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AkzoNoble India: DULUX Paints
Presented by:
Rohit Kumar
SJMSOM, IIT Bombay
About Company
• AkzoNobel is a leading global paints and coatings company and a
major producer of specialty chemicals.
• Portfolio of Axo Nobel includes well known brands such as Dulux,
Sikkens, International and Eka
• Akzo Nobel is in the fields of decorative paints, performance coatings
and speciality chemicals
• Dulux is produced by Akzo Nobel, now owned by Pittsburgh Plate
Glass Company(PPG)
• Dulux is one of the first alkyd-based paints and its main revenue is
from decorative segment
• Dulux Group is an industry leader in new product development in its
market segments. Their innovations are driven by technical
advancements in product design, environmental trends and changing
consumer preferences
• Dulux paints is now a part of World leading
company, AkzoNoble, which makes its
visibility very strong.
• It is amongst the top in the world in the
decorative paints category.
• Continued innovation and R&D
• Leader in Projects exterior coating in India.
• Also leader in Marine coating
• Dulux has maximum visibility in cities.
Premium pricing strategy eradicates any
doubts regarding quality in
the minds of the consumer.
• Less known brand
• Weak marketing
• Do not focus on day-to-day retail
• Red ocean market in India
• Being part of AkzoNobel may overshadow
the brand equity built by ICI paints.
• Stringent Government rules and
regulations regarding the quality of
products and manufacturing facilities as
Environment
• Trends taking turns very fast
• E-commerce
• With Increasing urbanization in India, it
finds a bright scope
• 100 smart cities
• People becoming quality savvy
• Cost of accommodation is high, so people
want to protect more
• Drastically changing climatic conditions
Strength Weakness
OpportunityThreats
Competition in India
1. Asian Paints
Asian paints is the Market leader in India and gets
the major portion of its revenue from Decorative
segment. Main advantage of Asian paints is due to its
strong brand equity and Distribution network.
2. Nerolac:
Nerolac holds the second position in paint industry. It
is the market leader in the industrial paint segment
3. Berger Paints:
Berger Paints hold the third position in Indian paint
market and gets the major revenue from Decorative
segment
4. Akzo Nobel:
Akzo Nobel holds the fourth position
Product PortFolio
Interior
Paint(8)
•Dulux Diamond
•Dulux Life-Master
•Dulux X-Pert
•Dulux Accents
•Dulux Kitchen &
Bath
•Glidden Ultra
•Glidden pro
•Glidden Speed
Wall
Exterior
Paint(5)
•Diamond Exterior
•Weather Guard
Maximum
•Weather Guard
•Weather Guard
Decraflex
•Dulux Accents
Wood
Stains(5)
•Flood Wood
Stains
•WoodPride Semi-
Transparent Deck
Stain
•WoodPride Solid
DeckStain
•Oil/Acrylic Siding
Stain
•Acrylic Solid Siding
Stain
Product PortFolio
Primers(7)
•Dulux Lifemaster
primer
•Weatherguard
Exterior Premier
•Dulux X-pert
Primer
•Glidden Pro Primer
•Glidden Speedwall
Primer
•Glidden Ultra
Interior Primer
•Glidden Ultra
Accent Basecoat
Speciality
Paints(7)
•Dulux X-pert
Waterborne Alkyd
•Dulux Rolls on Pink
Ceiling Paint
•Calcimine Ceiling
Paint
•Dulux Metalclad
•Polyurethane
Varnish
•Modified Acrylic
Varnish
•Water Based Floor
Enamel
Speciality
Primers(4)
•Waterborne Alkyd
Interior Primer
•Dulux Jammer
•Dulux Odourless
•Dulux X-pert
Blockfiller
STP of the company
Segment
High income, middle class
group, urban market
Target Group
Home-owners, construction,
commercial and industrial
maintenance
Positioning
Leading Decorative and
Industrial Coating brand with
continuous innovation and R&D;
Promotional Strategy
• Sales Promotion: Company should look to capitalize upon the festivals
and opportunities by means of offering purchase discounts and freebies
to contractors and retailers and/or starting a promotional campaign
with a theme to seize the opportunity as we normally see increased
paint demand during those seasons
• Advertising: It is the most visible form of promotional mix, and helps us
to educate the crowd about our concept, which acts as the base for
further round of more focused promotions to appeal to specific
audience
• Personal Selling: Since we have a paint company. So the suggestive
selling can be a great influencer for which we will need to give more
importance to personal selling
• Miscellaneous Means: We could also use social media for customer
engagement and brand building while focusing on offline strategies
simultaneously
Distribution Strategy and Network
AkzoNoble has categorised 4 end user segment which is further subdivided in to
their respect
• Building and infrastructure:
New build project
Maintenance Renovation and Repair
Building product and components
• Transportation
Automotive Repair
Automotive OEM, Parts and assembly
Marine and air Transport
• Consumer Goods
Consumer durables
Consumer Packaged Goods
• Industrial
Natural Resources and energy industries
Process industries
Market Organization Structure
• Market marketing organization used by big companies
who serve large number of customer spread over large
territory.
