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B2B Pintura Case Analysis Group9
B2B Pintura Case Analysis Group9
Corporation
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 $4 billion, 20 brands and 600 items in its product portfolio. It has an explicit goal of producing more
environmentally friendly products. Lopez (Vice President of product development) plans to introduce a new product “Lema” that addresses
consumer needs, mirror shifts in market growth, adhere to environmental regulations in a profitable manner.
● Pintura is organised into:
○ The Industrial Finishes Group (IFG) – 25% of Pintura’s sales
○ The Consumer Product Group (CPG) – 35% of Pintura’s sales
○ Pintura International (PI) – 40% of Pintura’s sales
IFG’s current position
IFG has an explicit goal of increasing revenue by 5% annually. It makes 25% of Pintura Corporation's sales. Solds GIC directly to large manufacturers and
indirectly through industrial distributors. It does a majority of the research and development in the company, primarily focuses on GICs. Some of its
features- ❖ organised by end users ❖ IFG’s current GIC customers: ❖ Pricing (derived using standard bulk units):
substrates as follows: ● Furniture (30%) ➢ Solvent based wood coating
○ Plastic coatings ■ 28$ 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
03 PLACE ●
●
300 distributor with good market coverage
Salesforce include expert who provided demonstration, testing and
recommendation for improved applications
As there is increase in revenue and contribution, therefore IFG should introduce LENA focusing on product
differentiation.
Thank you