KANSAI PAINT JAPANS EXPORT MARKETING STRATEGY

Presented to Dr. Mubasher Munawwar Khan

DECEMBER 31, 2013

PRESENTED BY MEHWISHAN JOOHI MUHAMMAD ALI SHAFIQUE HALEEMA TARIQ MUHAMMAD ADEEL SABEEH HABIB CHAUDHRY MBAE2012-027 MBAE2012-043 MBAE2012-048 MBAE2012-053 MBAE2012-055

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Kansai Paints Export Marketing Strategy

1 CONTENTS
2 3 Executive Summary ............................................................................................................................... 3 Deciding Whether to Internationalize .................................................................................................. 4 3.1 3.2 3.3 3.4 Introduction .................................................................................................................................. 4 Corporate Mission......................................................................................................................... 5 Product Portfolio ........................................................................................................................... 5 Technology Overview.................................................................................................................... 8 Basic Technology ................................................................................................................... 8 Paint Technology ................................................................................................................... 8 Application Technology......................................................................................................... 9 Color Technology and Color Design .................................................................................... 10

3.4.1 3.4.2 3.4.3 3.4.4 3.5 4

Motives for Export ...................................................................................................................... 11

Viable Markets to Enter ...................................................................................................................... 12 4.1 4.2 4.3 Markets Covered by Kansai Paints .............................................................................................. 12 Asia-Pacific Paint and Coating Market Breakdown ..................................................................... 12 Pakistan ....................................................................................................................................... 13 Background ......................................................................................................................... 13 POLITICAL AND LEGAL ANALYSIS ........................................................................................ 13 ECONOMIC ANALYSIS .......................................................................................................... 13 Raw Material ....................................................................................................................... 13 Foreign Investment ............................................................................................................. 14 Demand ............................................................................................................................... 14 Market Segmentation Based on Paint Usage ..................................................................... 15 Competitor Analysis ............................................................................................................ 15 Market Position of Kansai Paints in Pakistan ...................................................................... 16 Target Segments for Kansai Mosquito Repellant Paint ...................................................... 17

4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10 5

Designing and Implementing Marketing Strategy for Mosquito Repellent Paint in Pakistan ............ 18 5.1 5.2 Product ........................................................................................................................................ 18 Pricing.......................................................................................................................................... 20 Formula Cost ....................................................................................................................... 21 Sale Price of Product ........................................................................................................... 22

5.2.1 5.2.2 5.3

Place ............................................................................................................................................ 23

2|Page 5.3.1 5.4

Kansai Paints Export Marketing Strategy Kansais Distribution Network ............................................................................................ 23

Promotion ................................................................................................................................... 24 Brochures ............................................................................................................................ 24 Print Media.......................................................................................................................... 24 Social Media ........................................................................................................................ 25 Posters/Fliers ...................................................................................................................... 25 Broadcast Media ................................................................................................................. 25 Advertising Gifts .................................................................................................................. 26 Sampling .............................................................................................................................. 27 Seminars.............................................................................................................................. 28

5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6 5.4.7 5.4.8 6

References .......................................................................................................................................... 29

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2 EXECUTIVE SUMMARY
Kansai Paint is Japans no. 1 company in paint and coatings industry. The company has strong presence in more than 17 countries. Kansai paint has been in Pakistani market since 1992 where it enjoys solid market share in automotive paints. Since 2009 the company has launched its decorative paints division in Pakistan. The competition in decorative paints is fiercer than what Kansai faced in the automotive paints. Exploiting the strong technological and research driven business model, Kansai paint is looking to launch an innovative product that features lead free, water-based, insect repellant formula. The paper will look into the opportunities for this product and will propose strategies for a successful launch of the product in Pakistan. The paper is divided into three main parts given below: Part 1: Decision whether to internationalize Part 2: Study of the viable markets Part 3: Designing and implementing the marketing strategy for mosquito repellant paint

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3 DECIDING WHETHER TO INTERNATIONALIZE

3.1 INTRODUCTION
Established in 1918, Kansai Paint Co., Ltd. has grown into Japans most progressive manufacturer in various fields related to coatings. Today, the company enjoys a well-established position as one of the worlds leading paint manufacturers. The various products provided by the Kansai Paint Group are highly valued and trusted in a broad variety of fields as their products play many important role such as protection, beautification, special functionality and environmental sensitivity. Moreover, with Kansai Paints proprietary research and development capabilities at its core, the Company is providing its clients around the world with unparalleled customer service by expanding its manufacturing, distribution and sales activities worldwide.

