Contents 1)IndustryAnalysis 2)BrandAnalysis 3)BrandProcess 4)BrandCulture 5)ConsumerImageTrack 6)BrandAttributes 7)SWOTAnalysis 8)BrandAttributesofCompetitors 9)CompetitionDashboard 10)NewStrategicBrandingIdeas 11)Conclusion 12)PhotoFeature

Structure

TheIndianpaintindustrycomprisesthreesectors:tiny,smallscaleandorganised.Innumer-abletinyunitsexist,occupyingjustaroomortwoandnomeaningfuldataofthevalueoftheirproduc-tionisavailable.

The small units consist of three different groups:

a.Unitsproducingcheaperpaintswithlim-itedtechnicalknowledge.

b.Unitssetupmainlybytechnocratsproduc-ingindustrialpaintsforspecialuses.(Thisgroupisdoing well because they cater to specific and limited demandsunsuitableforlargescaleproduction.)

c.Unitswhichworkincloseliaisonwithlargeunitsandsupplementtheirproduction.Thisupgradestheirtechnicalskillandfreesthemfrommarketing problems. This is also beneficial to large unitsasitfreestheirproductioncapacityforhightechnologyproducts.

Productioninthesmallscalesectorin-creasedform10,000tonnesperannumin1950,to84,000tonnesin1979andto200,000tonnes(ap-proximately)in1991.Theshareofthissectorhasconsistentlyrisenfrom25%in1950toaround50%in1991.

Segmentation

Surprisingly,theRs.3,600crorepaintindus-tryhasnopublicsectormanufacturingunitandcom-pleteownershipisvestedinthehandsoftheprivatesector.Thismaybeindicativeofthefactthatinthepast,thegovernmentperceivedpaintstobealuxuryproductandtaxedtheindustryheavily,therebyrel-egaing this industry toanon-corestatus.Theclas-sification of the paints industry can be made either product-wiseorsector-wise.Inthesector-wiseseg-

mentation, this industry can be classified into the or-ganizedandunorganizedsectors.

Product-wise,paintsarebroadlycatergorizedinto1.decorative paints2. industrial paints

Incontrasttoglobaltrends,whereinindustrialpaintswithashareofnearly60percenttakeprimeimportance, the domestic industry is dominated bydecorative paints with an imposing share of nearly70percentofthepaintsmarket.amajorportionofdemandfordecorativepaintsisfromfreshcoatsonexisting wall finishes. Thus, the fortune of this seg-ment are closely linked to the construction activityinthecountry.Intermsofvolume,thoughtheindus-trial paints segment has made significant gains, it still trailsbehinddecorativepaints.

Coming to the sector-wise classification, while the organized sector with nearly 24 playerscontrols55percentofthemarketforpaints,theun-organized sector comprising 2000 plus small scaleunitsaccountsforthebalance45percentmakingitaforcetoreckonwith.Assophisticatedtechnologyis not a prime requisite for manufacturing decora-tive paints, the industry is flooded with a number of smallplayerscateringtothelower-endofthemarketbysupplyinglowvalueunbrandedproductsinsmallquantities.

Inthedecorativepaintssegment,whileboththesectorshaveashareofnearly50percenteach,theshareoftheunorganizedsectorinindustrialpaintsislimitedtoroughly35percent.Thisisbecausetech-nology is theoverriding factor in this segment andindustrial paints require constant upgradation andservicing.

Thesluggishvolumegrowthinthepastwasduetohighexcisedutiesleviedonpaintsmanufac-turedbyorganizedsectorplayers,makingtheirprod-uctsunaffordable.Thiswastheperiodduringwhichthe unorganized sector flourished because of a sub-stantialpricedifferencebetweenpaintsmanufacturedbytheunorganizedandorganizedpalyers.

In contrast to the decorative paint business,tappingtheindustrialpaintsegmentisnotbybrand-building or establishing a distribution network butthroughgettingtherightforeignpartner(fortechnol-ogy)andcaptivecustomers.Whiledecorativepaintmanufacturersneedtooffervarietyandhaveawide

INDUSTRY ANALYSIS

reach tostayaheadofcompetition, industrialpaintproducersneed tobecompetitive in termsof tech-nologyandservice.

On the basis of price, decorative paints can be broadly classified into:

Premium Medium Popular Product Description

Super-acrylicEmulsions,PremiumEnamelsPlasticEmulsions,High-qualityacrylicdistempersLow-qualityacrylicdistempers,oil-bounddistem-pers,lacquer,enamels,varnishesPrice Range(per litre)Rs.250-400Rs.150-200Rs.40-100Target SegmentUp-market buyersHighincomegroup&UppermiddleclassMiddleclass&RuralmarketKey Purchasing Factors Quality, Surfaces, Influencers,

Dealers pushQuality,Surfaces,Shades,

Dealers pushCosts,AvailabilityEstimated Growth>15%>20%10-15%Leading Brands (Manufacturer) Royale(Asian Paints), Velvet Touch(ICI), LuxolSilk(Berger),HossainCollection(Shalimar)Apcolite(AsianPaints),Nerolac (KansaiNerolac),Dulux(ICI), Silkl(Berger) Gattu, Tractor (AsianPaints),Bision(Berger),Maxilite(ICI),Jensolin(J&N) Withhighlyprice-sensitivedecorativepaint

segment,enamelsaccountforalargesharefollowedbydistempers,cementpaintsandacrylicemulsions,in that order. Distempers, the low value productswhich account for nearly a fifth of decorative paint saleshavebeen the traditional forteof smallplay-ers.

Amongpaintmajors,AsianPaintsproducesall typesofpaintsexceptingcementpaints,BergerPaints,ICIandJenson&Nicholson(J&N)manufac-ture syntheticenamelsandemulsionswhileGood-lassNerolacmakessyntheticenamels.Intheorgan-izedsector,Snowcem(India)specializesincementpaints.Oneofthenotablefeaturesofthisindustryisthateachmajorplayerhasaspecialityproductinitsprotfolioofdecorativepaints.

In the premium category of acrylic emul-sions, the contenders are Duette, Dulux Weather-shieldandDuluxVelvetTouch(ICI),Royale(AsianPaints)andLuxolSilk(BergerPaints).Thevariousbrandsvyingfor the tophonors in themiddleseg-mentareDulux(ICI),Apcolite(AsianPaints),Su-perlac(ShalimarPaints),Rangoli,VinylandLuxol(BergerPaints).

Nowplayersareeyeingtheprice-drivenpop-ular (mass) segment inwhichAsianPaints has al-readymetwithconsiderablesuccesswithlow-pricedbrandslikeUtsavandTractor.ICI’sFarco,Supercoteand Maxilite; Goodlass Nerolac’s Goody, BergerPaints Butterfly and Shalimar Paints’ Diamond are the other low-priced brands fighting it out.

Ontheotherhand,industrialpaintscompriseautomotivepaintsgeneralindustrialpaints,highper-formancecoating,marinepaints andcoil coatings.Automotivepaintsconstitutesalargeshareofindus-trialpaintsmarketwhichrequirehighqualitystand-ards,supplierreliabilityandabilitytooffercompletecoatingsystems.Theyareusedforgivinghighqual-ity finish to automobiles.

High performance coatings are applied inplants for fertilizers, petrochemicals, offshore oilandatomicenergyinstallationswhereanticorrosionisveryimportant.Powdercoatings(water-based)arefreeofsolventandareusedinconsumergoodslikewashingmachines, refrigerators etc.Marinepaintsareusedforpaintingshipsandvesselstomakethemwaterresistantandcorrosionfree.

Brand attriButesBrand Benefit

Duluxisthemarketleaderintheluxuryemul-sioncategoryinmostmetropolitancitieswherethereismaximumdemandinthesaidsegment.Theluxuryemulsioncategoryoficiduluxiskepttoaminimumofoptionsinitsproductvarieties,whichononehandmakesiteasierforthecustomertochoosebutontheothermightalsosidetracktheconsumerfromchoos-ingthebrandfortheiruse.

The brand benefit the category has established is that, its customersknow that dulux luxury emul-sionisthebestpossibleoptioninthecategory.Itun-derstandstheneedsoftheconsumerandwhenthosehavebeenunderstood,theconsumerfeelsthatheisinsafehandswithduluxandthereforeheisreadytopaythepremiumdemanded.

Relevance Brandpresenceinrelevantareasandtargetau-dienceisimpressiveevenwithamoderateapproachinmostmediaofadvertising.Thebrand’sreachinandarounditstargetareasisgreat,withastrongcompeti-tor thathasabetterpresence inallother categorieswhichworksintheirfavor.

Dulux however has narrowed a consumer’schoicefromtheapproachpointitselfwhereitsqual-itychallengemakesthebrandcomparativelystrongerthanitscompetitors.

Thebrandbelievesinrelevantmarketingap-proach.Theyalsobelieveinstrengtheningtheweakendsandmakingthestrongeronesunbreakable.Thebrand is well known and well appreciated amongstits competitors and undoubtedly has an upper handin terms of guarantee and novelty value to be the first to launch themanyoptions in the luxuryemulsionscategory.

TheonethingthatmakesDuluxdifferentfromtherestisthatintheeyesoftheconsumer,Duluxisnotapartoftheratrace.Asaconsumer,youeitherhaveitbecauseyouknowitscredibilityorDuluxasabrand does not hold any significance for you.

Pricing

Dulux is significantly expensive than its competitorsinthesaidcategory.Pricingitata20%premiumautomaticallyeradicatesthedoubtoflackofquality; it insteadgives reassurance to the con-sumer.Duluxhasnotsubsidizeditspricesbecauseitcommandsapremiumandbelievesinbeingabovethe fight for price competition.

Itisagreatproductlinewithalotofroomfor improvement place is an integral part of posi-tioning thebrand.Thefact thatmaximumsalesofDuluxLuxuryemulsionstakeplaceinthetieronecitiesofIndia,ithasrestricteditspromotionstothesameareas.

(The above diagram shows the price difference in the top six Indian paint brands in the last three years.)

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Asian PaintsRoyale

NerolacImpressions

Berger Silk

ICI DuluxVelvet Touch

Shalimar Superlac

Jenson &NicholsonSpecial Effects

ConsistencyQuality Consistency: Dulux interior emulsions have received thebest feedback and also the most reliable durabilityguarantee.Theproductsinthissectorareconsumedbymostinteriordesignersaswellasindependentcon-sumers.Duluxconductsyearlyqualitychecksaswellasbrandrelevancecheckswhichhelpinnovateorre-invent theexistingbrandsaccordingtotheconsum-er’sfeedback.

Service Consistency: Diligenceinrespondingtocomplaintshasnowincreasedthereliabilityofthebrandaswell.Onthe

Positioning ICI Dulux luxury emulsion products havepositioned themselves as the ultimate solution forachievingtherightluxurylookwithgreatdurability.Itpositionsitselfasthepioneerofthewashablepainttechnology.Distributionandavailabilityateverypos-sibletionchainwhichnotevenservesthetieronecit-iesbutalsothetier2andthreecities.

