Product Launch Strategy at Aditya Birla Group


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  • Product Launch Strategy at Aditya Birla Group

    1. 1. Levelplast & Textura A Marketing Strategy Presentation By Harshit Krishna Group Intern
    2. 2. 2 Introduction A market expansion strategy for Birla White Levelplast and Textura
    3. 3. 3 Branded Plaster and Texture Industry Analysis Threat of substitutes Threat of new entrants •Local functionally satisfactory product dominance due to low prices •Poor substitute quality but better channel engagement •Prevailing trends major determinants of sales, unless entrenchment broken •Fragmented industry, low entry barriers •Plaster a growing industry, Textures may be short-lived •Once quality standards established and promoted, market share known to be stable in similar markets Buyer Power Supplier Power •Low Involvement product, products differentiations stay hidden •Power concentrated with Channel Partners •No switching costs, several options available for buyer •Own raw material, little external dependence Internal Competition Few but large branded competitors, mostly not focused on these product segments, high risk of advancement exists despite product differentiation
    4. 4. 4 Products’ Value Chain Firm Infrastructure •management focus, information flow HR Management •field personnel Technology Development •R&D, product improvements Procurement •captive raw material production Inbound Operations •Purpose: demand •Efficiency gains creation for white cement Outbound Logistics •Effective Availability and Transportation Marketing and Sales Services •Sellers, Influencers •Complaint and Buyers, 4Ps Redressal etc
    5. 5. 5 Project Coverage Firm Infrastructure •management focus, information flow HR Management •field personnel Technology Development •R&D, product improvements Procurement •captive raw material production Inbound Operations •Purpose: demand •Efficiency gains creation for white cement Outbound Logistics •Effective Availability and Transportation Marketing and Sales Services •Sellers, Influencers •Complaint and Buyers, 4Ps Redressal etc
    6. 6. 6 Market Relations and Information Flow Company to Seller: awareness and sales benefits (pull) Company • Management • Front end employee Influencer • Architects • Applicators Company Seller Sellers • Stockists • Retailers Influencer Company to Buyer: awareness of quality (pull) Seller to Influencer: product supply (push) Seller to Buyer: product supply (push) Buyer • Builders • IHBs Company to Influencer: awareness and comparative recognition (pull) Buyer Influencer to Buyer: purchase decision (push)
    7. 7. 7 Agenda Project Objectives Levelplast Specific Issues Textura Specific Issues Common Issues Time based Rolling Plan
    8. 8. 8 Project Objectives Levelplast Specific Issues Textura Specific Issues Common Issues Time based Rolling Plan
    9. 9. 9 Approach      Surveyed major and upcoming market areas Studied products’ market and stakeholders’ for unique features and issues Used qualitative and quantitative primary and secondary survey information to frame recommendations Tested recommendations against insider views, analysis of available data and in a second round of market surveys Formulated action points along a short timeline as per different strategic marketing variables
    10. 10. 10 Studying cost and product based advantages and disadvantages of using Levelplast and Textura vis-à-vis the leading products these seek to substitute in terms of marketing, functionality and market potential (PoP / Gypsum / Plaster of Paris and acrylic texture, respectively) to our intermediate and end customers Suggesting improvements in the two products’ features, their pricing strategy, placement, product’s positioning and promotion (consumer and channel partners’ relationship with the company) Studying the successful markets (Pune and Bangalore, respectively) and analysing feasibility of replicating / modifying them for Mumbai and other markets Establishing most beneficial / correct application procedures and the resultant standard optimum coverage and costs numbers Outlining ways to strengthen distribution in existing markets and understand feasibility of expansion into new market areas Long term aggressive and defensive volume and margin targets for the products and action plan for next 2 years for Levelplast and Textura
    11. 11. 11 Project Objectives Levelplast Specific Issues Textura Specific Issues Common Issues Time based Rolling Plan
    12. 12. 12 Key Observations       Product based Poorly defined category, lies between cement plaster and putty for strength and finish, partially substitutes each Few similar branded products in category, main competition from cheaper substitutes Strength grading: No1 PoP > Gypsum plaster > No2 PoP > Lime Rendering. Gypsum cheaper, usage identical to Levelplast Most important competitor varies areawise, but better products used on ceilings universally Problem of non-standard mixing, application and quantities across sites Adulteration of expensive with cheaper products rampant to save costs (e.g. PoPputty 1:1 mix, local+branded mixing) Action Points  Guarantee product performance to cover the value - price gap for LP, and change product perception       Supervised application: requires just additional manpower, already scarce in company, use product champion Approved applicators: builder seeks reparations from company, but faulty application can’t be avoided by us despite highest quality Premium chargeable on actual guarantee, BW products alone have ability to be guaranteed in industry (a distinctive competitive advantage) Market scope limited by local player dominance to be addressed by combining coarse putty (almost a flanking product to LP) and LP brands under common umbrella Small LP SKU for repair and patchwork (1kg and 5kg), large for leveling in trade sales (20kg) and non-trade sales (30kg) Although LP has several applications (leveler, plaster on RCC, patchwork, texture), focus on leveler-plaster usage
    13. 13. 13 Key Observations  PoP vs. LP      PoP weak against seepage unlike LP LP setting time high (3 days) but no curing / hacking required, PoP sets fast over cement (1 day) but requires water curing / hacking No2 PoP cheaper, sold loose, wall levelling, tiling usage and as base coat (except by very few aware builders and IHBs), No1 on ceilings and for repair work (correspond to the Coarse Putty and Levelplast duo) LP applicable and cost effective as direct plaster on RCC and block surfaces Action Points  Features to improve:     Gypsum vs. LP    Product based Gypsum small competitor but fast emerging in Pune and most other markets, long term supply limited Compared to LP, very similar usage, poorer whiteness, similar finish, much cheaper, easier to mix and apply, absorbs water, more durable than PoP but worse level and finish Lime / Sanla / Neeru finish vs. LP    Gives smoother whiter finish than most products, easy and quick application (directly on wet cement plaster) Very easily available, direct sales from manufacturer and wholesaler Very poor strength and durability due to nature of application and composition, losing trend based market fast    Trade off between pot life (2 hours) and Setting time (>1 day), former needs to increase, work in progress Trade off between viscosity and binding, increase binding to allow less viscosity and easier application Repulsive smell, work in progress Packaging (minimizing wastage and adulteration), Small SKU with handle (appearance value, handling), work in progress Shelf life limited by standards for cement industry at 6 months Incompatible plasticizer and setting time delayer compounds Cement quality hampers easier mixing (ease of application, painter point of view)
