Professional Documents
Culture Documents
MKTG MGMT Case Study
MKTG MGMT Case Study
MKTG MGMT Case Study
Market segmentation is a marketing strategy which involves dividing a broad target market into
subsets of consumers, businesses, or countries that have, or are perceived to have, common
needs, interests, and priorities, and then designing and implementing strategies to target them.
The whole paint industry has been divided into two segments:
Decorative segment
Industrial Segment
1.
2.
3.
4.
5.
1.
2.
3.
automotive coating
high performance coating
powder coating and coil coating
Include powder coatings, high performance coating, automotive and marine paints.
Two-thirds of the industrial paints produced in the country are automotive paints.
Technological superiority and tie-up with automobile manufacturers.
BRANDING STRATEGIES
Comparison between Nerolac and Asian paints:-
Well, the brand strategy of both the companies is quite different. So, let us look at the differences
between their strategies:
Asian paints concentrating on decorative paints market and they know it is going to be a great
success; And automotive paint market was dominated by NEROLAC paints.Asian paints dominates
40 percent of share in decorative.
5. COMPETITION
6. Major innovation in packaging; one-litre,50-ml (the time during the festival ) Upgrading chuna into
utsav. Went to rural india Gain in respect in mass market with low price and great innovations
Concentrating in niche marketASIAN PAINTS
7. 10,000 dealers in 3,500 towns. Dealer loyalty and widespread retail network and centenary
celebrations with old dealers and employee. Paint is an expensive affair encourage people to use
paints by 1.painting experience 2.And painting resembles an enjoyable experience and good life.
3.targetting regional festivals and occasions. Understand the consumer need of advertising theme,
For your wallsUNDERSTAND THE MARKET
8. Spent Rs.11.5 crores in advertising. Planned to beat the competition on distribution, with 8000
dealers. Better than utsav ,and targeted people who are price-conscious. Mid-market paint (upgrade
of whitewash into powder distemper) Goody synthetic distemperNEROLAC PAINTS
9. Because the strategy NEROLAC used it is not effective as like the Asian paint It went to success
and it cant beat the Asian paints. Goody went in various avatars and introduced 3 premium brands
are; zolocoat,satin-emulsion,gumtex.
Anuj Jain: The new task was to communicate the innovation of the paint, and when you
have something new, a celebrity helps take the message to the people. With this new
positioning of creating an environment that is safe for kids, Shahrukhs personality (because
he represents healthy and happy homes), matched with the message.
Sukhpreet Singh: Its not about the face of the times. Weve always gone with
spokespersons whove identified with leadership and change, with conviction. Were trying
to move paint out of the four walls (paint advertising was always about good looking walls).
What were trying to say now is that paint can actually lead to a better living environment,
whether it is in your house, outside, your locality or your city. It isnt about saving the world,
but about you, your kids and taking care of your family. Our corporate line is also about
transformation: Kuch change karein, chalo paint karein. So thats why Shah Rukh was
chosen; it wasnt about the Khan wars, or because another brand has a Khan endorsing it.
1.
2.
Asian
It
Paints
established
created
network
of
large
company
network
depots
to
of
service
the
dealers
dealers
differentiator
Healthy Paint is a meaningful differentiator but not a powerful or sustainable one. Asian Paints or any other
competitor can easily achieve parity with this feature. Infact Nippon Paint is already running a campaign for its Odour
free paint
product.
In comparison with Asian Paint's focus on colors, Nerolac needed a much more powerful emotional differentiator
rather than a eco-friendly platform because eco-friendly has now become a most used one rather a passe . Every
brand talks about its eco-consciousness in one way or other. So putting that as the main positioning may not stand
against
powerful
competitor
like
Asian
Paints.
Having said that , the presence of Shah Rukh Khan will give a terrific boost to the brand. But this boost will be
because of the celebrity power rather than the brand power and will fade when the association stops. The brand have
adopted the tagline " Kuch Change Karo, Chalo Paint karo " roughly meaning, " Change Something, Start Painting " (
!!!!!!) . Frankly I did not exactly got the idea behind the tagline. The tagline is not at all related to the core positioning
of a Healthy Paint. So there is some confusion regarding the core brand manthra . Theoretically the taglines are
derived from Core Brand Manthra and the lack of that core manthra is the reason for most of positioning errors.
