Levelplast &
TexturaA Marketing Strategy
Presentation
By
Harshit Krishna
Group Intern
Introduction
2
A market expansion strategy for Birla White
Levelplast and Textura
Branded Plaster and Texture
Industry Analysis
3
Internal Competition
Few but large branded competitors, mostly not
focused on these product segments, high risk of advancement exists
despite product differentiation
Buyer Power
•Low Involvement product, products differentiations stay hidden
•Power concentrated with Channel Partners
•No switching costs, several options available for buyer
Threat of substitutes
•Local functionally satisfactory product dominance due to low prices
•Poor substitute quality but better channel engagement
•Prevailing trends major determinants of sales, unless entrenchment broken
Threat of new entrants
•Fragmented industry, low entry barriers
•Plaster a growing industry, Textures may be short-lived
•Once quality standards established and promoted, market share known to be stable in similar markets
Supplier Power
•Own raw material, little external dependence
Products’ Value Chain
Firm Infrastructure
•management focus, information flow
HR Management
•field personnel
Technology Development
•R&D, product improvements
Procurement
•captive raw material production
4
Inbound
•Purpose: demand creation for white cement
Operations
•Efficiency gains
Outbound Logistics
•Effective Availability and Transportation
Marketing and Sales
•Sellers, Influencers and Buyers, 4Ps
Services
•Complaint Redressal etc
Project Coverage
Firm Infrastructure
•management focus, information flow
HR Management
•field personnel
Technology Development
•R&D, product improvements
Procurement
•captive raw material production
5
Inbound
•Purpose: demand creation for white cement
Operations
•Efficiency gains
Outbound Logistics
•Effective Availability and Transportation
Marketing and Sales
•Sellers, Influencers and Buyers, 4Ps
Services
•Complaint Redressal etc
Market Relations and Information
Flow
Company
Seller
Influencer
Buyer
Company to Seller: awareness and
sales benefits (pull)
Company to Influencer: awareness and comparative
recognition (pull)
Company to Buyer: awareness
of quality (pull)
Seller to Influencer: product supply
(push)
Seller to Buyer: product
supply (push)
Influencer to Buyer: purchase decision (push)
Company
• Management
• Front end employee
Influencer
• Architects
• Applicators
Sellers
• Stockists
• Retailers
Buyer
• Builders
• IHBs
6
Agenda
7
Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Common Issues
Time based Rolling Plan
8
Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Common Issues
Time based Rolling Plan
Approach
Surveyed major and upcoming market areas
Studied products’ market and stakeholders’ for unique features and issues
Used qualitative and quantitative primary and secondary survey information to frame recommendations
Tested recommendations against insider views, analysis of available data and in a second round of market surveys
Formulated action points along a short timeline as per different strategic marketing variables
9
10
Studying cost and product based advantages and disadvantages of using
Levelplast and Textura vis-à-vis the leading products these seek
to substitute in terms of marketing, functionality and
market potential (PoP / Gypsum / Plaster of Paris and acrylic texture, respectively) to our
intermediate and end customers
Suggesting improvements in the two products’ features, their
pricing strategy, placement, product’s
positioning and promotion (consumer and channel
partners’ relationship with the company)
Studying the successful markets (Pune and
Bangalore, respectively) and analysing feasibility of
replicating / modifying them for Mumbai and other markets
Establishing most beneficial / correct application procedures
and the resultant standard optimum coverage and costs
numbers
Outlining ways to strengthen distribution in existing markets and understand feasibility of expansion into new market
areas
Long term aggressive and defensive volume and margin targets for the products and
action plan for next 2 years for Levelplast and Textura
Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Common Issues
Time based Rolling Plan
11
Product basedKey Observations Poorly defined category, lies between
cement plaster and putty for strength andfinish, partially substitutes each
Few similar branded products incategory, main competition fromcheaper substitutes
Strength grading: No1 PoP > Gypsumplaster > No2 PoP > Lime Rendering.Gypsum cheaper, usage identical toLevelplast
Most important competitor varies area-wise, but better products used on ceilingsuniversally
Problem of non-standardmixing, application and quantities acrosssites
Adulteration of expensive with cheaperproducts rampant to save costs (e.g. PoP-putty 1:1 mix, local+branded mixing)
12
Action Points Guarantee product performance to
cover the value - price gap for LP, andchange product perception Supervised application: requires just
additional manpower, already scarce incompany, use product champion
Approved applicators: builder seeksreparations from company, but faultyapplication can’t be avoided by usdespite highest quality
Premium chargeable on actualguarantee, BW products alone haveability to be guaranteed in industry (adistinctive competitive advantage)
Market scope limited by local playerdominance to be addressed bycombining coarse putty (almost aflanking product to LP) and LP brandsunder common umbrella
Small LP SKU for repair and patchwork(1kg and 5kg), large for leveling in tradesales (20kg) and non-trade sales (30kg)
Although LP has several applications(leveler, plaster onRCC, patchwork, texture), focus onleveler-plaster usage
Product basedKey Observations PoP vs. LP
PoP weak against seepage unlike LP
LP setting time high (3 days) but nocuring / hacking required, PoP sets fastover cement (1 day) but requires watercuring / hacking
No2 PoP cheaper, sold loose, walllevelling, tiling usage and as base coat(except by very few aware builders andIHBs), No1 on ceilings and for repair work(correspond to the Coarse Putty andLevelplast duo)
LP applicable and cost effective asdirect plaster on RCC and block surfaces
Gypsum vs. LP Gypsum small competitor but fast
emerging in Pune and most othermarkets, long term supply limited
Compared to LP, very similarusage, poorer whiteness, similarfinish, much cheaper, easier to mix andapply, absorbs water, more durable thanPoP but worse level and finish
Lime / Sanla / Neeru finish vs. LP Gives smoother whiter finish than most
products, easy and quick application(directly on wet cement plaster)
Very easily available, direct sales frommanufacturer and wholesaler
Very poor strength and durability due tonature of application andcomposition, losing trend based marketfast
13
Action Points
Features to improve:
Trade off between pot life (2 hours) and
Setting time (>1 day), former needs to
increase, work in progress
Trade off between viscosity and
binding, increase binding to allow less
viscosity and easier application
Repulsive smell, work in progress
Packaging (minimizing wastage and
adulteration), Small SKU with handle
(appearance value, handling), work in
progress
Shelf life limited by standards for cement
industry at 6 months
Incompatible plasticizer and setting time
delayer compounds
Cement quality hampers easier mixing
(ease of application, painter point of
view)
Price based
14
Key Observations
Local PoP retailer margin (@SP of Rs160) =Rs15-20 (10-20%) difficult to match
Local material prices raised only as pernew taxes, raw material pricechanges, small variations ineffectual atsuch low price points, no brand premium
LP premium charged over competitors toohigh
Gypsum plaster nearest competitor (similarusage and thickness but is cheaper), costshalf
PoP weaker as plaster, competes as leveler+ base coat, similar costing whencombined with plaster but restrictedcompetition from LP (can apply as plasteronly on RCC, else is a leveler)