    14. 14. 14 Key Observations Price based  Local PoP retailer margin (@SP of Rs160) = Rs15-20 (10-20%) difficult to match  Local material prices raised only as per new taxes, raw material price changes, small variations ineffectual at such low price points, no brand premium LP premium charged over competitors too high Gypsum plaster nearest competitor (similar usage and thickness but is cheaper), costs half PoP weaker as plaster, competes as leveler + base coat, similar costing when combined with plaster but restricted competition from LP (can apply as plaster only on RCC, else is a leveler) WCP - MF competitively priced in the same category (at lower thickness) ~30% taxes, ~20% transportation + depot expenses. Bigger bags (handling issue), more factories (area) not feasible, storage space at a premium. Other expenses leave around 45% margin on an SP of Rs300 for 20kg, difficult to reduce cost unless at plant level. Volume gains not viable on price reduction for new unaccepted product as such      Action Points        Contractor demands (reduce SP, credit for contractors alone by grading), stockist demands (reduce selling prices for higher margin, retain MRP for signaling) due to lack of customer-side awareness Target value delivery through pricing, market share through indirect commensurate price benefits through schemes etc. to match competition prices and inform of the same in meets and official communication channel Revenue gains unlikely at S1 (described later) on price slashing, breakeven in S2 with awareness of value and volume gain Special landing price presently ~ Rs 300 per bag, (trade price ~ Rs350) to be brought down to Rs300 as a promotional price while re-launching, then increased in small increments. Perceived as premium product but worth the price once educated about Gypsum per sq ft material cost Rs10, at LP’s coverage of 0.8 sq ft per kg to equalize per sq ft costs should reduce LP price to Rs 8 per kg (or Rs160 per bag) Adding quality premium (calculated next) above: Rs 143+160 = Rs303 per bag Reimbursement schemes initially small and frequent (monthly scheme: Rs7 per bag over 20 bags , Rs 8 over 40, 9 over 80, disbursement quarterly, plus cash discount for stockists Rs1000 flat over each 80 bags, longer schemes later
    15. 15. 15 Parameters Cement Plaster Gyproc OC Gyproc OCE Levelplast Coarse putty PoP1 PoP2 Gypsum SKU 50kg 25kg 25kg 20kg 20kg 20kg 20kg 20kg Price (Rs) 300 215 230 350 450 180 100 150 Coverage (sq ft per kg) 2.33 0.75 1.15 0.8 3.5 0.7 0.75 0.8 Per sq ft cost incl labour* 14 24 20 32 12 20 11 18 Additional coats Preferred usage Thickness CP on CP on CP on CP on mortar mortar Leveler mortar mortar wall, 1 wall, 1 and Putty wall, putty wall, putty coat putty coat putty required on mortar on mortar on mortar on mortar and RCC and RCC and RCC and RCC Ceilings and Walls Walls and exposed Walls Ceilings (Plaster Ceilings surfaces (Leveler) (Leveler) and (Plaster) (Plaster Leveler) and Leveler) 15mm 13mm 13mm 12mm 6mm Applied CP and CP and stand putty putty alone (optional) (optional) even on on mortar on mortar mortar and RCC and RCC wall Repair Work 14mm Ceilings Walls and walls (Leveler (Plaster and Base and Coat) Leveler) 8mm 15mm
    16. 16. 16 per bag price for additional value Value pricing for customer benefits and savings over a base price chargeable on a 1 lakh sq ft project over over No1 Differentiating features Source of value Gypsum PoP 25 25 approximated from survey Lifelong durability (high bonding) against 5-7 years durability Reduces 7 days from total wall preparing time, no curing but slow 22 22 time costs aproximated from survey setting time of up to 1 day Is completely water resistant, no blistering, chipping, flaking of time adjusted cost of painting from 9 9 survey upper coats, retains all water cost of additional compounds for 18 18 No fungal / algal growth (spl polymers) protection 18 18 saving on primer costs Is as white as fine putty, saves primer cost as absorbs less paint 9 9 hacking costs direct saving No hacking required saving on cost of sand only against 0 9 No sand required cement plaster + PoP 0 0 no differnece Can be applied till up to 12mm thickness over plaster 0 36 cost of plastering for PoP Strong enough to be directly applied on block work till 20mm 15 15 brand image and quality Birla brand 0 0 ultimately included in billing Company transport on site (FOB destination) Needs special training for application given to contractors just like putty training along with certificate of Birla approval 15 15 Training to workers given free by company on site 10 10 Comes in 30kg SKU for projects -5 -5 36 -18 PoP1 used as base coat, Gypsum needs two coats base coat -9 -9 initial unawareness linked issue, cost survey based -20 -20 cost of electricity, mixer and labour 143 134 Has slightly lesser smooth surface, coarse putty finish (needs single coat fine putty application for complete smoothness) Being cement based, is rough on hands and needs company provided gloves for worker Needs electric stirrer for mixing, 2 hours pot life so prepared in small quantities repeatedly Total premium chargeable recognition value as per survey no value add, only recognition value as per survey extra handling effort
    17. 17. 17 Key Observations  Seller      ‘Local manufacturers’ dominate PoP and Gypsum (incl. our stockists, higher margins than in selling competing LP), triple up as contractors and sellers / samplers, provide own labor, credit terms, high retailer channel presence, sell large quantities direct to builder No retail scope until huge market position obtained in projects (1. consumer cost consciousness, 2. specialised application requirement - sales without correct application spoils product image) Increasing gypsum usage; availability and costs most important, no brand premium, many erstwhile PoP manufacturers-stockists shifted Need more entrenched market position if not shifting to Ultratech channels Buyer    Placement based Non-trade demand unpredictable and sporadic Base coat segment easier to approach, so are IHBs. Branded leveler category needs marketing push Influencer   Main influencers (contractor and painters) opt for cheapest work to have lowest quotations Service follow up and coordination weak (say, hand gloves not provided in time to applicator), glitches halt application, hurt image Action Points       Bill directly to company approved applicators for projects they land, bill stockists for company landed LP contracts, bill retailers 6 months after launch Sell Levelplast as part of a package (LP+Putty), initially cross subsidize LP through lower combined prices, earn from putty alone to increase LP sales and awareness, then from LP as prices raised Bill stockists for sampling material when required or keep him pre-billed for future sampling needs Best channel initially, company->stockist>customer (builder/applicator/IHB etc) because longer channel => higher total mark-ups, again can’t afford higher prices No strategy that increases prices further recommended, if transportation expenses paid and then covered in billing price, not recommended Applicator important now as can control all costs, labour, material of all kinds, in providing several materials as package can reduce costs and increase sales of LP
    18. 18. 18 Placement channel)    1 (grey cement Sell through cement and plaster based stockist and outlets simultaneously (like gypsum plaster is) Objective: mass market expansion in limited timeframe Pros:    strategy Placement based Leverage 5000 strong Ultratech cement dealer network to sell Levelplast Plaster products bought before painting starts, makes sense to place it thus Cons:       Sister concern UT gray cement has much cheaper branded plaster already, selling from same counter => cannibalization LP applied on RCC (less on mortar wall due to costs at high undulations + mortar wall needs stronger cladding, LP=0.8M Pa, CP=4M Pa), could lose these high potential applications Positioning as premium and high quality white cement product diluted and involvement level further declines Gray White cement channel, applicators, market information levels very divergent, difficult to sell such an expensive product to plaster masons Gypsum plaster sold thus is a nondurable, perceived-as-cheap and dull finish (like gray cement) product Not feasible if coarse putty to be rebranded unless both are sold through grey channel Placement strategy 2 (paint channel, similar to Textura but more influencer focussed)      Objective: market entrenchment (sub stockist model and product champion model) and slow expansion Strategy to include coarse putty rebranding under Levelplast umbrella Must still include powerful manufacturer stockists but focus on non-manufacturers first to create influencer acceptance Initially, small SKUs (1 and 5kg) to be used for repair and patchwork for trade sales larger sold through non-trade; universalize slowly (12-18 months) Pros:      70% White Cement based products end sales through paint counters, awareness important in hi-tech products, best placed in a customer friendly network Don’t need too many stockists per se, demand limited, few can supply a large area, need more entrenchment in given area to expand sales Better visibility through existing stockists and applicators Can co-sell with fine putty and leverage re-branded coarse putty demand Cons:   Will take time to establish market presence Contingent on many other recommendations being successfully implemented