• Our company for research AkzoNobel also has a wide
range of customers
• Its products range from formulations for industrial and
household cleaning to pelleting aids for animal feed,
systems for road paving, flotation agents for the
purification of minerals and personal care.
• Its surface chemistry market and products are
Agrochemicals, Asphalt, Ceramics ,Chemical
Intermediates, Construction Fabric & Cleaning, Feed
Additives Fermentation & Pharma Fuels & Lubricants
Electronics
Distribution Network
• Countrywide distribution network of 8500 dealers and 75
warehouses in India
• It has set up exclusive retail outlets and distributor base to
increase its market share in western and southern part of
India.
• It has opened 100 franchise run Dulux Decorative Centres
to increase the interactions between consumers and sales
people
• In Domestic market Decorative segments accounts for 70%
of the total demand of the product and whereas industrial
segments account for the remaining 30 %
 We will now narrow
down our research on
protective coating
market in Narul, Navi
Mumbai
 We are choosing Narul
because it is one of the
fastest growing area in
terms infrastructure
Defining Objective
1. We will focus on the repainting market in Narul, Navi Mumbai
2. We will focus on the customer perception about the brand
3. We will conduct a survey with the objective to find the following:
• The approximate potential of the building
• Approximate repainting Cycle
• Parameters of paint selection
• Who are the brand influencer/ Maker
5. Survey reports and analysis of data
6. Find market for the new product
7. Recommendation on better marketing strategy and Cost analysis
Executive summary
• Mumbai is very unique city in terms of weather. It faces extreme
heat during summers whereas gets flooded during the rainy
season. Also salt present in the atmosphere due to nearby sea,
makes it dangerous for the buildings. Such atmospheric
composition hampers the building to a large extent.
• The real estate cost in Mumbai is soaring high and cost of
reconstruction is high. This makes the exterior coating very
significant. Such variant temperature reduces the average
repainting cycle in Mumbai to 6-7 Years.
• AkzoNobel is leader in the industry of Exterior decorative in Navi
Mumbai with a market share of around 60%. So in our project, we
will mainly be focusing on the exterior re-painting market in the
Navi Mumbai region.
PESTEL Analysis
• Political: India is politically favourable country for industry. The
economy is bullish and the living standard has grown up. People are
willing to spend more on luxury. Paint industry has been growing very
rapidly in the Indian market
• Economical : As the income of middle class people in India is increasing
drastically there is a good scope of increase in sales of paint industry
• Socio-cultural: In a culture oriented country like India sales of the paint
industry tend to increase in festival seasons
• Technological: Investment in world-class technology, and research and
development facilities, underpins Dulux's success. Products are
produced to the highest quality standards, and they are committed to
provide innovative product solutions that satisfy the needs of their
customers.
PESTEL Analysis
b)World class research facilities at Clayton, Australia
c)Product innovations support Dulux's leading market and premium
brand position
• Environmental
Environmental sustainability is a core element of the Dulux business
philosophy. Dulux is committed to the ongoing research and
development of innovative products that are more sensitive towards
nature. This is evident in our proactive shift from solvent-based
products to water-based alternatives, and the introduction of
Australia's first low VOC paint in the early 1990's.
