Sherwin Williams Powerpoint

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This is a powerpoint presentation made for a Sherwin Williams case study. The case study was for a first year marketing course at BCIT.

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Sherwin Williams Powerpoint

  1. 1. Marketing 2202 Presents... The Six Pack In... ® Duration! The Case Study that leaves critics saying “At least it’s more exciting than watching paint dry!”
  2. 2. The Six Pack How best to introduce Duration into the market, raise awareness in the target market to 90%, gain a 25% trial rate and 20% preference over the next year? The Problem
  3. 3. Facts and Assumptions <ul><li>Sherwin Williams’ “Duration” is the first paint of its kind. </li></ul><ul><li>Sherwin Williams has a 20% brand share of the residential home market. </li></ul><ul><li>Duration claims the following features: -no need to prime bare wood -only one coat required (over any colour) -can be applied in temperatures as low as 50 ° F. </li></ul><ul><li>People are skeptical that Duration can perform as well as advertised. </li></ul>The Six Pack
  4. 4. <ul><li>We are introducing this product as brand new. </li></ul><ul><li>Bob Vila is willing to be a celebrity spokesman for Duration (as he already endorses other Sherwin Williams products) </li></ul><ul><li>This case study is directed towards contractors. </li></ul>Facts and Assumptions cont’ The Six Pack I’d put Duration on This Old House any day!
  5. 5. Research <ul><li>In 2002, there were more than 468,000 individuals working in contracting, according to the U.S. Bureau of Labor Statistics. </li></ul><ul><li>Painting of new and remodeled buildings account for most of this industry's business. </li></ul><ul><li>The employment outlook in paint contracting is expected to grow by 14 percent between 2002 and 2012. </li></ul>The Six Pack
  6. 6. Research cont’ <ul><li>Estimated $13 billion in income, as per the latest statistics released by the U.S. Census Bureau. </li></ul><ul><li>Brush Brothers Painting have supplied the following information: </li></ul><ul><li>-It takes an average of 4-6 days to paint a house using conventional paint. </li></ul><ul><li>-Not having to prime bare wood or apply a second coat of paint can cut up to two days off the whole process. </li></ul>The Six Pack
  7. 7. SWOT <ul><li>-Sherwin Williams h as reduced debt burden. </li></ul><ul><li>-Geographical reach – in the US they have more store locations than a combination of their top ten competitors </li></ul><ul><li>-Constant innovation and introduction of new products </li></ul><ul><li>-Broad distribution platform with multiple distribution channels </li></ul><ul><li>-Strengthening financial position in recent years </li></ul><ul><li>-High earnings per share </li></ul><ul><li>-Strong product portfolio with many different product lines </li></ul><ul><li>-Large colour selection across product lines </li></ul><ul><li>-Green Initiative Program </li></ul><ul><li>-International diversification </li></ul><ul><li>-Conduct international business over website </li></ul>The Six Pack Strengths
  8. 8. <ul><li>- Past litigation due to lead based paints have come back in the plaintiff’s favor and current appeals. </li></ul><ul><li>-Stagnant automotive finishes division in recent years. </li></ul><ul><li>-Poor international operating margins </li></ul><ul><li>-Weak consumer segment </li></ul><ul><li>-Overdependence on the US market as 90% of all profits are generated there </li></ul><ul><li>-Low revenue and net income per employee when compared to industry average </li></ul>The Six Pack Weaknesses
  9. 9. <ul><li>-Chinese market has largest population and offers much potential for sales, manufacturing etc. </li></ul><ul><li>-Growth of Do-It-Yourself segment tends to increase as markets recess. </li></ul><ul><li>-Tie ups with home builders is a good opportunity to increase product sales. </li></ul><ul><li>-Continued increase in remodeling activities in US </li></ul><ul><li>-5 year contract with Pulte Homes which has manufactured 450,000 homes </li></ul><ul><li>-Agreement with Volkswagen </li></ul><ul><li>-Growth in the aerospace industry is likely to double. </li></ul><ul><li>-Movement into the Indian marketplace </li></ul><ul><li>-Immigration to the U.S </li></ul>The Six Pack Opportunities