    19. 19. 19 Key Observations Promotion based Competing products of lower quality yet no awareness created about same, No effective performance guarantee despite clearly superior results so builders stay risk averse of cost inefficient product  No applicator development / training (necessity for LP application) activities specifically for LP. Too few applicator training centers and painter training activities, no assistance to applicator in training from company  Can’t push cost ineffective product without awareness of direct / indirect cost advantage, fully dependent on contractors’ and stockists’ connections, limited sampling drives  Too similar a positioning of coarse putty (WCP – matte finish). Excerpt from website: “Getting a proper line and level surface Birla White Wallcare Putty Coarse (Matt Finish MF) applied in thicker coats (5 - 15 mm) covers up the undulations on the plastered surface. It fills up the minor cracks/crevices in the plastered wall and provides an even levelled surface”  Action Points    More promotional focus on influencers than owners/sellers unlike Textura Brand name, WCP’s high demand and general BW quality industry standard, no powerful competing brands, locally popular names used by manufacturers to pack loose material; leverage this initially  Using existing BW sellers and influencers to push products  Universally using LP and Tex on BW merchandise, stickers and signboards for counters even before launching in retail  Selling LP as a package through our contractors Instead of competing on cost, position uniquely from local products based on features and aim to remove lower quality material from market
    20. 20. 20 Promotion based Re-branding Coarse Putty LP Product benefits to highlight    Best way to rebrand existing WCP-matte finish (almost same positioning as LP at lower thickness and strength levels) as Levelplast coarse putty and existing product as Levelplast original Benefits of re-branding coarse putty as a ‘Levelplast coarse putty’      Higher coarse putty sales and awareness positive for LP brand-name Shall act as a flanker product for LP to eliminate local products Will bring more focus on LP as a product in company management Categories are better defined, cannibalisation resolved Levelplast a quality leader, high future potential, requires push      Reduced paint consumption and primer requirement No curing so time saved Applicable on wet plaster surface No sand required that is wasted a lot in handling alone, is coarse and faces mining ban Great for time bound projects (public / govt’l constructions, big private projects, durability seeking infrastructure projects) Can inoculate against all crack types, include in positioning parallel to Tex
    21. 21. 21 Chronological summary  Feature enhancement, as soon as possible -> Re-brand coarse putty under Levelplast umbrella before any new launch -> Price reduction (direct: value pricing, indirect: dedicated schemes, transportation, de facto guarantee) -> Product champion appointed -> Sell through putty stockists, pre-billed stocks for sampling -> Target plaster and leveler markets -> Approach IHBs first, commercial markets later along with applicators (push to sell package of LP+Putty) for sampling -> Stratified training and official communication channel -> Visible marketing (Levelplast samples and posters at point of sale, use along with Birla White ads) -> Increase stockist entrenchment (substockist model) -> Increase awareness and number of applicators through specific meets -> Relationship management practices for channel members and applicators -> Part retailer and part stockist billing -> Target patchwork and repairs market -> Shift to retail channel
    22. 22. 22 Positioning (Levelplast)  P1 (current positioning: competition based, niche market product)  Platform targeted: Durability (Applicators, Specific Builders), Technically Advanced (Architect) Levelplast as a premium leveler product, more durable substitute for cheaper local material which form the basis for fine putty, can cover higher undulations than coarse putty and PoP with better finish than Gypsum, suitable for only specialized application Pros:       Allows price premium based on quality leadership Positions us to acquire a niche market in plastering products Building awareness on tried and tested durability and quality lines Cons:      Pitches LP against far cheaper products, despite removing PoP substitute from promotions reccently, company perception remains the same Low performance products also functionally sufficient in a low involvement influencer dominant market Usage based positioning implies coarse putty also cannibalises sales Markets a new product like an old one (premium priced WCP) which faced a nonexistent product market and set all standards itself Aggravates low involvement nature due to advantages being shown through complex industry jargon alone, could have worked if product was already at high awareness stage
    23. 23. 23 Positioning (Levelplast)  P2 (suggested positioning: benefits based)  Platform targeted: Necessity (IHBs, Applicators, Builders) Levelplast as a necessary cladding on walls and ceiling to permanently prevent fungal / algal growth, cracks and water seepage related issues that no other products can deliver without which your wall will eventually be damaged, versatile as a repair work product Pros:         Aims to remove local competition from the purchase decision equation Product as such can’t compete on price, should compete on what is its forte Necessity image to technically sound influencers and value pricing to other applicators optimize sales potential of high quality product Makes product approachable to small applicators who drive most construction volumes Niche marketing + low involvement nature => low sales, this positioning goes broader Cons:   Against the trend of premium priced product range Weight of cost effectiveness against benefits of a well promoted quality product may be underestimated
    24. 24. 24 Project Objectives Levelplast Specific Issues Textura Specific Issues Common Issues Time based Rolling Plan
