Executive Summary

The launch of Dulux Trade Paints new range of products has proved to be a great success because the
new range not only launched Dulux Trade Paints into a new arena that admire the paint business but it has
also managed to increase the sales of company products and it has broken into new distribution channels.
The new range of Dulux Trade Paints has set a great example of how designe can deliver for the brand,
business and consumer. Dulux Trade Paints is known for its quality and performance and it has long
enjoyed this reputation. Dulux Trade Paints came up against a major challenge to strengthen its
sustainability profile without any sacrifice on the quality of its products when the architects and builders
started including sustainability in their specifications.

In 2007, Dulux Trade Paints launched a project to meet the challenge and introduced Dulux Trade
Ecosure Matt. This was a new range of product that was aimed to meet customers demands. Dulux Trade
Paints adopted a new paint manufacturing process and teamed up with an independent agency to assess
every aspect of the manufacturing process. As a result of this, company was able to lower embodied
carbon and without any sacrifice on the quality of product. This resulted in a great breakthrough for the
paint industry. In 2009, Ecosure won the Decorative Paints Innovation Award.

Dulux Trade Paints has 28.5% market share in United Kingdom and stands as the leading brand in the
country. It is performing well despite of the challenging economic conditions and market competition.
The reason for the success of the brand is the adapting ability of the company to market shifts and a
commitment to improve the products continuously.

Introduction

1.Company background

Dulux Trade Paints is the leading UK paint manufacturer. It was established in 1919 by Naylor Brothers.
They set up a paint manufacturing factory in Slough. In 1932, for the first time Dulux Paint was sold to
the building trade and started its operations. It manufactures high performance trade paints system
supporting contractors, decorators, merchants and specifiers. Dulux operates in arround 26 countries. It
operates in four continents: North America, Europe, Latin America and Asia. Dulux Trade Paints is an
expert on innovation, colour and environmental sustainability. In the coating industry, Dulux Trade Paints
sets quality benchmark and creates solutions that deliver quality and great performance in the real world
and laboratory.
2.Business Problem

In recent years, customers’ demand has shifted to broken colour effects. They are demanding more of
broken colours. Dulux Trade Paints is facing a tough competition from its major competitor, Crown,
because it has spent a lot of money and time to re-launch its product range of special effects. It has
launched its products both in retail and trade markets. This has caused a decline in the sales of Dulux
Trade paints new product line. Dulux Trade Paints launched Sonatta, Duette and Acrylic to meet latest
customers demand that worked well in the begining but now its sales has declined due to tough
competition with Crown.

3.Report Structure

The report consists of a marketing audit in which internal and external factors of company are examined
and necessary actions are suggested for the future success of company.

Question #01

Marketing Audit

Marketing audit is the process in which the organization takes the stock of its internal and external
factors. In marketing process, marketing audit is considered to be the fundamental part. The marketing
audit is considered to be a major exercise in which all the internal and external factors are examined.
There are many tools used to conduct a marketing audit such as Five Forces Analysis, PEST and SWOT
analysis. SWOT analysis is used for analyzing both the internal and external environment. Marketing
audit consists of three crucial stages, SWOT analysis, Market Segmentation and Branding.

1.SWOT analysis of Dulux Trade Paints

The Structured method used by companies to evaluate their weaknesses, strengths, threats and
opportunities is called SWOT analysis. The SWOT analysis can be carried for a place, product, person or
industry. This is a tool of marketing audit in which internal and external marketing environment of a
company can be monitored. SWOT analysis of Dulux Trade Paints is as follows:

(a)Strengths

1. The distribution network of Dulux Trade is very wide in United Kingdom with 130 outlets.
2. Dulux Trade Paints focuses on safety and health measures and takes it as a social responsibility.
3. Dulux Trade paints has a wide range of colours arround 52 of them.
4. The product they offer dry fast, odourless and not prone to yellowing.
(b)Weaknesses

1. Awareness for special effects products in customers is of low level.

2. Dulux Trade is not focusing on innovation while its competitor crown is focusing on launching
new products.
3. The products distribution channel is weak.
4. The Trade customers are the only target of Dulux.