Market Size from data
• We conducted a survey in Narul area. We covered 6 sectors out
of 30 approx sectors.
• Market in Narul was approximately 6,000,000 SqFt
Estimating Surface area and cost of painting the building
Assumption Number of stories 5
Assumption Height of floor 10 ft
Assumption length of building 50 ft
Assumption width of building 30 ft
 
  Total surface Area 11500 SqFt
 
Assumption 40% buffer area
  Net surface area to be painted 16100 Sqft
 
Alkali bloc 
Primer
Amount of Pre coating
required (litre) 160
  Cost (Rs) 24800
Weathershield 
MAX
Amount of top coating
required (litre) 16
  Cost (Rs) 99200
Total expense coating cost (Rs) 1,24,000
Cost calculation to the customer
Forecasting
Particulars Expected Growth
2013 2014 2015 2016 2017 2018
Industry capitalization( Billion Rupeees) 280 316.4 357.54 404.03 456.56 515.92
Organized Sector(65%) 182 205.66 232.401 262.6195 296.764 335.348
Contribution from Mumbai region(2%) 3.64 4.1132 4.64802 5.25239 5.93528 6.70696
Akzo Noble Market Share(9%) 0.3276 0.370188 0.418322 0.472715 0.534175 0.603626
Exterior Protective Coating
Mumbai(40% share) 0.13104 0.148075 0.167329 0.189086 0.21367 0.241451
Navi Mumbai(60% of Mumbai) 0.08 0.09 0.11 0.12 0.13 0.15
Assumptions
1Indian paint Industry is expected to grow at 12-13% from 2013-18 from 280 Bn to 500 Bn rupees
2unorganized control 35% and organized sector 65%
3Assuming Mumbai contribution to the revenue of paint industry is 2%
4Exterior Protective coating market share in Navi Mumbai is 60%(Overall Mumbai 40%)
Concerns associated with repainting market
•Weak marketing; People know the brand, still go for Asian Paints because of
strong presence
•Being a sales manager of a area it becomes difficult to get a clue of the market.
•Employing Trainees will incur a lot of CTC
Solutions recommended
•We need to go for brand visibility. Aggressive ad campaigns
•Focus aggressively on interior paints. This helps in building personal
contacts with the customer.
•Leveraging social media
•Campaigns that hit the right emotional chord among consumers.
•Ambush Marketing
•We can use visualizer app for instant preview
•Also target small bungalows
•Follow up the hot contacts.
•Collaboration with e-retail websites like housing.com
Introducing new product
• Development of new product in paint industry takes a lots of time and
is subjected to R&D.
• We tried to analyze the market and understand the requirement of the
customer.
• Based on that we recommend a product that shall have following
qualities:
- longer life
- Low price
- Brand recognition
Anti-fungal, Anti paint peeling,
Color fading
• Dulux has a product called PUMA which has
been launched recently. It is not very famous
and sales is low in the market.
• This product has all these qualities and might
hit the market hard.
Contractor/
Designer
Applicator Retailer Sales team Influencer
Give new
exclusive offers
to the
contractors so
that use our
products for
their various
projects.
- Painter
workshop
to let
them try
new
designs &
get
comfortab
le with
them
- Take
Online
orders &
on-board
painters
- Touch & feel
experience via
Feature wall
sample
- Conduct events
in Colour Ideas
stores located
near to target
customer
segments
- Start retail outlets
in Malls where
other décor
items are
available
Educate
retailers on
how
weather
shield is
different &
show
retailer to
effectively
display
designs to
the
customers
- Friends
- Social
media
- Advertise
ment
- Blogs
- Magazines
- Android
Apps
- Website
- Sales
manager
pitch
Driving Sales Ahead
Solutions and recommendations
•We need to go for brand visibility. Aggressive ad campaigns
•Focus aggressively on interior paints. This helps in building personal
contacts with the customer
•Mobile games for kids
•Campaigns that hit the emotional chords of the consumer
•Ambush Marketing
•We can use visualizer app for instant preview
•Also target small bungalows
•Follow up the hot contacts.
