Contents

1) Industry Analysis
2) Brand Analysis
3) Brand Process
4) Brand Culture
5) Consumer Image Track
6) Brand Attributes
7) SWOT Analysis
8) Brand Attributes of Competitors
9)Competition Dashboard
10) New Strategic Branding Ideas
11) Conclusion
12) Photo Feature

INDUSTRY
ANALYSIS
Structure
The Indian paint industry comprises three
sectors: tiny, small scale and organised. Innumer-
able tiny units exist, occupying just a room or two
and no meaningful data of the value of their produc-
tion is available.
The small units consist of three different
groups:
a.Units producing cheaper paints with lim-
ited technical knowledge.
b.Units set up mainly by technocrats produc-
ing industrial paints for special uses . (This group is
doing well because they cater to specific and limited
demands unsuitable for large scale production.)
c.Units which work in close liaison with
large units and supplement their production. This
upgrades their technical skill and frees them from
marketing problems. This is also beneficial to large
units as it frees their production capacity for high
technology products.
Production in the small scale sector in-
creased form 10,000 tonnes per annum in 1950, to
84,000 tonnes in 1979 and to 200,000 tonnes (ap-
proximately) in 1991. The share of this sector has
consistently risen from 25% in 1950 to around 50%
in 1991.
Segmentation
Surprisingly, the Rs.3,600 crore paint indus-
try has no public sector manufacturing unit and com-
plete ownership is vested in the hands of the private
sector. This maybe indicative of the fact that in the
past, the government perceived paints to be a luxury
product and taxed the industry heavily, thereby rel-
egaing this industry to a non-core status. The clas-
sification of the paints industry can be made either
product-wise or sector-wise. In the sector-wise seg-
mentation, this industry can be classified into the or-
ganized and unorganized sectors.
Product-wise, paints are broadly catergorized into
1.decorative paints
2. industrial paints
In contrast to global trends, wherein industrial
paints with a share of nearly 60 per cent take prime
importance, the domestic industry is dominated by
decorative paints with an imposing share of nearly
70 per cent of the paints market. a major portion of
demand for decorative paints is from fresh coats on
existing wall finishes. Thus, the fortune of this seg-
ment are closely linked to the construction activity
in the country. In terms of volume, though the indus-
trial paints segment has made significant gains, it still
trails behind decorative paints.
Coming to the sector-wise classification,
while the organized sector with nearly 24 players
controls 55 per cent of the market for paints, the un-
organized sector comprising 2000 plus small scale
units accounts for the balance 45 per cent making it
a force to reckon with. As sophisticated technology
is not a prime requisite for manufacturing decora-
tive paints, the industry is flooded with a number of
small players catering to the lower-end of the market
by supplying low value unbranded products in small
quantities.
In the decorative paints segment, while both
the sectors have a share of nearly 50 per cent each, the
share of the unorganized sector in industrial paints is
limited to roughly 35 per cent. This is because tech-
nology is the overriding factor in this segment and
industrial paints require constant upgradation and
servicing.
The sluggish volume growth in the past was
due to high excise duties levied on paints manufac-
tured by organized sector players, making their prod-
ucts unaffordable. This was the period during which
the unorganized sector flourished because of a sub-
stantial price difference between paints manufactured
by the unorganized and organized palyers.
In contrast to the decorative paint business,
tapping the industrial paint segment is not by brand-
building or establishing a distribution network but
through getting the right foreign partner (for technol-
ogy) and captive customers. While decorative paint
manufacturers need to offer variety and have a wide
reach to stay ahead of competition, industrial paint
producers need to be competitive in terms of tech-
nology and service.
On the basis of price, decorative paints
can be broadly classified into:
segment, enamels account for a large share followed
by distempers, cement paints and acrylic emulsions,
in that order. Distempers, the low value products
which account for nearly a fifth of decorative paint
sales have been the traditional forte of small play-
ers.

Premium Among paint majors, Asian Paints produces

Medium all types of paints excepting cement paints, Berger
Popular Paints, ICI and Jenson & Nicholson (J&N) manufac-
ture synthetic enamels and emulsions while Good-
lass Nerolac makes synthetic enamels. In the organ-
Product Description
ized sector, Snowcem (India) specializes in cement
paints. One of the notable features of this industry is
Super-acrylic Emulsions, Premium Enamels
that each major player has a speciality product in its
Plastic Emulsions, High-quality acrylic distempers
protfolio of decorative paints.
Low-quality acrylic distempers, oil-bound distem-
pers, lacquer, enamels, varnishes
In the premium category of acrylic emul-
sions, the contenders are Duette, Dulux Weather-
Price Range(per litre)
shield and Dulux Velvet Touch (ICI), Royale (Asian
Rs. 250-400
Paints) and Luxol Silk (Berger Paints). The various
Rs. 150-200
brands vying for the top honors in the middle seg-
Rs. 40-100
ment are Dulux (ICI), Apcolite (Asian Paints), Su-
perlac (Shalimar Paints), Rangoli, Vinyl and Luxol
Target Segment (Berger Paints).
Up-market buyers Now players are eyeing the price-driven pop-
High income group & Upper middle class ular (mass) segment in which Asian Paints has al-
Middle class & Rural market ready met with considerable success with low-priced
brands like Utsav and Tractor. ICI’s Farco, Supercote
Key Purchasing Factors and Maxilite; Goodlass Nerolac’s Goody, Berger
Quality, Surfaces, Influencers, Paints Butterfly and Shalimar Paints’ Diamond are
the other low-priced brands fighting it out.
Dealers push
Quality, Surfaces, Shades, On the other hand, industrial paints comprise
automotive paints general industrial paints, high per-
Dealers push formance coating, marine paints and coil coatings.
Costs, Availability Automotive paints constitutes a large share of indus-
trial paints market which require high quality stand-
Estimated Growth ards, supplier reliability and ability to offer complete
> 15 % coating systems. They are used for giving high qual-
> 20 % ity finish to automobiles.
10 - 15 %
High performance coatings are applied in
Leading Brands (Manufacturer) plants for fertilizers, petrochemicals, offshore oil
Royale(Asian Paints), Velvet Touch(ICI), Luxol and atomic energy installations where anticorrosion
Silk(Berger), Hossain Collection(Shalimar) is very important. Powder coatings (water-based) are
Apcolite(Asian Paints), Nerolac (Kansai Nerolac), free of solvent and are used in consumer goods like
Dulux(ICI), Silkl(Berger) Gattu, Tractor (Asian washing machines, refrigerators etc. Marine paints
Paints), Bision(Berger), Maxilite(ICI), Jensolin(J & are used for painting ships and vessels to make them
N) water resistant and corrosion free.

With highly price-sensitive decorative paint

 Brand Attributes
Brand Benefit Pricing

Dulux is the market leader in the luxury emul-
sion category in most metropolitan cities where there
is maximum demand in the said segment. The luxury
emulsion category of ici dulux is kept to a minimum
of options in its product varieties, which on one hand
makes it easier for the customer to choose but on the
other might also sidetrack the consumer from choos-
ing the brand for their use.
Dulux is significantly expensive than its
competitors in the said category. Pricing it at a 20%
premium automatically eradicates the doubt of lack
of quality; it instead gives reassurance to the con-
sumer. Dulux has not subsidized its prices because it
commands a premium and believes in being above
the fight for price competition.