WCP - MF competitively priced in the samecategory (at lower thickness)
~30% taxes, ~20% transportation + depotexpenses. Bigger bags (handlingissue), more factories (area) notfeasible, storage space at a premium.Other expenses leave around 45% marginon an SP of Rs300 for 20kg, difficult toreduce cost unless at plant level. Volumegains not viable on price reduction for newunaccepted product as such
Action Points Contractor demands (reduce SP, credit
for contractors alone by grading), stockistdemands (reduce selling prices for highermargin, retain MRP for signaling) due tolack of customer-side awareness
Target value delivery throughpricing, market share through indirectcommensurate price benefits throughschemes etc. to match competitionprices and inform of the same in meetsand official communication channel
Revenue gains unlikely at S1 (describedlater) on price slashing, breakeven in S2with awareness of value and volume gain
Special landing price presently ~ Rs 300per bag, (trade price ~ Rs350) to bebrought down to Rs300 as a promotionalprice while re-launching, then increasedin small increments. Perceived aspremium product but worth the priceonce educated about
Gypsum per sq ft material cost Rs10, atLP’s coverage of 0.8 sq ft per kg toequalize per sq ft costs should reduce LPprice to Rs 8 per kg (or Rs160 per bag)
Adding quality premium (calculated next)above: Rs 143+160 = Rs303 per bag
Reimbursement schemes initially smalland frequent (monthly scheme: Rs7 perbag over 20 bags , Rs 8 over 40, 9 over80, disbursement quarterly, plus cashdiscount for stockists Rs1000 flat overeach 80 bags, longer schemes later
ParametersCement
Plaster
Gyproc
OC
Gyproc
OCELevelplast
Coarse
puttyPoP1 PoP2 Gypsum
SKU 50kg 25kg 25kg 20kg 20kg 20kg 20kg 20kg
Price (Rs) 300 215 230 350 450 180 100 150
Coverage (sq
ft per kg)2.33 0.75 1.15 0.8 3.5 0.7 0.75 0.8
Per sq ft cost
incl labour*14 24 20 32 12 20 11 18
Additional
coats
Leveler
and Putty
required
CP on
mortar
wall, putty
on mortar
and RCC
CP on
mortar
wall, putty
on mortar
and RCC
CP on
mortar
wall, 1
coat putty
on mortar
and RCC
CP on
mortar
wall, 1
coat putty
on mortar
and RCC
CP and
putty
(optional)
on mortar
and RCC
CP and
putty
(optional)
on mortar
and RCC
Applied
stand
alone
even on
mortar
wall
Preferred
usage
Walls and
Ceilings
(Plaster)
Walls
(Leveler)
Ceilings
(Leveler)
Ceilings
and
exposed
surfaces
(Plaster
and
Leveler)
Walls
(Plaster
and
Leveler)
Repair
Work
Walls
(Leveler
and Base
Coat)
Ceilings
and walls
(Plaster
and
Leveler)
Thickness 15mm 13mm 13mm 12mm 6mm 14mm 8mm 15mm
15
16
Value pricing for customer benefits and savings over a base price
per bag price for additional value
chargeable on a 1 lakh sq ft project
Differentiating featuresover
Gypsumover No1
PoPSource of value
Lifelong durability (high bonding) against 5-7 years durability 25 25 approximated from survey
Reduces 7 days from total wall preparing time, no curing but slow setting time of up to 1 day
22 22 time costs aproximated from survey
Is completely water resistant, no blistering, chipping, flaking of upper coats, retains all water
9 9time adjusted cost of painting from survey
No fungal / algal growth (spl polymers) 18 18cost of additional compounds for protection
Is as white as fine putty, saves primer cost as absorbs less paint 18 18 saving on primer costs
No hacking required 9 9 hacking costs direct saving
No sand required 0 9saving on cost of sand only against cement plaster + PoP
Can be applied till up to 12mm thickness over plaster 0 0 no differnece
Strong enough to be directly applied on block work till 20mm 0 36 cost of plastering for PoP
Birla brand 15 15 brand image and quality
Company transport on site (FOB destination) 0 0 ultimately included in billing
Needs special training for application given to contractors just like putty training along with certificate of Birla approval
15 15recognition value as per survey
Training to workers given free by company on site 10 10no value add, only recognition value as per survey
Comes in 30kg SKU for projects -5 -5 extra handling effort
Has slightly lesser smooth surface, coarse putty finish (needs single coat fine putty application for complete smoothness)
36 -18PoP1 used as base coat, Gypsum needs two coats base coat
Being cement based, is rough on hands and needs company provided gloves for worker
-9 -9initial unawareness linked issue, cost survey based
Needs electric stirrer for mixing, 2 hours pot life so prepared in small quantities repeatedly
-20 -20 cost of electricity, mixer and labour
Total premium chargeable 143 134
Placement based
17
Key Observations Seller
‘Local manufacturers’ dominate PoPand Gypsum (incl. our stockists, highermargins than in selling competingLP), triple up as contractors and sellers /samplers, provide own labor, creditterms, high retailer channel presence, selllarge quantities direct to builder
No retail scope until huge market positionobtained in projects (1. consumer costconsciousness, 2. specialised applicationrequirement - sales without correctapplication spoils product image)
Increasing gypsum usage; availabilityand costs most important, no brandpremium, many erstwhile PoPmanufacturers-stockists shifted
Need more entrenched market position ifnot shifting to Ultratech channels
Buyer Non-trade demand unpredictable and
sporadic
Base coat segment easier toapproach, so are IHBs. Branded levelercategory needs marketing push
Influencer Main influencers (contractor and
painters) opt for cheapest work to havelowest quotations
Service follow up and coordination weak(say, hand gloves not provided in time toapplicator), glitches haltapplication, hurt image
Action Points Bill directly to company approved
applicators for projects they land, billstockists for company landed LPcontracts, bill retailers 6 months afterlaunch
Sell Levelplast as part of a package(LP+Putty), initially cross subsidize LPthrough lower combined prices, earnfrom putty alone to increase LP sales andawareness, then from LP as prices raised
Bill stockists for sampling material whenrequired or keep him pre-billed for futuresampling needs
Best channel initially, company->stockist->customer (builder/applicator/IHB etc)because longer channel => higher totalmark-ups, again can’t afford higherprices
No strategy that increases prices furtherrecommended, if transportation expensespaid and then covered in billingprice, not recommended
Applicator important now as can controlall costs, labour, material of all kinds, inproviding several materials as packagecan reduce costs and increase sales of LP
Placement based
18
Placement strategy 1 (grey cementchannel) Sell through cement and plaster based
stockist and outlets simultaneously (likegypsum plaster is)
Objective: mass market expansion inlimited timeframe
Pros: Leverage 5000 strong Ultratech cement
dealer network to sell Levelplast
Plaster products bought before paintingstarts, makes sense to place it thus
Cons:
Sister concern UT gray cement has muchcheaper branded plaster already, sellingfrom same counter => cannibalization
LP applied on RCC (less on mortar walldue to costs at high undulations + mortarwall needs stronger cladding, LP=0.8MPa, CP=4M Pa), could lose these highpotential applications
Positioning as premium and high qualitywhite cement product diluted andinvolvement level further declines
Gray - White cementchannel, applicators, market informationlevels very divergent, difficult to sell suchan expensive product to plaster masons
Gypsum plaster sold thus is a non-durable, perceived-as-cheap and dullfinish (like gray cement) product
Not feasible if coarse putty to berebranded unless both are sold throughgrey channel
Placement strategy 2 (paintchannel, similar to Textura but moreinfluencer focussed) Objective: market entrenchment (sub
