Pintura Corporation:

The Lena Launch

Decision

P R E S E N T E D B Y- W O R K I N G G R O U P A 1

Anshay Jain- 21M103

Krishnan M R- 21M114
Samiksha Agarwal- 21M126
Shivam Deol- 21M128
Shloke Saha- 21M130
 INTRODUCTION
Place of origin Product Division
United State Paints , Coating IFC, CFG, PI

Global market-GIC Segment

$24 billion

IFG’s Situational Analysis

• Sell paints, coating, and related products and accounted for 25% of
Pintura’s sales.
• Accounts for 47.5% of the total revenue of wood coating.
• IFC’s current GIC customer groups for wood coatings included furniture
(30%) flooring (25%), cabinetry (205, and other woproductsuct and wood
baskets (25%)
• Sales accounted for by Distributors
o 51% of all sales of wood coating
o 65% of flooring sales
o 70% of cabinetry sales.
 Problem
Statement
IFG has developed a new performance, environmentally, friendly
hardwood coating product called Lena to make a difference in the
market and is concerned about whether or not to launch the product,
cannibalization of existing products of the company, market growth,
and the channel of distribution and another aspect that company had
a problem deciding.
Comparison between Liquid and Powder based coatings

  Liquid-based coatings Powder-based coatings

Product benefits  Lower material cost  Durability

 Minimal equipment costs (if already  Versatility
EPA-compliant)  Environmental friendliness
 Minimal training costs  Antimicrobial properties
 Compliance with EPA standards

Product limitations  More material waste  Higher material cost

 Inconsistent quality  Higher equipment cost
 Limited versatility  Higher training costs

Annual growth rate  Declining for solvent-based  10% annually

  coatings  
 Flat for water-based coatings

Life-cycle stage Mature Growth

Lena has the following comparative
benefits over customary liquid-based
coatings for hardwood:

• Durability

• Shape Flexibility
• Sensitivity to the environment
• Value for money

• Flexibility of Coating
Categories Water based( $ M.) Solvent based ( $ M.) Total( $ M.)
Furniture 136.5 58.5 195
Flooring 32.5 130 162.5
Cabinetry 26 104 130
Others 113.75 48.75 162.5
Annual Revenue 308.75 341.25 650
Price per Unit ( in Dollars) 34 28
Units Sold 9080882.353 12187500 21268382.4
Unit Contribution ( in Dollars) 12.92 13.72
Total Contribtuion( in Million Dollars) 117.325 167.2125 284.5375

• Before Lena was introduced, there had been a total donation of $284.54 million.

• The expected revenues, units sold, and total contribution can be determined while accounting for the cannibalization
of sales from the Water-based and Solvent-based categories if Lena is introduced and Lopez's forecasts are accurate.
The end scenario is as follows: The expected revenues, units sold, and total contribution can be determined while
accounting for the cannibalization of sales from the Water-based and Solvent-based categories if Lena is introduced
and Lopez's forecasts are accurate.
The end scenario is as follows: Post 'LENA' 's Introduction
Categories Sales in Million Dollars    
If Lopez's projections are correct, Lena would
contribute around 20% of total sales in the flooring and Powder % Of Total
cabinetry industries and more than 50% of the total   Water based Solvent based Based Sale Total
sales in the furniture and other category following her   (in $ M.) (in $ M.) (in $ M.)    
launch. There would be a net contribution of $284.73 Furniture 54.6 35.1 105.3 54% 195
million. As can be seen, the total contribution would Flooring 26 104 32.5 20% 162.5
likewise rise by $200,000. Additionally, it is reasonable
Cabinetry 20.8 83.2 26 20% 130
to expect that the market for powder-based coatings
Others 45.5 29.25 87.75 54% 162.5
would grow as a result of Lena's acceptance because it
would improve the products' durability, attractiveness, Annual Revenue 146.9 251.55 251.55 39% 650

profitability, and environmental friendliness for Price per Unit (in Dollars) 34 28 38    
consumers across all categories. Therefore, Lena's
Units sold 4320588.24 8983928.571 6619736.842    
introduction would be beneficial for the organisation.
• . Units Sold (Rounding off) 4320588 8983929 6619737   19924254

Contribution per Unit (in

Dollars) 12.92 13.72 15.96    

Total Contribution (in Million

Dollars) 55.821997 123.2595059 105.6510025   284.7325
Issues which Pintura Corporation could face:

• The first question is whether IFG should brand Lena as Pintura because doing so would cannibalise Pintura's already existing line
of solvent-based coatings and reduce IFG's annual contribution margin; however, using Pintura's brand name with Lena will
increase contribution margin for Pintura's water-based coatings.

• Because Pintura now wants to emphasise environmentally friendly product offerings as the foundation for future growth and
because water-based coatings also have negligible or no pollutants, customers may be confused if Lena was advertised as an
environmentally friendly substitute for all liquid-based coatings. The second question is whether IFG should promote Lena as a
superior alternative for water-based coatings, solvent-based coatings, or both.

• Since the market for powder-based coatings is expanding and expected to become saturated in a few years, Lena should be
introduced. If Pintura misses this chance, it might be too late.