The brand benefit the category has established

is that, its customers know that dulux luxury emul-
sion is the best possible option in the category. It un- Asian Paints
derstands the needs of the consumer and when those Royale
have been understood, the consumer feels that he is in
60.00%
safe hands with dulux and therefore he is ready to pay
the premium demanded. 50.00% Nerolac
Impressions
Relevance 40.00%
Brand presence in relevant areas and target au- Berger Silk
dience is impressive even with a moderate approach
in most media of advertising. The brand’s reach in and 30.00%
around its target areas is great, with a strong competi-
tor that has a better presence in all other categories 20.00% ICI Dulux
which works in their favor. Velvet Touch

Dulux however has narrowed a consumer’s 10.00%

Shalimar
choice from the approach point itself where its qual-
ity challenge makes the brand comparatively stronger Superlac
0.00%
than its competitors. 2004 - 2005 - 2006 -
05 06 07 Jenson &
The brand believes in relevant marketing ap- Nicholson
proach. They also believe in strengthening the weak
Special Effects
ends and making the stronger ones unbreakable. The
brand is well known and well appreciated amongst
its competitors and undoubtedly has an upper hand
in terms of guarantee and novelty value to be the first (The above diagram shows the price difference
to launch the many options in the luxury emulsions in the top six Indian paint brands in the last three
category. years.)
It is a great product line with a lot of room
The one thing that makes Dulux different from for improvement place is an integral part of posi-
the rest is that in the eyes of the consumer, Dulux is tioning the brand. The fact that maximum sales of
not a part of the rat race. As a consumer, you either Dulux Luxury emulsions take place in the tier one
have it because you know its credibility or Dulux as a cities of India, it has restricted its promotions to the
brand does not hold any significance for you. same areas.
Positioning popular brand amongst the other four products. It has
ICI Dulux luxury emulsion products have been positioned and marketed in a better way than the
positioned themselves as the ultimate solution for others.
achieving the right luxury look with great durability.
It positions itself as the pioneer ofthe washable paint Consistency
technology. Distribution and availability at every pos- Quality Consistency:
sible tion chain which not even serves the tier one cit- Dulux interior emulsions have received the
ies but also the tier 2 and three cities. best feedback and also the most reliable durability
guarantee. The products in this sector are consumed
When it comes to outdoor branding Dulux by most interior designers as well as independent con-
interiors are not visible enough which occasionally sumers. Dulux conducts yearly quality checks as well
works against the sales of the products. Even after as brand relevance checks which help innovate or re-
high availability, and a good enough distribution the invent the existing brands according to the consum-
brand sometimes fails to top the chart of the brand er’s feedback.
recall of consumers. The brand has not been reposi-
tioned as yet in any possible way till the present day. Service Consistency:
This makes brand resonance possible with consum- Diligence in responding to complaints has now
ers. increased the reliability of the brand as well. On the

The TV advertisement of the nanny smooth-

ly wiping the wall with a sponge after the little boy
makes football marks on it. At the end of the adver-
tisement, the wall is as clean as new. The ‘Velvet
Touch’ range in Dulux interior emulsions is the most
(The Graph Below shows the sales percentage of Du-
lux Velvet Touch soaring highs in the previous year.
Backing it us was a great ad campaign with huge ce-
lebrity endorsements).
other hand, the web based interactive services pro-
vide occasional responses to the curious consumer,
which will in turn bring the brand’s customer service
in bad light.
Supply Consistency:
Supply chain diligence is one important area
which Dulux products should work on. Deliveries are
mostly slow and availability of the right shades and
prompt delivery is a miss when it comes to catering
to the western parts of the country. Surveys were con-
ducted in the last three years relating to quality con-
trol as well as consumer complaints are given below
for providing you with a clear perspective.
Portfolio
The values the Dulux paints hold in the market
are not as strong as they should be. There isn’t enough
brand awareness for the consumers to actually relate
totally to the brand. The evident identity of the brand
still holds insignificant value to the consumer. This
in turn does not breed loyalty for the brand. Endorse-
ments are helpful for making better brand decisions
when your favorite film star or celebrity endorses the (The following image illustrates the 4 dimensional
same brand.
The paint sector is one in which constant in-
novations and new ideas work wonders. Dulux paints
need to tighten up their loose ends and get back at
doing the right things at the rite time and at the right
places. Previously there were very few initiatives tak-
en up for awareness of the brand.
cial launches. That made awareness of the store very
minimal and did not give it the right presence it need-
ed. Even with very less marketing promotions, the to-
tal sales for that year soared higher than the normal
average.
For Dulux interior emulsions which have been
the major revenue generator for the company in the
Asian market and also globally there has never been
a good memorable and resonating marketing cam-
paign.
What they need is a real breakthrough emo-
tionally intelligent marketing strategy. In the previ-
ous advertising campaigns, there was not much to talk
about but the inspiration stores and the Karan Johar,
Kareena Kapoor television advertisement were the
only two things that gave the brand with the appropri-
ate visibility it needed. This visibility was short lived
and the brand made no significance later on the life of
the consumers.
presence of DULUX Interior Emulsion Brands. Each
product has a different ressonancce and approach.)

Dulux’s credibility is only taken into consid-

eration when it comes to existing consumers who
might go in for repainting their houses after years.
That kind of loyalty towards the brand is what Dulux
interior emulsions have.

Co-Ordinated Marketing
In Dulux’s marketing strategies one of the
most well appreciated and well known were the in-
spiration stores Dulux had launches three years back.
The sales that year had gone up 20% for the brand and
in other market receptivity surveys Dulux has begun
to become a household brand name. The one down-
fall about the Inspiration stores was that they did not
reach the aggregate target audience they wanted to.

The opening and the positioning of the stores

was done with mild marketing strategies and no spe-
Brand Process
Presence

The brand’s presence in the last three years
has been very volatile. Sometimes there were several
advertisements in a row on television and sometimes
there were none. The major chunk of ads they had
aired was in the past two ICC 50-50. The shows Du-
lux decides to sponsor are the ones with high Televi-
sion Rating Points on TV. The strategic placements of
advertisements in the print medium is also seasonal
but imworld cup tournaments. The one previous to
last year was justified for Indian television audiences
but the one last year lost more than 60% audiences
once India lost and was out of the tournament.

The one important thing to look at here is that

the strategic advertising opportunities were not really
explores well enough. The awareness of the brand
has almost diminished in places where it was already
low. There is no brand recognition in most rural areas
what so ever. The brand is far from being recognized
a paints manufacturer, it has lost its identity in most
developing urban areas as well. There is no brand
presence of Dulux paints in the economy brands be-
cause of which when middle class consumers opted
for better quality and premium emulsions they did not
consider Dulux, instead, they stuck to the same brand
they knew very well.

