance
supplements for
protective spray paint range for
improving variety
creating designs on bathroom
of output
wall tiles + complementary stencil
designs
 Heat resistant protective spray
Multiple type of
paint and stencil range for
stencils to be sold to
decorations on kitchen tiles and
encourage creativity
walls
which can be easily
achieved
 Research & Insights Understanding DIYers Market Analysis Future Product Mix Strategy Recommendations

Campaign KPIs Rationale

#APnaDIY hashtag contest- # of mentions, User-generated
Objectives: Posting DIY project pics and interactions, influential content generation
select posts are featured or interactive authors for engagement
• Lead Generation
• Conversion CTR, CPC, bounce Leveraging most
Paid Search Ad (PPC) on Guided
• Engagement rate, average session common digital
Google for lead generation Selling:
duration touchpoint
Opportunity of
DIY Champions # of emails opened,
Email Marketing Campaign direct and
CTO rate, bounce rate, On-demand
to drive conversions impactful
CTR, conversions appointments
conversation
with interior
decorator on
Ads on select YouTube CTR, CPC, bounce Leveraging social focused
Objectives: channels, videos and Facebook rate, average session media information forum on
for lead generation duration search app/website
• Awareness
• Lead Generation
Influencer Marketing- Targeted ads Reach and Leveraging
via collaboration with Social Media Engagement metrics influencer reach to Guided
Fence Sitter DIYers
Influencers (How-To Videos) (Likes, shares, etc.) create awareness Activity

TV and Print Ads conveying ease Gross Rating Points Mass awareness
of use and # of call-to-action campaign focused App/website
Objectives: successes respectively on easy use forum for
Offline activity in malls or public Trial engagement DIYers to
• Awareness Event Footfall, # of solve each
• Encouraging Trial places to promote ease of use and and organic
hashtag mentions other queries
having a selfie contest with #ezydiy promotion
and share
`:
No DIY Reach and
User-generated videos of DIY on work
Focus on effect of
Instagram handle of Asian Paints Engagement metrics
positive WOM
(Likes, shares, etc.)
 Research & Insights Understanding DIYers Market Analysis Future Product Mix Strategy Recommendations

Pain points identified Proposed solution COST CALCULATION OF PLAN

NEED RECOGNITION Campaign Channel Cost(INR) Assumptions

Positioning of ezyCR8 range #APnaDIY hashtag contest Instagram 0 Organic
High dependence on
as a ‘self-sufficient’ kit; Influencer Marketing- Fence
labour for upkeep and Instagram 50000 Fixed Rate
short tutorial videos on Sitters
renovation
Instagram User Generated Posts Instagram 0 Organic
#APnaDIY hashtag contest Facebook 0 Organic
INFORMATION SEARCH Lead generation- Fence CPC, 19000 impressions/day, 1% CTR, 15 days, Rs
Search Engine Facebook 285000
Requirement of specific- Sitters 100/lead
Optimization to promote
search for encountering Asian Paint’s DIY range on Skippable Ads- YouTube YouTube 4987.5 CPC, 19000 impressions/day, 0.7% CTR, 15 days, Rs
DIY kits online 0.25/click
web search
Influencer Marketing- Fence
Sitters YouTube 1000000 Fixed Rate
ALTERNATE EVALUATION
CPC, 19000 impressions/day, 1.1% CTR, 15 days, Rs
Guided-Selling technology Paid Search on Google Google 470250 15/click
Absence of on website and app to ease
expert/guidance for a TV Ad-No DIYers 2 channels 560000 20 sec Ad for 2 channels for 7 days
selection and ordering of
confident purchase products
Email Campaign Gmail 5000 50,000 Emails
Mall Rent Offline 80000 20,000 per hour- 4 hour event
Print Ad Offline 200000 Fixed Size Ad TOI
PURCHASE
Ensuring availability in the   Total (in INR)*  
Lack of options 2,655,238
Lack of availability organized retail chains
offline and the dealer network

POST-PURCHASE *Approximate cost ~ 25-30 Lakhs owing to variability in the digital plan
EVALUATION Introducing an interactive All you need to paint is a few tools, a little
Absence of a robust feedback section on the instruction, and a vision in your mind.
feedback mechanism app and encourage -Bob Ross
consumer reviews

THANK YOU
 APPENDIX

1. AR 2020, 2019 Asian Paints, Berger, Nerolac, Akzonobel

2. Conference calls transcripts Asian Paints 2020, 2019, 2018
3. Company websites Asian Paints, Berger, Nerolac, Akzonobel
4. Statista India Toys, Hobby – DIY report
5. Statista India Garden Pets – DIY report Sample section of report- Indian Paints Industry Outlook,2022
6. Sampling section- Indian Paint Industry Outlook, 2022
7. Analysis of Sherwin Williams, Benjamin Moore
8. https://stratoserve.com/2011/01/the-do-it-yourself-diy-market-is-different-in-india-no-one-does-diy.html
9. https://www.thedrum.com/opinion/2020/04/17/what-the-impact-covid-19-the-diy-industry
10. https://www.bloomberg.com/news/articles/2019-02-22/diy-fades-as-paintmakers-cater-to-a-new-favorite-do-it-for-me
11. https://www.business-standard.com/article/companies/asian-paints-to-focus-on-kitchen-and-bathroom-dor-space-for-f
uture-growth-115021300865_1.html
12. https://www.wordstream.com/blog/ws/2017/02/28/facebook-advertising-benchmarks
13. Cost calculations- https://www.themediaant.com/