    25. 25. 25 Key Observations          Product based Coarse Putty substitutes RF (cheaper, easy to apply, similar visibility at heights), 50 tpa JK coarse putty used as texture in BLR Acrylic texture substitutes all variants (assumed to have better / smoother finish and hence appearance, an important quality, pre-mixed, easy to apply) Product category confused with interior designer paints, acrylic texture; cement based texture not popular in general (impression that will crack like others do) Perception of lack of designs (no RF promotion) Painter and contractor issues relative to acrylic texture (powder form, stirrer mixing necessary for RF/SF, TF hand mixed because of granules, specialised training, gloves, electricity requirement, short pot life, repeated mixing) RF potential demand high due to designs, slightly subdued due to cost, finish inferiority to acrylic, less visibility at height, lack of awareness and above factors Higher adulteration in projects (high quantity, low monitoring) Trend based industry (Cement paint>Emulsion->Texture->??) Shelf life limited by standards for cement industry (6 months), Incompatible plasticizer and pot life increasing compounds, Cement nature hampers ease of application Action Points      Need repositioning for long term demand, launch sooner in both channels than Levelplast Larger granules => more visibility. Increase to 3mm width from current 2mm, introduce multiple sizes, 100-110 sq ft per bag at 2mm, 10 sq ft coverage reduction per mm granule size increase, cost per sq ft increase of only 50p Introduce larger economical SKU for projects to avoid retailer perception of better pricing for projects from stockists Promote RF as versatile designer product, TF as standard texture, no need of flank products since competitively priced Features to improve      Trade off between pot life (2 hours) and Setting time (>1 day), former needs to increase, work in progress Trade off between viscosity and binding, increase binding to allow less viscosity and easier application Repulsive smell, work in progress Packaging (minimizing wastage and adulteration, 5-8% material wasted, 20% loss to adulteration, 70% bags tampered with in Bangalore market), Small SKU with handle (appearance value, handling), work in progress SF, RF use coarse sand, non-binding due to thinness of coat, thick coat expensive, less popularity of spray guns, rollers, non-homogenous patterns due to quick drying
    26. 26. 26 Key Observations    Price based Locals give up to Rs100 retailer margin on Rs300 to Rs 520/bag of 25kg, we give 3-4% on over Rs640 selling price and Rs750 MRP, save on transport, taxes and raw material Lower margins and awareness than branded acrylic too, also prone to squeeze as retail customer ask for same low price on non established product even as company has hiked it over time Fixed margins of 3.5% for stockist in pidilite, 5% retailer margin earned through cross subsidising across product range in Asian Paints Action Points    Maintain prices for signaling effect as targeted positioning of higher quality, transfer indirect pricing benefits as promotional strategy Reimbursement schemes initially small and frequent (monthly scheme: Rs7 per bag over 5 bags , Rs 8 over 15, 9 over 30, combined quarterly disbursement, plus cash discount for stockists 5% flat Longer schemes as performance increases later
    27. 27. 27 Parameters Textura TF Textura RF Textura SF Branded Acrylic Local texture SKU 25kg 25kg 25kg 25kg 25kg Price (Rs) 650 700 700 900 500 Coverage (sq ft per kg) 4.4 5 5 2.5 3.1 Per sq ft cost incl labour* 10 11 11 22 8 Additional coats Paint required, No primer Paint required, No primer Preferred usage IHBs and Residential buildings IHBs and Commercial buildings IHBs and Commercial buildings Commercial buildings Residential buildings Thickness 2mm 1.5mm 1.5mm 3mm 2mm Colours Paint required, Paint required, available, Primer No primer Primer required required
    28. 28. 28 Key Observations         Placement based Texture sales low generally, so retailer keeps known big brands alone (Nitco, Dulux, Asian) in most areas Market perception due to our long restricted project focus: texture is best in acrylic form Wherever texture in trend, local players have entered market and captured based on price, additional services and availability Local acrylic mainly sells to small builders and houses through painters and cost conscious contractors, availability at stockists / retailers due to high margins another main advantage Can’t be used over once-painted surface, no replacement market Texture done towards end of construction, small owners cash strapped by then, go for cheapest option available We sell to all sizes and income ranges (as per awareness), branded acrylic texture bought by big builder projects and architect influenced ones who go on brand appeal Small applicators and retailers highest volume drivers, least considered Action Points      Sales channel: paint counters and existing putty stockists, presumed point of sale for such products Improve retail and small applicator focus (volume drivers), WCP launched in retail 6-12 months after project launch, ensure equal prices as projects from stockists, currently Rs5-20 differential Towards end of S1, sell to contractor through retailer in company-landed projects under 25 bags and through stockist for over 25 bags Directly bill large contractors after certain quota of earlier applications reached (S2) Rs 10 per 25kg bag transportation from depot on average, could include in billing price for Textura (S1), per sq ft rise = 10p
    29. 29. 29 Placement based Benefits of retail focus     Stockist, retailer, applicator, painter, end customer all involved Better word of mouth awareness, complaint redress done by channel Retail sales = higher profit for all channel partners (due to higher retail prices and more margin opportunities), high and stable turnover for company (80% WCP sales through retail), more visibility and awareness Paint-like product needs higher customer involvement level to sell Benefits of billing through retailers    Company: Sales up, retailer awareness and acceptance, payment collection outsourced Retailer: Turnover up, more scheme earnings, additional sales of painter tools and related products to buying contractor, business automatically generated w/o stockist competition, good for attracting retailers on board Contractor: Can avail of small quantities too (company normally direct bills for 100 bags or more)
    30. 30. 30 Promotion based Key Observations    Less market focus on category by major brands, hence fragmented and limited market, mostly in projects in our case Similar problems with product look and feel (needs painting over, low visibility at height issue) as in acrylic, latter only more circulated and and hence sells due to awareness Textura sales in general not pushed across the company because of WCP focus Action Points     Product be visibly placed at selected putty retailers / stockists on 4’*2’ samples on walls, stickers and signboards containing Textura pictures 4 sheet catalogues to influencers free with 4 designs per sheet to personnel, applicators, retailers, architects , builders Branded acrylic and RF potential demand high due to numerous designs and uniqueness, first mover advantage would count Benefits to be highlighted:      Higher coverage, so more cost effective despite high MRP Single uniform granule size unlike others Acrylic finish smoother than TF but non durable No peeling unlike acrylic = suitable for rainy / seepage prone areas Primer costs saved
    31. 31. 31 Chronological summary  Feature enhancement, as soon as possible, esp new SKU for projects and granule size -> Price reduction (indirect only: dedicated schemes, transportation, actual billing prices maintained) -> Product champion appointed -> Sell through putty stockists, pre-billed stocks maintained for sampling -> Approach IHBs first, commercial markets later along with applicators for sampling -> Stratified training processes and official communication channel in place -> Visible marketing (Textura samples and posters at point of sale, catalogs with channel partners and salespeople) -> Increase stockist entrenchment (sub-stockist model) -> Increase awareness and number of applicators through meets -> Relationship management practices for channel members and applicators, grading -> Part retailer and part stockist billing -> Shift to retail channel