When it comes to outdoor branding Duluxinteriors are not visible enough which occasionallyworks against the sales of the products. Even afterhighavailability,andagoodenoughdistributionthebrand sometimes fails to top the chart of the brandrecallofconsumers.Thebrandhasnotbeenreposi-tionedasyetinanypossiblewaytillthepresentday.This makesbrand resonancepossible with consum-ers.

TheTVadvertisementof thenannysmooth-lywipingthewallwithaspongeafter the littleboymakesfootballmarksonit.Attheendoftheadver-tisement, the wall is as clean as new. The ‘VelvetTouch’rangeinDuluxinterioremulsionsisthemost

(The Graph Below shows the sales percentage of Du-lux Velvet Touch soaring highs in the previous year. Backing it us was a great ad campaign with huge ce-lebrity endorsements).

popularbrandamongsttheotherfourproducts.Ithasbeenpositionedandmarketedinabetterwaythantheothers.

other hand, the web based interactive services pro-vide occasional responses to the curious consumer,whichwillinturnbringthebrand’scustomerserviceinbadlight.Supply Consistency: SupplychaindiligenceisoneimportantareawhichDuluxproductsshouldworkon.Deliveriesaremostlyslowandavailabilityoftherightshadesandpromptdeliveryisamisswhenitcomestocateringtothewesternpartsofthecountry.Surveyswerecon-ductedinthelastthreeyearsrelatingtoqualitycon-trolaswellasconsumercomplaintsaregivenbelowforprovidingyouwithaclearperspective.

Portfolio ThevaluestheDuluxpaintsholdinthemarketarenotasstrongastheyshouldbe.Thereisn’tenoughbrandawarenessfortheconsumerstoactuallyrelatetotallytothebrand.Theevidentidentityofthebrandstill holds insignificant value to the consumer. This inturndoesnotbreedloyaltyforthebrand.Endorse-mentsarehelpfulformakingbetterbranddecisionswhen your favorite film star or celebrity endorses the samebrand.

Thepaintsectorisoneinwhichconstantin-novationsandnewideasworkwonders.Duluxpaintsneed to tightenup their loose ends andget back atdoingtherightthingsattheritetimeandattherightplaces.Previouslytherewereveryfewinitiativestak-enupforawarenessofthebrand.

Dulux’scredibilityisonlytakenintoconsid-eration when it comes to existing consumers whomight go in for repainting their houses after years.ThatkindofloyaltytowardsthebrandiswhatDuluxinterioremulsionshave.

Co-Ordinated Marketing In Dulux’s marketing strategies one of themostwellappreciatedandwellknownwere the in-spirationstoresDuluxhadlaunchesthreeyearsback.Thesalesthatyearhadgoneup20%forthebrandandinothermarketreceptivitysurveysDuluxhasbeguntobecomeahouseholdbrandname.Theonedown-fallabouttheInspirationstoreswasthattheydidnotreachtheaggregatetargetaudiencetheywantedto.

Theopeningandthepositioningofthestoreswasdonewithmildmarketingstrategiesandnospe-

(The following image illustrates the 4 dimensional presence of DULUX Interior Emulsion Brands. Each product has a different ressonancce and approach.)

ciallaunches.Thatmadeawarenessofthestoreveryminimalanddidnotgiveittherightpresenceitneed-ed.Evenwithverylessmarketingpromotions,theto-talsalesfor thatyearsoaredhigher thanthenormalaverage.

ForDuluxinterioremulsionswhichhavebeenthemajorrevenuegeneratorfor thecompanyin theAsianmarketandalsogloballytherehasneverbeena good memorable and resonating marketing cam-paign.

What theyneed is a realbreakthroughemo-tionally intelligent marketing strategy. In the previ-ousadvertisingcampaigns,therewasnotmuchtotalkaboutbuttheinspirationstoresandtheKaranJohar,Kareena Kapoor television advertisement were theonlytwothingsthatgavethebrandwiththeappropri-atevisibilityitneeded.Thisvisibilitywasshortlivedand the brand made no significance later on the life of theconsumers.

The following the past three years of advertising of the company; the areas of target audience it wanted to attract)

Presence The brand’s presence in the last three yearshasbeenveryvolatile.Sometimestherewereseveraladvertisementsinarowontelevisionandsometimesthere were none.The major chunk of ads they hadairedwasinthepasttwoICC50-50.TheshowsDu-luxdecidestosponsoraretheoneswithhighTelevi-sionRatingPointsonTV.Thestrategicplacementsofadvertisements in theprintmediumisalsoseasonalbut imworld cup tournaments. The one previous tolast year was justified for Indian television audiences but theone lastyear lostmore than60%audiencesonceIndialostandwasoutofthetournament.

Theoneimportantthingtolookathereisthatthestrategicadvertisingopportunitieswerenotreallyexplores well enough. The awareness of the brandhasalmostdiminishedinplaceswhereitwasalreadylow.Thereisnobrandrecognitioninmostruralareaswhatsoever.Thebrandisfarfrombeingrecognizedapaintsmanufacturer,ithaslostitsidentityinmostdeveloping urban areas as well. There is no brandpresenceofDuluxpaintsintheeconomybrandsbe-causeofwhichwhenmiddleclassconsumersoptedforbetterqualityandpremiumemulsionstheydidnotconsiderDulux,instead,theystucktothesamebrandtheyknewverywell.

Thisthereforemadethatbrandamultipurposebrandwhichbecameauniversalpaint solutionpro-viderforallpricerangesaswellasqualities.Duluxhasthereforelostalotofbrandpresenceinthemarketforthesamereason.KareenaKapoorwashiredasthebrandambassador inOct07’ ,Hercontractexpiredafewmonthsago.Shehasalsoactedinatelevisioncommerical for the same campaign which was di-rectedbyKaranJohar.

Brand ProCess

Execution

The previous strategies Dulux has come upwithhavedonemoderatelywellforthebrands.En-

Planing

Whenitcomestomediaplanningandplace-ments, ICI Dulux has been far behind the require-mentsofthebandwagonofpacting.Theonlythingbecauseofwhichthebrandlosesoutonpopularityisthat,consumersnowadaysthinkthatifabrandisoutofsightitisoutoffunctionandsotheytendtodeviatefromit.

Challenge

Amongthemanychallengestocopewithcom-petition there is one more which is the most impor-tantoneforthebrand,itiskeepingbrandawarenessat optimum levels at all times. Long term and shorttermgoalshave tobe set for thebrandand strategyisofutmostimportancehere.Inthelaterpromotionalactivities of Dulux there needs to be equilibrium ofcreatingawarenessevenintheareaswhichhavenevertappedbefore.20%ofthepremiumemulsionsaresoldin the ruralareasand thenumber is increasingnow.Thechallengeherenowistotapthenichemarketinawaywhichhasneverbeenbeforeandtocreateanewcategoryinsidetheexistingsothatanautomaticnicheis created. Being the first in a category gives an auto-maticbrandstandingintheeyesoftheconsumer.

Strategizing The strategy Dulux has opted for till todayisthelowkeystrategywhichdoesnothavealotofpenetrationofmediacontentintheruralareas.Theyhavealwaysfocusedonmakingamarkinurbancit-iesofIndiaandalsohavehopedthattheirinternation-albrand standingwouldworkwonders for them intheIndianmarketaswell.TheirstrategieshavebeenthebasicbrandlaunchesandthebasicPRactivitiesandalotoftelevisionpromotionsalongwithcreat-ingmoreandmorebrandawareness.AstrategythathasworkedintheIndianmarketstilldatewithmostproductcategorieswouldbethedistributionwithandthepresenceineverynookandcorneratutilityshopsandbrandingaroundtheplacesaswell.

(The diagram below shows Velvet Touch’s Shop Pen-etration accross India and Mumbai)

dorsementsareonefortetheyhaven’ttriedtheirhandatentirely.Theonlyone thing thebranddidwhichwas related to endorsements was the Kareena Ka-pooradcampaignwhosetelevisioncommercialwasdirected by Karan Johar.There was a marginal in-creaseinsalesandinthemonthlyaveragesurveyofthebrandknowledge.InIndiatherehasbeennoothermarketingandbrandstrategizingasgoodas its In-diancompetitor.TheveryclassyadvertisementsdonotreallyresonatewiththeeliteIndiansalso.Whattheyneedissomethingthattouchesthemandnotjustinformsthem.

Brand Culture

Performance Orientation

In terms of product performance Dulux hasbeen a much better performer than any of its com-petitor’sdurabilityandqualityassurance.Therehasbeenalotofspeculationwhenitcomestoperform-ancejudgmentsinthelonglastingqualityofinterioremulsions.Butwhentakenapoll,outofthepeoplewhouse thedifferentbrands thebest feedbacksarereceivedbyDuluxinterioremulsionconsumersonly.

Thereisalotofresearchinvolvedbehindtheproductqualityandthatistheonethingthecompanybelieves inon thewhole. ICIbelieves indeliveringthebestqualityinwhateverproducttheyproduce.

Innovation Innovations are some things Dulux has notdone fora long timenowaccording to Indianaudi-ences now. It doesn’t matter if Dulux as a brand isdoingwondersworldwide,theyhavetodothingstheyhaveneverdonebeforewhenitcomestoIndianmar-kets.TheyhavetostayconnectedtotheIndianpsy-chewhichwillthenmakesomeoneresonatewiththe

brandanditsidentity. DuluxhasmadealotofinnovationsandhaslaunchedalotofDIY(doityourself)productsintheinternationalmarket.Mostofthemhaveworkedwondersthere.SomeofthemcouldbebroughttotheIndianmarketaswellwithalittletweakingifneeded.Therehasnotbeenalotofchangesince2006whencolorfutureslaunched.

ThesameDuluxproductshavebeendo-ingtheroundsoftheIndianpaintmarketamongmanynewandupcomingcompetionproductswhichlaunched. They were a hit and then soared to profits inlessthansixmonths.

For the company and its officials, its very im-portantthattheyhaverecreationalfacilitiesintheof-fice premises to stimulate their brain and make them think in ways they might not have thought aboutwhen they were constricted to their desks and office cabins. Another way to innovate would be askingquestionsaboutwhatnewthingspeopleneedintheirlives.Thinkingaboutwhatwouldexciteapersonandcompelhimtobuyaproduct.

Quality of the product Duluxpremiuminterioremulsionsareofthebest quality among premium brands. DuluxVelvetTouch sells better thanAsian Paints Royale in cit-iesandurbanplaceswherethistypeofproductisamoderate involvementproduct.VelvetTouchusersvouch for the best quality promise. Loyal custom-ersaremadethereandthen,onceDuluxisusedandexperienced. It is difficult to stand their ground in cut throatcompetitionfrombrandsthanareomnipresentineveryplacewherepaintsaresold.