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3.2 CORPORATE MISSION

1. 2. 3. To further build company credibility with the public and to contribute to society, by providing products and services that achieve customer satisfaction. To build on our knowledge and strive for technological innovations, in order to improve the companys performance. To harness the collective efforts of all individuals to maximize the company returns

3.3 PRODUCT PORTFOLIO

The various products provided by the Kansai Paint and its Group companies are highly valued by customers not only in Japan, but in Europe, the United States, and Asian countries such as China, and India. Kansai paints are playing important roles in the protection and beautification of all types of products and merchandise. Some of our paints and coatings instill the products with special functionality. Our products are receiving high praise and earning a reputation for exceptional reliability in a wide range of fields. The fact that we hold a large share of the automotive coating market and that our products are used by many automobile manufacturers contributes to the good reputation we enjoy. We also continue to put unwavering effort into products for all types of items requiring painting or coating, including industrial products, residential housing, office buildings, and steel structures such as ships, bridges and plants. Kansai Paint is much more than a paint manufacturer that simply sells its products through its joint ventures and affiliated companies. Throughout the world, Kansai Paint utilizes the achievements and knowledge earned through research and development efforts, and transforms these into technical services that the company is able to provide its customers together with the companys outstanding products and services.

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3.4 TECHNOLOGY OVERVIEW

3.4.1 Basic Technology Kansai Paint has its R&D facilities and organizations located collectively in its R&D Center at Hiratsuka, Japan. Basic technological research is also centralized at the same premises together with both dedicated technical experts and advanced laboratory equipment. The key to providing paint with various functions lies in synthetic polymers. Functions of paint such as low dirt-smearing or water-repellence are obtained by polymer designs and syntheses at molecular level. These kinds of synthetic polymers are so diverse that technical staff at Kansai Paint research the best options from among innumerable combinations. The advances in computer science of recent years have also been applied to this field in order to help simulate chemical reactions and the molecular structures of paint components. As a result of these steady efforts, the product research and development time has been vastly reduced. Kansai Paint also utilizes the latest in analytical and physical measuring equipment in order to identify the behavior of various paint components and to improve the physical and chemical properties of the paint film. As an example, the data obtained on the rheology of wet or dry film helps to provide a solid foundation and back-up to the research and development tasks carried out. 3.4.2 Paint Technology

Kansai Paint is a comprehensive manufacturer of paints and coatings. We develop and supply the most advanced products to almost all of the industrial sectors. All-round performance is the main requirement of paint and no matter how revolutionary the material or technology may be; it will never be commercially produced if there is even a single problem in the paints quality or if it is too costly to produce. Moreover, even if the paint has an excellent quality, if it cannot be practically applied to build a sound film it will also be discarded. Over the past few years it has become even more important to develop environmentally friendly and people-friendly products. Therefore, it is a prerequisite for the R&D team to ensure that hazardous substances are not used and to pay full attention to the reduction of VOC (volatile organic compounds) during the process of application and curing of the paint.

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The key to solving these problems, meeting each and every requirement, and launching innovative and attractive products is in scientifically controlling the composition of multiple substances, the individual behavior of each component and the chemical interactions among them within the paint. One may say that paint technology is indeed a fine art form of chemistry itself. Currently a large number of these highly advanced technologies are exported by Kansai Paint on a technical license around the world. 3.4.3 Application Technology

Paint in a can is not an end user product yet. Paint only becomes a valuable material and plays its role when it is applied to the surface of an object through a specific application process. Application methods play a big part in determining the final appearance of the dry paint film and the quality that the paint gives the finished product. On top of this it often affects paint film performance too. Therefore, it is also of great importance for both the economy and the environment to minimize the overspray of paint which falls off the substrate or becomes airborne without attaching to the surface of an object during application. By avoiding excessive overspray through special application processes the amount of resources used as well as the overall cost can be greatly reduced. As a paint manufacturer, Kansai Paint researches these application technologies in order to achieve a high level of customer satisfaction by providing services and an integrated system of paint and application processes. For example, the R&D team of Kansai Paints Automotive OEM Coatings division has introduced a full-size application line in its laboratory at Hiratsuka which is identical to one used at a car manufacturers plant. This allows the R&D teams to gather the necessary data to pursue, in a practical manner close to the car manufacturers line conditions, further development in both the paint and paint application fields.