(c)Opportunities

1. The demand for the broken colour effects is increasing which is an opportunity.
2. Awareness among the customers is expected to grow because of wide distribution network.
3. Opportunities can be discovered by finding the solution of the customers.
4. Making better strategy and re-launching their products.

(d)Threats

1. The competition with other companies is increasing.

2. Dulux Trade Paints is not bringing changes to the product, while the competitors are investing to
widen their product range.
3. Products sales is reducing.
4. Another threat for Dulux Trade Paints is the bargaining of the customer that reduces company
profits.

2.Market Segmentation

Market Segmentation is the process of dividing the market into different segments and then targeting each
segment by a distinct product. Each segment must be targeted with a different product. The main
objective of dividing the market into segments is to fully analyze the market, searching opportunities and
serve the customers needs and improve company’s competitor position. Dulux Trade Paints should
consider and target the following mentioned segments.

(a)Size of Organization

Dulux Trade Paints must consider to target large organizations because large organizations consume large
amount of goods while small organizations consume small amount of products. The size of the
organization matters a lot and Dulux Trade Paints is in a good position to target large organizations
because it has launched new products like Sonata, Duette and Acrylic Scuble glaze that distinguishes it
from other paint manufacturers. Dulux Trade Paints must target large organizations like hospitals, hotels
and real estate companies.

(b)Purchase Organizations

Purchase organizations are those organizations that purchase goods for their own use or for other
purposes. Dulux Trade Paints must consider this segment because it is an important segment. The
purchase organizations may include Interior designers, Contractors and Architectures.

(c)Contractors

A contractor is a group of people or an individual that renovates or constructs a road, building etc. Paints
are required for construction purposes so Dulux Trade Paints must target contractors as this segment
covers a large area of market. Dulux Trade Paints has launched new products that can benefit it to target
this segment. New schemess must be launched with discounts and promotions and on time delivery of
goods to the customers.

(d)Interior Designers

Interior designers are the professionals who organise and decorate the interior of a building or a house.
Nowadays, paints have become an important part of interior designing and with decorative paints like
Duette the Dulux Trade Paints may grab a big share of this market segment. Targeting the Interior
Designers will also help in creating the brand name.

(e)Trade Outlets

Trade Outlets are considered to be important in any organization. Dulux Trade Paints have 130 outlets in
the United Kingdom. Dulux Trade Paints has the largest number of retail outlets compared to any other
paint manufacturer. These outlets must be managed properly and the new products like Sonata, Duette
and Acrylic must be available in the outlets to meet customers demand. The company and the outlets must
remain in contact in a proper way to ensure the smooth working of the system.

3.Branding And Positioning

Branding

Branding is the management process in which a product is branded. The process includes giving a brand
name to the product, making or designing of a brand mark, establishing and identifying and popularising
it. To differentiate the organization from its competitors it must have a distinguished offering that should
give a clear identity in customers’ mind. Dulux Trade Paints is the market leader in paint industry. The
consumers of paint are very much aware of the Dulux brand so it is easier for Dulux Trade Paints to
market the newly launched products like Sonata, Duette and Acrylic. However Dulux Trade Paints must
consider some branding principles described as follows.

(a)Flexibility

The company has achieved good barand name because of being flexible. Dulux Trade Paints is flexible
because it launches new product with the changing customers taste and demands.

(b)Quality

Dulux Trade Paints delivers quality products as compared to its competitors that helps in increasing its
sales and maintaining a good brand name.

(c)Consistent

Dulux Trade Paints maintains brand standard and brand promise. The customers of Dulux are well aware
of the quality standards that leaves a good effect on them.

Positioning

Positioning is refered to as the location of the company’s product in customers’ mind. The brand name of
the product occupies in the minds of consumers. Every product needs to be positioned with a strategy and
Dulux Trade Paints can target following strategies.