PeopledonotmindreusingDuluxpaintsbe-causetheyalreadyhavequalityassurancefromtheirfirst consumption process. Consumers who have nev-erusedtheproductmightbeskepticaltooptforthebrandandmostprobablyoptforthemarketleader.Insomecasespremiumbrandsthatbelieveinpremiumpricingoftheirproductswinthebattleofprice.

Product benefits offered-Duluxinterioremulsionshavegreatperformancein termsofdurability; the fourpremiumbrandsofDuluxhaveeachproventhemselvesinthemarket.-Availabilityinallmajorcitieswheredemandforpremiumemulsionsishigh.-Greatperformancesatisfaction-Odorlessproductwhichleavesnostrongpaintsmellevenimmediatelyafterapplication.-Fastdryingwithintwohours-Easytouseandveryhandy-Perfectshadequality-Greataftersalesservices-Longlastingandwashableemulsions-PerfectsmoothandsoftsheenafterapplicationPrice – Value offered Velvettouchispricedatapremiumcomparedto theotherbrands in itssegment.DuluxpremiuminterioremulsionsarepricedatamorethanRupeeshundreddifferencebetweenanyotherbrandofpre-miuminterioremulsionandDuluxbrands.Thereisstill indeedavalueformoneybecauseofexcellentcost effectiveness which is majorly appreciated bytheconsumerbaseinthemarket.

Contractors and bulk purchasers prefer itscompetitors because they can cut costs and makebetter profits for themselves but otherwise Dulux as a brand is preferred by individuals. Dulux has nottappedthemarketintheruralorsmallertownsandcities because of significantly higher rates compared to its competitors. On the other hand when a con-

Consumer image traCk

Usage occasions- Redecorationofthehouse- Seasonalpainting- Marriageinthefamily- Festivals- Designingabrandnewhome- Periodicalpainting

Brand Personality dimensions- Aproductthatmakeswallsglowlikepearls- Givesthewallsamajesticlook- Atrustedqualityproduct- Makesyourwallslookricher

Leading competitors brand imageAsian Paints Royale- Greataffordability- Resonancewiththeconsumer- Greatfeelingwalls- Thefeelgoodfactor- TopofmindAwarenessofbrand

sumerhasexperiencedtheperformanceofthebrandtheywillalwayschooseDuluxandalsorecommendtheproducttoothers.Images evoked -Greatcolorwithgreatglow -Richtaste -Thefeelingofbeingapartoftheelite -Odourfreewalls -Richlookingwalls

User Images- Expensive- Afeelingofgrandeur- Betterthantheotheroptions- Morereliable- Betterqualityguarantee- Sensibleoption

Market Standing/Share

DuluxVelvettouchwasthemarketleaderinthepremiumemulsioncategoryforalongtimeafterit launched.Today it faces tough competition fromIndia’snumber1paintmanufacturerevenwhenVel-vet Touch’s brand presence is immense among thecompetitors.(The graph below shows aggregate market share of major paint brands in India. )

AswecanseeintheabovetablesthatAsianPaintsRoyalewithitsexcellentmarketingstrategiesandunmatchedmediapresencehascaughtuptothe25yearoldstrongstandingbrand,VelvetTouch.ThisisanindicationforVelvetTouchtowakeupandmakesomeseriouschangesinthewaythingsareworkinginthecompany.Themarketsharehasdwindledandnowcometoastandstillwithjustafewpointshigherthanit’sclosestcompetitor.

Brand analysis

(Overall market share of different sector of paints in the year 06 - 07)

Velvet touch has to maintain it’sgrip on themarket and provide more competitive and credibleclaims. ICI Dulux stands as the number four topbrandintheIndianpaintmarkettoday.VelvetTouchasabrandhasastrongstandingamongitscompeti-tors.AsianPaintsRoyaleisrapidlycatchinguptothelevelofVelvetTouchandnowhasamarginaldiffer-encebetweenthetwotopbrandsinpremiumemul-sion.

VelvetTouchhasmanypromotionalschemesandoffersforthedealerswhichcompelthedealerstoswearbythebrandandchangecustomerpreferences.If the dealers benefit from the sales of Velvet Touch theywillobviouslypromotethatbrandmoreforreap-ing more profits. Velvet Touch has launched many schemesforthedealers,themostfamousamongthemistheVelvetTouchClubwhichisanonlyinviteclubfordealers.

Thedealersareonlyentitled tobemember-shipanditsperksiftheyachievecertainpurchasetar-getseverymonth.Themoresupplythedealerpicksup themorepointshegetsand isentitled tobiggergiftsattheendofthemonth.Promotionaloffersforsmallpaintersandcontractorsarealsoprovidedtoin-creasesaleswithintheendusernexus.

Selling Tactics

`ThesellingtacticsofVelvetTouchhavebeenrestricted to the minimum for several years now.Theydonotbelieveinaggressiveadvertisingandbigspendingbudgetsonbrandimagebuilding.Accord-ing toVelvetTouchareasalesmanager(Sewri)Pa-wanKumar,thecompanywantstoconcentrateonthedealersofVelvetToucharoundthecountry.

Accordingtothecompanyitisthedealerwhois the biggest influencer in the decision making of a consumer.Adealerisoneimportantpersonwhocanwithin no time change preferences of the consum-ersbyvouchingfor thebrandas if theythemselvesareendorsingthebrand.ThesellingtacticsofVelvetTouchareverydealercentric.

Jingle recognition/Brand Logo DuluxVelvetTouchhasauniversaljinglewhichhasnotbeenusedformostVelvetTouchAdsforalongtimenow.Thejingle(“DuluxDuluxDulux”)hadanappealalongtimeagobuttodayithaslostitscharm.Thepublictodaydoesnotlikeslowandsoulfultunes,orrathertheyarenotusedtolisteningtosoulfultunesanymore.Theyneedpeppyandfastsoundtracks.Peoplewhoheartheoriginaltunetodaydonotreallylikeitandconnectwithit.IntheadcampaignsofthepastfewyearsVelvetTouchhastakenittoanotherlevel.Theyhavestucktomakingadcampaignswhichareexecutioncen-tric.

USP of the BRAND TheUniqueSellingPropositionofDuluxVelvetTouchisthatitistheonlypaintthatgivesaPearl Glow finish. The brand has a lot of credibil-itywhenitcomestoitsuniquesellingproposition.Whoeverhasusedtheproductknowsaboutitsdura-bilityandswearsbyit.

(The above graph shows the awareneess scale dur-ing the advertisements during the ICC Champions Ttophy)

Dealer Networks:

Dulux Velvet Touch has over 12000 retailshopsacross India.Duluxaims tohavemore than15000storesbytheendoftheyear2010.PenetrationanduniversalpresenceiswhatDuluxshouldaimfor.Thecompetitionitfacesisfromthecountry’sbig-gestpaintmanufacturerwhichhasover18000retailstoresinInidia.

Dealer networks have a lot of influence on theconsumer’spurchasingpatterns.Alotofbrand-ing around the retail networks is a big influencer for anover thecounter sale.Mostbrandinggurus saythatwhatisoutofsightisoutofmind.AndAsianPaintsdoesagreatjobbyactuallykeepingdirectlyintouchwiththeretailshops. Nerolac’s strength of wide spread distribu-

Salesmen: Dulux believes in quality dealing and opti-mizing resources. When it comes to salesmen andmorefeetonstreet,Duluxkeepsitlimitedto4salesmanagersperpaintwarehouseandatotalof10salesexecutivesunderthemtoreachoutindirectsalesaswellasindividualconversionofclients.

Asian Paints has a totally opposite strategycomparedtoDulux,theybelieveinindividualatten-tionandsohavemorefeetonstreetallottedforeacharea.Theyalsohaveabetterhierarchyandafeed-backandaproperreportingsystemsetin.Theysetindividual and team specific targets for each week. Along with that they specially believe in targetingthelocalpainterandthelaborersalongwithretailersanddealers.

Nerolacpaintshavemoreaggressivemarketingfunctionsinthenorthernstatesandhaveachievedconversionrateswhicharelargerthanany-whereelse.Theyarebeginningtotapregionswhichweresaidtohavelittleornoscopeforthepaintin-dustry.

Bergerhasnotmanysalestacticssetinandalso has only regional sales officers for every paint hubinmajorcities.Theirassistantsaretheonlypeo-ple who interact with the shopkeepers on a day todaybasis.Thisentireprocessseemsveryimpersonalwhichthenaffectsthesalesofthebrandinthemar-ket.

tionnetworkisitsrightarmingeneratingsalesrev-enuefromallpartsofIndia.Nerolachasawidedis-tributionnetworkofover11,000dealers.TheyhaveeightSalesDivisionsandeachdivisionhasdepotstotakecareoflocalneeds.Inallwehave66depots.AllthisensurescompletereachinIndiaincludingruralandupcountrymarkets.

CompeTITIoN DAShboARD

Bergerpaintshavelessthan8000retailstoresandarestagnatingatthatnumber.Whenitcomestogrowing thedealernetworkacross India theyhaveonlyrestrictedtothesouthwesternregionsofIndiaonly.Becauseof this fact theyarenotable topen-etrateinplaceswherethedemandisgrowing.

Shalimar and Jenson & Nicholson Paintshavea longway togoandevencomeclose to thevolume of the top four decorative brands in India.With a mere 2000 dealers and 600 dealers respec-tively,theyhavenotenoughpenetrationtogainpres-enceinthedeeproutedIndianpaintmarket.

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Other Associates:

- ad agencies DuluxIndiaHasbeenaclientofSaatchi&Satchiworldwideforacoupleofyearsnowinterna-tionally.TherehaveplanstorebrandVelvetTouchbutnotingconcretewasplannedever.TheKareenaKapoorAdCampaignhelpedDuluxtobouncebackinthemediabutdidnotmuchforthebrandonthesalesfront.Duluxhastostrategizeagreatadcam-paignandbackitupwithagreatmarketingandPRstrategyaswell.A360degreecommunicationeffortiswhatneedstobringbackthebrand’sliveliness.

DuluxVelvetTouchhasstucktooneidentityin theadvertisingcampaignsaswell.WhenDuluxfirst advertised Velvet Touch they took the advertise-mentswhichhadworkedabroadandtheyonlyputIndian voice overs. They initially used the DuluxMascotthesheepdogfortheads.Duluxstartedad-vertisingonlyacoupleofyearsback.Evenwhentheproducthasbeenaroundforalongtime,itdidnotfeeltheneedtomakeastatementinnthemedia.Inthelate90’sPositioningVelvetTouchinadifferentwaywasveryimportant.Withcompetitors launch-ing similar products with a big bang in the mediawould have affected Dulux credibility as well itspresence.Dulux thendecided to launchcoluors in2005.Thiscalledforagreatkickstartinmedia.ThisadcampaignwasfollowedbythelaunchofDuluxInspirationstores. Asian Paints and Ogilvy and Mather havedonewondersforRoyaleanditsadvertising.AsianPaintsisbyfarthebestadvertisedbrandinIndiaandit also reaps its benefits of being on top. The aware-ness levelsofAsianPaintsdonotstagnateonlyattelevisionmedia,theyhaveuniversalpresenceinallsortsofmediacommunications.FromsmalloffersforpainterstohugedealswiththeRahejabuilders,everything is done keeping in mind the motive ofachievingbrandresonanceeverywhere.

