Direct Marketing Initiatives from Goodlass Nerolac

Details

Case Code : CLMC-012
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Goodlass Nerolac Paints Ltd., Kansai Paints, Region-specific Advertising Campaigns, Spectrophotometer, Magic Eye, Amitabh Bachan, Industrial, paints, Core dealer club and Direct marketing.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet deals with the direct marketing initiatives of Goodlass Nerolac Paints Ltd., a leading player in the industrial paints segment in India. It discusses the ‘Core Dealer Club’ program introduced by the company to motivate and build stronger ties with dealers across the country. The caselet also describes the use of technology by the company, through the ‘Magic Eye’, to provide value-added services to customers. Finally, the caselet brings out the region-specific advertisement campaigns followed by Goodlass Nerolac.

Issues:   » Importance of maintaining strong relationships with dealers   » Use of technology in direct marketing   » Role of celebrity endorsement in communicating a brand image Introduction Goodlass Nerolac Paints Ltd. (Nerolac) is the wholly-owned subsidiary of Kansai Paints Company Ltd., Japan, which is one of the top 10 paint manufacturers in the world. Nerolac, with its widespread dealer network, is the leading player in the industrial paints segment in India with a market share of around 42% . As part of its expansion program to increase its presence in the decorative paints segment, the company decided to target the rural segment, though this segment accounts for only around 10% of the total paints market, by increasing the number of dealers across the company.

Nerolac started a range of initiatives and one such initiative was the direct marketing effort aimed at the dealers and retailers of the company. According to Mr. Anuj Jain, Vice-President, Marketing and Sales, Goodlass Nerolac, “It's an ongoing activity and we are looking at developing the `width' as well as the `depth' of our network.”

Questions for Discussion:

1. “In order to build its brand in the decorative paints segment, Goodlass Nerolac’s long-term strategy should be to influence customers directly. In fact, when it comes to selecting paint, the company should adopt a strategy whereby customers (and not the painters) make their own decisions.” How far is Nerolac right in focusing its direct marketing initiatives on its dealers rather than on the customers?

2. Nerolac roped in Amitabh Bachchan to endorse the brand, at a time when he has already endorsed a spate of brands like Pepsi, Wagon R, Cadburys, and BPL. Do you think Amitabh Bachchan would help Nerolac in creating a brand image for the company’s paint products?