(a)Benefits/ Needs

Dulux Trade Paints should provide benefits like discounts and other offers to make the purchasers stick to
the company’s products.

(b)Quality/ Price

Dulux Trade Paints must provide good quality products at lower prices to gain high profits and compete
with its competitors.

(c)Product Features

Dulux Trade Paints must differentiate its products from competotors by identifying the product faetures.
Customers must be aware of the differences.
3 Year Business Plan

1.Recommendations

It is recommended that for a successful business in the future Dulux Trade Paints must use its strengths to
continue lead the market and increase its sales. Because of wide distribution network it has an edge over
its competitors. It already has a wide range of colours and it must further increase its range of colours by
product innovation. Company must offer products according to customers needs and the products must
differentiate from the competitors. Dulux Trade Paints must bring awareness among the public by
identifying the product features that differentiate it from other products. Dulux Trade Paints already has a
strong brand name that can help to sell new products easily in the market. It is found that awareness of
special effects products in customers is very less about Dulux Trade Paints. So, it is necessary for the
company to run awareness campaigns locally and internationally to make public aware of the new
products. Dulux Trade Paints must also focus on the competitors’ performance in the market. It is found
that the major competitor of Dulux Trade Paints, Crown has introduced new products in the market that
meet customers demand. These products are a result of innovation and huge investment. This has resulted
in a decline in the sales of Dulux Trade Paints products. In this situation the company must target new
markets and customers with new products. This can be done by strengthening the distribution channel and
not only targeting trade customers but other customers as well. Dulux Trade Paints must target huge
organizations that consume products in large quantity. Organizational size matters a lot and Dulux Trade
Paints is in a good position to target large organizations because it has launched new attractive products
like Sonata, Duette and Acryclic. These products have all the qualities to meet the current demands of
customers on broken paints. Organizations like hotels and hospitals consume large quantity of products.
In order to compete in the market and keep a healthy market share Dulux Trade Paints must target this
segment. If the company works according to the recommendations then it may increase the sales over the
next 3 years that will result in the increase in company profits.

2.Limitations

Dulux Trade Paints only focuses on one segment. Trade customers are the only segment that Dulux Trade
Paints focuses for its sales. With this narrow segmentation the company has less chances to increase its
sales and market share. This is the reason why company has faced declines in its sales while its
competitors are experiencing an increase in their sales. The company’s distribution channel is weak that
impedes smooth availability of products to the customers. Because of late distribution of products
customers shift to other manufacturers. Customer shift always results in decline in company’s sales and a
decline in the profits.
Conclusion

Dulux Trade Paints is the leading brand in UK. It has a competitive edge over its competitors in UK
because of its strong brand name. Dulux Trade Paints has 28.5% market share with a large distribution
network. This makes Dulux Paints successful in the market. Dulux Trade Paints has in recent past
introduced new products like Sonata, Duette and Acryclic to meet the customers demands and to compete
in the market. However, despite of the launch of new products Dulux Trade Paints is facing a tough
competiton from its major competitor, Crown that has invested huge capital to innovate new products to
meet customer demands and grab the market share. The compatition from Crown has declined the profits
and sales of Dulux Trade Paints. The reason for the decline in sales of Dulux Trade Paints is some
weaknesses that it has. Dulux Trade Paints also need to improve its operations. In order to compete in the
market and gain market share Dulux Trade Paints must focus to target new markets. Customer targeting
must be broad based. So far Dulux Trade Paints has targeted only trade customers while its competitors
target all the customers. To differentiate the organization from its competitors it must have a distinguished
offering that should give a clear identity in customers’ mind. The customers must know the features of the
products that distinguish them from those of the competitors. The consumers of paint are very much
aware of the Dulux brand so it is easier for Dulux Trade Paints to market the newly launched products
like Sonata, Duette and Acrylic. The company must overcome its weaknesses to become successful in the
market. Increasing competition and customer bargaining are some major threats that Dulux Trade Paints
is facing in the market. These threats must be reduced by effective planning and operations.
References

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