    32. 32. 32 Positioning (Textura)   P1 (current positioning, ‘usage based’) Positioned as an appealing and artistic product, Platform targeted: Premium (niche IHB, Builder), Designer appeal (architect, IHB, builder)   Textura as a cement based higher-quality-than-competition premium exterior wall texture, meant to cover bad workmanship and undulations permanently, focused on projects, competing against all similar products (acrylic texture, putty used as texture). Pros:      Project focus builds market credibility for new product Builds applicator knowledge and establishes a sales channel ‘Usage’ positioning targeted at prime influencers, the applicators Conforms to company perception of durability and visual appeal not congruous for textures Cons:         Quality difficult to show without widespread promotion, sampling Restricted by nature of product and costs involved, respectively Appeal more important than durability in wall coats, thus focusing on latter at former’s expense works to product’s detriment Competitors have unique benefits that we lack (designs, finish, price) Direct competition from functional cheaper coarse putty and local products in cost sensitive projects market No focus placed on either sellers and buyers, or on architects Ads displaying designs and appeal as product platform not in tune with market perception of cement based better binding and protecting counterpart to acrylic texture, failed positioning, probably improperly conveyed or being sold on benefits which themselves became positioning Still lower involvement than deco paints, if position as luxurious like acrylic is, the latter which is better promoted will sell
    33. 33. 33 Positioning (Textura)   P2 (suggested posiitioning: benefits based new concept) Platform targeted: Strength(Builder, IHB, Architect), Approachable (applicator, builder, IHB)   Textura as a new kind of texture that not only gives finish and numerous designs of acrylic texture, but the better binding and durability of cement products thus is a wall protecting, permanent exterior coat with many designs (when RF and TF taken together), quickly applied, covers structural cracks at any type of construction and stands seepage and rains Pros:        Sells not the product but the specific benefits people look for No premium portrayal so as not to compete with branded acrylic High quality as differentiator from cheaper substitutes End users also taken in loop along with influencers and sellers Portrays all benefits only we can provide Appeal and Strength combination USP Cons:  Applicable as far as company interfaces quality conscious customer
    34. 34. 34 Project Objectives Levelplast Specific Issues Textura Specific Issues Common Issues Time based Rolling Plan
    35. 35. 35 Product based Key Observations   High-end and differentiated features sought in a new product to compete unless aided by promotion and pricing Area (weather and sand etc), psychology (existing trend, channel familiarity and applicator specialisation), and thus awareness prime determinant Action Points   Single layer better material packaging to avoid wastage and adulteration of expensive material Guarantee performance as a lifelong product in word and indirectly, the ‘part of wall’ statement limited time period guarantee by paint cos
    36. 36. 36 Key Observations       Price based Non-uniform prices across stockists and cities, big stockists hoard high volumes and sell at lesser prices, + multiple stockists in an area => competition and undercutting Seller squeeze margins to sell popular branded products, if no volumes then high seller margins sought to push product, credit also given by others (local and branded manufacturers) and thus requested by channel partners ( incl. seller category) All products in profile sold at premium over competition (quality leadership pricing) Special prices to non-trade parties arbitrarily decided on a cost + bargained premium basis, no uniform prices from us and from stockists, too much discretion 3 day advance payment requirement, work slowed if large order placed w/o immediate cash availability with applicators Company perception: credit to stockist = more credit to retailers, bad debts accumulate (company impression of insurmountable bad debts), company image suffers and product abandoned by contractors Action Points    Area sales teams’ pricing discretion to be limited to offering (or not) discounts and schemes as per defined criteria and objectives, with an additional 5% leeway only Target quality based value delivery through pricing, gain market share through product positioning and awareness Special price determination curve for direct billing above minimum realisation requirement (order quantity, previous cumulative purchases, initial promotional pricing) as in excel sheet
    37. 37. 37 Placement based Key Observations  Seller      Retailer sells the bestseller for volumes, push products with highest margin, new products have neither. If margins given but volumes absent, will push the better selling products Channel penetration and perception prime sales determinants for branded products (eg.Lime prominence), high dependence on paint retailers (cement products’ share of their turnover ~2%, can counter by deeper market penetration) Retail hold possible by better benefits than competitors to sellers (for seller push), and applicators (influencer push) until customer awareness based demand created (sampling, applicator development, promotion), but current project focus means sticking to influencers alone Retailer competition with stockist selling to contractors, customers directly at lower prices that retailer can’t afford or consuming themselves Perception of low gains from small SKUs across products + inexact demand forecasts => supply issues for these potential volume generators Action Points  Seller       As less as one bag sold by stockist on cash, highest retail quantity on one sale not much, because buyer lifts only as per immediate requirement. Impossible to demarcate sales quantities, can only support retailers through direct billing Fixed area wise stockists=> no infringements = no undercutting = uniform pricing. Divide areas for stockists and inform retailers and stockists of the same through meets and an official communication channel between company and channel Sans-stockist Asian model of sales works on market recognition, stockist push not required, critical in our case Increase stockist penetration through sub stockist model, better ROIs  Cash discount (special prices) 5% + Trade discount (as per quantity) 5%  Stockist keeps at least Rs 10 per bag in Textura as margin, retailers keep Rs 10-15 too  ApproxRs 10 per bag incurred in transport by stockist from depot to own godown, little stocked, ordered from depot when required, small quantity retailers supplied from own stocks and charged inclusive of transportation  Directly give targets to and compensate stockists’ sales team to counter company understaffing UBSs uninvolved so far with LP / Tex, should have leveraged them to promote in and access Tier 2 / 3 cities wherever product launched Retailer should not have to compete with stockist on price for same customer, bill only through retailer for smaller quantity orders
    38. 38. 38 Placement based Key Observations  Influencer       Repeat applicators, few new ones because of inadequate training and information activities Small quantities required for sampling, necessary to promote, since sales low and low shelf life, stocks rarely maintained if launches unsuccessful Difficult to cross sample at project site, especially when product pre decided Takes up to 2 months to convert a lead from first approach to sampling to usage for new products, 15-20 days for Putty Issue of timely delivery for new products (low sales turnover) in projects because sufficient total quantity required to place order, hits reputation and contractor orders elsewhere; not so for products in retail where stockist supplies Architects small influencers because, much like builders, are involved with design (look-feel) of construction and not what’s applied inside. Relatively more important for Textura than LP because is a visible product Action Points  Influencer     Whether to directly bill applicator decided as per their bargaining power (size of order, market reputation, previous orders), should provide streamlined special pricing Billing contractors through retailers for own projects and supplying from depot under 100 bags (in S2, beginning of retailer focus along with sampling), supply from depot Billing contractors through stockists for own projects and supplying from depot over 100 bags Currently company samples to only builders through applicators, sells to them but if sampling slow (as is the case), no visibility whatsoever, need more sampling for IHBs, slightly easier market