•Collaboration with e-retail
•Ads at eating joints on weekends
Concerns associated with Repainting market
•Weak marketing; People know the brand, still go for Asian Paints because of
strong presence
•Being a sales manager of a area it becomes difficult to get a clue of the
market.
•Employing Trainees will incur a lot of CTC
THANK YOU

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Marketing Management - Akzo nobel india

  • 1. AkzoNoble India: DULUX Paints Presented by: Rohit Kumar SJMSOM, IIT Bombay
  • 2. About Company • AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals. • Portfolio of Axo Nobel includes well known brands such as Dulux, Sikkens, International and Eka • Akzo Nobel is in the fields of decorative paints, performance coatings and speciality chemicals • Dulux is produced by Akzo Nobel, now owned by Pittsburgh Plate Glass Company(PPG) • Dulux is one of the first alkyd-based paints and its main revenue is from decorative segment • Dulux Group is an industry leader in new product development in its market segments. Their innovations are driven by technical advancements in product design, environmental trends and changing consumer preferences
  • 3. • Dulux paints is now a part of World leading company, AkzoNoble, which makes its visibility very strong. • It is amongst the top in the world in the decorative paints category. • Continued innovation and R&D • Leader in Projects exterior coating in India. • Also leader in Marine coating • Dulux has maximum visibility in cities. Premium pricing strategy eradicates any doubts regarding quality in the minds of the consumer. • Less known brand • Weak marketing • Do not focus on day-to-day retail • Red ocean market in India • Being part of AkzoNobel may overshadow the brand equity built by ICI paints. • Stringent Government rules and regulations regarding the quality of products and manufacturing facilities as Environment • Trends taking turns very fast • E-commerce • With Increasing urbanization in India, it finds a bright scope • 100 smart cities • People becoming quality savvy • Cost of accommodation is high, so people want to protect more • Drastically changing climatic conditions Strength Weakness OpportunityThreats
  • 4. Competition in India 1. Asian Paints Asian paints is the Market leader in India and gets the major portion of its revenue from Decorative segment. Main advantage of Asian paints is due to its strong brand equity and Distribution network. 2. Nerolac: Nerolac holds the second position in paint industry. It is the market leader in the industrial paint segment 3. Berger Paints: Berger Paints hold the third position in Indian paint market and gets the major revenue from Decorative segment 4. Akzo Nobel: Akzo Nobel holds the fourth position
  • 5. Product PortFolio Interior Paint(8) •Dulux Diamond •Dulux Life-Master •Dulux X-Pert •Dulux Accents •Dulux Kitchen & Bath •Glidden Ultra •Glidden pro •Glidden Speed Wall Exterior Paint(5) •Diamond Exterior •Weather Guard Maximum •Weather Guard •Weather Guard Decraflex •Dulux Accents Wood Stains(5) •Flood Wood Stains •WoodPride Semi- Transparent Deck Stain •WoodPride Solid DeckStain •Oil/Acrylic Siding Stain •Acrylic Solid Siding Stain
  • 6. Product PortFolio Primers(7) •Dulux Lifemaster primer •Weatherguard Exterior Premier •Dulux X-pert Primer •Glidden Pro Primer •Glidden Speedwall Primer •Glidden Ultra Interior Primer •Glidden Ultra Accent Basecoat Speciality Paints(7) •Dulux X-pert Waterborne Alkyd •Dulux Rolls on Pink Ceiling Paint •Calcimine Ceiling Paint •Dulux Metalclad •Polyurethane Varnish •Modified Acrylic Varnish •Water Based Floor Enamel Speciality Primers(4) •Waterborne Alkyd Interior Primer •Dulux Jammer •Dulux Odourless •Dulux X-pert Blockfiller
  • 7. STP of the company Segment High income, middle class group, urban market Target Group Home-owners, construction, commercial and industrial maintenance Positioning Leading Decorative and Industrial Coating brand with continuous innovation and R&D;
  • 8. Promotional Strategy • Sales Promotion: Company should look to capitalize upon the festivals and opportunities by means of offering purchase discounts and freebies to contractors and retailers and/or starting a promotional campaign with a theme to seize the opportunity as we normally see increased paint demand during those seasons • Advertising: It is the most visible form of promotional mix, and helps us to educate the crowd about our concept, which acts as the base for further round of more focused promotions to appeal to specific audience • Personal Selling: Since we have a paint company. So the suggestive selling can be a great influencer for which we will need to give more importance to personal selling • Miscellaneous Means: We could also use social media for customer engagement and brand building while focusing on offline strategies simultaneously