  10. 10. <ul><li>-Environmental statutes and pressure to create more environmentally friendly products -Currency fluctuations lead to profit differences as Sherwin operates in many different countries. -Dependence on international chemical prices that are linked to oil prices, which are consistently increasing. -Recessing market means less money spent on building homes or renovating and fixing them up. -Environmental regulations that may force them to pay to clean up old manufacturing sites -Rising raw material costs -People opting for more environmentally friendly alternatives -People choosing lower maintenance options </li></ul>The Six Pack Threats
  11. 11. <ul><li>Direct Competition </li></ul><ul><li>Top three paint and coating competitors in the North American Market: </li></ul>Competitive Analysis The Six Pack PPG Industries Akzo Nobel Benjamin Moore
  12. 12. Competitive Analysis cont’ <ul><li>Indirect Competition </li></ul><ul><li>This includes all forms of siding companies that offer alternatives to paint. </li></ul>Vinyl Stone Brick Stucco The Six Pack
  13. 13. Alternative #1 <ul><li>Advertising </li></ul><ul><li>Advantages </li></ul><ul><li>Easily reach the entire target audience </li></ul><ul><li>Allows you to control the message content </li></ul><ul><li>Can be used to build long term image for the product </li></ul><ul><li>Disadvantages </li></ul><ul><li>Costly to produce and distribute </li></ul><ul><li>Time consuming/ must be thought out well in advance </li></ul><ul><li>Lacks credibility that publicity gives </li></ul>The Six Pack
  14. 14. Alternative #2 <ul><li>Publicity </li></ul><ul><li>Advantage </li></ul><ul><li>Not very costly </li></ul><ul><li>Very powerful if good publicity results </li></ul><ul><li>Works to raise awareness </li></ul><ul><li>Disadvantages </li></ul><ul><li>Lasts for a short period of time only </li></ul><ul><li>No control over what reviewers will say </li></ul><ul><li>No guarantee publications will publicize your product </li></ul>The Six Pack
  15. 15. Alternative #3 <ul><li>Sales Promotion </li></ul><ul><li>Advantages </li></ul><ul><li>Could lead to increased trial/sales </li></ul><ul><li>Bolsters/complements other promotional elements </li></ul><ul><li>Very effective for new product introduction </li></ul><ul><li>Disadvantages </li></ul><ul><li>Could diminish the products image (in terms of quality) </li></ul><ul><li>Reduces profit margins </li></ul><ul><li>Action based, so not informative for potential buyers </li></ul>The Six Pack
  16. 16. Target Market <ul><li>Contractors </li></ul><ul><li>Demographic: 20-50 year old males Psychographics: ambitious, open minded Geography: South West USA (including CA, NV, AZ, NM and TX) (based on climate, including temperature, precipitation and population) </li></ul>The Six Pack
  17. 17. Creative Brief The Six Pack
  18. 18. The Six Pack Creative Brief cont’
  19. 19. The Six Pack Creative Brief cont’
  20. 20. Solution <ul><li>To inform, promote trial, build preference we need to be aware of the stages of the buying decision process: </li></ul>Advertising Sales Promotion Publicity The Six Pack Not Aware Advertising, Publicity Aware but no Knowledge Advertising, Publicity Interest Sales Promotion and Advertising Evaluation Sales Promotion Trial Sales Promotion Adoption (remind/reinforce) Advertising
  21. 21. Plan of Action <ul><li>Product Publicity – To Raise Awareness </li></ul><ul><li>-Sending samples to reviewers at appropriate magazines </li></ul><ul><li>-Our intent is to gain free and hopefully favourable editorial coverage. </li></ul><ul><li>-A press kit will be made and sent to the media Eg. Press release, company brochure, free samples. </li></ul><ul><li>Sales Promotion – Promote Trial </li></ul><ul><li>-Providing “below contractor” introductory pricing to create incentive to try the product. </li></ul>The Six Pack
  22. 22. Plan of Action cont’ <ul><li>Advertising </li></ul><ul><li>- Advertising in trade publications to work with promotions and publicity </li></ul><ul><li>-The T.V ads will feature Bob Vila to help build credibility </li></ul><ul><li>-The ad should give the reader the following message/impression: </li></ul><ul><li>No primer or second coat = less time and more money saved </li></ul><ul><li>Some contractor publications distributed in the US, some of which are tailored to our geographic region: </li></ul><ul><ul><li>Finishing Today </li></ul></ul><ul><ul><li>Professional Builder </li></ul></ul><ul><ul><li>California Builder and Engineer </li></ul></ul>The Six Pack
  23. 23. Duration can go on bare wood without a primer and only requires one coat for each surface. Duration saves you hours of time that can be spent on other jobs. Finally the future of painting has arrived! Sherwin Williams has come up with a revolutionary, advanced “superpaint”.