    39. 39. 39 Placement based Key Observations  Buyer    Perception is - once all others engaged IHBs-builders demand will come by awareness. Least connected parties as of now Builders stock just enough quantity, repeated on-time delivery hampered by 3rd party transporter involvement. Company transports effectively only from factory to depot Small customers / house owners can spend a little extra per sq ft totaling to a few thousands at most (for 500-2000 sq ft), Big projects mean additional expense in lakhs, quality concerns lower Action Points  Buyer  Cross selling / sampling through applicators of putty for LP on site , invitation for free sampling in ads     Approx 33% sampling conversion in projects for Textura, 75% for WCP, <10% for LP, this needs continuous monitoring, IHB conversion higher When products to be used already decided, as in big commercial projects involving architects etc, cost per sq ft most important to change preference so approach beforehand through architects and applicators 1 bag LP used giving around 14 sqft on wall (multiple coats) and up to 28 sqft on ceilings, 3-4 designssone in Textura, maximum consumption upto 2kg For company, labour cost Rs 350-400 per sampling; hire monthly paid painter trained for WCP / Textura / LP to sample, cost Rs8000/month
    40. 40. 40 Placement based  Company     Improve information flow by advertising and effective new manpower use, material flow will follow sales, invoicing flow and payment flow channels need product dedicated manpower Virtuous cycle: Stocks->Point of Sale Availability->Sales->Awareness->Demand->Stocks. Need to improve logistics and awareness creation to maintain usable stocks and market interest Need to establish continuous flow, small pre-billed stocks maintained with dealers for sampling purposes while project team scouts for new sites [how much exactly] Redefine CASC objectives as long term demand generation CASC objective to generate long term pull side demand for products, engaged in sales and promotion wherever manpower shortage in big areas such that same person handles both activities (Orissa), need to overcome understaffing to gain focus
    41. 41. 41 Key Observations  Promotion based Communication and Training        Owners (quality conscious) uneducated of quality parameters, product presence and advantages; influencers even if educated, unicentivised in absence of framework for dealing with channel partners separately No separate coverage of architects, (more important influencers than applicators in bigger projects, rich IHBs) Communication on, number of and engagement level of schemes and meets to retailers weak compared to paint cos, retailers randomly called and not informed about in time, sporadic coverage No direct communication from management or RnD to big clients (recognition and involvement) as exists in other cos (share performance stats, sales strategy, channel information, target segments etc in fewer larger stockists / applicator programmes) No mass media used because product use requires special training, can’t sell and risk bad application unless applicators developed and general market awareness there Online efforts (information through website, cost calculator, design pictures) unreliable because of low involvement nature of product Painter meet training ineffective relative to formalised training programme, no localised training programme (Asian Paints’ Royale Play training) Action Points  Communication and Training      Educate employees first, then influencers and retailers through stockists, then indirectly approach end customers to evoke quality consciousness Only WOM advertising so far, need mass promotions once quality parameters established in market (S2), advertise locally on TV - radio in S2, co-advertise new products with other Birla White products first Develop applicators in umbrella mode locally, 1 authorised trainee teaches 4, 4 teach 16, examine new painters’ work, pay Rs 200 per head to authorised trainee. Total FY11-12 formal training expenditure Rs17.5 lakh, per head cost Rs3000-4000 (2 painters attend with each contractor teach others if interested in product). Rs50-100 per head cost of onsite training including small gifts On-site training and supervised application as de facto guarantee, can’t do through actual guarantees or approved applicators as faulty application can’t be avoided by us despite quality If well engaged through meets, architects could recommend usage as a standard product given high top of mind recall, important party in building designing and quality recommendation
    42. 42. 42 Promotion based Key Observations  Channel       Stockist priority => sales (given awareness and promotion) > service levels > margins > schemes (Big, stockists / applicators => recognition more than margin hikes) Retailer priotity => sales > margins > schemes > service levels Applicator priority => sales > service levels > pricing Quality pre-requisite not sales driver  Sellers don’t push and stock also because awareness and sales need to go up hand in hand  Importance of quality: IHBs > Architects > Applicators > Sellers > 3rd party builders, benefits besides awareness sought for new competitive product  Our applicators too can’t push in big projects where builder-architect have pre-decided preference Schemes not tied to quantity, inadequate compensation especially considering products are new Stockists change very frequently, timely availability and procurement issues exist Action Points  Channel       Effective influencing power in product selection: 60% applicator, 20% architect, 10% builder, 10% seller (currently stockist only), need to empower sellers with time Credit sales to grade A contractors alone, not stockists (forwards more credit ahead, collection issues, losses accumulate in channel, incremental price chargeable by giving credit = up to 2% of credit amount Timely payment incentivising credit for contractor / stockist: 3.5% annual incentives for all payments made within the week, 5% for all made in advance above minimum 50 bags a month over 2 quarters, more lax policy not feasible at our turnover level; total outlay = 11% of markup Special prices=>undercutting in channel=>limited growth and unprofitability, avoid in Textura at least, give to applicators on direct billing, not to sellers Local level counter-wise and applicatorwise training to their painter contacts to capture counters, develop contractors and painters + recognition to channel, cost estimate Rs100 per head (Royale Play training costs), regular purchasing painters from retailers command 30-50% share of sales, no portrayal of very high specialization, all meets to be area-wise Could seek invitation for free sampling at construction sites while locally advertising