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Color Technology and Color Design

Paint has two goals that it needs to fulfill; one is to protect the coated object and the other is to give added value to the product provided by the paints aesthetically pleasing color properties, which can affect human psychology. This is especially relevant as in the modern world a strong emphasis is placed upon sensitivity, and the consumer expectation for high quality paint is getting stronger and stronger in many societies across the world. However, beauty alone does not make the paint. Paint must be beautiful on the one hand and on the other its desired functions must perform well under harsh conditions for a long period of time. In many cases, despite the paints desirable color, it cannot be produced commercially due to its poor performance and poor durability in practical usage. In the color research and design laboratories at Kansai Paint, designers and chemists work together in an attempt to improve both the functional and aesthetic aspects of the paint. Moreover, to create a pleasant living and working environment, Kansai Paint creates positive color designs such as stress-free office colors, and elderly-friendly colors. These efforts have been recognized by various organizations with reputable awards and as such we are confident that our product can deliver. The world of color tends to be perceived only by sensitivity or sentiment, but in actuality it is backed by sound logic and reasoning.

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3.5 MOTIVES FOR EXPORT

After taking into account all the internal resources of Kansai Paint and the corporate mission of the company, the following motives of export are obvious:

Proactive

Reactive

Technology competence Profit and growth goals Managerial urge Foreign market opportunities Economies of scale Tax benefits

Competitive pressures Domestic market Saturation Overproduction

With many successful operations overseas, the company has already overcome many difficulties of internationalization. Equipped with this knowledge, Kansai Paint is in a good position to strengthen and extend their global presence. In the strategic windows model, the company is in a phase of strengthening its global position be extending its markets to even more countries of the world.

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4 VIABLE MARKETS TO ENTER

4.1 MARKETS COVERED BY KANSAI PAINTS

With the high quality of products, Kansai has a strong presence across the globe. The world map shows the coverage in following areas/regions: U.K. | TURKEY | U.S.A | CANADA | MEXICO | SOUTH AFRICA | CHINA | THAILAND | SINGAPORE |TAIWAN | VIETNAM | PHILIPPINES | INDONESIA | MALAYSIA | K OREA | INDIA | UAE

4.2 ASIA-PACIFIC PAINT AND COATING MARKET BREAKDOWN

Asia-Pacific Paint and coating Market Overview Segment Market Decorative Paints Industrial Wood Coatings Automotive OEM Coatings Automotive Refinishes Powder Coatings General Industrial Coatings Protective Coatings Marine Paints Coatings for Plastics Total Size (Tons) 7,752,837 1,583,343 1,346,662 360,694 1,362,903 1,808,766 2,485,349 1,033,871 320,955 18,055,380

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4.3 PAKISTAN
Pakistan is a land of opportunities for multinational companies. Its high population, growing migration of people to urban centers and subsequent changes in lifestyle, generate a demand for high-quality products that can be supplied by multinationals. 4.3.1 Background Local paint industry operates both in organized and unorganized sectors. The data regarding production and number of units of the unorganized sector is not available, therefore, it is difficult to have complete data about the production and number of units of the paint industry. According to an estimate, over 350 units of paints and varnishes are operating in the unorganized sector. Their products are substandard though their cost of production is comparatively low. Many of them also avoid payments of excise duties and therefore, are in a better position to compete in the local market. 4.3.2 POLITICAL AND LEGAL ANALYSIS The Political condition and Government rules and regulations of the country can affect any industry whether that is at introduction, growth, maturity or at decline. The same case is with the paint industry of Pakistan. Since many years the political condition of the country is not very certain. The suicide attacks, poor law and order condition in northern areas and unstable new government creates risks for paint business. The high costs of the petroleum products, energy crisis and lack of infrastructure are the major hurdles in the growth of this industry. 4.3.3 ECONOMIC ANALYSIS Economy has a critical role in fostering the success or creating problems for any organization. Similarly in case of paints industry, this industry is facing instability in the sales and growth from many years. Government has imposed16% sales tax and heavy duties on imports of raw materials. Paints industry of Pakistan import 75% of its raw materials so import duties have increased the production cost thus decreasing the profit margin. Recessionary conditions continued to prevail as the government pressed on with its efforts to document the economy. The depressed construction industry and the slow trading industry and the slow trading environment resulted in an overall market shrinkage in the decorative business by 10%. Against this backdrop the business however has able to increase its market share by 1% through its strong advertising and promotional campaigns and effective after sale service. The industrial business continued to deliver a robust performance driven by penetration of new market segments within the general industry sector. 4.3.4 Raw Material

Paint industry uses about 300 different types of raw materials for producing various kinds of paints. About 15 per cent raw materials of the industry are petroleum based. In 1971 between 80 to 90 per cent requirements of the materials were met through imports which have been reduced in recent years due to increased production of indigenous raw materials. The major imported raw materials include pigments, zinc oxide and titanium oxide. Most of raw materials is available locally. At times raw materials are imported in large quantities compared with their demand which affects quantity of imports.