Nerolac is second to the Asian Paints andaretryingveryhardtocatchuptothepaceatwhichAsianPaintsIgrowingasauniversalbrandinpaints.TheShaliniChopracampaignwasindividuallyahitbutdidnotdomuchforthesalesofthebrand.

ShalimarPaintsdonotadvertiseonnation-al televisionbutinsteadoptforregionaltelevisionchannels which penetrate in the specific areas where theywant.

Syndicated Reports (media spend reports)

TheannualadvertisingandpromotionbudgetallottedforVelvetTouchinIndiaismuchmorethananyoftheotherDuluxproducts.TheannualbudgetforDuluxVelvettouchis3croresworthofadvertise-ments.Lastyearthebudgetsoaredanewhigh.Itdou-bledbecauseofthetwobrandendorsementstheydid.DuluxhasonlyathreemonthcontractwithKAreenaKapoorforherendorsingVelvetTouch.

AsianPaintsanditsimmensemediapresenceevidently has the biggest advertising budget annu-ally.Itreachesmorethan18croreseveryyear.AndthebrandendorsementsarecalculatedseparatelyandcostmorewhichisaninvestmentaccordingtotheirBalanceSheets

Nerolac has the second biggest advertisingbudgetsinthepaintindustry.Annuallytheysetasidearound5croresforinvestinginadvertisingandotherpromotional activities.When it comes to brand en-dorsementstheyareclubbedwithannualbudgetsandaccordinglynewraisedbudgetsareset.

Bergerpaintshashalfyearlybudgetssetforadvertisingandotherpromotionalactivities

- Merchandising Merchandizinginthepaint industryisonlyrestricted to merchandising which is distributed topaintersandcontractors.Merchandisinginthepaintindustrydoesnotreachtheconsumersbecauseitisnot appealing for them. Only one paint brand hasgonebeyondmerchandisingforpaintersinthelastyear. Nerolac Disney, after tying up with Disneyproductshas launcheda lineofdifferentmerchan-disethatisusedbychildren.

NerolacDisneyhasalsosponsoredtelevisionshowswhichappeal tochildrenandthathasmadetheawarenessofthebrandsexceeditsexpectations.

AsianPaintshasmademerchandisewhichishandedout topaintersandcontractorsasfreepro-motional items. (Specimen 2 in the package is anexampleofthemerchandising)

Key activities of the Competitors:

- New product launch – variant launch DuluxhasnotyetlaunchedvariantsofVelvetTouchanddoesnotplanonitaswell.Theybelieveinprovidingqualityandnotvarietywithmediocrequality.DuluxhaslaunchednewemulsionbrandswhicharenotoffshootsofVelvetTouchbutarebrandswhichhavetotallydifferentUSPs.

ForAsianPaints,Royalewastheonlypre-miumbrandwhichhadhighbrandawarenesslevels.ThereforetolaunchtheotherproductsasvariantsoftheRoyalebrandmadesenseandinstantlygavemorecredibilitytothenewlylaunchedbrands.AsianPaintshaslaunchedAsianPaintsRoyalePlayasoneoftheluxurybrandsunderRoyale’sUmbrella.

NerolacImpressionsalsolaunchedoffshootsofImpressionswhichgotagreatplatforminthemediabecauseofthealreadysetbrandimageofImpressions.AfterImpressions,itwasImpressionsMetalicwhichcameupwithemulsionswithGoldand Silver finishes and also metallic finishes. The otheroffshootthatlaunchedwastheNerolacIm-pressionsDisneywhichlaunchedwithabigbangthatfollowedanaggressivemarketingstrategywhichstucktoappealingitstargetaudiences.Im-pressionsDisneywasonlyforchildren’sroomsandhadalotofappealamongthesameinterestgroup.

BergerhasalsonotlaunchedavariantorevenandoffshootoftheBergerSilkline.TheyaretryingtocatchuptothetwotopbrandswhenitcomestoaggressivenessinadvertisingandalsomatchuptotheawarenesslevelsofAsianPaints,NerolacandDuluxVelvetTouch.

ShalimarisnowtryingtomakeaneffortoflaunchingtheSuperlacBrandinthemainstreammarket pan India. There are no confirmed reports of themlaunchingaproductlineofSuperlac.ItwillincreasecredibilityofthebrandiftheentirelineofSuperlacbrandsarelaunchedinthemediawithabigbang.

JensonandNicholsonpaintsarenotamain-streamdecorativepaintsbrand.Thereforeitdoesn’tmakesenseforthemtoeventthinkoflaunchingvariantsorevenaproductline.

- Sales promotions VelvetTouchcameupwithsalespromotionswhichwere subject to season timingsandalsoonlyrestrictedtodealerpromotions.TheonlypromotionalofferstheyeverhadwereforDuluxColourFutures.

Colour Futures had promotional offers onlyfor the Dulux Colour Professional services. Promo-tional serviceswereonlymeant forpeoplewhoap-pointedDuluxpaintingprofessionalsforgettingtheirwallspainted.AsianPaintsRoyalehad luckydrawswhichinvolvedvacationtripsandabumperprizeofaSkodaOctaviacar.AllofthiswasonlywhenRoyalePlaywaslaunched.Lateronoccasionalandseasonalpromotionswerenotcontinued.

Berger,Neroalc,Shalimarand Jenson&Ni-cholson Paints have never had promotional offersoranyothersortofsalespromotionsforconsumers.Theyhavekeptalowkeyandmadenoextraeffortstoattractmoreandmorecustomers.Thisverythinghasinsomewaysworkedagainsttheawarenessofthebrand.

- Dealer promotions ConstantDealerpromotionsareactiveamongall brands of paints today. Its either better schemesorsomerewardsystemsandtargetorientedgiftsandprizes.Duluxhasahugebudgetsetfordealerandcon-tractor specific promotional activities every year. The promotionsarenotonlyrestrictedtotheretailersandshop owners, different promotions are also targetedtothecontractorsandsmall timepaintersinsmallerdenominations. Thelatestpromotionalactivitiestheyarehold-ingwerefreekitchenwareforpaintersonpurchasingtwo20litrekegsofVelvetTouchandalsoachancetowinaluckydrawforaHeroHondamotorcycle.ForcontractorsDuluxcomeupwithmoreexcitingofferssuchasaVelvetTouchaccount,whereafterpurchas-ingmorethan30lirtresofVelvetTouchtheygetadis-countcardwhichtheycanredeemfora40%discountthenexttimetheypurchase30litresofpaint. AsianPaintshavenooffersassuchfordealersbecause theybelieve that theendusersare theoneswhoreallymakethebrandwork.Theseendusersdonot care about big offers and do not even have thepurchasingpowerforavailinghugediscounts.

ThereforeAsianPaintsspendsonmakingfreemerchandisewhich thesalesmanagersgiveout forfreeattheNakaMeetsandwithpurchasesofsmallquantities of paint boxes aswell.Things thepaint-ers coulduse, like rollers, paint brushes, bandanas,spongesetc.

Berger Paints has smaller offers for dealerswhichtheycanavailattheendofthemonthforplac-ingnewordersformoreproducts.Therearediscountpackages given aas well as freebies given out byBergertotheretailers.Theydonothavelevelsofof-feres,theyonlyhaveuniversaloffersonpurchases.

Shalimar has greater commissions for theirdealers which increase their profit margins. This helps in the ruralareas inwhichbrandsarenotverysig-nificant. Shalimar has only experimented with larger commission scales and nothing else for now. Theyshouldpromotetheirbrandmoreinmainstream.

Jenson&Nicholsonpaintsdonothaveanypromotionalofferswhatsoever.

- Price changes VelvetTouchdonotbelieveinbeingapartofthepricewarofanysortwithitscompetitors.Ithaspositioneditselfasaluxuryproductanditdemandsapremiumforit.Thepriceshaveonlychangedsubjectto the raw material fluctuations.

Asian Paints Royale was priced at a hugpremium when it was first launched. Later in the re launchesthepriceswerediminishingtilltheystabi-lizedin2006andhavebeenthesamesince.

Nerolac paints have kept the prices stablesincethelaunchandintendtoonlyhikethemsubjectto the fluctuations in the pricing of the raw materi-als.

For Berger paints, there are no specific chang-es in prices inn the past one year. Berger is pricedlowerthanthetopthreebrands.

Shalimar and Jenson & Nicholson have thelowestpricesinthecategoryandhavenotreallyvar-iedsincethelaunches.Thepricesarethesameandhaveonlychangedsubjecttootherhikes.

s W o tStrengths:

ICI believes that ICI Dulux Paints Indiastrengthsincludeitswell-establishedbrandsandtheglobalnatureofthebusinesswhichallowICIPaintstouseitsresources,expertiseandexperiencetoofferthebestsolutionforeachlocalmarketandtheneedsof the end users. Great presence in places that thebrand isbetter recognizedandhasagoodcustomerbase.

A well Established Brand DuluxVelvettouchcelebratesitsproduction’sSilverJubleethisyear.Evenafter25yearsofproduc-tion,ithasneverneededtore-branditself.TheUSPoftheproductissostrongandhasagreatcredibilityfortheconsumer.Aqualityinnovationdrivenattitudehaskeptthebrandstillaliveandonthetopofthemindrecallofmostofitsexistingandprospectiveconsum-ers.

Strong Brand Image DuluxVelvettouchishasmaintainedanim-ageofbeingthemostexpensiveinthecategoryalongwith providing the best quality among its competi-tors.Withthehelpofa lotofpromotionalactivitiesfor itsdealersaswellasconsumers, ithasearnedagreatamountofgoodwillover theyears.There isalot of recall when it comes toVelvetTouch, when-ever someone thinks of paints and pearl glow finished henecessarilyhastobethinkingaboutVelvetTouchonly.

Quality driven Whileitscompetitorsconcentratemoreonva-rietyandmassproductionandalotofotherdifferentstrategies,thecompanyisessentiallyaqualitycentriccompany.Thishashelpedthecompanygrowandsus-tainitsbrands

First Mover Advantage VelvetTouchasabrandhasbeenaounrdformorethantwodecadesandtheonlycompetitionitbe-ganfacingwasonlyadecadeaftertheylaunchedthesmooth finish technology. This in itself help strength-enthecredibilityofthebrandpromiseandnowitis

Weaknesses:

No Innovation in products Oneofthemajordownfallsofthecompanyisthat,ICIhasnotinnovatedintechnologyandmarket-ing over the years. Being one of the oldest and theglobally trustedbrand ithasnotchangedwith time.Thischangewhichisverycardinalforeverycompa-nytogrowovertheyearsisnonexistentinDullux.