This therefore made that brand a multipurpose

brand which became a universal paint solution pro-
vider for all price ranges as well as qualities. Dulux
has therefore lost a lot of brand presence in the market
for the same reason. Kareena Kapoor was hired as the
brand ambassador in Oct 07’ , Her contract expired
a few months ago. She has also acted in a television
commerical for the same campaign which was di-
rected by Karan Johar.
The following the past three years of advertising of
the company; the areas of target audience it wanted
to attract)
Execution

The previous strategies Dulux has come up

with have done moderately well for the brands. En-
dorsements are one forte they haven’t tried their hand
at entirely. The only one thing the brand did which
was related to endorsements was the Kareena Ka-
poor ad campaign whose television commercial was
directed by Karan Johar. There was a marginal in-
crease in sales and in the monthly average survey of
the brand knowledge. In India there has been no other
marketing and brand strategizing as good as its In-
dian competitor. The very classy advertisements do
not really resonate with the elite Indians also. What
they need is something that touches them and not just
informs them.

Strategizing
The strategy Dulux has opted for till today
is the low key strategy which does not have a lot of
penetration of media content in the rural areas. They
have always focused on making a mark in urban cit-
ies of India and also have hoped that their internation-
al brand standing would work wonders for them in
the Indian market as well. Their strategies have been
the basic brand launches and the basic PR activities
and a lot of television promotions along with creat-
ing more and more brand awareness. A strategy that
has worked in the Indian markets till date with most
Challenge
product categories would be the distribution with and
Among the many challenges to cope with com-
the presence in every nook and corner at utility shops
petition there is one more which is the most impor-
and branding around the places as well.
tant one for the brand, it is keeping brand awareness
at optimum levels at all times. Long term and short
(The diagram below shows Velvet Touch’s Shop Pen-
term goals have to be set for the brand and strategy
etration accross India and Mumbai)
is of utmost importance here. In the later promotional
activities of Dulux there needs to be equilibrium of
creating awareness even in the areas which have never
tapped before. 20% of the premium emulsions are sold
in the rural areas and the number is increasing now.
The challenge here now is to tap the niche market in a
way which has never been before and to create a new
category inside the existing so that an automatic niche
is created. Being the first in a category gives an auto-
matic brand standing in the eyes of the consumer.
Planing

When it comes to media planning and place-

ments, ICI Dulux has been far behind the require-
ments of the band wagon of pacting. The only thing
because of which the brand loses out on popularity is
that, consumers nowadays think that if a brand is out
of sight it is out of function and so they tend to deviate
from it.
Brand Culture
Performance Orientation
In terms of product performance Dulux has
been a much better performer than any of its com-
petitor’s durability and quality assurance. There has
been a lot of speculation when it comes to perform-
ance judgments in the long lasting quality of interior
emulsions. But when taken a poll, out of the people
who use the different brands the best feedbacks are
received by Dulux interior emulsion consumers only.
There is a lot of research involved behind the
product quality and that is the one thing the company
believes in on the whole. ICI believes in delivering
the best quality in whatever product they produce.
Innovation
Innovations are some things Dulux has not
done for a long time now according to Indian audi-
ences now. It doesn’t matter if Dulux as a brand is
doing wonders worldwide, they have to do things they
have never done before when it comes to Indian mar-
kets. They have to stay connected to the Indian psy-
che which will then make someone resonate with the
brand and its identity.
Dulux has made a lot of innovations and has
launched a lot of DIY (do it yourself) products in
the international market. Most of them have worked
wonders there. Some of them could be brought to
the Indian market as well with a little tweaking if
needed. There has not been a lot of change since
2006 when color futures launched.
The same Dulux products have been do-
ing the rounds of the Indian paint market among
many new and upcoming competion products which
launched. They were a hit and then soared to profits
in less than six months.
For the company and its officials, its very im-
portant that they have recreational facilities in the of-
fice premises to stimulate their brain and make them
think in ways they might not have thought about
when they were constricted to their desks and office
cabins. Another way to innovate would be asking
questions about what new things people need in their
lives. Thinking about what would excite a person and
compel him to buy a product.
 Consumer Image Track
Quality of the product
Dulux premium interior emulsions are of the Contractors and bulk purchasers prefer its
best quality among premium brands. Dulux Velvet competitors because they can cut costs and make
Touch sells better than Asian Paints Royale in cit- better profits for themselves but otherwise Dulux as
ies and urban places where this type of product is a a brand is preferred by individuals. Dulux has not
moderate involvement product. Velvet Touch users tapped the market in the rural or smaller towns and
vouch for the best quality promise. Loyal custom- cities because of significantly higher rates compared
ers are made there and then, once Dulux is used and to its competitors.
sumer On the
has experienced the performance
other hand when
of theabrand
con-
experienced. It is difficult to stand their ground in cut they will always choose Dulux and also recommend
throat competition from brands than are omnipresent the product to others.
in every place where paints are sold. Images evoked
- Great color with great glow
People do not mind reusing Dulux paints be- - Rich taste
cause they already have quality assurance from their - The feeling of being a part of the elite
first consumption process. Consumers who have nev- - Odour free walls
er used the product might be skeptical to opt for the - Rich looking walls
brand and most probably opt for the market leader. In
some cases premium brands that believe in premium User Images
pricing of their products win the battle of price. - Expensive
- A feeling of grandeur
Product benefits offered - Better than the other options
- Dulux interior emulsions have great performance - More reliable
in terms of durability; the four premium brands of - Better quality guarantee
Dulux have each proven themselves in the market. - Sensible option
- Availability in all major cities where demand for Usage occasions
premium emulsions is high. - Redecoration of the house
- Great performance satisfaction - Seasonal painting
- Odorless product which leaves no strong paint - Marriage in the family
smell even immediately after application. - Festivals
- Fast drying within two hours - Designing a brand new home
- Easy to use and very handy - Periodical painting
- Perfect shade quality
- Great after sales services Brand Personality dimensions
- Long lasting and washable emulsions - A product that makes walls glow like pearls
- Perfect smooth and soft sheen after application - Gives the walls a majestic look
- A trusted quality product
Price – Value offered - Makes your walls look richer
Velvet touch is priced at a premium compared
to the other brands in its segment. Dulux premium Leading competitors brand image
interior emulsions are priced at a more than Rupees Asian Paints Royale
hundred difference between any other brand of pre- - Great affordability
mium interior emulsion and Dulux brands. There is - Resonance with the consumer
still indeed a value for money because of excellent - Great feeling walls
cost effectiveness which is majorly appreciated by - The feel good factor
the consumer base in the market. - Top of mind Awareness of brand

Brand Analysis
Market Standing/Share
Dulux Velvet touch was the market leader in
the premium emulsion category for a long time after
it launched. Today it faces tough competition from
India’s number 1 paint manufacturer even when Vel-
vet Touch’s brand presence is immense among the
competitors.
(The graph below shows aggregate market share of
major paint brands in India. )
Velvet touch has to maintain it’sgrip on the
market and provide more competitive and credible
claims. ICI Dulux stands as the number four top
brand in the Indian paint market today. Velvet Touch
as a brand has a strong standing among its competi-
tors. Asian Paints Royale is rapidly catching up to the
level of Velvet Touch and now has a marginal differ-
ence between the two top brands in premium emul-
sion.