  • 9. Distribution Strategy and Network AkzoNoble has categorised 4 end user segment which is further subdivided in to their respect • Building and infrastructure: New build project Maintenance Renovation and Repair Building product and components • Transportation Automotive Repair Automotive OEM, Parts and assembly Marine and air Transport • Consumer Goods Consumer durables Consumer Packaged Goods • Industrial Natural Resources and energy industries Process industries
  • 10. Market Organization Structure • Market marketing organization used by big companies who serve large number of customer spread over large territory. • Our company for research AkzoNobel also has a wide range of customers • Its products range from formulations for industrial and household cleaning to pelleting aids for animal feed, systems for road paving, flotation agents for the purification of minerals and personal care. • Its surface chemistry market and products are Agrochemicals, Asphalt, Ceramics ,Chemical Intermediates, Construction Fabric & Cleaning, Feed Additives Fermentation & Pharma Fuels & Lubricants Electronics
  • 11. Distribution Network • Countrywide distribution network of 8500 dealers and 75 warehouses in India • It has set up exclusive retail outlets and distributor base to increase its market share in western and southern part of India. • It has opened 100 franchise run Dulux Decorative Centres to increase the interactions between consumers and sales people • In Domestic market Decorative segments accounts for 70% of the total demand of the product and whereas industrial segments account for the remaining 30 %
  • 12.  We will now narrow down our research on protective coating market in Narul, Navi Mumbai  We are choosing Narul because it is one of the fastest growing area in terms infrastructure
  • 13. Defining Objective 1. We will focus on the repainting market in Narul, Navi Mumbai 2. We will focus on the customer perception about the brand 3. We will conduct a survey with the objective to find the following: • The approximate potential of the building • Approximate repainting Cycle • Parameters of paint selection • Who are the brand influencer/ Maker 5. Survey reports and analysis of data 6. Find market for the new product 7. Recommendation on better marketing strategy and Cost analysis
  • 14. Executive summary • Mumbai is very unique city in terms of weather. It faces extreme heat during summers whereas gets flooded during the rainy season. Also salt present in the atmosphere due to nearby sea, makes it dangerous for the buildings. Such atmospheric composition hampers the building to a large extent. • The real estate cost in Mumbai is soaring high and cost of reconstruction is high. This makes the exterior coating very significant. Such variant temperature reduces the average repainting cycle in Mumbai to 6-7 Years. • AkzoNobel is leader in the industry of Exterior decorative in Navi Mumbai with a market share of around 60%. So in our project, we will mainly be focusing on the exterior re-painting market in the Navi Mumbai region.
  • 15. PESTEL Analysis • Political: India is politically favourable country for industry. The economy is bullish and the living standard has grown up. People are willing to spend more on luxury. Paint industry has been growing very rapidly in the Indian market • Economical : As the income of middle class people in India is increasing drastically there is a good scope of increase in sales of paint industry • Socio-cultural: In a culture oriented country like India sales of the paint industry tend to increase in festival seasons • Technological: Investment in world-class technology, and research and development facilities, underpins Dulux's success. Products are produced to the highest quality standards, and they are committed to provide innovative product solutions that satisfy the needs of their customers.
  • 16. PESTEL Analysis b)World class research facilities at Clayton, Australia c)Product innovations support Dulux's leading market and premium brand position • Environmental Environmental sustainability is a core element of the Dulux business philosophy. Dulux is committed to the ongoing research and development of innovative products that are more sensitive towards nature. This is evident in our proactive shift from solvent-based products to water-based alternatives, and the introduction of Australia's first low VOC paint in the early 1990's.
