direct marketing initiatives from goodlass nerolac
TRANSCRIPT
Direct Marketing Initiatives from Goodlass Nerolac
A Case Analysis by-
Raunak Doshi 1021327
Rojan Chacko 1021328
Sagar B S 1021329
Souvik Ghosh 1021330
INTRODUCTIONGoodlass Nerolac Paints is the wholly owned subsidiary of Kansai Paints
ltd Japan.
It is one of the largest paint manufacturers in the world.
As part of its expansion program, It decided to target the rural segment.
The company initiated a club for its dealers called the ‘core dealers club’
of Goodlass Nerolac to build stronger ties with them.
The club logo was changed and focus was shifted from sales and revenue
to building relationships.
Also took steps to improve the learning activities of the club and asked
the club members to educate the painters and consumers about using
rollers instead of paint brushes.
To motivate the dealers, company introduced the “spectrophotometer”
or “magic eye” in 2002.
In spite of these initiatives, research analysts say long term strategy
should be to influence consumers directly.
Nerolac also employed region specific advertising campaigns using
celebrity endorsements like Mohanlal, Deepa Venkat and Amitabh
Bachchan too.
STRENGTHSStrong Customer Base with market share close to 42% in India.
Regions specific advertising campaigns using celebrities.
Use of technology to help the customers choose the best shades in
various forms.
The Core Dealer Club of Goodlass Nerolac was a good platform for
interaction between the dealers and the company.
Nerolac focused on building relations instead of sales & revenue.
WEAKNESSESThose dealers who could not make it to the Club in the successive year
would feel demotivated.
Use of region based advertising might turnout to be a costly affair for the
company.
OPPORTUNITIESMarket penetration
Promotion strategies: makeovers
Use latest technology to rope in bigger, profitable clients.
QUESTION 1 In order to build its brand in the decorative paints segment,
Goodlass Nerolac’s long term strategy should be to influence
customers directly. In fact, when it comes to selecting paint,
the company should adopt strategy whereby customers (and
not the painters) make their own decisions.”
How far is Nerolac right in focusing its direct marketing
initiatives on its dealers rather than on the customers?
As a part of expansion- Decorative paints segment
One such initiative was the direct marketing effort aimed at the dealers and
retailers of the co.
Dealers and contractors play an important role in the purchase decision for paints,
as they are the major influencers.
Goodlass is now making inroads into the decorative paints segment that makes up
about 70 per cent of the overall paint market in India.
.Took various steps to improve the learning
activities of the club, where in the dealers would be able to educate painters and customers on using rollers.
They wanted to change the mindset of paint application techniques.
Focusing its direct marketing initiatives on dealers was right as they contribute about 20-25% of the business.
Also they acted as company representatives and gave their advice on industry and market related issues.
QUESTION 2 Nerolac roped in Amitabh Bachchan to endorse the brand at
a time when he has already endorsed a spate of brands like
Pepsi, Wagon R, Cadburys and BPL. Do you think Amitabh
Bachchan would help Nerolac in creating a brand image for
the company’s paint products?
Objective behind the campaign:
Repositioning of Nerolac
as a larger than life brand that is
omni-present.
MEANING TRANSFER THEORYExplains that a celebrity encodes a unique
set of meanings which if well used can be transferred to the endorsed product.
STAGES:ENCODING MEANINGS-celebrities encode a
set of meanings in their image e.g trustworthiness
MEANING TRANSFER-to the endorsed products
MEANING CAPTURE-consumers buy products for capturing some of the desirable meanings which celebrities have passed on to the product
Larger than life imageNEROLAC wanted to reach out to the
masses.Mr Amitabh Bachchan thus was an obvious
choice, a legend that every man identifies with...................
Embodies same values NEROLAC stands for- excellence
dynamism inspiration innovation.”“HUM KEH REHE HAI”-the last punch words
OMNI-POTENT IMAGE“Yeh Rang hai jo har Ek ki Zindagi ko
Choota hai” Colour that touches the lives and dreams of
every person.
Bachchan would definitely make a difference in terms of brand image of Nerolac & he did it
Significant increase in brand value after the campaign
VAMPIRE EFFECT & MULTIPLE PRODUCT ENDORSEMENT didn’t hold good in this case,due to suitable meaning transfer & meaning capture
CONCLUSION As a part of the expansion program Nerolac is targeting the rural markets which
account for 10% of the total market.
It initiated the direct marketing strategy by initiating a club for the dealers
called the ‘Core dealer club of Goodlass Nerolac’ where:
It accepts all the suggests given by the dealers ,
Make the products according to their needs.
The focus shifted from sales and revenues to building strong customer
relationships.
The objective is to instill confidence among the dealers and to create healthy
competition.
To motivate dealers and provide value added services and increase consumer
range of preferences, the company introduced a new product called ‘
Spectrophotometer’ or ‘The Magic Eye’ .
It provides customer satisfaction where ,they can make their own decisions.
Nerolac is adopting a long term strategy to influence customers directly.
It introduces region – specific advertising campaigns using celebrities to
endorse the products.
Hence we can conclude saying that the company is directly reaching the
customer and building strong relationships with them , so that it can be ahead
of the competitors.