    43. 43. 43 Key Observations  Organisation      Promotion based Management focus, targets, retailer schemes and initiatives, special rewards for stockists and applicators, employee appraisals components (40% each WC and WCP sales, 10% each LP and Tex) tied to WC and WCP sales, other products thus ignored Old product based targets passed down, thus limited new product information at each level + no in-house training facility (5 zonal level meetings held periodically to exchange information, then passed on, no direct involvement of front end line employees) => disconnect between field action and planned objectives Little incentivizing, promotion opportunities, raises, travel allowances, refunds for phone and food etc, liable to leave company (average period of employment in the company of an SR <2 years, perception pf unstable employment). Pay 10k + ~600p.m. incentives, less than competition, JK pays 15k fixed + TA/DA, Asian 16k fixed, Pidilite 17-18k fixed, (all market majors, one cement company) No management focus leads to lack of coordination between sampling, follow up, pricing and supply, in turn suppressing sales and awareness further CASC objectives (long term demand generation) and functions (sales activities) misaligned Action Points  Organisation  Train employees regularly on product and marketing innovations from different areas, involve marketing – sales – projects employees in employee meet by seeking opinions and rewarding same  Separate teams: experienced SR promoted to on-roll field officer as product champion, separate team in S2, Base targets and appraisal on new products, initially as a small share of total, then standalone targets and appraisal heads for dedicated staff  Market knowledge required different from putty application and market  Cost: on roll employee placed at increment of 6000 + incentives to match industry as product champ, Benefit: incentivising all others and cheapest way to push products, better channel hold  Responsibility: sales leads, sampling, providing cost estimates, product info and applicator link-up to customer, followup, documentations, pricing, meet auditing, sales monitoring, supervised application, architect coverage, complaint redressal, more channel visits  Communication, transport paid for and autonomy to act such that complaint redressals and request fulfillment done without delays of escalation  Revisit incentive structure of off role employees, performance based incentives to the extent of bill reimbursements and on-roll trained employees’ field activeness needed
    44. 44. 44 Sub Stockist model              Promotion based In addition to existing distribution model Initially a stockist of some other products willing to deal in Birla White products Buys from regular stockist not selling to C-class retailers C-class retailers’ potential average sales of around 10 bags Gets stockists’ best price for retailers being a big buyer Sells at smaller than stockists’ margin Retailers also get comparatively lesser margin than bigger retailers Similar to having multiple stockists in same area in that margins reduced but reach achieved, no conflict as targets different Schemes from company same as those given to retailers for the smaller retailers shown under the actual stockist No schemes currently for the sub stockist who also gives credit and transport to cash strapped small retailers If given credit etc and supported by company, then best way to crack new and old but slow markets (un-captured sections) to drive volumes After regularly making certain amount of sales, upgrade to stockist level for a new area If product not working need better penetration rather than market expansion
    45. 45. 45 Promotion based  Relationship management practices (more important for bigger clients)       In new markets initially for new products, all initiatives as per parties’ total turnover and not BW sales Have 3 grades of contractors based on annual Birla White sales (Grade A > Rs20,00,000, Grade C < Rs4,00,000), felicitate same and give direct billing, credit selling (advance cash payment -> cheque payment -> credit, then increase credit limits), product dossiers with birthday, anniversary cards, privelege cards with points tied to sales reimbursable or usable in AB Group outlets Rs 1.5 - 2 lakhs already spent on a retailer meet, segregate channel partners by turnover, organize separate socialising programmes (trips, tours) for big ones for better exchange of information, expectations Engage the family (gold coins as investment, tour packages for family etc traditionally given, appliances) Lucky draw at meets with compulsory counter owner presence to collect awards Seniority wise liasoning under an official communication channel: management to A grade stokist / aplicators, builders and architects, field officers with other stockists and applicators, off-roll field employees with retailers and end customers CASC activities Lucky Draw Trips / Tours Liason programme* Fecilitation Retailer meet Contractor meet 10000 1-3.5k per head 10000 800 per meet 10000 1-3.5k per head 4500 800 per meet Engineer/archit ect meet 28000 1-3.5k per head 3000 800 per meet Painter / mason meet NA NA NA NA *per month in an area on an average based on Asian Paints data
    46. 46. 46  CASC activities     Promotion based Rs3.08 crore CASC budget this year, ~80 lakh expenditure in meets last year (31% of total Rs2.56 crore), need to push up to 40% (or 1.232 crore) while including separate meets for new products Formal training expenditure last year 17.5 lakh (~7%), need to push up to ~10% (31 lakhs) as counter-wise and applicator-wise painter training introduced Sampling costs at 5% and Relationship Management for applicators, builders, and architects at a total of 5%% of budget as separate categories Need to withdraw additional requirement in above two from CASC budget spent on sales activities, need to restrict sales expenditure to sales budget 300 + (200 to 300) 50-80 50 Contractor meet 300 + (200 to 300) 50 600 + (400) 50 200 + (120) 50 200 614 per sq cm of coloured ad space, 440 for B/W* 14000-21000 per 10s slot (off-time, prime time)# AIR 250-400 to 400-1000 per 10s as per city tier, pvt FM 1600-2700 as per city and time of day 30 Painter / mason meet Ads in local newspaper 100 Engineer/archit ect meet Costs Ads on radio Retailer meet Other promotional activities Ads in local TV channel Cost per head Avg no of Frequency (national CASC activities + (cost of gifts) attendees level, per annum) Sampling (free, by invitation) Token 65x for Tex, 350x for LP + 9000 a month labour / 350x^ 25x for LP, 45x for Tex *dainik jagran rates, #ETV rates, ^'x' implies no of samplings
    47. 47. 47 Promotion based  Presentation at meets      Standard presentation used at all meets Need audience wise changes in technical-marketing orientation; engineers, applicators, painters, stockists, retailers Include more on product positioning and specific audience benefits (what’s in us for you? features, company provided benefits, problem resolutions) rather than product features (too much focus on tech details currently) Importance of standard application to be outlined along with numbers Division of presentation into parts is suggested as follows: Components Company Info, Strategic Vision, Party’s Importance Product Positioning And Usage Areas Technical Specifications Benefits And Features, Why Costly? Promotional Benefits For Party Concerned Other Products seller applicator architect engineer painter 15% 15% 15% 15% 15% 25% 25% 25% 20% 25% 10% 10% 25% 30% 10% 25% 25% 25% 25% 25% 15% 15% 0% 0% 15% 10% 10% 10% 10% 10%
    48. 48. 48 Project Objectives Levelplast Specific Issues Textura Specific Issues Other Common Issues Time based Rolling Plan
    49. 49. 49 Temporal Stages in market expansion in an area* for Textura Can’t use same metrics as WCP (under 1000tpm underdeveloped, above 2500tpm developed) for LP/Tex, must gauge total addressable market in area as per substitute products’ usage and demarcate proportions. Under 2% underdeveloped, over 15% developed for Textura  Begin from S1, Underdeveloped:  influencers most important, so applicator development important  selling through stockist to big and small projects and contractors  include new products in targets/appraisals of putty team (product champion)  Grow to S2, Emerging (transition requires applicator development and sampling drives to create general awareness):  newly created influencers push the product  stockists sell to projects and some big retailers only, sub-stockists created  billing the retailer for small orders and retail promotional activities  applicator development continued and upscaled  handover responsibility of new products to a separate team  Finally arrive at S3, Mature (transition requires high pan-market awareness, relationship mgmt and good service levels):  take all on board (seller, influencer, buyer)  selling mainly through retailers  billing retailers and few ‘privileged’ contractors for all company projects  S1 toS3 should be at least 6 months, ideally 12-14 months  Mumbai stuck in S1, Bangalore moving onwards from S2 *all markets in S1 initially with at best partial exceptions wherever taxtures already popular 