  • 17. Market Size from data • We conducted a survey in Narul area. We covered 6 sectors out of 30 approx sectors. • Market in Narul was approximately 6,000,000 SqFt
  • 18.
  • 19. Estimating Surface area and cost of painting the building Assumption Number of stories 5 Assumption Height of floor 10 ft Assumption length of building 50 ft Assumption width of building 30 ft     Total surface Area 11500 SqFt   Assumption 40% buffer area   Net surface area to be painted 16100 Sqft   Alkali bloc  Primer Amount of Pre coating required (litre) 160   Cost (Rs) 24800 Weathershield  MAX Amount of top coating required (litre) 16   Cost (Rs) 99200 Total expense coating cost (Rs) 1,24,000 Cost calculation to the customer
  • 20. Forecasting Particulars Expected Growth 2013 2014 2015 2016 2017 2018 Industry capitalization( Billion Rupeees) 280 316.4 357.54 404.03 456.56 515.92 Organized Sector(65%) 182 205.66 232.401 262.6195 296.764 335.348 Contribution from Mumbai region(2%) 3.64 4.1132 4.64802 5.25239 5.93528 6.70696 Akzo Noble Market Share(9%) 0.3276 0.370188 0.418322 0.472715 0.534175 0.603626 Exterior Protective Coating Mumbai(40% share) 0.13104 0.148075 0.167329 0.189086 0.21367 0.241451 Navi Mumbai(60% of Mumbai) 0.08 0.09 0.11 0.12 0.13 0.15 Assumptions 1Indian paint Industry is expected to grow at 12-13% from 2013-18 from 280 Bn to 500 Bn rupees 2unorganized control 35% and organized sector 65% 3Assuming Mumbai contribution to the revenue of paint industry is 2% 4Exterior Protective coating market share in Navi Mumbai is 60%(Overall Mumbai 40%)
  • 21. Concerns associated with repainting market •Weak marketing; People know the brand, still go for Asian Paints because of strong presence •Being a sales manager of a area it becomes difficult to get a clue of the market. •Employing Trainees will incur a lot of CTC Solutions recommended •We need to go for brand visibility. Aggressive ad campaigns •Focus aggressively on interior paints. This helps in building personal contacts with the customer. •Leveraging social media •Campaigns that hit the right emotional chord among consumers. •Ambush Marketing •We can use visualizer app for instant preview •Also target small bungalows •Follow up the hot contacts. •Collaboration with e-retail websites like housing.com
  • 22. Introducing new product • Development of new product in paint industry takes a lots of time and is subjected to R&D. • We tried to analyze the market and understand the requirement of the customer. • Based on that we recommend a product that shall have following qualities: - longer life - Low price - Brand recognition Anti-fungal, Anti paint peeling, Color fading • Dulux has a product called PUMA which has been launched recently. It is not very famous and sales is low in the market. • This product has all these qualities and might hit the market hard.
  • 23. Contractor/ Designer Applicator Retailer Sales team Influencer Give new exclusive offers to the contractors so that use our products for their various projects. - Painter workshop to let them try new designs & get comfortab le with them - Take Online orders & on-board painters - Touch & feel experience via Feature wall sample - Conduct events in Colour Ideas stores located near to target customer segments - Start retail outlets in Malls where other décor items are available Educate retailers on how weather shield is different & show retailer to effectively display designs to the customers - Friends - Social media - Advertise ment - Blogs - Magazines - Android Apps - Website - Sales manager pitch Driving Sales Ahead
  • 24. Solutions and recommendations •We need to go for brand visibility. Aggressive ad campaigns •Focus aggressively on interior paints. This helps in building personal contacts with the customer •Mobile games for kids •Campaigns that hit the emotional chords of the consumer •Ambush Marketing •We can use visualizer app for instant preview •Also target small bungalows •Follow up the hot contacts. •Collaboration with e-retail •Ads at eating joints on weekends Concerns associated with Repainting market •Weak marketing; People know the brand, still go for Asian Paints because of strong presence •Being a sales manager of a area it becomes difficult to get a clue of the market. •Employing Trainees will incur a lot of CTC
  • 25.