Weak Distribution Dulux Velvet Touch as a brand doesnotmakeanefforttopenetrateandcreateastrongholdnotonlyinnthecitiesbuttheruralareasaswell.Thedistributionconcentratesonlyonthedevelopedareasof thecountrywhich isonlyabout30%of the totalpopulation of India. Comparing its aggregate saleswith itscompetitors in India,Duluxneeds towidenthedistributioninareaswhicharedevelopingaswellasrural.

Concentrating only on dealer related marketing According to Velvet Touch’s Regional SalesManagerMumbai,theimportantthingforthemisthedealers.Theendusersarenotheirtarget.VelvetTouchmarketingtakesonlydealersintoconsideration.Thecompany does not want to convert the product intoa high involvement product. This factor, today, hasgravely affected the brand presence as well as thecredibilityofthebrandamongtheconsumers.

Depending on previously established Goodwill DuluxVelvetTouchhasnotevolvedwithtime.Thecompanyalsodoesnotbelievethattheyneedtorebrandthemselvesandalsobringbackthebrandat

Threats:

Reaching Brand Graveyard OneofthethreatsVelvetTouchcouldfaceisthebrandgraveyard.WhenitcomestorecallVelvetTouchon itsownhasa lotofcredibility,butsome-timesbyalaymanitismistakenasanAsianPaint’sbrand.ThisisverydangerousforthebrandloyaltyofVelvetTouch.This trend may even end up in mak-ingonlythebrandnamegenericlike‘Bisleri’(anamegiventoanymineralwaterbottlebrandnow)inIndia.Thispracticeofalotofpaintersandpeoplewhoareunawareofthemarketwouldprovetobeverydanger-ousforVelvetTouch.

Tag of a Tired Brand VelvetTouchhasbeenastrongcontender inthemarketforalongtimenowbutisloosingitsgripnow.Thisaccordingtoalotofbrandvaluationproc-essesisasignofatiredbrand.Tiredbrandsusuallywearoutanddonotbouncebackup.Oncethetagofatiredbrandisgiven,thebrandwillimmediatelylooseallcredibilityaswellasloyalty.

Loss Of Loyal Customers BecauseVelvetTouchisoneoftheoldestandoneofthemostbankablebrandsinthemarkettoday,ithasalotofdemandaswellasappealamongcon-sumers.Withalotofinnovationsandalotofmove-mentinthemarket,theloyalconsumermightjustgetinquisitive and opt or a competitor brand. A studyshowsthatmostloyalbrandusersoptfornewbrandsbecause boredom sets in and change seems to be agreatoption.

Possibility of Running out of Fashion Newtrendskeepcomingupandtheyhavealotofimpactontheconsumptionpatternsofpeople.Moodsanda lotofother factorsalsoare taken intoconsideration when it comes to choosing consumergoods. With so many different innovations and finish-eslaunchingintheindustry,aconsumerisverypronetogetdeviatedfromhisoriginalchoice.Thisdevia-tion influences the consumer to try out a new product whichhasanelementofsurpriseinitaswell.

Opportunities:

Greater Penetration OneofthebiggestopportunitiesICIhasinIn-diaistobecomethepositionedleaderinallpartsofthecountry.Atpresent,thereisverylesspenetrationofICIbrandsintheruralmarket.ICIcouldreapgreatprofits coming from the rural areas as well.

Better Brand Presence With a great stronghold among the existingdealers in major cities, there are chances of VelvetTouch becoming an unmatched and better knownbrandamongcompetitors.WithabetterstrategyandsubstantialgoalsabetterbrandpresencecanbebuiltforVelvetTouch.

Real Estate Boom The real estate boom which is gaining mo-mentumbytheday,isagreatboontotheentirepaintindustry.Thiswouldactuallybeagoodopportunityfor all of the industry to cash in on their profits.

Consumer Involvemeent With increasing direct contact with the con-sumer,therearemorechancesofthepaintbrandstogainalotofmomentumandmaketheirmarkintheconsumer’sminds.

Moreandmorepaintproductsarereposition-ingthemselvesandmakingtheirmarketingstrategiesmoreappealing to thehouseowners rather than thecontractors. This ensures the consumer’s total in-volvementinthedecisionmaking.

analysis

s W o tStrengths:

ICI believes that ICI Dulux Paints Indiastrengthsincludeitswell-establishedbrandsandtheglobalnatureofthebusinesswhichallowICIPaintstouseitsresources,expertiseandexperiencetoofferthebestsolutionforeachlocalmarketandtheneedsof the end users. Great presence in places that thebrand isbetter recognizedandhasagoodcustomerbase.

A well Established Brand DuluxVelvettouchcelebratesitsproduction’sSilverJubleethisyear.Evenafter25yearsofproduc-tion,ithasneverneededtore-branditself.TheUSPoftheproductissostrongandhasagreatcredibilityfortheconsumer.Aqualityinnovationdrivenattitudehaskeptthebrandstillaliveandonthetopofthemindrecallofmostofitsexistingandprospectiveconsum-ers.

Strong Brand Image DuluxVelvettouchishasmaintainedanim-ageofbeingthemostexpensiveinthecategoryalongwith providing the best quality among its competi-tors.Withthehelpofa lotofpromotionalactivitiesfor itsdealersaswellasconsumers, ithasearnedagreatamountofgoodwillover theyears.There isalot of recall when it comes toVelvetTouch, when-ever someone thinks of paints and pearl glow finished henecessarilyhastobethinkingaboutVelvetTouchonly.

Quality driven Whileitscompetitorsconcentratemoreonva-rietyandmassproductionandalotofotherdifferentstrategies,thecompanyisessentiallyaqualitycentriccompany.Thishashelpedthecompanygrowandsus-tainitsbrands

First Mover Advantage VelvetTouchasabrandhasbeenaounrdformorethantwodecadesandtheonlycompetitionitbe-ganfacingwasonlyadecadeaftertheylaunchedthesmooth finish technology. This in itself help strength-enthecredibilityofthebrandpromiseandnowitis

Weaknesses:

No Innovation in products Oneofthemajordownfallsofthecompanyisthat,ICIhasnotinnovatedintechnologyandmarket-ing over the years. Being one of the oldest and theglobally trustedbrand ithasnotchangedwith time.Thischangewhichisverycardinalforeverycompa-nytogrowovertheyearsisnonexistentinDullux.

Weak Distribution Dulux Velvet Touch as a brand doesnotmakeanefforttopenetrateandcreateastrongholdnotonlyinnthecitiesbuttheruralareasaswell.Thedistributionconcentratesonlyonthedevelopedareasof thecountrywhich isonlyabout30%of the totalpopulation of India. Comparing its aggregate saleswith itscompetitors in India,Duluxneeds towidenthedistributioninareaswhicharedevelopingaswellasrural.

Concentrating only on dealer related marketing According to Velvet Touch’s Regional SalesManagerMumbai,theimportantthingforthemisthedealers.Theendusersarenotheirtarget.VelvetTouchmarketingtakesonlydealersintoconsideration.Thecompany does not want to convert the product intoa high involvement product. This factor, today, hasgravely affected the brand presence as well as thecredibilityofthebrandamongtheconsumers.

Depending on previously established Goodwill DuluxVelvetTouchhasnotevolvedwithtime.Thecompanyalsodoesnotbelievethattheyneedtorebrandthemselvesandalsobringbackthebrandat

Threats:

Reaching Brand Graveyard OneofthethreatsVelvetTouchcouldfaceisthebrandgraveyard.WhenitcomestorecallVelvetTouchon itsownhasa lotofcredibility,butsome-timesbyalaymanitismistakenasanAsianPaint’sbrand.ThisisverydangerousforthebrandloyaltyofVelvetTouch.This trend may even end up in mak-ingonlythebrandnamegenericlike‘Bisleri’(anamegiventoanymineralwaterbottlebrandnow)inIndia.Thispracticeofalotofpaintersandpeoplewhoareunawareofthemarketwouldprovetobeverydanger-ousforVelvetTouch.

Tag of a Tired Brand VelvetTouchhasbeenastrongcontender inthemarketforalongtimenowbutisloosingitsgripnow.Thisaccordingtoalotofbrandvaluationproc-essesisasignofatiredbrand.Tiredbrandsusuallywearoutanddonotbouncebackup.Oncethetagofatiredbrandisgiven,thebrandwillimmediatelylooseallcredibilityaswellasloyalty.

Loss Of Loyal Customers BecauseVelvetTouchisoneoftheoldestandoneofthemostbankablebrandsinthemarkettoday,ithasalotofdemandaswellasappealamongcon-sumers.Withalotofinnovationsandalotofmove-mentinthemarket,theloyalconsumermightjustgetinquisitive and opt or a competitor brand. A studyshowsthatmostloyalbrandusersoptfornewbrandsbecause boredom sets in and change seems to be agreatoption.

Possibility of Running out of Fashion Newtrendskeepcomingupandtheyhavealotofimpactontheconsumptionpatternsofpeople.Moodsanda lotofother factorsalsoare taken intoconsideration when it comes to choosing consumergoods. With so many different innovations and finish-eslaunchingintheindustry,aconsumerisverypronetogetdeviatedfromhisoriginalchoice.Thisdevia-tion influences the consumer to try out a new product whichhasanelementofsurpriseinitaswell.

Opportunities:

Greater Penetration OneofthebiggestopportunitiesICIhasinIn-diaistobecomethepositionedleaderinallpartsofthecountry.Atpresent,thereisverylesspenetrationofICIbrandsintheruralmarket.ICIcouldreapgreatprofits coming from the rural areas as well.

Better Brand Presence With a great stronghold among the existingdealers in major cities, there are chances of VelvetTouch becoming an unmatched and better knownbrandamongcompetitors.WithabetterstrategyandsubstantialgoalsabetterbrandpresencecanbebuiltforVelvetTouch.

Real Estate Boom The real estate boom which is gaining mo-mentumbytheday,isagreatboontotheentirepaintindustry.Thiswouldactuallybeagoodopportunityfor all of the industry to cash in on their profits.

Consumer Involvemeent With increasing direct contact with the con-sumer,therearemorechancesofthepaintbrandstogainalotofmomentumandmaketheirmarkintheconsumer’sminds.

Moreandmorepaintproductsarereposition-ingthemselvesandmakingtheirmarketingstrategiesmoreappealing to thehouseowners rather than thecontractors. This ensures the consumer’s total in-volvementinthedecisionmaking.

analysis

Brand Benefit Initially Royale positioned itself as an Elitebrand, it has built a sense of confidence in people’s minds.Asenseofassurance that thisbrandensuresoptimum quality is embedded in people’s minds.Morethananythingelsetheirmarketinganddistribu-tionhasensuredthatwhenpeoplethinkofpaintstheythinkofAsianPaints.