On a branding perspective Nerolac still needs to identify meaningful positioning to beat Asian Paints. Environment
Friendly or Healthy Paint is an idea whose time has not come to India as of now.
As can be seen from the Creative Brief, the ad is strategic in nature, being a part of the
Asian Paints campaign promoting Asian Paints as the brand with the largest range of
colours and one that will satisfy the consumer and is able to give him precisely what
he wants. The advertising through the campaign is single-minded and focussed in its
proposition, communication and target audience. The campaign included TVCs and
other print advertisements as part of the same communication.
At the time, Asian Paints had 13 brands with over 1,100 shades, targeting different
niches. They were beginning to realise that though some brands like Apex emulsions,
Royale interior emulsion, Apcolite and Touch Wood had high recall; none except
Tractor distemper were almost generic. Therefore, they decided to promote the
corporate image and the various brands under their umbrella brand Asian Paints
through their communication, pushing the generic Asian Paints brand instead of
pumping in investment on individual brands. This leveraged on the advantage that
Asian Paints was the one company in this low-involvement segment where people
actually asked for the paint by brand, breaking away from the earlier tradition where
consumers were not known to be very brand-conscious in this low-involvement
segment and, more often than not, relied on what the painter bought for them within
the budget allocated, being more specific about the colour than its source.
Other Considerations
Use the colours, logo and symbol of Asian Paints and Colour World, which are a
pneumonic essential to all brand communication.
Keep in mind that the advertisement should be in line with the overall
communication strategy of the brand and primarily should support the proposition
advertised in the current television commercials mera wala cream, mera wala pink
and kathakalli dancer (TVCs will be sent for your perusal).
During primary research we noticed that persons during the phase of getting their
house painted look for just the right shade and are prone to collecting samples to
visually show their painter exactly what they had in mind and cannot always express
verbally. If this insight is useful, you may incorporate it in your advertising.
ut this campaign failed to inspire any interest in the consumers and the company felt that the market is moving
towards a commodity market where price is the most important differential. Asian Paints undertook a consumer
research aimed at understanding the perception of consumers about the product category. The research revealed lot
of interesting insights. Consumers felt that paints could change the mood of the space and it was a sign of festival
and plenitude.It could make a gloomy place bright and pleasant. From this insight came the campaign of Asian Paints
associating itself with festivals. Research also confirmed that customers tend to repaint their houses on the occasion
of festivities. Thus born the campaign "Celebrate with Asian Paints". The campaigns were carefully crafted and there
were different campaign for different regions. These campaigns effectively enhanced the brand equity of Asian Paints
and established itelf as a premium brand. More than that , these campaign ensured an emotional connect with a
brand in a low involvement category.The brand also phased out many subbrands and rest of the subbrands was
brought under Asian Paint's umbrella brand.
hus came the birth of a wonderful positioning strategy created by O&M. The insight was that the brand is about
people and homes and homes reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai" translated to " Every
Home has a story to tell". This campaign is a perfect example of a brand laddering up and connecting to a higher
level in the mind of the customer. The campaigns reinforced the brand as a premium emotional brand.
Along with the campaign Asian Paints also ran parallel ads for its subbrands. Saif Ali Khan endorsed the premium
brand Royale .For Apex Ultima, the campaign was highly localized and was different in different market.
The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket one designed by
Entreprise IG based in Singapore.The logo/design was to convey self expression, sophistication and Technology.
Taking a cue from the success of Ghar campaign , the brand took ownership of the COLOR. The insight is that each
color has a story to tell. The latest campaign reflects on the color and uses the campaign " Har Rang Kuch Kehta hai"
translated to "Every color has a story to tell".The brand is so serious about the color that it has tied up with IIT to
explore new colors and conduct research on colors.
Asian Paints is a classic branding story and the brand is still exploring and growing.
Asian paints and Nerolac paints can be very well differentiated in terms of their target audience, Asian paints is more in decorative
market while Nerolac is in Industrial market. This difference is highlighted by their websites as well. Nerolac gives us a more
corporate look. Whereas Asian on the other hand is much more lively and fun filled where you can view the website in the colour you
like and other initiatives like ask aparna etc. Asian paints score more on CRM as compared to Nerolac.