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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

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%
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

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

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.

Thank You