Consistency When Asian Paints Royale first launched its qualitywasnotappreciatedforcostitwasbeingsold.There were problems and the brand had no takersthen.Laterintheyear2000whenRoyalewasreposi-tionedinanewandwithadifferentoutlook,thesalesskyrocketedtothetopinstantly.Therehavebeennocomplaints ever since theproductwas re-launched.Withagreatcustomerservicecentersetupnationally,AsianPaintshasalsomadeitselfaleaderincustomersatisfactionandconsistency.Fromtheretailer’spointofviewalsotheserviceisimpeccable,inmostpartsofIndiatheyhaveathreehourordersettletimeandin case of any grievances the sales officers at the dis-

trictdispatchcenterstakepersonalcareofthesame.

Co-Ordinated Marketing Asian Paints follow an open market policy,theydonotbelieveintheclassicaldistributionpat-tern.Ithasalottofloopholesaccordingtothem.Thepointofinteractionoftheretailerandthecompanyisdirectwhichmakeseachdealerfeelsecureabouttheauthenticityoftheservicesprovidedtohim.

A distribution led company has to have astrongholdoneachandeverynookandcornerofthemarket.Thatiswhat18000retailersarepresentforinIndia.Ineverymetrotherearetwomainwarehousesfromwhichsupply isdispatched toall the retailerswithin thecity. AsianPaintshaverecognizedtheirenduserproperlyand thereforepaymoreattentiononthelocalNakaMeetswhichhappeneveryweekinsmallPainthubsinthecities.ForexampleSouthMumbaihas4painthubs,theyareCPTank,Tardeo,SewriandDadar.Everyweekcontractorsandsmalltimepaintersandartisanscometogetherforgettingsmalljobsandcontractsfortheweek.Whenretail-ersaregivenbetterschemestheypromotetheprod-uctsbetterandsellthemmore.Asianpaintshassetschemes and is not flexible in making exceptions for retailers.

B r a n d a t t r i B u t e s o F C o m P e t i t o r s

B r a n d a t t r i B u t e s o F C o m P e t i t o r s

They believe that their brand equity shouldspeakforitself.AlthoughAsianPaintsdoesnotgiveretailer benefits, its representatives make their pres-encefeltintheNakameetsandpromotetheirbrandbyperformingdifferentbrandingexercises.Thecurrentbrandingexercisetheyhavebeenconductingisthattheyarehandingoutfreebandanasouttothepainterssothattheycancovertheirheadswhilepainting.Thismakesaconnecttotheenduserandmakeshimfeelcaredabout.

Brand Pressence Asian Paints has its presence and is knownall over India.With its network of 18000 retailersacrossIndia,AsianPaintshasastrongholdineachandeverysectorofpaintstoday.Asianspaintshavebecomegeneric to the commodity itself.Whenevera layman thinks of paints, the first brand he thinks aboutisAsianPaints.

Besides gaining top of the mind recall theyhavemanagestocaptureadspaceandgreatdealofawarenessforRoyaleasaseparateentity.Intermsofbrandpresencetheyhavedonealottoremainnumberoneonthelist.ForkeepingbrandpresencealiveevenlocallyAsianPaintshavealsocomeupwithapro-motion campaign atSaatRastawhere dealers havepaintedtheirwallswithroyalepaints.

Relevance Hasgreatresonancewithitsconsumers,theyknowthebrandasthenumberonesolutionprovider.Whenafamilyneedshelpinselectingthemedécorfortheirhouse,insteadofappointinganinteriorde-signer, they choose to take suggestions from theirnearestAsianPaintscolorworldstore.Thebestpos-siblesolutionwithgreatserviceaswellasaoneofakindexperienceiswhatconsumersrelatetowhentheythinkaboutAsianPaints.

Positioning AsianPaintshavetheirstrongholdoneverypossible category of paints in India and are goingglobalaswell.InitiallytheypositionedRoyaleastheElite’sbrandofpaints.Changesineconomiccondi-tionsandtheriseinthestandardoflivingthetargetaudienceofRoyalehasnowchanged.

Royale was once positioned as royalty buthasbeenmovedtoapositionofaccessibilityandyetembodyingluxury.Royaltyconnotationchangedandevolvedintotheuppermiddleclassstatussymbol.

Brand Benefit Kansai Nerolac Impressions has made recalleasilypossiblefortheconsumerswiththeirpossiblymostexcellentchoiceintaglinesevermade.Thefa-mous“jabgharkiraunakbadhaniho”isstillasfreshinpeople’smindsasitwasadecadeago.

The brand has been repositioned way toomanytimesafterthatbutnothingstucktotheheartsofthepubliclikethesong.Thesoulfulnesswasappre-ciatedsomuchthatitbecameagreattopicofdiscus-sionaswell.

Relevance KansaiNerolacpaintsnowwanttooffervari-ouschoicesforaconsumer’ssoleneeds.Theywantto give so many choices under one brand that, theconsumerhasnosecondthoughttooptforanyotherbrandforhispaintingneeds.Nerolacisperceivedasaneedbasedproductmorethanabrandsumerwouldmakewhenheopts foraparticularbrandofpaints.Nerolachasmadeitselfrelevantenoughforthepre-miuminterioremulsionsectorinthemarket.

Positioning Nerolacpaintsaresecond to the leaders in the in-dustry.Aninnovationdrivencompanybuthasalwaysbeen thesecondmover in termsof introducingnewtechnologyintheindustry.NerolacImpressionswasbackedbyagreatcampaignwhichdidincreasesalesforthebrandforawhile.Impressionsasabrandhasnotbeenabletoestablishapointofdifferencefromitscompetitors.Ithasnotpositioneditselfinanynewway.Thereisnodistinctivenessinthebrandaswell.

Consistency Intermsofsupplyconsistencytheorderset-tletimeismorethan24hours.Itscompetitorandthebrandleaderhaslessthanthreehoursordersettletimewhichdoesnotwork inNerolac’s favour.The aftersalesservicesarenotregularlyprovidedbythecus-tomerservicedepartment.EvenwithagoodqualityproductNerolachasnotbeenable to reach the top.Itstillremainshalf insizeoftheleaderinthepaintindustry.

Co-Ordinated MarketingWhen Nerolac ventured into the “Nerolac Impres-sions”,theysimultaneouslylaunchedthebrandin8majormetrosofMumbai,Delhi,Kolkata,Chennai,Bangalore,Hyderabad,Pune&Ahmedabad.

The roleof targetingwas threefold as it needed toaddress3clusters:•Professional•Families•EliteClaasThetaskofmediawastwo-fold:•TogenerateawarenessintheprimaryTargetaudi-ence•ToensurethatNerolacImpressionslaunchedwithfocus on engagement where we could offer on-groundexperienceforconsumersandalsogivetheminformationonaplatformwherewecouldgetthe3Targetgroupstogether.Intermsofmassmediaselection,•TVwasusedandherethemediumbecamethemes-sageaswelookedatpresenceonlyontheLifestyleChannelstostartwithwhichofferedhugebrandrub

Brand Benefit Whentwothirdsofthebrand’ssalescomprisesofdecorativepaintstherehastobeasubstantialbackupofagoodadcampaignalongwithbrandpresenceinrespectiveareasofthemarket.BergerSilk,whichisnowanancillaryunitoftheAsianPaintsfamilyandalso standing strong at thirdplace in thedecorativeandinterioremulsionsectoroftheIndianpaintsmar-ket.Relevance In theparticular sectorBergerSilkhas littleornorelevanceatall, theproducthasverylessdis-tributionandalsohasstoppedpromotingitselfinthepremiumemulsioncategorynow.Bergerisnowcon-centratingonitsdistempercategorymakesmoresalespanIndia.Bergersilkasabrandhasnotrelatedtotheconsumerandalsohasaverysmalldistributionchaincomparedtoitstopcompetitors.

Positioning

offinadditiontotherightenvironment.•ExperienceCentersandExhibitions•ActivitiesincinemahallsChoosingeffectiveambientmedialedto:•Gaugingandcollectingactualresponsetogetcon-version

Brand Pressence NerolacImpressionshavemadeasubstantialpresenceinthemarket.Theyhavesustainedtheirun-aidedrecallplacebutstillhavealongwaytogowhenit comes to topof themind recall.Nerolac Impres-sionshaveaturnoverofalmost40%lessthanRoyaleand they do not even enjoy first mover advantage.

Monitoring Nerolac Impressions as a brand have a setmonitoringsystemwhichisfollowedeverymonthbytheretailerswhoexchangesalesdatawiththeirsup-pliersandkeeptrackofwhatwassoldmoreandwhatproducthasmoredemandcomparedtoanother.Nero-lachasnotkeptacloserecordofhowthedistributionispenetratedinthesmallermarketsandstored.

BergeracrylicbrandslikeLuxolSilkforinte-riors,isaqualityleaderintechnologyandrepresentsdecor statements that redefined the premium catego-ry.Theyhavestillnotmadeamarkinthemarket,thetrendshavealreadybeen setby themarket leadersandBergerhasnotbeenabletoreallysteerthede-mandtowardstheirproducts.Withoutastrongbrandstrategybackingitupthisbrandcannotsoar to thetopposition.

Consistency Berger Silk has not kept its consistency intermsofserviceandsupplyof thegoods.Thesys-temofsupplyisalittledifferentfromtheothersatBergerpaints.Thereare a lotofmiddlemen in thesupply chain. This in turn makes it harder for theconsistencyoftheservicesBergerprovides.ThereisnocustomerservicecentersetupforBergerwhichreallybecomesverycumbersomefortheenduserstocontacttherightkindofgrievanceservices

Co-Ordinated Marketing BergerPaintshasbeenmostlyassociatedasa

Brand Benefit Kansai Nerolac Impressions has made recalleasilypossiblefortheconsumerswiththeirpossiblymostexcellentchoiceintaglinesevermade.Thefa-mous“jabgharkiraunakbadhaniho”isstillasfreshinpeople’smindsasitwasadecadeago.

The brand has been repositioned way toomanytimesafterthatbutnothingstucktotheheartsofthepubliclikethesong.Thesoulfulnesswasappre-ciatedsomuchthatitbecameagreattopicofdiscus-sionaswell.

Relevance KansaiNerolacpaintsnowwanttooffervari-ouschoicesforaconsumer’ssoleneeds.Theywantto give so many choices under one brand that, theconsumerhasnosecondthoughttooptforanyotherbrandforhispaintingneeds.Nerolacisperceivedasaneedbasedproductmorethanabrandsumerwouldmakewhenheopts foraparticularbrandofpaints.Nerolachasmadeitselfrelevantenoughforthepre-miuminterioremulsionsectorinthemarket.