stockist model and product championmodel) and slow expansion
Strategy to include coarse puttyrebranding under Levelplast umbrella
Must still include powerful manufacturerstockists but focus on non-manufacturersfirst to create influencer acceptance
Initially, small SKUs (1 and 5kg) to be usedfor repair and patchwork for trade saleslarger sold through non-trade; universalizeslowly (12-18 months)
Pros: 70% White Cement based products end
sales through paint counters, awarenessimportant in hi-tech products, bestplaced in a customer friendly network
Don’t need too many stockists perse, demand limited, few can supply alarge area, need more entrenchment ingiven area to expand sales
Better visibility through existing stockistsand applicators
Can co-sell with fine putty and leveragere-branded coarse putty demand
Cons: Will take time to establish market
presence
Contingent on many otherrecommendations being successfullyimplemented
Promotion based
19
Key Observations Competing products of lower quality yet
no awareness created about same, Noeffective performance guarantee despiteclearly superior results so builders stay riskaverse of cost inefficient product
No applicator development / training(necessity for LP application) activitiesspecifically for LP. Too few applicatortraining centers and painter trainingactivities, no assistance to applicator intraining from company
Can’t push cost ineffective productwithout awareness of direct / indirect costadvantage, fully dependent oncontractors’ and stockists’connections, limited sampling drives
Too similar a positioning of coarse putty(WCP – matte finish). Excerpt fromwebsite:
“Getting a proper line and level surfaceBirla White Wallcare Putty Coarse (Matt Finish -MF) applied in thicker coats (5 - 15 mm)covers up the undulations on the plasteredsurface. It fills up the minor cracks/crevices inthe plastered wall and provides an evenlevelled surface”
Action Points More promotional focus on influencers
than owners/sellers unlike Textura Brand name, WCP’s high demand and
general BW quality industry standard, nopowerful competing brands, locallypopular names used by manufacturers topack loose material; leverage this initially Using existing BW sellers and
influencers to push products Universally using LP and Tex on BW
merchandise, stickers and signboardsfor counters even before launching inretail
Selling LP as a package through ourcontractors
Instead of competing on cost, positionuniquely from local products based onfeatures and aim to remove lower qualitymaterial from market
Promotion based
20
Re-branding Coarse Putty Best way to rebrand existing WCP-matte
finish (almost same positioning as LP atlower thickness and strength levels) asLevelplast coarse putty and existingproduct as Levelplast original
Benefits of re-branding coarse putty as a‘Levelplast coarse putty’ Higher coarse putty sales and awareness
positive for LP brand-name
Shall act as a flanker product for LP toeliminate local products
Will bring more focus on LP as a productin company management
Categories are betterdefined, cannibalisation resolved
Levelplast a quality leader, high futurepotential, requires push
LP Product benefits to highlight
Reduced paint consumption and primerrequirement
No curing so time saved
Applicable on wet plaster surface
No sand required that is wasted a lot inhandling alone, is coarse and facesmining ban
Great for time bound projects (public /govt’l constructions, big privateprojects, durability seeking infrastructureprojects)
Can inoculate against all cracktypes, include in positioning parallel to Tex
Chronological summary
21
Feature enhancement, as soon as possible -> Re-brand coarseputty under Levelplast umbrella before any new launch -> Pricereduction (direct: value pricing, indirect: dedicatedschemes, transportation, de facto guarantee) -> Productchampion appointed -> Sell through putty stockists, pre-billedstocks for sampling -> Target plaster and leveler markets ->Approach IHBs first, commercial markets later along withapplicators (push to sell package of LP+Putty) for sampling ->Stratified training and official communication channel -> Visiblemarketing (Levelplast samples and posters at point of sale, usealong with Birla White ads) -> Increase stockist entrenchment (sub-stockist model) -> Increase awareness and number of applicatorsthrough specific meets -> Relationship management practices forchannel members and applicators -> Part retailer and part stockistbilling -> Target patchwork and repairs market -> Shift to retailchannel
Positioning (Levelplast) P1 (current positioning: competition based, niche market product)
Platform targeted: Durability (Applicators, Specific Builders), Technically Advanced(Architect)
Levelplast as a premium leveler product, more durable substitute for cheaper localmaterial which form the basis for fine putty, can cover higher undulations thancoarse putty and PoP with better finish than Gypsum, suitable for only specializedapplication
Pros: Allows price premium based on quality leadership Positions us to acquire a niche market in plastering products Building awareness on tried and tested durability and quality lines
Cons: Pitches LP against far cheaper products, despite removing PoP substitute from
promotions reccently, company perception remains the same Low performance products also functionally sufficient in a low involvement influencer
dominant market Usage based positioning implies coarse putty also cannibalises sales Markets a new product like an old one (premium priced WCP) which faced a non-
existent product market and set all standards itself Aggravates low involvement nature due to advantages being shown through complex
industry jargon alone, could have worked if product was already at high awarenessstage
22
Positioning (Levelplast) P2 (suggested positioning: benefits based)
Platform targeted: Necessity (IHBs, Applicators, Builders)
Levelplast as a necessary cladding on walls and ceiling to permanently preventfungal / algal growth, cracks and water seepage related issues that no otherproducts can deliver without which your wall will eventually be damaged, versatileas a repair work product
Pros: Aims to remove local competition from the purchase decision equation Product as such can’t compete on price, should compete on what is its forte Necessity image to technically sound influencers and value pricing to other applicators
optimize sales potential of high quality product Makes product approachable to small applicators who drive most construction
volumes Niche marketing + low involvement nature => low sales, this positioning goes broader
Cons: Against the trend of premium priced product range Weight of cost effectiveness against benefits of a well promoted quality product may
be underestimated
23
24
Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Common Issues
Time based Rolling Plan
Product basedKey Observations Coarse Putty substitutes RF (cheaper, easy
to apply, similar visibility at heights), 50 tpaJK coarse putty used as texture in BLR
Acrylic texture substitutes all variants(assumed to have better / smoother finishand hence appearance, an importantquality, pre-mixed, easy to apply)
Product category confused with interiordesigner paints, acrylic texture; cementbased texture not popular in general(impression that will crack like others do)
Perception of lack of designs (no RFpromotion)
Painter and contractor issues relative toacrylic texture (powder form, stirrer mixingnecessary for RF/SF, TF hand mixedbecause of granules, specialised training,gloves, electricity requirement, short potlife, repeated mixing)
RF potential demand high due to designs,slightly subdued due to cost, finishinferiority to acrylic, less visibility at height,lack of awareness and above factors
Higher adulteration in projects (highquantity, low monitoring)
Trend based industry (Cement paint->Emulsion->Texture->??)