(Overall market share of different sector of paints

in the year 06 - 07)

As we can see in the above tables that Asian
Paints Royale with its excellent marketing strategies
and unmatched media presence has caught up to the
25 year old strong standing brand, Velvet Touch. This
is an indication for Velvet Touch to wake up and make
some serious changes in the way things are working
in the company. The market share has dwindled and
now come to a stand still with just a few points higher
than it’s closest competitor.
Selling Tactics

`The selling tactics of Velvet Touch have been

restricted to the minimum for several years now.
They do not believe in aggressive advertising and big
spending budgets on brand image building. Accord-
ing to Velvet Touch area sales manager (Sewri) Pa-
wan Kumar, the company wants to concentrate on the
dealers of Velvet Touch around the country.

According to the company it is the dealer who

is the biggest influencer in the decision making of a
consumer. A dealer is one important person who can
within no time change preferences of the consum-
ers by vouching for the brand as if they themselves
are endorsing the brand. The selling tactics of Velvet
Touch are very dealer centric.

Velvet Touch has many promotional schemes

and offers for the dealers which compel the dealers to
swear by the brand and change customer preferences.
If the dealers benefit from the sales of Velvet Touch
they will obviously promote that brand more for reap-
ing more profits. Velvet Touch has launched many
schemes for the dealers, the most famous among them
is the Velvet Touch Club which is an only invite club
for dealers.

The dealers are only entitled to be member-

ship and its perks if they achieve certain purchase tar-
gets every month. The more supply the dealer picks
up the more points he gets and is entitled to bigger
gifts at the end of the month. Promotional offers for
small painters and contractors are also provided to in-
crease sales within the end user nexus.

Jingle recognition/Brand Logo

Dulux Velvet Touch has a universal jingle
which has not been used for most Velvet Touch
Ads for a long time now. The jingle (“Dulux Dulux
Dulux”) had an appeal a long time ago but today it
has lost its charm. The public today does not like
slow and soulful tunes, or rather they are not used to
listening to soulful tunes anymore. They need peppy
and fast soundtracks. People who hear the original
tune today do not really like it and connect with it.
In the ad campaigns of the past few years Velvet
Touch has taken it to another level. They have stuck
to making ad campaigns which are execution cen-
tric.
(The above graph shows the awareneess scale dur-
ing the advertisements during the ICC Champions
Ttophy)
USP of the BRAND
The Unique Selling Proposition of Dulux
Velvet Touch is that it is the only paint that gives a
Pearl Glow finish. The brand has a lot of credibil-
ity when it comes to its unique selling proposition.
Whoever has used the product knows about its dura-
bility and swears by it.
Competition
Dashboard
Dealer Networks:
Dulux Velvet Touch has over 12000 retail
shops across India. Dulux aims to have more than
15000 stores by the end of the year 2010. Penetration
and universal presence is what Dulux should aim for.
The competition it faces is from the country’s big-
gest paint manufacturer which has over 18000 retail
stores in Inidia.
Dealer networks have a lot of influence on
the consumer’s purchasing patterns. A lot of brand-
ing around the retail networks is a big influencer for
an over the counter sale. Most branding gurus say
that what is out of sight is out of mind. And Asian
Paints does a great job by actually keeping directly
in touch with the retail shops.
Nerolac’s strength of wide spread distribu-
2500
2000
1500
1000
500
0 dustry.
0 2 4 6 8
tion network is its right arm in generating sales rev-
enue from all parts of India. Nerolac has a wide dis-
tribution network of over 11,000 dealers. They have
eight Sales Divisions and each division has depots to
take care of local needs. In all we have 66 depots. All
this ensures complete reach in India including rural
and up country markets.
Berger paints have less than 8000 retail stores
and are stagnating at that number. When it comes to
growing the dealer network across India they have
only restricted to the south western regions of India
only. Because of this fact they are not able to pen-
etrate in places where the demand is growing.
Shalimar and Jenson & Nicholson Paints
have a long way to go and even come close to the
volume of the top four decorative brands in India.
With a mere 2000 dealers and 600 dealers respec-
tively, they have not enough penetration to gain pres-
ence in the deep routed Indian paint market.
Salesmen:
Dulux believes in quality dealing and opti-
mizing resources. When it comes to salesmen and
more feet on street, Dulux keeps it limited to 4 sales
managers per paint warehouse and a total of 10 sales
executives under them to reach out in direct sales as
well as individual conversion of clients.
Asian Paints has a totally opposite strategy
compared to Dulux, they believe in individual atten-
tion and so have more feet on street allotted for each
area. They also have a better hierarchy and a feed-
back and a proper reporting system set in. They set
individual and team specific targets for each week.
Along with that they specially believe in targeting
the local painter and the laborers along with retailers
and dealers.
Nerolac paints have more aggressive
marketing functions in the northern states and have
achieved conversion rates which are larger than any-
where else. They are beginning to tap regions which
were said to have little or no scope for the paint in-
Berger has not many sales tactics set in and
also has only regional sales officers for every paint
hub in major cities. Their assistants are the only peo-
ple who interact with the shopkeepers on a day to
day basis. This entire process seems very impersonal
which then affects the sales of the brand in the mar-
ket.
Other Associates:
- ad agencies
Dulux India Has been a client of Saatchi &
Satchi worldwide for a couple of years now interna-
tionally. There have plans to re brand Velvet Touch
but noting concrete was planned ever. The Kareena
Kapoor Ad Campaign helped Dulux to bounce back
in the media but did not much for the brand on the
sales front. Dulux has to strategize a great ad cam-
paign and back it up with a great marketing and PR
strategy as well. A 360 degree communication effort
is what needs to bring back the brand’s liveliness.
Dulux Velvet Touch has stuck to one identity
in the advertising campaigns as well. When Dulux
first advertised Velvet Touch they took the advertise-
ments which had worked abroad and they only put
Indian voice overs. They initially used the Dulux
Mascot the sheep dog for the ads. Dulux started ad-
vertising only a couple of years back. Even when the
product has been around for a long time, it did not
feel the need to make a statement inn the media. In
the late 90’sPositioning Velvet Touch in a different
way was very important. With competitors launch-
ing similar products with a big bang in the media
would have affected Dulux credibility as well its
presence. Dulux then decided to launch coluors in
2005. This called for a great kick start in media. This
ad campaign was followed by the launch of Dulux
Inspiration stores.
Asian Paints and Ogilvy and Mather have
done wonders for Royale and its advertising. Asian
Paints is by far the best advertised brand in India and
it also reaps its benefits of being on top. The aware-
ness levels of Asian Paints do not stagnate only at
television media, they have universal presence in all
sorts of media communications. From small offers
for painters to huge deals with the Raheja builders,
everything is done keeping in mind the motive of
achieving brand resonance everywhere.
Shalimar Paints do not advertise on nation-
al television but instead opt for regional television
channels which penetrate in the specific areas where
they want.
Syndicated Reports (media spend reports)
The annual advertising and promotion budget
allotted for Velvet Touch in India is much more than
any of the other Dulux products. The annual budget
for Dulux Velvet touch is 3 crores worth of advertise-
ments. Last year the budget soared a new high. It dou-
bled because of the two brand endorsements they did.
Dulux has only a three month contract with KAreena
Kapoor for her endorsing Velvet Touch.
Asian Paints and its immense media presence
evidently has the biggest advertising budget annu-
ally. It reaches more than 18 crores every year. And
the brand endorsements are calculated separately and
cost more which is an investment according to their
Balance Sheets
Nerolac has the second biggest advertising
budgets in the paint industry. Annually they set aside
around 5 crores for investing in advertising and other
promotional activities. When it comes to brand en-
dorsements they are clubbed with annual budgets and
accordingly new raised budgets are set.
Berger paints has half yearly budgets set for
advertising and other promotional activities