Positioning Nerolacpaintsaresecond to the leaders in the in-dustry.Aninnovationdrivencompanybuthasalwaysbeen thesecondmover in termsof introducingnewtechnologyintheindustry.NerolacImpressionswasbackedbyagreatcampaignwhichdidincreasesalesforthebrandforawhile.Impressionsasabrandhasnotbeenabletoestablishapointofdifferencefromitscompetitors.Ithasnotpositioneditselfinanynewway.Thereisnodistinctivenessinthebrandaswell.

Consistency Intermsofsupplyconsistencytheorderset-tletimeismorethan24hours.Itscompetitorandthebrandleaderhaslessthanthreehoursordersettletimewhichdoesnotwork inNerolac’s favour.The aftersalesservicesarenotregularlyprovidedbythecus-tomerservicedepartment.EvenwithagoodqualityproductNerolachasnotbeenable to reach the top.Itstillremainshalf insizeoftheleaderinthepaintindustry.

Co-Ordinated MarketingWhen Nerolac ventured into the “Nerolac Impres-sions”,theysimultaneouslylaunchedthebrandin8majormetrosofMumbai,Delhi,Kolkata,Chennai,Bangalore,Hyderabad,Pune&Ahmedabad.

The roleof targetingwas threefold as it needed toaddress3clusters:•Professional•Families•EliteClaasThetaskofmediawastwo-fold:•TogenerateawarenessintheprimaryTargetaudi-ence•ToensurethatNerolacImpressionslaunchedwithfocus on engagement where we could offer on-groundexperienceforconsumersandalsogivetheminformationonaplatformwherewecouldgetthe3Targetgroupstogether.Intermsofmassmediaselection,•TVwasusedandherethemediumbecamethemes-sageaswelookedatpresenceonlyontheLifestyleChannelstostartwithwhichofferedhugebrandrub

Brand Benefit Whentwothirdsofthebrand’ssalescomprisesofdecorativepaintstherehastobeasubstantialbackupofagoodadcampaignalongwithbrandpresenceinrespectiveareasofthemarket.BergerSilk,whichisnowanancillaryunitoftheAsianPaintsfamilyandalso standing strong at thirdplace in thedecorativeandinterioremulsionsectoroftheIndianpaintsmar-ket.Relevance In theparticular sectorBergerSilkhas littleornorelevanceatall, theproducthasverylessdis-tributionandalsohasstoppedpromotingitselfinthepremiumemulsioncategorynow.Bergerisnowcon-centratingonitsdistempercategorymakesmoresalespanIndia.Bergersilkasabrandhasnotrelatedtotheconsumerandalsohasaverysmalldistributionchaincomparedtoitstopcompetitors.

Positioning

offinadditiontotherightenvironment.•ExperienceCentersandExhibitions•ActivitiesincinemahallsChoosingeffectiveambientmedialedto:•Gaugingandcollectingactualresponsetogetcon-version

Brand Pressence NerolacImpressionshavemadeasubstantialpresenceinthemarket.Theyhavesustainedtheirun-aidedrecallplacebutstillhavealongwaytogowhenit comes to topof themind recall.Nerolac Impres-sionshaveaturnoverofalmost40%lessthanRoyaleand they do not even enjoy first mover advantage.

Monitoring Nerolac Impressions as a brand have a setmonitoringsystemwhichisfollowedeverymonthbytheretailerswhoexchangesalesdatawiththeirsup-pliersandkeeptrackofwhatwassoldmoreandwhatproducthasmoredemandcomparedtoanother.Nero-lachasnotkeptacloserecordofhowthedistributionispenetratedinthesmallermarketsandstored.

BergeracrylicbrandslikeLuxolSilkforinte-riors,isaqualityleaderintechnologyandrepresentsdecor statements that redefined the premium catego-ry.Theyhavestillnotmadeamarkinthemarket,thetrendshavealreadybeen setby themarket leadersandBergerhasnotbeenabletoreallysteerthede-mandtowardstheirproducts.Withoutastrongbrandstrategybackingitupthisbrandcannotsoar to thetopposition.

Consistency Berger Silk has not kept its consistency intermsofserviceandsupplyof thegoods.Thesys-temofsupplyisalittledifferentfromtheothersatBergerpaints.Thereare a lotofmiddlemen in thesupply chain. This in turn makes it harder for theconsistencyoftheservicesBergerprovides.ThereisnocustomerservicecentersetupforBergerwhichreallybecomesverycumbersomefortheenduserstocontacttherightkindofgrievanceservices

Co-Ordinated Marketing BergerPaintshasbeenmostlyassociatedasa

levelsofIndiansgoingupandalotofdiscerningcon-sumersreadytospendonhomedécor,theythenfelttheneedtore-brandtheirproducttotapthetopendof thepaintsmarket.TomakeGalaxywidelyavail-able,thecompanyisadoptingastrategyofalternativechanneldistributionsoastomaketheproductwidelyavailable everywhere, says an official release. Lewis Bergerhasbeenamajorre-brandinginitiativeaimedingivingBergerPaints anew identityunder anewlogo. Lewis Berger encompasses a series of signifi-cantchangesaimedatoverallbrandupgrading.Theseincludeupgradeinthequalityofpaint,pack,design,printing on the containers and cartons, the aesthet-icsof thepaintoutletsacross thecountryand,mostimportantlythequalityofservicesgiventothecon-sumer.

Brand Pressence Berger Silk has a monitoring system similartoNerolacbuttheymonitortheirsupplyanddemandprocesseseveryfortnightinsteadofeveryweakwithareamanagersallottedtoeachparticularareainacitybythecompany.Allthelegworkandthetrackiskeptbytheareamanagers.

Monitoring Berger Silk has a monitoring system similartoNerolacbuttheymonitortheirsupplyanddemandprocesseseveryfortnightinsteadofeveryweakwithareamanagersallottedtoeachparticularareainacitybythecompany.Allthelegworkandthetrackiskeptbytheareamanagers.

Brand Benefit SpecialEffectshasbeenaroundforalongtimeandhaspositioned itself to appeal a certain typeofconsumerbasewhobelieveinthebrand.Thenationalreachanddistributionchainoftheinterioremulsionin the premium category has not been competitiveenoughtomatchuptotheurbanknownbrands.

Relevance Jenson and Nicholson Special Effect hasstopped manufacturing this categoryof paints sincethe beginning of the financial year. The product did

Presence Jenson & Nicholson paints also have been,focusedonindustrialpaintsforthelastfewyearsanddonotpromotetheirotherbrandsatall.Alargerprof-itmarginaswellasabettergoodwillandpresenceintheindustrialsectoriswhattheywanttofocusonasacompany.

MonitoringForJenson&Nicholsonpaints,thebranditselfholdsnorealimportanceforittobemonitored.

notdoanything for thecompany’sdecorativepaintsector.Becauseofnorelevanceinthenameandtheperformance of the product the product flopped when itreleasedbackinthe90’s.

ThemarketshareaswellasawarenessofthebrandacrossIndiaisclosetonothing.Therehasnotbeen any real distribution strategy as well for theproduct.

Positioning Acompanywhichhasalotofotherbusiness-estolookafterunderitsumbrellahasnotreallypaidmuch attention in positioning its decorative paintsrange of products.With no real innovation or evenanyrightpromotionsthebrandisclosetodeadintheeyesoftheconsumer.Theyhavenottriedtoinvolvethe consumer at all. For Jenson and Nicholson andmanyotherbrands,paintsarestillalowinvolvementproductrange.

Consistency Jenson&NicholsonSpecialEffectshasonlybeensurvivingon its existing supplychainwithoutinnovating or even trying to reposition. They areconsistentinothercategoriesandtheinteriorluxuryemulsionsectoratJ&Nsuffers.

Co-Ordinated Marketing Jenson & Nicholson paints have no strate-giesinplaceforsalesoftheirdecorativepaintsector.MarketingisofspecialeffectsindividuallyhasneverbeenapriorityforJ&Npaints.Theirtargetsectorwasalways industrial paints. The only thing they havedone in terms of marketing is the launch in whichtheyhadapressconferencealongwithdistributingitin3000retailshops.

Brand Benefit BackedbythesixthlargestbusinesshouseinIndia (JindalSteel)ShalimarSuperlachasnotbeenable to tap the market in the right ways. Shalimarpaints are a brand nationally known but there hasbeennomarketingandpromotions campaign to in-crease the sales to agreater level.TheHusainCol-lection based on the best quality acrylic copolymerbasedemulsionistheCompany’spremiumcategoryinterior decorative paint product. It stands fifth in the nationalmarketintermsofawareness.Relevance Shalimaralsohas troublesustaining itself inthe luxury emulsions category because of the im-mense pressure and penetration of Asian PaintsRoyale and the well known and trusted DuluxVel-vetTouch.ShalimarSuperlacworksonapiggybackpatternofdistribution.InthedistributionchainwhenShalimardistempersaredistributedsomeoftheextrastockconsistsoftheotherproductsincludingSuper-lacwhichthenaresoldofftothecustomerswhoaskforit.Thispatternofdistributiondoesverylittleforthe brand’s sales but it does a bit of fire fighting at least.

Positioning ShalimarSuperlachasnotpositioneditselfinanywayeveninregionaladvertising.Shalimarpaintswasonceaverywellknownbrandofpaintsbuteventherecentadcampaigntheydiddidnotreallymakeanydifferenceinthewaypeoplesawthebrandonthewhole.TheeffortofrepositioningitselfwithShalimarSuperlacandanewtagline“zarahatkesocho”wentinveinoncethecampaignbombedwithnoincreaseinsalesthatfollowingyear.

Consistency ShalimarSuperlachasnotproved itsqualityconsistency and has neither been able to strengthenitssupplychainintheyears.TherehasbeenlittleornochangeintheprocessofmarketingSuperlac.In-novationshavenottakenplace,repositioningandre-branding has not made much difference in the waypeopleperceivethebrand.

Co-Ordinated Markeeting ShalimarPaintshasrevealedplanstopenetratethemarketinsouthernIndiabyincreasingitsdealernetworkby50%.̀ TheTamilNaduandKeralamarketsholdgoodscopeforourproducts,’saidthecompany’smarketingandtrainingconsultantDHariharaputhran.`By the end of this year we will have around 1500dealersinthefourstates.’Shalimarholdsabout7%ofthemarketshareinthesouth,whichisdominatedbyAsianPaints.Thecompanyisalsotrainingitsdealersandrelocatingdepotstoimprovelogistics.

Brand PressenceShalimarSuperlachadabrandpresencepriortothefamousadvertisingcampaignsand rigorousmarket-ingplansofAsianPaintsandNerolacPaintsaswell.Shalimarnowhasverylittlepresencenowcomparedto thepreviousdecade.Therehaven’t been any ad-vertising campaigns in the pas 5 years to bring thebrand back to life. It is a dormant but functioningbrandwhichstillisinproductionbecauseofastrongfootholdintheindustrialsector.

