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Pintura Corporation: The Lena

Launch Decision
Group 6
Bandi Niharika (PGP10196)
Komaritha Sree Vommi (PGP10211)
Sejal Ved (PGP10230)
Sheena Rathore (PGP10231)
Siddharth Gautam (PGP10233)
Rallapalli Vishal (PGP10239)
Case Highlights
● Pintura Corporation, headquartered in midwestern US, developed, manufactured & distributed paints, coatings etc.
● The main customers of Pintura were industrial, commercial, professional and retail
● US industry leader in quality for factory-applied water-based wood coatings
● Had a product line of over 20 brands & 600 items & annual revenue approximately $4 billion
● It was organised in three major divisions :

Division % Sales Customers

Industrial Finishes Group 25% Industrial & commercial customers in US

Consumer Products Group 35% Professional & DIY consumers in US

Pintura International (PI) 40% Industrial consumer outside US


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IFG’s current position
● Industrial Finishes group accounted for 25% of Pintura’s sales
● IFG was responsible for most of Pintura’s R&D , which focused primarily on innovations in GICs
● Global market for GIC segment made up around $24 billion annually in 2016
● Approximately 25% of this market was held by US manufacturers
● Water-based coatings accounted for 47.5% of total revenues from wood coatings
● IFG was organized into end users substrates. There market share was -
○ Plastic - 6.25%
○ Metal - 16.67%
○ Wood - 27.08%
○ Total Revenue - 16.67%
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Estimates for annual sales of power based coatings
Microsoft Excel

by customer groups Worksheet

● Keeping the sales forecast into account, the sales


unit were calculated.

● Based on Lopez forecast, the number of powder


based coatings sales are calculated as well as the
number of sales unit for Water and Solvent
coatings is calculated

● The results show that total revenue has increased


due to the introduction of the powder based
coatings.

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Cannibalization Potential
Looking at the difference in the percentage of sales over years of Water-based and Solvent-based coatings, it can
be observed that the cannibalization of other coatings is reducing and is not much impacting the sales

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Marketing Mix & Strategy
STP: Furniture and other wood companies would be our focus, as according to the survey 60% of these buyers were ready to switch. Also,
they pay attention to aesthetic qualities of coatings as well as low environmental impact and we can charge higher price.

Product branding: It will be added to the same product line, as it is estimated to capture substantial market share, also cannibalization is
going down in years. Lena should be promoted as a superior substitute to solvent based coating based on its quality, attractiveness and
durability because it contained no solvents

Price: We will go with $38 per unit according to Lopez. It is believed that customers will be willing to pay higher price due to added benefits.

Channels of distribution: We can include telephone sales as we will be investing in electronic media as well which by-passes the
distributors and allows to save 21%, along with distributors and sales force.

Communications: Keeping in mind the cannibalization, we will initially try to invest more in Sales Force and Distributor, and then assign the
remaining from $2 million into building the brand through advertising, publicity and electronic media. In the next year, we will work more on
electronic media and publicity.

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Thank You