Nerolac is second to the Asian Paints and

are trying very hard to catch up to the pace at which
Asian Paints I growing as a universal brand in paints.
The Shalini Chopra campaign was individually a hit
but did not do much for the sales of the brand.
Key activities of the Competitors:

- New product launch – variant launch

Dulux has not yet launched variants of
Velvet Touch and does not plan on it as well. They
believe in providing quality and not variety with
mediocre quality. Dulux has launched new emulsion
brands which are not off shoots of Velvet Touch but
are brands which have totally different USPs.

For Asian Paints, Royale was the only pre-

mium brand which had high brand awareness levels.
Therefore to launch the other products as variants
of the Royale brand made sense and instantly gave
more credibility to the newly launched brands. Asian
Paints has launched Asian Paints Royale Play as one
of the luxury brands under Royale’s Umbrella.

Nerolac Impressions also launched offshoots

of Impressions which got a great platform in the
media because of the already set brand image of
Impressions. After Impressions, it was Impressions
Metalic which came up with emulsions with Gold
and Silver finishes and also metallic finishes. The
other offshoot that launched was the Nerolac Im-
pressions Disney which launched with a big bang
that followed an aggressive marketing strategy
which stuck to appealing its target audiences. Im-
pressions Disney was only for children’s rooms and
had a lot of appeal among the same interest group. - Merchandising
Merchandizing in the paint industry is only
Berger has also not launched a variant or restricted to merchandising which is distributed to
even and offshoot of the Berger Silk line. They painters and contractors. Merchandising in the paint
are trying to catch up to the two top brands when industry does not reach the consumers because it is
it comes to aggressiveness in advertising and also not appealing for them. Only one paint brand has
match up to the awareness levels of Asian Paints, gone beyond merchandising for painters in the last
Nerolac and Dulux Velvet Touch. year. Nerolac Disney, after tying up with Disney
products has launched a line of different merchan-
Shalimar is now trying to make an effort of dise that is used by children.
launching the Superlac Brand in the mainstream
market pan India. There are no confirmed reports of Nerolac Disney has also sponsored television
them launching a product line of Superlac. It will shows which appeal to children and that has made
increase credibility of the brand if the entire line of the awareness of the brands exceed its expectations.
Superlac brands are launched in the media with a
big bang. Asian Paints has made merchandise which is
handed out to painters and contractors as free pro-
Jenson and Nicholson paints are not a main- motional items. (Specimen 2 in the package is an
stream decorative paints brand. Therefore it doesn’t example of the merchandising)
make sense for them to event think of launching
variants or even a product line.
- Sales promotions
Velvet Touch came up with sales promotions
which were subject to season timings and also only
restricted to dealer promotions. The only promotional
offers they ever had were for Dulux Colour Futures.
Colour Futures had promotional offers only
for the Dulux Colour Professional services. Promo-
tional services were only meant for people who ap-
pointed Dulux painting professionals for getting their
walls painted. Asian Paints Royale had lucky draws
which involved vacation trips and a bumper prize of a
Skoda Octavia car. All of this was only when Royale
Play was launched. Later on occasional and seasonal
promotions were not continued.
Berger, Neroalc, Shalimar and Jenson & Ni-
cholson Paints have never had promotional offers
or any other sort of sales promotions for consumers.
They have kept a low key and made no extra effort s
to attract more and more customers. This very thing
has in some ways worked against the awareness of the Jenson & Nicholson paints do not have any
brand. promotional offers whatsoever.
- Dealer promotions
Constant Dealer promotions are active among
all brands of paints today. Its either better schemes
or some reward systems and target oriented gifts and
prizes. Dulux has a huge budget set for dealer and con-
tractor specific promotional activities every year. The
promotions are not only restricted to the retailers and
shop owners, different promotions are also targeted
to the contractors and small time painters in smaller
denominations.
The latest promotional activities they are hold-
ing were free kitchenware for painters on purchasing
two 20 litre kegs of Velvet Touch and also a chance to
win a lucky draw for a Hero Honda motorcycle. For
contractors Dulux come up with more exciting offers
such as a Velvet Touch account, where after purchas-
ing more than 30 lirtres of Velvet Touch they get a dis-
count card which they can redeem for a 40 % discount
the next time they purchase 30 litres of paint.
Asian Paints have no offers as such for dealers
because they believe that the end users are the ones
who really make the brand work. These end users do
not care about big offers and do not even have the
purchasing power for availing huge discounts.
Therefore Asian Paints spends on making free
merchandise which the sales managers give out for
free at the Naka Meets and with purchases of small
quantities of paint boxes as well. Things the paint-
ers could use, like rollers, paint brushes, bandanas,
sponges etc.
Berger Paints has smaller offers for dealers
which they can avail at the end of the month for plac-
ing new orders for more products. There are discount
packages given aas well as freebies given out by
Berger to the retailers. They do not have levels of of-
feres, they only have universal offers on purchases.
Shalimar has greater commissions for their
dealers which increase their profit margins. This helps
in the rural areas in which brands are not very sig-
nificant. Shalimar has only experimented with larger
commission scales and nothing else for now. They
should promote their brand more in main stream.
- Price changes
Velvet Touch do not believe in being a part of
the price war of any sort with its competitors. It has
positioned itself as a luxury product and it demands a
premium for it. The prices have only changed subject
to the raw material fluctuations.
Asian Paints Royale was priced at a hug
premium when it was first launched. Later in the re
launches the prices were diminishing till they stabi-
lized in 2006 and have been the same since.
Nerolac paints have kept the prices stable
since the launch and intend to only hike them subject
to the fluctuations in the pricing of the raw materi-
als.
For Berger paints, there are no specific chang-
es in prices inn the past one year. Berger is priced
lower than the top three brands.
Shalimar and Jenson & Nicholson have the
lowest prices in the category and have not really var-
ied since the launches. The prices are the same and
have only changed subject to other hikes.
S W OT
Strengths:

ICI believes that ICI Dulux Paints India

strengths include its well-established brands and the
global nature of the business which allow ICI Paints
to use its resources, expertise and experience to offer
the best solution for each local market and the needs
of the end users. Great presence in places that the
brand is better recognized and has a good customer
base.
Weaknesses:
A well Established Brand
Dulux Velvet touch celebrates its production’s
No Innovation in products
Silver Jublee this year. Even after 25 years of produc-
One of the major downfalls of the company is
tion, it has never needed to re-brand itself. The USP of
that, ICI has not innovated in technology and market-
the product is so strong and has a great credibility for
ing over the years. Being one of the oldest and the
the consumer. A quality innovation driven attitude has
globally trusted brand it has not changed with time.
kept the brand still alive and on the top of the mind
This change which is very cardinal for every compa-
recall of most of its existing and prospective consum-
ny to grow over the years is non existent in Dullux.
ers.
Weak Distribution
Strong Brand Image
Dulux Velvet Touch as a brand does
Dulux Velvet touch is has maintained an im-
not make an effort to penetrate and create a stronghold
age of being the most expensive in the category along
not only inn the cities but the rural areas as well. The
with providing the best quality among its competi-
distribution concentrates only on the developed areas
tors. With the help of a lot of promotional activities
of the country which is only about 30% of the total
for its dealers as well as consumers, it has earned a
population of India. Comparing its aggregate sales
great amount of goodwill over the years. There is a
with its competitors in India, Dulux needs to widen
lot of recall when it comes to Velvet Touch, when-
the distribution in areas which are developing as well
ever someone thinks of paints and pearl glow finished
as rural.
he necessarily has to be thinking about Velvet Touch
only.
Concentrating only on dealer related marketing
According to Velvet Touch’s Regional Sales
Quality driven
Manager Mumbai, the important thing for them is the
While its competitors concentrate more on va-
dealers. The end users are no their target. Velvet Touch
riety and mass production and a lot of other different
marketing takes only dealers into consideration. The
strategies, the company is essentially a quality centric
company does not want to convert the product into
company. This has helped the company grow and sus-
a high involvement product. This factor, today, has
tain its brands
gravely affected the brand presence as well as the
credibility of the brand among the consumers.
First Mover Advantage
Velvet Touch as a brand has been aounrd for
Depending on previously established Goodwill
more than two decades and the only competition it be-
Dulux Velvet Touch has not evolved with time.
gan facing was only a decade after they launched the
The company also does not believe that they need to
smooth finish technology. This in itself help strength-
rebrand themselves and also bring back the brand at
en the credibility of the brand promise and now it is
 Analysis
Threats:

Reaching Brand Graveyard

One of the threats Velvet Touch could face is
the brand graveyard. When it comes to recall Velvet
Touch on its own has a lot of credibility, but some-
times by a layman it is mistaken as an Asian Paint’s
brand. This is very dangerous for the brand loyalty of
Velvet Touch. This trend may even end up in mak-
ing only the brand name generic like ‘Bisleri’ (a name
Opportunities: given to any mineral water bottle brand now) in India.
This practice of a lot of painters and people who are
Greater Penetration unaware of the market would prove to be very danger-
One of the biggest opportunities ICI has in In- ous for Velvet Touch.
dia is to become the positioned leader in all parts of
the country. At present, there is very less penetration Tag of a Tired Brand
of ICI brands in the rural market. ICI could reap great Velvet Touch has been a strong contender in
profits coming from the rural areas as well. the market for a long time now but is loosing its grip
now. This according to a lot of brand valuation proc-
Better Brand Presence esses is a sign of a tired brand. Tired brands usually
With a great stronghold among the existing wear out and do not bounce back up. Once the tag of a
dealers in major cities, there are chances of Velvet tired brand is given, the brand will immediately loose
Touch becoming an unmatched and better known all credibility as well as loyalty.
brand among competitors. With a better strategy and
substantial goals a better brand presence can be built Loss Of Loyal Customers
for Velvet Touch. Because Velvet Touch is one of the oldest and
one of the most bankable brands in the market today,
Real Estate Boom it has a lot of demand as well as appeal among con-
The real estate boom which is gaining mo- sumers. With a lot of innovations and a lot of move-
mentum by the day, is a great boon to the entire paint ment in the market, the loyal consumer might just get
industry. This would actually be a good opportunity inquisitive and opt or a competitor brand. A study
for all of the industry to cash in on their profits. shows that most loyal brand users opt for new brands
because boredom sets in and change seems to be a
Consumer Involvemeent great option.
With increasing direct contact with the con-
sumer, there are more chances of the paint brands to Possibility of Running out of Fashion
gain a lot of momentum and make their mark in the New trends keep coming up and they have a
consumer’s minds. lot of impact on the consumption patterns of people.
Moods and a lot of other factors also are taken into
More and more paint products are reposition- consideration when it comes to choosing consumer
ing themselves and making their marketing strategies goods. With so many different innovations and finish-
more appealing to the house owners rather than the es launching in the industry, a consumer is very prone
contractors. This ensures the consumer’s total in- to get deviated from his original choice. This devia-
volvement in the decision making. tion influences the consumer to try out a new product
which has an element of surprise in it as well.
 B r a n d At t
C o m p e
Brand Benefit
Initially Royale positioned itself as an Elite
brand, it has built a sense of confidence in people’s
minds. A sense of assurance that this brand ensures
optimum quality is embedded in people’s minds.
More than anything else their marketing and distribu-
tion has ensured that when people think of paints they
think of Asian Paints.
Consistency
When Asian Paints Royale first launched its
quality was not appreciated for cost it was being sold.
There were problems and the brand had no takers
then. Later in the year 2000 when Royale was reposi-
tioned in a new and with a different outlook, the sales
sky rocketed to the top instantly. There have been no
complaints ever since the product was re-launched.
With a great customer service center set up nationally,
Asian Paints has also made itself a leader in customer
satisfaction and consistency. From the retailer’s point
of view also the service is impeccable, in most parts
of India they have a three hour order settle time and
in case of any grievances the sales officers at the dis-
trict dispatch centers take personal care of the same.
Co-Ordinated Marketing
Asian Paints follow an open market policy,
they do not believe in the classical distribution pat-
tern. It has a lott of loop holes according to them. The
point of interaction of the retailer and the company is
direct which makes each dealer feel secure about the
authenticity of the services provided to him.
A distribution led company has to have a
strong hold on each and every nook and corner of the
market. That is what 18000 retailers are present for in
India. In every metro there are two main warehouses
from which supply is dispatched to all the retailers
within the city. Asian Paints have recognized their
end user properly and therefore pay more attention
on the local Naka Meets which happen every week
in small Paint hubs in the cities. For example South
Mumbai has 4 paint hubs, they are CP Tank, Tardeo,
Sewri and Dadar. Every week contractors and small
time painters and artisans come together for getting
small jobs and contracts for the week. When retail-
ers are given better schemes they promote the prod-
ucts better and sell them more. Asian paints has set
schemes and is not flexible in making exceptions for
retailers.
r i bu t e s O F
t i to r s

They believe that their brand equity should Relevance

speak for itself. Although Asian Paints does not give
retailer benefits, its representatives make their pres-
ence felt in the Naka meets and promote their brand by
performing different branding exercises. The current
branding exercise they have been conducting is that
they are handing out free bandanas out to the painters
so that they can cover their heads while painting. This
makes a connect to the end user and makes him feel
cared about.
Has great resonance with its consumers, they
know the brand as the number one solution provider.
When a family needs help in selecting theme décor
for their house, instead of appointing an interior de-
signer, they choose to take suggestions from their
nearest Asian Paints colorworld store. The best pos-
sible solution with great service as well as a one of
a kind experience is what consumers relate to when
they think about Asian Paints.