Shelf life limited by standards for cementindustry (6 months), Incompatibleplasticizer and pot life increasingcompounds, Cement nature hampersease of application
25
Action Points Need repositioning for long term
demand, launch sooner in both channelsthan Levelplast
Larger granules => more visibility. Increaseto 3mm width from current2mm, introduce multiple sizes, 100-110 sqft per bag at 2mm, 10 sq ft coveragereduction per mm granule sizeincrease, cost per sq ft increase of only50p
Introduce larger economical SKU forprojects to avoid retailer perception ofbetter pricing for projects from stockists
Promote RF as versatile designerproduct, TF as standard texture, no needof flank products since competitivelypriced
Features to improve Trade off between pot life (2 hours) and
Setting time (>1 day), former needs toincrease, work in progress
Trade off between viscosity andbinding, increase binding to allow lessviscosity and easier application
Repulsive smell, work in progress
Packaging (minimizing wastage andadulteration, 5-8% material wasted, 20%loss to adulteration, 70% bags tamperedwith in Bangalore market), Small SKU withhandle (appearancevalue, handling), work in progress
SF, RF use coarse sand, non-binding dueto thinness of coat, thick coatexpensive, less popularity of sprayguns, rollers, non-homogenous patternsdue to quick drying
Price based
26
Key Observations Locals give up to Rs100 retailer margin on
Rs300 to Rs 520/bag of 25kg, we give 3-4%on over Rs640 selling price and Rs750MRP, save on transport, taxes and rawmaterial
Lower margins and awareness thanbranded acrylic too, also prone tosqueeze as retail customer ask for samelow price on non established producteven as company has hiked it over time
Fixed margins of 3.5% for stockist inpidilite, 5% retailer margin earned throughcross subsidising across product range inAsian Paints
Action Points Maintain prices for signaling effect as
targeted positioning of higherquality, transfer indirect pricing benefits aspromotional strategy
Reimbursement schemes initially smalland frequent (monthly scheme: Rs7 perbag over 5 bags , Rs 8 over 15, 9 over30, combined quarterlydisbursement, plus cash discount forstockists 5% flat
Longer schemes as performanceincreases later
27
Parameters Textura TF Textura RF Textura SF Branded Acrylic Local texture
SKU 25kg 25kg 25kg 25kg 25kg
Price (Rs) 650 700 700 900 500
Coverage (sq ft
per kg)4.4 5 5 2.5 3.1
Per sq ft cost incl
labour*10 11 11 22 8
Additional coatsPaint required,
No primer
Paint required,
No primer
Paint required,
No primer
Colours
available, Primer
required
Paint required,
Primer required
Preferred usageIHBs and
Residential
buildings
IHBs and
Commercial
buildings
IHBs and
Commercial
buildings
Commercial
buildings
Residential
buildings
Thickness 2mm 1.5mm 1.5mm 3mm 2mm
28
Key Observations Texture sales low generally, so retailer
keeps known big brands alone(Nitco, Dulux, Asian) in most areas
Market perception due to our longrestricted project focus: texture is best inacrylic form
Wherever texture in trend, local playershave entered market and capturedbased on price, additional services andavailability
Local acrylic mainly sells to small buildersand houses through painters and costconscious contractors, availability atstockists / retailers due to high marginsanother main advantage
Can’t be used over once-paintedsurface, no replacement market
Texture done towards end ofconstruction, small owners cash strappedby then, go for cheapest option available
We sell to all sizes and income ranges (asper awareness), branded acrylic texturebought by big builder projects andarchitect influenced ones who go onbrand appeal
Small applicators and retailers highestvolume drivers, least considered
Action Points Sales channel: paint counters and existing
putty stockists, presumed point of sale forsuch products
Improve retail and small applicator focus(volume drivers), WCP launched in retail6-12 months after project launch, ensureequal prices as projects from stockists,currently Rs5-20 differential
Towards end of S1, sell to contractorthrough retailer in company-landedprojects under 25 bags and throughstockist for over 25 bags
Directly bill large contractors after certainquota of earlier applications reached (S2)
Rs 10 per 25kg bag transportation fromdepot on average, could include in billingprice for Textura (S1), per sq ft rise = 10p
Placement based
29
Benefits of retail focus
Stockist, retailer, applicator, painter,end customer all involved
Better word of mouth awareness,complaint redress done by channel
Retail sales = higher profit for allchannel partners (due to higher retailprices and more marginopportunities), high and stableturnover for company (80% WCPsales through retail), more visibilityand awareness
Paint-like product needs highercustomer involvement level to sell
Benefits of billing through retailers
Company: Sales up, retailerawareness and acceptance,
payment collection outsourced
Retailer: Turnover up, more schemeearnings, additional sales of paintertools and related products to buyingcontractor, business automaticallygenerated w/o stockist competition,good for attracting retailers on board
Contractor: Can avail of smallquantities too (company normallydirect bills for 100 bags or more)
Placement based
Promotion based
30
Key Observations
Less market focus on category by majorbrands, hence fragmented and limited
market, mostly in projects in our case
Similar problems with product look andfeel (needs painting over, low visibility atheight issue) as in acrylic, latter only morecirculated and and hence sells due toawareness
Textura sales in general not pushed acrossthe company because of WCP focus
Action Points Product be visibly placed at selected
putty retailers / stockists on 4’*2’ sampleson walls, stickers and signboardscontaining Textura pictures
4 sheet catalogues to influencers freewith 4 designs per sheet topersonnel, applicators, retailers, architects, builders
Branded acrylic and RF potentialdemand high due to numerous designsand uniqueness, first mover advantagewould count
Benefits to be highlighted: Higher coverage, so more cost effective
despite high MRP
Single uniform granule size unlike others
Acrylic finish smoother than TF but nondurable
No peeling unlike acrylic = suitable forrainy / seepage prone areas
Primer costs saved
Chronological summary
Feature enhancement, as soon as possible, esp new SKU forprojects and granule size -> Price reduction (indirect only:dedicated schemes, transportation, actual billing pricesmaintained) -> Product champion appointed -> Sellthrough putty stockists, pre-billed stocks maintained forsampling -> Approach IHBs first, commercial markets lateralong with applicators for sampling -> Stratified trainingprocesses and official communication channel in place ->Visible marketing (Textura samples and posters at point ofsale, catalogs with channel partners and salespeople) ->Increase stockist entrenchment (sub-stockist model) ->Increase awareness and number of applicators throughmeets -> Relationship management practices for channelmembers and applicators, grading -> Part retailer and partstockist billing -> Shift to retail channel
31
Positioning (Textura) P1 (current positioning, ‘usage based’) Positioned as an appealing and artistic
product,
Platform targeted: Premium (niche IHB, Builder), Designer appeal
(architect, IHB, builder)
Textura as a cement based higher-quality-than-competition premium exterior walltexture, meant to cover bad workmanship and undulations permanently, focused onprojects, competing against all similar products (acrylic texture, putty used as texture).
