Introduction

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 its two field

Consumer product

product
Industrial product

PRODUCT FEATURES
Consumer product Interior Exterior Every surface Plaster Metal Wood Industrial product Protection coating General industrial Coating Automotive coating Powder coating

QUESTION NO. 1
WHAT SHOULD BE THE GENERAL PROMOTION STRATEGY TO BE TAKEN BY BERGER FOR ITS INDUSTRIAL CLIENT?

QUESTION NO. 3 THERE ARE MANY SMALL REGIONAL PLAYERS IN THE MARKET. SHOULD BERGER GO FOR INORGANIC GROWTH BY ACQURING THEM?

QUESTION NO. 4

IN WHAT OTHER AREAS, CAN BERGER DIVERSIFY IN NEAR FUTURE?

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

Current and Potential Competition

Current Competition: Sheenlac ,Pidilite , Sirca , Linea Coats, ICA, MRF Tyres Potential Competition: Goodlass Nerolac, ICI Paints, Berger Paints

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. 10 per square feet Rs. 15 per square feet Rs. 30-40 per square feet Rs. 80-120 per square feet Rs. 120-150 per square feet Rs. 200 per square feet

6) Polyester

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.

Threats
Non-wood materials like plastic, cane, acrylic, wrought iron etc. used for furniture.
Materials like laminates being used to coat wooden surfaces.

INFORMATIVE ( Thinker )

AFFECTIVE (Feeler )

HABIT FORMATION (Doer)

SATISFACTION (Reactor)

Consumer Survey

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 , Safety , Health, Environment and the price they are willing to pay for it.

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 11.5)

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

Importance of Safety, Health and Environment (SHE).

SHE
50

40

30

20

Percent

10

0 Least Important 2 3 4

SHE

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, Polisher, Contractor Low frequency of painting / recoating the house Low awareness about wood finishes Very low awareness for Water-based wood finishes

Analysis (Contd.)
Awareness about real impact of cost not clear. Matt finish preferred over gloss finish.

Majority have concerns over safety , health & environment but are ambivalent on the investment they are willing to make for the same.
Note: Derived out of the open ended question in the questionnaire

Carpenters/ Polishers/ Contractors Interviews ( Sample Size : 32

Location : Mumbai )

Customer ko nahi maloomsirf kareegar ko pataa hota hai

Water based wood finish iske baare mein nahi suna..

Finish hi sabse badiya haipolish 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..

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.

Contd.
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

Target Segments

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

Natures Touch
A Premium Brushable Water Based PU Wood Finish
Rationale: The product is environment friendly and brings out the natural beauty of the wood .

Pricing & Product

Pricing : Pricing should be at same level as that of solvent based PU wood finish . Rationale : Need to create awareness Initiate trials Maybe at later stage of PLC the price can be revised upwards as volumes pick up.

NATURES TOUCH

Product :
Benefits regarding durability must be equivalent to that of solvent based wood finish .

QUESTION NO. 2 AT CONSUMER SEGMENT , CAN YOU THINK OF SOME INNOVATIVE,YET COSTEFFECTIVE PROMOTION AND DISTRIBUTION STRATEGY?

PROMOTIONAL STRATEGY
Objectives

B2B

B2C

B2B communication strategy To generate product

awareness.
Give an incentive to influencer to push/suggest product. To initiate trial.

B2C communication strategy To increase knowledge about category. To involve consumers in the purchase process. To convert product from low involvement to high involvement.

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, Design and Interior as well as inflight magazines. Direct Mail Mailers to customer database already available with the company.

Contd.
Internet Website: Separate link on the company website. Banners: On related websites like www.mumbaiconstructions.com Outdoor POP displays. Posters and sign-boards outside furniture markets.

Promotion Strategy
Glow-signs and other promotional material at large hardware stores. Conventions/Workshops for Architects and Interior Decorators Workshop for carpenters To build awareness and product demonstration and offer incentives to promote usage

Tie Ups
Tie-up with Builders: Hiranandanis, Ansals, DLF- to promote product usage in their fully furnished flats on sale.

Tie-up with Corporates and Hotels: To initiate talks for getting contracts for revamp and maintenance of their office furniture.
Tie-Up with major furniture manufacturers/retailers to use the product

PR Activities
Press conference: journalists to be invited for an information and question-answer session. Press releases and press kits to be issued. Press Publicity : articles in the media about its eco friendliness , no negative effects on health and safety of users and applicators

Creative Strategy
The role of Creative Strategy would be to: Provide information. Establish the positioning. Bring about change in consumer behavior.

Media Budget
PR activities
Magazines POP Misc.

10 lacs
20 lacs 10 lacs 5 lacs

Alternative Distribution Channels

Exclusive Asian Paints-Furniture Clinics.
One furniture consultant per Clinic.

Provision of labor, with Branded uniform, to provide doorstep service.

Furniture Corners in furniture retail outlets.

Contd..
Organized retailers like Shoprite, Big Bazaar, Lifestyle etc. Direct selling through the existing Asian Paints helpline, Home Solutions.

Large Building Contractors who provide furnished flats

Give your furniture Natures Touch

Call Asian Paints Home Solutions at 1 - 600 - 22- 5678

Premium Water Based PU Wood Finish

Has your wood got the

Natures Touch..
For dealership and more detail: Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com

Premium Water Based PU Wood Finish

THANK YOU
PRASHUN BISHVASH RAGHVENDRA JADAUN PRASHU TYAGI RAGHVENDRA KUMAR RAI PRIYANKA NEERAJ