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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
48%
30%
Alkyd
12%
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
Weaknesses
Low Awareness about wood finishes.
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 )
SATISFACTION (Reactor)
Consumer Survey
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)
Percent
50
40
30
20
Percent
10
Importance of Brand
Brand of the wood-finish
50
40
30
20
Percent
10
Preference of Finish
Matt vs Gloss
50
40
30
20
Percent
10
Matt vs Gloss
Importance of durability
Durability
60
50
40
30
20
Percent
10
0 2 3 4 Very Important
Durability
40
30
20
Percent
10
0 Least Important 2 3 4
Ease of application
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 (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
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 )
Target Segments
Positioning
A premium easy to use wood finish which
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 .
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
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
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
Contd..
Organized retailers like Shoprite, Big Bazaar, Lifestyle etc. Direct selling through the existing Asian Paints helpline, Home Solutions.
Natures Touch..
For dealership and more detail: Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com
THANK YOU
PRASHUN BISHVASH RAGHVENDRA JADAUN PRASHU TYAGI RAGHVENDRA KUMAR RAI PRIYANKA NEERAJ