Monitoring ShaalimarSuperlacdoesnot have abrandmonitor-ingsysteminplace.Thecompanybelievesinkeepingsimpletrackofhowmuchsupplyisdemandedinthemarketandaccordingtothatthenextbatchofprod-uctsaresuppliedandproduced.

levelsofIndiansgoingupandalotofdiscerningcon-sumersreadytospendonhomedécor,theythenfelttheneedtore-brandtheirproducttotapthetopendof thepaintsmarket.TomakeGalaxywidelyavail-able,thecompanyisadoptingastrategyofalternativechanneldistributionsoastomaketheproductwidelyavailable everywhere, says an official release. Lewis Bergerhasbeenamajorre-brandinginitiativeaimedingivingBergerPaints anew identityunder anewlogo. Lewis Berger encompasses a series of signifi-cantchangesaimedatoverallbrandupgrading.Theseincludeupgradeinthequalityofpaint,pack,design,printing on the containers and cartons, the aesthet-icsof thepaintoutletsacross thecountryand,mostimportantlythequalityofservicesgiventothecon-sumer.

Brand Pressence Berger Silk has a monitoring system similartoNerolacbuttheymonitortheirsupplyanddemandprocesseseveryfortnightinsteadofeveryweakwithareamanagersallottedtoeachparticularareainacitybythecompany.Allthelegworkandthetrackiskeptbytheareamanagers.

Monitoring Berger Silk has a monitoring system similartoNerolacbuttheymonitortheirsupplyanddemandprocesseseveryfortnightinsteadofeveryweakwithareamanagersallottedtoeachparticularareainacitybythecompany.Allthelegworkandthetrackiskeptbytheareamanagers.

Brand Benefit SpecialEffectshasbeenaroundforalongtimeandhaspositioned itself to appeal a certain typeofconsumerbasewhobelieveinthebrand.Thenationalreachanddistributionchainoftheinterioremulsionin the premium category has not been competitiveenoughtomatchuptotheurbanknownbrands.

Relevance Jenson and Nicholson Special Effect hasstopped manufacturing this categoryof paints sincethe beginning of the financial year. The product did

Presence Jenson & Nicholson paints also have been,focusedonindustrialpaintsforthelastfewyearsanddonotpromotetheirotherbrandsatall.Alargerprof-itmarginaswellasabettergoodwillandpresenceintheindustrialsectoriswhattheywanttofocusonasacompany.

MonitoringForJenson&Nicholsonpaints,thebranditselfholdsnorealimportanceforittobemonitored.

notdoanything for thecompany’sdecorativepaintsector.Becauseofnorelevanceinthenameandtheperformance of the product the product flopped when itreleasedbackinthe90’s.

ThemarketshareaswellasawarenessofthebrandacrossIndiaisclosetonothing.Therehasnotbeen any real distribution strategy as well for theproduct.

Positioning Acompanywhichhasalotofotherbusiness-estolookafterunderitsumbrellahasnotreallypaidmuch attention in positioning its decorative paintsrange of products.With no real innovation or evenanyrightpromotionsthebrandisclosetodeadintheeyesoftheconsumer.Theyhavenottriedtoinvolvethe consumer at all. For Jenson and Nicholson andmanyotherbrands,paintsarestillalowinvolvementproductrange.

Consistency Jenson&NicholsonSpecialEffectshasonlybeensurvivingon its existing supplychainwithoutinnovating or even trying to reposition. They areconsistentinothercategoriesandtheinteriorluxuryemulsionsectoratJ&Nsuffers.

Co-Ordinated Marketing Jenson & Nicholson paints have no strate-giesinplaceforsalesoftheirdecorativepaintsector.MarketingisofspecialeffectsindividuallyhasneverbeenapriorityforJ&Npaints.Theirtargetsectorwasalways industrial paints. The only thing they havedone in terms of marketing is the launch in whichtheyhadapressconferencealongwithdistributingitin3000retailshops.

Brand Benefit BackedbythesixthlargestbusinesshouseinIndia (JindalSteel)ShalimarSuperlachasnotbeenable to tap the market in the right ways. Shalimarpaints are a brand nationally known but there hasbeennomarketingandpromotions campaign to in-crease the sales to agreater level.TheHusainCol-lection based on the best quality acrylic copolymerbasedemulsionistheCompany’spremiumcategoryinterior decorative paint product. It stands fifth in the nationalmarketintermsofawareness.Relevance Shalimaralsohas troublesustaining itself inthe luxury emulsions category because of the im-mense pressure and penetration of Asian PaintsRoyale and the well known and trusted DuluxVel-vetTouch.ShalimarSuperlacworksonapiggybackpatternofdistribution.InthedistributionchainwhenShalimardistempersaredistributedsomeoftheextrastockconsistsoftheotherproductsincludingSuper-lacwhichthenaresoldofftothecustomerswhoaskforit.Thispatternofdistributiondoesverylittleforthe brand’s sales but it does a bit of fire fighting at least.

Positioning ShalimarSuperlachasnotpositioneditselfinanywayeveninregionaladvertising.Shalimarpaintswasonceaverywellknownbrandofpaintsbuteventherecentadcampaigntheydiddidnotreallymakeanydifferenceinthewaypeoplesawthebrandonthewhole.TheeffortofrepositioningitselfwithShalimarSuperlacandanewtagline“zarahatkesocho”wentinveinoncethecampaignbombedwithnoincreaseinsalesthatfollowingyear.

Consistency ShalimarSuperlachasnotproved itsqualityconsistency and has neither been able to strengthenitssupplychainintheyears.TherehasbeenlittleornochangeintheprocessofmarketingSuperlac.In-novationshavenottakenplace,repositioningandre-branding has not made much difference in the waypeopleperceivethebrand.

Co-Ordinated Markeeting ShalimarPaintshasrevealedplanstopenetratethemarketinsouthernIndiabyincreasingitsdealernetworkby50%.̀ TheTamilNaduandKeralamarketsholdgoodscopeforourproducts,’saidthecompany’smarketingandtrainingconsultantDHariharaputhran.`By the end of this year we will have around 1500dealersinthefourstates.’Shalimarholdsabout7%ofthemarketshareinthesouth,whichisdominatedbyAsianPaints.Thecompanyisalsotrainingitsdealersandrelocatingdepotstoimprovelogistics.

Brand PressenceShalimarSuperlachadabrandpresencepriortothefamousadvertisingcampaignsand rigorousmarket-ingplansofAsianPaintsandNerolacPaintsaswell.Shalimarnowhasverylittlepresencenowcomparedto thepreviousdecade.Therehaven’t been any ad-vertising campaigns in the pas 5 years to bring thebrand back to life. It is a dormant but functioningbrandwhichstillisinproductionbecauseofastrongfootholdintheindustrialsector.

Monitoring ShaalimarSuperlacdoesnot have abrandmonitor-ingsysteminplace.Thecompanybelievesinkeepingsimpletrackofhowmuchsupplyisdemandedinthemarketandaccordingtothatthenextbatchofprod-uctsaresuppliedandproduced.

BrandAuditBy:Armin Jamula

ForVelvettouch,thereneedstobenotonlyachangeinmarketingstrategybutalsoindifferentcommunicationmediums.VelvetTouchneedstoadvertiseandpenetrateintheirexistingmarket.

Transforming the supply chain toaconsumercentricone.VelvetTouchisafavouriteamongthedealersandalreadyhastheirvoteofloyalty.Whatitneedstodonowistogainitsfootholdonunap-proachedterritoriessuchastheendusers.Providingthemwithabetterserviceandprobablygivingthemsomethingmorethanjustdiscountsandfreegiftswilldrivethemtoloyaltyforthebrand.

RepositioningVelvetTouchandenhancingat-tributeswhichareknownbutneveremphasizedonwouldbeagoodpositioningturnforthebrand.Vel-vetTouchcouldbepositionedasthesuperLuxurypaintthatlastsforever.Indiansareverytouchyabouttheirfamilygenerations.‘TheGlowofPearlsForever’wouldbeagoodvariationfromitsexist-ingidentity.Theemphasiscouldbeonitbeingthelongest lasting paint finish.

RejuvenatingthebrandandnotmakingdrasticchangesinitwouldworkinVelvetTouch’sfavourinthismarketplace.MakingVelvetTouchmorehightechanddisplayingfeaturessuchasitistheonlyenvironmentfriendlybrandwillgiveitspersonality a significant boost. Velvet Touch has to repositionitselfasabrandwhichisnottoxicandnotharmfultofamilies.

Advertising

reBranding

Why did people stop using the brand?

Peoplestoppedusingtheproductnotbe-causetheythoughtitwassubstandardbutbecausetheyenjoychange.Today,changeisafadanditgivesasortofexcitedfeelingtotheconsumerwhenhehasnotdonetheusualbutdaredtoex-periment.Thebrandhasnothingdifferentinittoshowcase.Ithasreachedapointwherestagnationhastakenplaceofgrowth.

Accordingtometherewasnoexcitementleftintheproducttoexplore.Thequalitywasstillundoubtedlythesameandthebestluxurybrandinthesector.Theoneveryimportantthingwhichreducedtheawarenessofthebrandwasthemediapresenceitscompetitorshad.Inthemedia,AsianPaintshasawarenessandresonancewiththeme-diamessagestheysendacross.

AsianPaintshasbecomesomethingmorethanjustapremiumproduct,itgivesoutafeelingandanemotion.ThatparticularemotionalconnectiswhatclickswiththeconsumerandthatiswhatVelvetTouchisloosingto.

Is awareness an issue or trial? Awarenessisacardinalfactorinthesuccessofthebrand.Therightkindofawarenessiswhatclicksandtakesthebrandtothetop.Whenitcomestosuchalowinvolvementbrand,awarenessplaysavitalrole.Whensomebodyknowsapaintbrandandisawareofitscredibility,theproducthasreacheditstargetofmakingaplaceintheconsumer’smindevenwhenheisnottheenduserandwouldnotevenknowthedifferenceintheendresultoftheconsumedproduct.

VelvetTouchhadagreatamountofaware-nessinthepreviousyearsbeforeRoyalecamein.Itenjoyed the first mover advantage for many yearstofollow.Awarenessisonethingwhichithadini-tiallybutnowwithsimilartechnologyavailableinotherbrandsithaslostitscharm.DuluxstillhasastrongholdintheluxuryemulsionsectorbutVelvetTouchisslowlyslippingdowntonumbertwo.ForVelvetTouch,thestrongImageDimensionswouldbeitsPearls.Whenyoulookatpaintcanandyousee pearls, the first thing that strikes you is that itis Velvet Touch which has a pearl glow finish. TheimageofthepearlsandVelvetTouchresonatedwellwiththeaudience.

ConClusion