Pros:
Project focus builds market credibility for new product
Builds applicator knowledge and establishes a sales channel
‘Usage’ positioning targeted at prime influencers, the applicators
Conforms to company perception of durability and visual appeal not congruous for textures
Cons:
Quality difficult to show without widespread promotion, sampling
Restricted by nature of product and costs involved, respectively
Appeal more important than durability in wall coats, thus focusing on latter at former’s
expense works to product’s detriment
Competitors have unique benefits that we lack (designs, finish, price)
Direct competition from functional cheaper coarse putty and local products in cost
sensitive projects market
No focus placed on either sellers and buyers, or on architects
Ads displaying designs and appeal as product platform not in tune with market perception
of cement based better binding and protecting counterpart to acrylic texture, failed
positioning, probably improperly conveyed or being sold on benefits which themselves
became positioning
Still lower involvement than deco paints, if position as luxurious like acrylic is, the latter which
is better promoted will sell
32
Positioning (Textura) P2 (suggested posiitioning: benefits based new concept)
Platform targeted: Strength(Builder, IHB, Architect), Approachable (applicator,builder, IHB) Textura as a new kind of texture that not only gives finish and numerous designs of
acrylic texture, but the better binding and durability of cement products thus is a wallprotecting, permanent exterior coat with many designs (when RF and TF takentogether), quickly applied, covers structural cracks at any type of construction andstands seepage and rains
Pros: Sells not the product but the specific benefits people look for
No premium portrayal so as not to compete with branded acrylic
High quality as differentiator from cheaper substitutes
End users also taken in loop along with influencers and sellers
Portrays all benefits only we can provide
Appeal and Strength combination USP
Cons: Applicable as far as company interfaces quality conscious customer
33
34
Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Common Issues
Time based Rolling Plan
Product basedKey Observations
High-end and differentiated featuressought in a new product to compete
unless aided by promotion and pricing
Area (weather and sandetc), psychology (existingtrend, channel familiarity andapplicator specialisation), and thusawareness prime determinant
35
Action Points Single layer better material packaging to
avoid wastage and adulteration ofexpensive material
Guarantee performance as a lifelongproduct in word and indirectly, the ‘partof wall’ statement limited time periodguarantee by paint cos
Price based
36
Key Observations Non-uniform prices across stockists and
cities, big stockists hoard high volumesand sell at lesser prices, + multiple stockistsin an area => competition andundercutting
Seller squeeze margins to sell popularbranded products, if no volumes thenhigh seller margins sought to pushproduct, credit also given by others (localand branded manufacturers) and thusrequested by channel partners ( incl.seller category)
All products in profile sold at premiumover competition (quality leadershippricing)
Special prices to non-trade partiesarbitrarily decided on a cost + bargainedpremium basis, no uniform prices from usand from stockists, too much discretion
3 day advance paymentrequirement, work slowed if large orderplaced w/o immediate cash availabilitywith applicators
Company perception: credit to stockist =more credit to retailers, bad debtsaccumulate (company impression ofinsurmountable bad debts), companyimage suffers and product abandonedby contractors
Action Points Area sales teams’ pricing discretion
to be limited to offering (or not)discounts and schemes as perdefined criteria and objectives, withan additional 5% leeway only
Target quality based value deliverythrough pricing, gain market sharethrough product positioning andawareness
Special price determination curve fordirect billing above minimumrealisation requirement (orderquantity, previous cumulativepurchases, initial promotional pricing)as in excel sheet
Placement based
37
Key Observations
Seller
Retailer sells the bestseller for volumes,
push products with highest margin, new
products have neither. If margins given
but volumes absent, will push the better
selling products
Channel penetration and perception
prime sales determinants for branded
products (eg.Lime prominence), high
dependence on paint retailers (cement
products’ share of their turnover ~2%,
can counter by deeper market
penetration)
Retail hold possible by better benefits
than competitors to sellers (for seller
push), and applicators (influencer push)
until customer awareness based
demand created (sampling, applicator
development, promotion), but current
project focus means sticking to
influencers alone
Retailer competition with stockist selling
to contractors, customers directly at
lower prices that retailer can’t afford or
consuming themselves
Perception of low gains from small SKUs
across products + inexact demand
forecasts => supply issues for these
potential volume generators
Action Points Seller
As less as one bag sold by stockist on cash,highest retail quantity on one sale not much,because buyer lifts only as per immediaterequirement. Impossible to demarcate salesquantities, can only support retailers throughdirect billing
Fixed area wise stockists=> no infringements =no undercutting = uniform pricing. Divideareas for stockists and inform retailers andstockists of the same through meets and anofficial communication channel betweencompany and channel
Sans-stockist Asian model of sales works onmarket recognition, stockist push not required,critical in our case
Increase stockist penetration through substockist model, better ROIs
Cash discount (special prices) 5% +Trade discount (as per quantity) 5%
Stockist keeps at least Rs 10 per bag inTextura as margin, retailers keep Rs 10-15too
ApproxRs 10 per bag incurred intransport by stockist from depot to owngodown, little stocked, ordered fromdepot when required, small quantityretailers supplied from own stocks andcharged inclusive of transportation
Directly give targets to and compensatestockists’ sales team to countercompany understaffing
UBSs uninvolved so far with LP / Tex, shouldhave leveraged them to promote in andaccess Tier 2 / 3 cities wherever productlaunched
Retailer should not have to compete withstockist on price for same customer, bill onlythrough retailer for smaller quantity orders
Placement based
38
Key Observations
Influencer
Repeat applicators, few new ones
because of inadequate training and
information activities
Small quantities required for sampling,
necessary to promote, since sales low
and low shelf life, stocks rarely
maintained if launches unsuccessful
Difficult to cross sample at project site,
especially when product pre decided
Takes up to 2 months to convert a lead
from first approach to sampling to usage
for new products, 15-20 days for Putty
Issue of timely delivery for new products
(low sales turnover) in projects because
sufficient total quantity required to place
order, hits reputation and contractor
orders elsewhere; not so for products in
retail where stockist supplies
Architects small influencers because,
much like builders, are involved with
design (look-feel) of construction and not