Brand Pressence Positioning

Asian Paints has its presence and is known Asian Paints have their strong hold on every
all over India. With its network of 18000 retailers possible category of paints in India and are going
across India, Asian Paints has a strong hold in each global as well. Initially they positioned Royale as the
and every sector of paints today. Asians paints have Elite’s brand of paints. Changes in economic condi-
become generic to the commodity itself. Whenever tions and the rise in the standard of living the target
a layman thinks of paints, the first brand he thinks audience of Royale has now changed.
about is Asian Paints.
Royale was once positioned as royalty but
Besides gaining top of the mind recall they has been moved to a position of accessibility and yet
have manages to capture ad space and great deal of embodying luxury. Royalty connotation changed and
awareness for Royale as a separate entity. In terms of evolved into the upper middle class status symbol.
brand presence they have done a lot to remain number
one on the list. For keeping brand presence alive even
locally Asian Paints have also come up with a pro-
motion campaign at Saat Rasta where dealers have
painted their walls with royale paints.
Brand Benefit
Kansai Nerolac Impressions has made recall
easily possible for the consumers with their possibly
most excellent choice in tag lines ever made. The fa-
mous “jab ghar ki raunak badhani ho” is still as fresh
in people’s minds as it was a decade ago.

The brand has been repositioned way too

many times after that but nothing stuck to the hearts
of the public like the song. The soulfulness was appre-
ciated so much that it became a great topic of discus-
sion as well.

Relevance
Kansai Nerolac paints now want to offer vari-
ous choices for a consumer’s sole needs. They want
to give so many choices under one brand that, the
consumer has no second thought to opt for any other
brand for his painting needs. Nerolac is perceived as
a need based product more than a brand sumer would
make when he opts for a particular brand of paints.
Nerolac has made itself relevant enough for the pre-
mium interior emulsion sector in the market. Co-Ordinated Marketing
When Nerolac ventured into the “Nerolac Impres-
sions”, they simultaneously launched the brand in 8
Positioning
major metros of Mumbai, Delhi, Kolkata, Chennai,
Nerolac paints are second to the leaders in the in-
Bangalore, Hyderabad, Pune & Ahmedabad.
dustry. An innovation driven company but has always
been the second mover in terms of introducing new
The role of targeting was threefold as it needed to
technology in the industry. Nerolac Impressions was
address 3 clusters:
backed by a great campaign which did increase sales
• Professional
for the brand for a while. Impressions as a brand has
• Families
not been able to establish a point of difference from
• Elite Claas
its competitors. It has not positioned itself in any new
The task of media was two-fold:
way. There is no distinctiveness in the brand as well.
• To generate awareness in the primary Target audi-
ence
Consistency • To ensure that Nerolac Impressions launched with
In terms of supply consistency the order set- focus on engagement where we could offer on-
tle time is more than 24 hours. Its competitor and the ground experience for consumers and also give them
brand leader has less than three hours order settle time information on a platform where we could get the 3
which does not work in Nerolac’s favour. The after Target groups together.
sales services are not regularly provided by the cus- In terms of mass media selection,
tomer service department. Even with a good quality • TV was used and here the medium became the mes-
product Nerolac has not been able to reach the top. sage as we looked at presence only on the Lifestyle
It still remains half in size of the leader in the paint Channels to start with which offered huge brand rub
industry.
off in addition to the right environment. Berger acrylic brands like Luxol Silk for inte-
• Experience Centers and Exhibitions riors, is a quality leader in technology and represents
• Activities in cinema halls decor statements that redefined the premium catego-
Choosing effective ambient media led to: ry. They have still not made a mark in the market, the
• Gauging and collecting actual response to get con- trends have already been set by the market leaders
version and Berger has not been able to really steer the de-
mand towards their products. Without a strong brand
Brand Pressence strategy backing it up this brand cannot soar to the
Nerolac Impressions have made a substantial top position.
presence in the market. They have sustained their un-
aided recall place but still have a long way to go when Consistency
it comes to top of the mind recall. Nerolac Impres- Berger Silk has not kept its consistency in
sions have a turnover of almost 40% less than Royale terms of service and supply of the goods. The sys-
and they do not even enjoy first mover advantage. tem of supply is a little different from the others at
Berger paints. There are a lot of middlemen in the
Monitoring supply chain. This in turn makes it harder for the
Nerolac Impressions as a brand have a set consistency of the services Berger provides. There is
monitoring system which is followed every month by no customer service center set up for Berger which
the retailers who exchange sales data with their sup- really becomes very cumbersome for the end users to
pliers and keep track of what was sold more and what contact the right kind of grievance services
product has more demand compared to another. Nero-
lac has not kept a close record of how the distribution Co-Ordinated Marketing
is penetrated in the smaller markets and stored. Berger Paints has been mostly associated as a

Brand Benefit
When two thirds of the brand’s sales comprises
of decorative paints there has to be a substantial back
up of a good ad campaign along with brand presence
in respective areas of the market. Berger Silk, which
is now an ancillary unit of the Asian Paints family and
also standing strong at third place in the decorative
and interior emulsion sector of the Indian paints mar-
ket.

Relevance
In the particular sector Berger Silk has little
or no relevance at all, the product has very less dis-
tribution and also has stopped promoting itself in the
premium emulsion category now. Berger is now con-
centrating on its distemper category makes more sales
pan India. Berger silk as a brand has not related to the
consumer and also has a very small distribution chain
compared to its top competitors.

Positioning
levels of Indians going up and a lot of discerning con-
sumers ready to spend on home décor, they then felt
the need to re-brand their product to tap the top end
of the paints market. To make Galaxy widely avail-
able, the company is adopting a strategy of alternative
channel distribution so as to make the product widely
available everywhere, says an official release. Lewis
Berger has been a major re-branding initiative aimed
in giving Berger Paints a new identity under a new
logo. Lewis Berger encompasses a series of signifi-
cant changes aimed at overall brand upgrading. These
include upgrade in the quality of paint, pack, design,
printing on the containers and cartons, the aesthet-
ics of the paint outlets across the country and, most
importantly the quality of services given to the con-
sumer.
Brand Pressence
Berger Silk has a monitoring system similar
to Nerolac but they monitor their supply and demand
processes every fortnight instead of every weak with
area managers allotted to each particular area in a city
by the company. All the leg work and the track is kept
by the area managers.
Monitoring
Berger Silk has a monitoring system similar
to Nerolac but they monitor their supply and demand
processes every fortnight instead of every weak with
area managers allotted to each particular area in a city
by the company. All the leg work and the track is kept
by the area managers.
Brand Benefit
Special Effects has been around for a long time
and has positioned itself to appeal a certain type of
consumer base who believe in the brand. The national
reach and distribution chain of the interior emulsion
in the premium category has not been competitive
enough to match up to the urban known brands.
Relevance
Jenson and Nicholson Special Effect has Monitoring
stopped manufacturing this category of paints since
the beginning of the financial year. The product did
not do anything for the company’s decorative paint
sector. Because of no relevance in the name and the
performance of the product the product flopped when
it released back in the 90’s.
The market share as well as awareness of the
brand across India is close to nothing. There has not
been any real distribution strategy as well for the
product.
Positioning
A company which has a lot of other business-
es to look after under its umbrella has not really paid
much attention in positioning its decorative paints
range of products. With no real innovation or even
any right promotions the brand is close to dead in the
eyes of the consumer. They have not tried to involve
the consumer at all. For Jenson and Nicholson and
many other brands, paints are still a low involvement
product range.
Consistency
Jenson & Nicholson Special Effects has only
been surviving on its existing supply chain without
innovating or even trying to reposition. They are
consistent in other categories and the interior luxury
emulsion sector at J&N suffers.
Co-Ordinated Marketing
Jenson & Nicholson paints have no strate-
gies in place for sales of their decorative paint sector.
Marketing is of special effects individually has never
been a priority for J&N paints. Their target sector was
always industrial paints. The only thing they have
done in terms of marketing is the launch in which
they had a press conference along with distributing it
in 3000 retail shops.
Presence
Jenson & Nicholson paints also have been,
focused on industrial paints for the last few years and
do not promote their other brands at all. A larger prof-
it margin as well as a better goodwill and presence in
the industrial sector is what they want to focus on as
a company.
For Jenson & Nicholson paints, the brand itself holds
no real importance for it to be monitored.