  24. 24. YOU ONLY NEED ONE COAT! Duration can go on bare wood without a primer and only requires one coat for each surface. Duration saves you hours of time that can be spent on other jobs. Finally the future of painting has arrived! Sherwin Williams has come up with a revolutionary, advanced “superpaint”.
  25. 25. Plan of Action cont’ <ul><li>Implementation plan: </li></ul><ul><li>- Public relations will be released during the middle of the second quarter and advertising will appear almost simultaneously. </li></ul><ul><li>- In the US, expenditure on home improvement is highest in the third and fourth quarters. </li></ul><ul><li>-Sales promotion will begin in the third quarter and go over the fourth quarter and end after 6 months. </li></ul>The Six Pack
  26. 26. The Six Pack Course Concepts -Advertising -Publicity -Sales Promotion -Market Segments -Communications Effects Pyramid
  27. 27. References <ul><li>Associated Construction Publications Website (2008). Retrieved March 10, 2008 from http://www.acppubs.com/ </li></ul><ul><li>Business Reference Website (2008). SIC 1721 Painting and Paper Hanging. Retrieved March 12, 2008 from http://www.referenceforbusiness.com/industries/Construction/Painting-Paper-Hanging.html </li></ul><ul><li>Business Week Website (2008). Sherwin-Williams. Retrieved March 10, 2008 from http://www.businessweek.com/bw50/2007/22.htm </li></ul><ul><li>CB Staff (2007, September 27). Sherwin-Williams Gives Color to our Life. Caribbean Big Business Profiles: Construction & Real Estate, pp. B20-B21. </li></ul><ul><li>DataMonitor (2007, September 28). The Sherwin-Williams Company: Company Profile SWOT Analysis. Retrieved March 12, 2008, from datamonitor.com </li></ul><ul><li>e-Shadow.com Website (2008). Shadow Real Peoples’ Jobs Online: An Interview with a Commercial Painter. Retrieved March 11, 2008 from http://www.e-shadow.com/an-interview-with-a-commercial-painter / </li></ul>
  28. 28. <ul><li>NAHB Public Affairs (2007, May). Housing Facts, Figures and Trends. Retrieved March 12, 2008 from http://www.nahb.org/generic.aspx?sectionID=130&genericContentID=45409 </li></ul><ul><li>NAHB Website (2008). Building Materials Data & Reports. Retrieved March 12, 2008 from http://www.nahb.org/page.aspx/category/sectionID=133 </li></ul><ul><li>NAHB Website (2008). Eye on the Economy. Retrieved March 12, 2008 from http://www.nahb.org/page.aspx/category/sectionID=187 </li></ul><ul><li>NAHB Website (2008). Welcome to NAHB. Retrieved March 12, 2008 from http://www.nahb.org/default.aspx </li></ul><ul><li>Shaffasend, Arman (2008, February 25). Interview with the Owner of ‘Competitive Quality Contracting.’ </li></ul><ul><li>Tulacz, Gary (2001, October). &quot;The Top 600 Specialty Contractors,&quot; ENR. 8. Retrieved March 12, 2008 from http://enr.construction.com </li></ul><ul><li>Lucarino, Adam (2008, March 7). Interview with the Co-Owner of ‘Brush Brother’s Painting.’ </li></ul>

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