    50. 50. 50 Creating an area wise strategy (Textura)  Alter these stages as per ‘Market Types        Launched earlier, unsuccessful, eg. Mumbai area (study for losses, rectify erroneous practices as the case may be, re-launch) Launched earlier, successful (moderately) due to contingencies, eg. Bangalore area (share contingencies in employee meet, verify applicability elsewhere, devise alterative placement strategies) Launched recently, good response, eg. Hyderabad area (highest focus, implement recommendations and monitor results) Launched recently, slow response, eg. North Zone (check which implementations faulty, correct for and continue) Not yet launched, but other textures present, eg. Most areas in Rajasthan India (look for dominant product's main qualities, modify promotion strategy, develop applicators) Not yet launched and other textures absent, eg. Eastern India areas [most lucrative market], eg. Rest of India In each market, check for:      ongoing trends in exterior wall coats (nature of products, application methods, price consciousness) locally common construction issues (coarse sand, labour, primary complain) trends in relationship between sellers, influencers and buyers (strong influencers a plus point) staffing requirement and further area divisions based on market size entrenchment of wallcare putty in market, channel hold
    51. 51. 51 Creating an area wise strategy (Textura)  And enhance or maintain sales effort as per ‘Building Types’     Commercial projects (second largest application, architects dominant) Residential projects (largest application, architects involved) Government buildings (time constraint important, tenders important, potential customer in good to high awareness market) Independent houses (easiest to cross sample, painter and contractor dominated, volume drivers) Ranks -> Amount of application Extent of cost consciousness Readiness for sampling Potential market size 1 2 3 4 Residential Projects Residential Projects Independent Houses Residential Projects Commercial projects Commercial projects Independent Houses Independent Houses Government buildings Government buildings Commercial projects Commercial projects Independent Houses Independent Houses Government buildings Government buildings
    52. 52. 52  Rank As per importance of following parameters: Trade channel Non trade channel 1 Existing trends in market Existing trends in market 2 Durability and Binding Cost per square feet 3 Strength against cracks Visibility 4 Water resistance Finish 5 Cost per square feet Durability and Binding 6 Visibility Strength against cracks 7 Time required for application Water resistance 8 Ease of Application Time required for application 9 Handling Ease of Application 10 Granule size Handling 11 Availability of required quantities Granule size 12 Finish Availability of trained applicators 13 Availability of trained applicators Availability of required quantities 14 Timely and easy availability Timely and easy availability 15 No of designs No of designs
    53. 53. 53 Temporal Stages in market expansion in an area* for LP Can’t use same metrics as WCP (>1000tpm underdeveloped, above 2500tpm developed) for LP/Tex, must gauge total addressable market in area as per substitute products’ usage or from putty market and demarcate proportions. Under 0.5% underdeveloped, over 7-8% developed for LP  Begin from S1, Underdeveloped:  influencers most important, so applicator development important  selling through stockist to big and small projects and contractors  include new products in targets/appraisals of putty team (product champion)  Grow to S2, Emerging (transition requires applicator development and sampling drives to create general awareness):  newly created influencers push the product  stockists sell to projects and some big retailers only  billing the retailer for small orders and retail promotional activities  applicator development continued and upscaled  handover responsibility of new products to a separate team  Finally arrive at S3, Mature (transition requires high pan-market awareness, relationship mgmt and good service levels):  take all on board (seller, influencer, buyer)  selling mainly through retailers  billing retailers and few ‘privileged’ contractors for all company projects  S1 to S3 should be at least 12 months, ideally 16-18 months  Mumbai stuck in S1, Pune in S2 *all else in S1 initially with at best partial exceptions 
    54. 54. 54 Creating an area wise strategy (Levelplast)  Alter these stages as per ‘Market Types’       Launched earlier, unsuccessful, eg. Mumbai (study for losses, re-visit after few successful launches) Launched earlier, successful (moderately) due to contingencies, eg. Central Zone (share contingencies in employee meet, verify applicability elsewhere, devise alterative placement strategies) Launched recently, good response, eg, areas in North India (highest focus, implement recommendations and monitor results) Launched recently, slow response, eg. Ahmedabad area (check which implementations faulty) Not yet launched, eg. Most of India (study addressable market size from putty sales and application trends of substitutes) In each market, check for      ongoing trends in exterior wall coats / plastering (nature of products, application methods, price consciousness) locally common construction issues (coarse sand, expensive labour, primary complain types) trends in relationship between sellers, influencers and buyers (strong influencers a plus for staffing requirement for new products and further area divisions based on market size entrenchment of wallcare putty in market, channel hold
    55. 55. 55 Creating an area wise strategy (Levelplast)  And enhance or maintain sales effort as per ‘Building Types’     Commercial projects (largest application, architects dominant) Residential projects (second largest application, architects involved but applicator has say) Government buildings (time constraint important, tenders important, high potential customer in good to high awareness market) Independent houses (easiest to cross sample, painter and contractor dominated, volume drivers) Ranks-> 1 2 3 4 Amount of application Commercial projects Residential projects Government buildings IHBs Extent of cost consciousness Residential Projects Government buildings Commercial projects IHBs Readiness for sampling Independent Houses Residential projects Commercial projects Government buildings Potential market size Commercial projects IHBs Residential projects Government buildings
    56. 56. 56  As per importance of these parameters Sales Determinants Rank Trade channel Non trade channel 1 Water resistance Water resistance 2 Cost per square feet Cost per square feet 3 Thickness Thickness 4 Durability and Binding Durability and Binding 5 Strength against cracks Strength against cracks 6 Whiteness Whiteness 7 Availability of trained applicators Availability of trained applicators 8 Finish Finish 9 Existing trends in market Availability of required quantities 10 Availability of required quantities Existing trends in market 11 Timely and easy availability Timely and easy availability 12 Ease of Application Ease of Application 13 Handling Time spent in application 14 Time spent in application Handling
    57. 57. 57 Volume Targets Levelplast  Addressable market size estimate for Levelplast in:        FY 2013 2538.4 tons FY 2014 8086 tons Addressable market size estimate for textures in:     FY 2013 0.8% FY 2014 1.5% Volume target for Levelplast in:   FY 2013 (launched in 10% putty markets) 317, 303 tons FY 2014 (launched in 15% putty markets) 539,125 tons Current cumulative market share in launched markets 0.4% Targeted cumulative market share in:  Textura Current cumulative market share of Textura in launched markets 1.6% Targeted cumulative market share in:    FY 2013 (launched in 10% putty markets) 94,124 tons FY 2014 147,623 tons (launched in 15% putty markets) FY 2013 3% FY 2014 5% Volume target for Textura in:   FY 2013 2824 ton FY 2014 7381 tons
    58. 58. 58 Thank You For Your Time