what’s applied inside. Relatively more
important for Textura than LP because is
a visible product
Action Points Influencer
Whether to directly bill applicatordecided as per their bargaining power(size of order, market reputation, previousorders), should provide streamlinedspecial pricing
Billing contractors through retailers forown projects and supplying from depotunder 100 bags (in S2, beginning ofretailer focus along withsampling), supply from depot
Billing contractors through stockists forown projects and supplying from depotover 100 bags
Currently company samples to onlybuilders through applicators, sells to thembut if sampling slow (as is the case), novisibility whatsoever, need more samplingfor IHBs, slightly easier market
Placement based
39
Key Observations
Buyer
Perception is - once all others engaged
IHBs-builders demand will come by
awareness. Least connected parties as
of now
Builders stock just enough
quantity, repeated on-time delivery
hampered by 3rd party transporter
involvement. Company transports
effectively only from factory to depot
Small customers / house owners can
spend a little extra per sq ft totaling to a
few thousands at most (for 500-2000 sq
ft), Big projects mean additional expense
in lakhs, quality concerns lower
Action Points Buyer
Cross selling / sampling throughapplicators of putty for LP on site ,invitation for free sampling in ads Approx 33% sampling conversion in
projects for Textura, 75% for WCP, <10%for LP, this needs continuous monitoring,IHB conversion higher
When products to be used alreadydecided, as in big commercial projectsinvolving architects etc, cost per sq ftmost important to change preference soapproach beforehand througharchitects and applicators
1 bag LP used giving around 14 sqft onwall (multiple coats) and up to 28 sqft onceilings, 3-4 designssone in Textura,maximum consumption upto 2kg
For company, labour cost Rs 350-400 persampling; hire monthly paid paintertrained for WCP / Textura / LP to sample,cost Rs8000/month
Placement based
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Company
Improve information flow by advertising and effective new manpower use, material flowwill follow sales, invoicing flow and payment flow channels need product dedicated
manpower
Virtuous cycle: Stocks->Point of Sale Availability->Sales->Awareness->Demand->Stocks.Need to improve logistics and awareness creation to maintain usable stocks and marketinterest
Need to establish continuous flow, small pre-billed stocks maintained with dealers forsampling purposes while project team scouts for new sites [how much exactly]
Redefine CASC objectives as long term demand generation CASC objective to generatelong term pull side demand for products, engaged in sales and promotion wherevermanpower shortage in big areas such that same person handles both activities (Orissa),
need to overcome understaffing to gain focus
Promotion based
41
Key Observations Communication and Training
Owners (quality conscious) uneducatedof quality parameters, product presenceand advantages; influencers even ifeducated, unicentivised in absence offramework for dealing with channelpartners separately
No separate coverage ofarchitects, (more important influencersthan applicators in bigger projects, richIHBs)
Communication on, number of andengagement level of schemes andmeets to retailers weak compared topaint cos, retailers randomly called andnot informed about in time, sporadiccoverage
No direct communication frommanagement or RnD to big clients(recognition and involvement) as exists inother cos (share performance stats, salesstrategy, channel information, targetsegments etc in fewer larger stockists /applicator programmes)
No mass media used because productuse requires special training, can’t selland risk bad application unlessapplicators developed and generalmarket awareness there
Online efforts (information throughwebsite, cost calculator, design pictures)unreliable because of low involvementnature of product
Painter meet training ineffective relativeto formalised training programme, nolocalised training programme (AsianPaints’ Royale Play training)
Action Points Communication and Training
Educate employees first, then influencersand retailers through stockists, thenindirectly approach end customers toevoke quality consciousness
Only WOM advertising so far, need masspromotions once quality parametersestablished in market (S2), advertiselocally on TV - radio in S2, co-advertisenew products with other Birla Whiteproducts first
Develop applicators in umbrella modelocally, 1 authorised trainee teaches 4, 4teach 16, examine new painters’work, pay Rs 200 per head to authorisedtrainee. Total FY11-12 formal trainingexpenditure Rs17.5 lakh, per head costRs3000-4000 (2 painters attend with eachcontractor teach others if interested inproduct). Rs50-100 per head cost of on-site training including small gifts
On-site training and supervisedapplication as de factoguarantee, can’t do through actualguarantees or approved applicators asfaulty application can’t be avoided byus despite quality
If well engaged throughmeets, architects could recommendusage as a standard product given hightop of mind recall, important party inbuilding designing and qualityrecommendation
Promotion based
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Key Observations
Channel
Stockist priority => sales (given awareness
and promotion) > service levels > margins
> schemes (Big, stockists / applicators =>
recognition more than margin hikes)
Retailer priotity => sales > margins >
schemes > service levels
Applicator priority => sales > service
levels > pricing
Quality pre-requisite not sales driver
Sellers don’t push and stock also
because awareness and sales need
to go up hand in hand
Importance of quality: IHBs >
Architects > Applicators > Sellers > 3rd
party builders, benefits besides
awareness sought for new
competitive product
Our applicators too can’t push in big
projects where builder-architect
have pre-decided preference
Schemes not tied to
quantity, inadequate compensation
especially considering products are new
Stockists change very frequently, timely
availability and procurement issues exist
Action Points Channel
Effective influencing power in productselection: 60% applicator, 20%architect, 10% builder, 10% seller(currently stockist only), need toempower sellers with time
Credit sales to grade A contractorsalone, not stockists (forwards more creditahead, collection issues, lossesaccumulate in channel, incrementalprice chargeable by giving credit = up to2% of credit amount
Timely payment incentivising credit forcontractor / stockist: 3.5% annualincentives for all payments made withinthe week, 5% for all made in advanceabove minimum 50 bags a month over 2quarters, more lax policy not feasible atour turnover level; total outlay = 11% ofmarkup
Special prices=>undercutting inchannel=>limited growth andunprofitability, avoid in Textura atleast, give to applicators on directbilling, not to sellers
Local level counter-wise and applicator-wise training to their painter contacts tocapture counters, develop contractorsand painters + recognition tochannel, cost estimate Rs100 per head(Royale Play training costs), regularpurchasing painters from retailerscommand 30-50% share of sales, noportrayal of very high specialization, allmeets to be area-wise
Could seek invitation for free sampling atconstruction sites while locally advertising