Brand Benefit
Backed by the sixth largest business house in
India (Jindal Steel) Shalimar Superlac has not been
able to tap the market in the right ways. Shalimar
paints are a brand nationally known but there has
been no marketing and promotions campaign to in-
crease the sales to a greater level. The Husain Col-
lection based on the best quality acrylic copolymer
based emulsion is the Company’s premium category
interior decorative paint product. It stands fifth in the
national market in terms of awareness.
Relevance
Shalimar also has trouble sustaining itself in
the luxury emulsions category because of the im-
mense pressure and penetration of Asian Paints
Royale and the well known and trusted Dulux Vel-
vet Touch. Shalimar Superlac works on a piggy back
pattern of distribution. In the distribution chain when
Shalimar distempers are distributed some of the extra
stock consists of the other products including Super-
lac which then are sold off to the customers who ask
for it. This pattern of distribution does very little for
the brand’s sales but it does a bit of fire fighting at
least.
Positioning
Shalimar Superlac has not positioned itself in
any way even in regional advertising. Shalimar paints
was once a very well known brand of paints but even
the recent ad campaign they did did not really make
any difference in the way people saw the brand on the
whole. The effort of repositioning itself with Shalimar
Superlac and a new tag line “zara hat ke socho” went
in vein once the campaign bombed with no increase in
sales that following year.
Consistency
Shalimar Superlac has not proved its quality
consistency and has neither been able to strengthen
its supply chain in the years. There has been little or
no change in the process of marketing Superlac. In-
novations have not taken place, repositioning and re-
branding has not made much difference in the way
people perceive the brand.
Co-Ordinated Markeeting
Shalimar Paints has revealed plans to penetrate
the market in southern India by increasing its dealer
network by 50%. `The Tamil Nadu and Kerala markets
hold good scope for our products,’ said the company’s
marketing and training consultant D Hariharaputhran.
`By the end of this year we will have around 1500
dealers in the four states.’ Shalimar holds about 7% of
the market share in the south, which is dominated by
Asian Paints. The company is also training its dealers
and relocating depots to improve logistics.
Brand Pressence
Shalimar Superlac had a brand presence prior to the
famous advertising campaigns and rigorous market-
ing plans of Asian Paints and Nerolac Paints as well.
Shalimar now has very little presence now compared
to the previous decade. There haven’t been any ad-
vertising campaigns in the pas 5 years to bring the
brand back to life. It is a dormant but functioning
brand which still is in production because of a strong
foothold in the industrial sector.
Monitoring
Shaalimar Superlac does not have a brand monitor-
ing system in place. The company believes in keeping
simple track of how much supply is demanded in the
market and according to that the next batch of prod-
ucts are supplied and produced.
Brand Audit By: Armin Jamula
Rebranding
For Velvet touch, there needs to be not only
a change in marketing strategy but also in different
communication mediums. Velvet Touch needs to
advertise and penetrate in their existing market.
Transforming the supply chain to a consumer
centric one. Velvet Touch is a favourite among the
dealers and already has their vote of loyalty. What
it needs to do now is to gain its foothold on unap-
proached territories such as the end users. Providing
them with a better service and probably giving them
something more than just discounts and free gifts
will drive them to loyalty for the brand.
Rejuvenating the brand and not making
drastic changes in it would work in Velvet Touch’s
favour in this marketplace. Making Velvet Touch
more high tech and displaying features such as it
is the only environment friendly brand will give its
personality a significant boost. Velvet Touch has to
reposition itself as a brand which is not toxic and
not harmful to families.
Advertising

Repositioning Velvet Touch and enhancing at-

tributes which are known but never emphasized on
would be a good positioning turn for the brand. Vel-
vet Touch could be positioned as the super Luxury
paint that lasts forever. Indians are very touchy
about their family generations. ‘The Glow of Pearls
Forever’ would be a good variation from its exist-
ing identity. The emphasis could be on it being the
longest lasting paint finish.
 Conclusion
Why did people stop using the brand?
People stopped using the product not be-
cause they thought it was substandard but because
they enjoy change. Today, change is a fad and it
gives a sort of excited feeling to the consumer
when he has not done the usual but dared to ex-
periment. The brand has nothing different in it to
showcase. It has reached a point where stagnation
has taken place of growth.
According to me there was no excitement
left in the product to explore. The quality was still
undoubtedly the same and the best luxury brand
in the sector. The one very important thing which
reduced the awareness of the brand was the media
presence its competitors had. In the media, Asian
Paints has awareness and resonance with the me-
dia messages they send across.
Asian Paints has become something more
than just a premium product, it gives out a feeling
and an emotion. That particular emotional connect
is what clicks with the consumer and that is what
VelvetTouch is loosing to.
Is awareness an issue or trial?
Awareness is a cardinal factor in the success
of the brand. The right kind of awareness is what
clicks and takes the brand to the top. When it comes
to such a low involvement brand, awareness plays a
vital role. When somebody knows a paint brand and
is aware of its credibility, the product has reached
its target of making a place in the consumer’s mind
even when he is not the end user and would not
even know the difference in the end result of the
consumed product.
Velvet Touch had a great amount of aware-
ness in the previous years before Royale came in. It
enjoyed the first mover advantage for many years
to follow. Awareness is one thing which it had ini-
tially but now with similar technology available in
other brands it has lost its charm. Dulux still has a
stronghold in the luxury emulsion sector but Velvet
Touch is slowly slipping down to number two. For
Velvet Touch, the strong Image Dimensions would
be its Pearls. When you look at paint can and you
see pearls, the first thing that strikes you is that it
is Velvet Touch which has a pearl glow finish. The
image of the pearls and Velvet Touch resonated well
with the audience.