Pintura (1)

PINTURA CORPORATION The Lena Launch Decision Submitted By: Group 7

Adarsh Shukla - PGP10004 Kanupriya Gathoria - PGP10023 Tanvi Rane - PGP10041 Shaloo Nidhi Minz - PGP10046 Sheersha KK - PGP10048 Shubham Jalan - PGP10113

Company Background: ● ● ● ●

Headquarter in the mid-western United States Company develop, manufacture and distribute high-quality paint, coating and related products Split into three main divisions: IFG, CFG, PI The global market for the GIC segment was about $24 billion annually

IFG’s Situational Analysis ● ● ● ●

Sell paints, coatings and related products and accounted for 25% of Pintura’s sales Accounts to 47.5% of total revenue of wood coatings IFG’s current GIC customer groups for wood coatings included furniture (30%), flooring (25%), cabinetry (20%), and other wood products and wood baskets (25%) Sales accounted by Distributors ○ 51% of all sales of wood coatings ○ 65% of flooring sales ○ 70% of cabinetry sales

Problem Statement: IFG has developed a new high-performance, environmentally friendly hardwood coating product called Lena to make difference in the market and is concerned whether or not to launch the product, cannibalization of existing products of the company, market growth and the channel of distribution was another aspect that company had problem deciding.

Annual Revenue of Lena Based on current sales figures, it was possible to estimate the potential sales numbers for Lena for each of the 4 customers group (all units and sales are in millions)

Figures showed that the annual sales revenue for the current solvent and water-based coating amount to $650 million. Lopez’s estimates provide an indication that the Lena product has the potential to bring in $302.63 million. This figure makes up 46.56%, close to half that of current sales revenue figures. If these estimates can be achieved, it would be favorable for Pintura to launch the Lena product into the market.

Cannibalization expectations

Recommendations on marketing program (Marketing Mix) Based on the data, that the product is in it’s growth stage of PLC. With it’s high durability, shape versatility, environmental friendliness, cost effectiveness and coating versatility, it naturally becomes first choice for coatings used in hardwood category

Pricing it at 34$ per unit seems optimum, though it will cannibalize solventbased coatings products, but given that they extend the life by 100%-200% and increased durability against scratches, the pricing seems justified since a reliable formula was also developed by IGF

Multi channel of distribution, exploiting the current distributor network of IFG accounting for 3100 distributors skewed in multiple geographic location along with in-house sales force 100 sales experts reaching out to large customers

Providing bonuses and spiffs to its sales team basis the volume-centric approach in the first year. For distributors monetary incentives and volume rebates. Outbound marketing tools of press releases, newsletters, magazines, e-media etc should be exploited extensively in the first year.

Lena, powder based coating for hardwood

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