Promotion based
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Key Observations Organisation
Management focus, targets, retailerschemes and initiatives, special rewardsfor stockists and applicators, employeeappraisals components (40% each WCand WCP sales, 10% each LP and Tex)tied to WC and WCP sales, otherproducts thus ignored
Old product based targets passeddown, thus limited new productinformation at each level + no in-housetraining facility (5 zonal level meetingsheld periodically to exchangeinformation, then passed on, no directinvolvement of front end line employees)=> disconnect between field action andplanned objectives
Little incentivizing, promotionopportunities, raises, travelallowances, refunds for phone and foodetc, liable to leave company (averageperiod of employment in the companyof an SR <2 years, perception pf unstableemployment). Pay 10k + ~600p.m.incentives, less than competition, JK pays15k fixed + TA/DA, Asian 16k fixed, Pidilite17-18k fixed, (all market majors, onecement company)
No management focus leads to lack ofcoordination between sampling, followup, pricing and supply, in turnsuppressing sales and awareness further
CASC objectives (long term demandgeneration) and functions (salesactivities) misaligned
Action Points
Organisation
Train employees regularly on productand marketing innovations from differentareas, involve marketing – sales –projects employees in employee meetby seeking opinions and rewarding same
Separate teams: experienced SRpromoted to on-roll field officer asproduct champion, separate team inS2, Base targets and appraisal on newproducts, initially as a small share oftotal, then standalone targets andappraisal heads for dedicated staff
Market knowledge required differentfrom putty application and market
Cost: on roll employee placed atincrement of 6000 + incentives to matchindustry as product champ, Benefit:incentivising all others and cheapest wayto push products, better channel hold
Responsibility: salesleads, sampling, providing costestimates, product info and applicatorlink-up to customer, follow-up, documentations, pricing, meetauditing, sales monitoring, supervisedapplication, architectcoverage, complaint redressal, morechannel visits
Communication, transport paid for andautonomy to act such that complaintredressals and request fulfillment donewithout delays of escalation
Revisit incentive structure of off roleemployees, performance basedincentives to the extent of billreimbursements and on-roll trainedemployees’ field activeness needed
Promotion basedSub Stockist model In addition to existing distribution model Initially a stockist of some other products willing to deal in Birla White products
Buys from regular stockist not selling to C-class retailers C-class retailers’ potential average sales of around 10 bags Gets stockists’ best price for retailers being a big buyer Sells at smaller than stockists’ margin Retailers also get comparatively lesser margin than bigger retailers Similar to having multiple stockists in same area in that margins reduced but reach
achieved, no conflict as targets different Schemes from company same as those given to retailers for the smaller retailers shown
under the actual stockist No schemes currently for the sub stockist who also gives credit and transport to cash
strapped small retailers If given credit etc and supported by company, then best way to crack new and old but
slow markets (un-captured sections) to drive volumes After regularly making certain amount of sales, upgrade to stockist level for a new area If product not working need better penetration rather than market expansion
44
Promotion based Relationship management practices (more important for bigger clients)
In new markets initially for new products, all initiatives as per parties’ total turnover andnot BW sales
Have 3 grades of contractors based on annual Birla White sales (Grade A >Rs20,00,000, Grade C < Rs4,00,000), felicitate same and give direct billing, credit selling(advance cash payment -> cheque payment -> credit, then increase creditlimits), product dossiers with birthday, anniversary cards, privelege cards with points tiedto sales reimbursable or usable in AB Group outlets
Rs 1.5 - 2 lakhs already spent on a retailer meet, segregate channel partners byturnover, organize separate socialising programmes (trips, tours) for big ones for betterexchange of information, expectations
Engage the family (gold coins as investment, tour packages for family etc traditionallygiven, appliances)
Lucky draw at meets with compulsory counter owner presence to collect awards
Seniority wise liasoning under an official communication channel: management to Agrade stokist / aplicators, builders and architects, field officers with other stockists andapplicators, off-roll field employees with retailers and end customers
45
CASC activities Lucky Draw Trips / Tours Liason programme* Fecilitation
Retailer meet 10000 1-3.5k per head 10000 800 per meet
Contractor meet
10000 1-3.5k per head 4500 800 per meet
Engineer/architect meet
28000 1-3.5k per head 3000 800 per meet
Painter / mason meet
NA NA NA NA
*per month in an area on an average based on Asian Paints data
CASC activities Rs3.08 crore CASC budget this year, ~80 lakh expenditure in meets last year (31% of
total Rs2.56 crore), need to push up to 40% (or 1.232 crore) while including separatemeets for new products
Formal training expenditure last year 17.5 lakh (~7%), need to push up to ~10% (31lakhs) as counter-wise and applicator-wise painter training introduced
Sampling costs at 5% and Relationship Management for applicators, builders, andarchitects at a total of 5%% of budget as separate categories
Need to withdraw additional requirement in above two from CASC budget spent onsales activities, need to restrict sales expenditure to sales budget
Promotion based
CASC activitiesCost per head + (cost of gifts)
Avg no of attendees
Frequency (national level, per annum)
Retailer meet300 + (200 to
300)50-80 50
Contractor meet
300 + (200 to 300)
50 100
Engineer/architect meet
600 + (400) 50 30
Painter / mason meet
200 + (120) 50 200
46
Other promotional activities
Costs
Ads in local newspaper614 per sq cm of coloured
ad space, 440 for B/W*
Ads in local TV channel14000-21000 per 10s slot (off-time, prime time)#
Ads on radio
AIR 250-400 to 400-1000 per 10s as per city tier, pvt FM 1600-2700 as per city
and time of day
Sampling (free, by invitation)
65x for Tex, 350x for LP + 9000 a month labour /
350x^
Token 25x for LP, 45x for Tex
*dainik jagran rates, #ETV rates, ^'x' implies no of samplings
Promotion based Presentation at meets
Standard presentation used at all meets Need audience wise changes in technical-marketing orientation; engineers, applicators,
painters, stockists, retailers Include more on product positioning and specific audience benefits (what’s in us for you?
features, company provided benefits, problem resolutions) rather than product features (toomuch focus on tech details currently)
Importance of standard application to be outlined along with numbers Division of presentation into parts is suggested as follows:
47
Components seller applicator architect engineer painter
Company Info, Strategic
Vision, Party’s Importance
15% 15% 15% 15% 15%
Product Positioning And Usage Areas
25% 25% 25% 20% 25%
Technical Specifications 10% 10% 25% 30% 10%
Benefits And Features, Why Costly?
25% 25% 25% 25% 25%
Promotional Benefits For Party Concerned
15% 15% 0% 0% 15%
Other Products 10% 10% 10% 10% 10%
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Project Objectives
Levelplast Specific Issues
Textura Specific Issues
Other Common Issues
Time based Rolling Plan
Temporal Stages in market expansion in an area* for Textura
Can’t use same metrics as WCP (under 1000tpm underdeveloped, above 2500tpm
developed) for LP/Tex, must gauge total addressable market in area as per
substitute products’ usage and demarcate proportions. Under 2%
underdeveloped, over 15% developed for Textura
Begin from S1, Underdeveloped:
influencers most important, so applicator development important
selling through stockist to big and small projects and contractors
include new products in targets/appraisals of putty team (product champion)
Grow to S2, Emerging (transition requires applicator development and sampling
drives to create general awareness):
newly created influencers push the product
stockists sell to projects and some big retailers only, sub-stockists created
billing the retailer for small orders and retail promotional activities
applicator development continued and upscaled
handover responsibility of new products to a separate team
Finally arrive at S3, Mature (transition requires high pan-market
awareness, relationship mgmt and good service levels):
take all on board (seller, influencer, buyer)
selling mainly through retailers
billing retailers and few ‘privileged’ contractors for all company projects
S1 toS3 should be at least 6 months, ideally 12-14 months
Mumbai stuck in S1, Bangalore moving onwards from S2
*all markets in S1 initially with at best partial exceptions wherever taxtures already
popular
49
Creating an area wise strategy
(Textura) Alter these stages as per ‘Market Types
Launched earlier, unsuccessful, eg. Mumbai area (study for losses, rectify erroneous
practices as the case may be, re-launch)
Launched earlier, successful (moderately) due to contingencies, eg. Bangalore
area (share contingencies in employee meet, verify applicability elsewhere, devise
alterative placement strategies)
Launched recently, good response, eg. Hyderabad area (highest focus, implement
recommendations and monitor results)
Launched recently, slow response, eg. North Zone (check which implementations
faulty, correct for and continue)
Not yet launched, but other textures present, eg. Most areas in Rajasthan India
(look for dominant product's main qualities, modify promotion strategy, develop
applicators)
Not yet launched and other textures absent, eg. Eastern India areas [most lucrative
market], eg. Rest of India
In each market, check for:
ongoing trends in exterior wall coats (nature of products, application methods,
price consciousness)
locally common construction issues (coarse sand, labour, primary complain)
trends in relationship between sellers, influencers and buyers (strong influencers a
plus point)
staffing requirement and further area divisions based on market size
entrenchment of wallcare putty in market, channel hold
50
Creating an area wise strategy
(Textura) And enhance or maintain sales effort as per ‘Building Types’
Commercial projects (second largest application, architects dominant)
Residential projects (largest application, architects involved)
Government buildings (time constraint important, tenders important, potential
customer in good to high awareness market)
Independent houses (easiest to cross sample, painter and contractor
dominated, volume drivers)
51
Ranks -> 1 2 3 4
Amount of applicationResidential
Projects
Commercial
projects
Government
buildings
Independent
Houses
Extent of cost consciousnessResidential
Projects
Commercial
projects
Government
buildings
Independent
Houses
Readiness for samplingIndependent
Houses
Independent
Houses
Commercial
projects
Government
buildings
Potential market sizeResidential
Projects
Independent
Houses
Commercial
projects
Government
buildings
Rank Trade channel Non trade channel
1 Existing trends in market Existing trends in market
2 Durability and Binding Cost per square feet
3 Strength against cracks Visibility
4 Water resistance Finish
5 Cost per square feet Durability and Binding
6 Visibility Strength against cracks
7 Time required for application Water resistance
8 Ease of Application Time required for application
9 Handling Ease of Application
10 Granule size Handling
11 Availability of required quantities Granule size
12 Finish Availability of trained applicators
13 Availability of trained applicators Availability of required quantities
14 Timely and easy availability Timely and easy availability
15 No of designs No of designs
52
As per importance of following parameters:
Temporal Stages in market expansion in an area* for LP
Can’t use same metrics as WCP (>1000tpm underdeveloped, above 2500tpm
developed) for LP/Tex, must gauge total addressable market in area as per
substitute products’ usage or from putty market and demarcate proportions. Under
0.5% underdeveloped, over 7-8% developed for LP
Begin from S1, Underdeveloped:
influencers most important, so applicator development important
selling through stockist to big and small projects and contractors
include new products in targets/appraisals of putty team (product champion)
Grow to S2, Emerging (transition requires applicator development and sampling
drives to create general awareness):
newly created influencers push the product
stockists sell to projects and some big retailers only
billing the retailer for small orders and retail promotional activities
applicator development continued and upscaled
handover responsibility of new products to a separate team
Finally arrive at S3, Mature (transition requires high pan-market awareness,
relationship mgmt and good service levels):
take all on board (seller, influencer, buyer)
selling mainly through retailers
billing retailers and few ‘privileged’ contractors for all company projects
S1 to S3 should be at least 12 months, ideally 16-18 months
Mumbai stuck in S1, Pune in S2
*all else in S1 initially with at best partial exceptions
53
Creating an area wise strategy
(Levelplast) Alter these stages as per ‘Market Types’
Launched earlier, unsuccessful, eg. Mumbai (study for losses, re-visit after fewsuccessful launches)
Launched earlier, successful (moderately) due to contingencies, eg. CentralZone (share contingencies in employee meet, verify applicability elsewhere,devise alterative placement strategies)
Launched recently, good response, eg, areas in North India (highest focus,implement recommendations and monitor results)
Launched recently, slow response, eg. Ahmedabad area (check whichimplementations faulty)
Not yet launched, eg. Most of India (study addressable market size fromputty sales and application trends of substitutes)
In each market, check for ongoing trends in exterior wall coats / plastering (nature of products,
application methods, price consciousness)
locally common construction issues (coarse sand, expensive labour, primarycomplain types)
trends in relationship between sellers, influencers and buyers (stronginfluencers a plus for
staffing requirement for new products and further area divisions based onmarket size
entrenchment of wallcare putty in market, channel hold
54
Creating an area wise strategy
(Levelplast) And enhance or maintain sales effort as per ‘Building Types’
Commercial projects (largest application, architects dominant)
Residential projects (second largest application, architects involved but
applicator has say)
Government buildings (time constraint important, tenders important, high
potential customer in good to high awareness market)
Independent houses (easiest to cross sample, painter and contractor
dominated, volume drivers)
55
Ranks-> 1 2 3 4
Amount of applicationCommercial
projects
Residential
projects
Government
buildingsIHBs
Extent of cost
consciousness
Residential
Projects
Government
buildings
Commercial
projectsIHBs
Readiness for samplingIndependent
Houses
Residential
projects
Commercial
projects
Government
buildings
Potential market sizeCommercial
projectsIHBs
Residential
projects
Government
buildings
Sales Determinants
Rank Trade channel Non trade channel
1 Water resistance Water resistance
2 Cost per square feet Cost per square feet
3 Thickness Thickness
4 Durability and Binding Durability and Binding
5 Strength against cracks Strength against cracks
6 Whiteness Whiteness
7 Availability of trained applicators Availability of trained applicators
8 Finish Finish
9 Existing trends in market Availability of required quantities
10 Availability of required quantities Existing trends in market
11 Timely and easy availability Timely and easy availability
12 Ease of Application Ease of Application
13 Handling Time spent in application
14 Time spent in application Handling
56
As per importance of these parameters
Volume TargetsLevelplast
Addressable market size estimate for Levelplast in:
FY 2013 (launched in 10% putty markets)
317, 303 tons
FY 2014 (launched in 15% putty markets)
539,125 tons
Current cumulative market share in launched markets 0.4%
Targeted cumulative market share in:
FY 2013 0.8%
FY 2014 1.5%
Volume target for Levelplast in:
FY 2013 2538.4 tons
FY 2014 8086 tons
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Textura
Addressable market size estimate for textures in:
FY 2013 (launched in 10% putty markets)
94,124 tons
FY 2014 147,623 tons (launched in 15%
putty markets)
Current cumulative market share of Textura in launched markets 1.6%
Targeted cumulative market share in:
FY 2013 3%
FY 2014 5%
Volume target for Textura in:
FY 2013 2824 ton
FY 2014 7381 tons
Thank You For Your Time
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