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4.3.5 Foreign Investment Foreign companies in Pakistan's paint industry have been fairly active. In fact quite a few of the leading paints manufacturing units were sponsored by foreign manufacturers and are operated in collaboration with local entrepreneurs. Two of these foreign-sponsored paints manufacturing enterprises are public limited companies whose shares, after being offered for public subscription, are quoted on the local stock exchange. The interest of foreign investors in this industry appears to be due to the fact that most of these companies began their operations in Pakistan as importers and traders of paints which were manufactured by their principals in the home country. After the imposition of restriction on the import of paints, through high tariff barrier, these companies have established their own factories and are manufacturing their well-known brands. Foreign investment in paints industry was estimated to be in the vicinity of Rs. 10 million. Some of the local paint manufacturing enterprises have also established paint manufacturing factories in the Middle East countries in collaboration with the host country's investors. Such joint ventures by Pakistani sponsors are reported to have been established in Kuwait, Afghanistan and Lebanon while more such opportunities are being explored in Saudi Arabia, Iran and other countries of the Gulf. 4.3.6 Demand The main consumers of paints and varnishes are Government and semi-government organizations such as Defense Service, Shipyard, Railways, WAPDA, Tarbela Dam; Government Road Transport Agencies etc. The private housing sector is estimated to account for 20 per cent of total paint consumption in the country.

Product Volume

1% The demand for paints and varnished is 2% 3% derived from expansion in construction, 10% building, manufacturing, transport and other sectors. Moreover, a favorable 12% turn in the investment outlook in the private sector, brought about by a 5% desired change in the industrial and 10% economic policies of the Government, is expected to contribute to a pick-up in the private industrial sector. In view of this, there appears to exist a sizeable potential for further strides in the country's paints industry.

Gloss Enamel Interior Emulsion Exterior Emulsion Distemper 57% Cement paint Wood Finish Putty

Primer, Thinner

The demand for paints in conservatively estimated to increase by 20 per cent annually during the next five years. Moreover, the development of chemical industry is also taking place and in view of this, most of the raw materials used by the paints industry, are expected to be produced and manufactured locally during the next five years. The paint industry would thus find a favorable raw material for further expansion and growth.

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4.3.7 Market Segmentation Based on Paint Usage Pakistan's Paint market is segmented on the bases of paint types into the following six types:Defense Service Paints: These are variously described as vehicle paints, camouflage paints, scenic paints, heat resisting paints, ammunition general service paints, radar paints, cellulose lacquers and enamels. Marine Paints: Antifouling paints, anticorrosive paints, deck non-slip, boat topping paints, hull paints, rudder paints, cabin paints, weather resistant paints, machinery enamels; under water paint etc. Decorative Paints: Synthetic Enamels, hard gloss paints, quick drying paints, varnish paints, ready mixed paints, stiff paints, paste paints, aluminum paints, bituminous paints black Japan swimming pool paints, coal tars, varnishes and all types of surface coatings. Building Paints: Plastic Emulsion paints, oil-bound distemper, dry distemper, dry oxide colors, masonry paints, flat paints, oil paints etc. Industrial Finishes: Anti-corrosive paints, chemical resistant paints, heat resisting paints, hammer finishes, boiler paints, chimney paints, water proof paints, bobbin lacquers, automotive paints and lacquers, locomotive paints and lacquers, pencil lacquers, nitrocellulose lacquers, enamels insulating varnish, primers, under-coats surfaces, clear lacquers, polyurethane lacquers, Epoxy lacquers, Tin printers lacquers etc. Special Paints: Cellulose Dopes, heat resisting paints all weather paints, leather finishes and all types of special paints which are generally used for painting aircraft. 4.3.8 Competitor Analysis Pakistani paint and coatings market is quite competitive at the moment. The significant names in the market include ICE, Berger, Nippon, and Jotun. An important insight into the market is the presence of unrecognized paint manufacturers. These manufacturers usually sell low quality products at extraordinarily low prices than the branded products. The market share division is shown in the diagram given below:

Market Share
Market Share

30%

20%

20% 12%

18%

ICI

Berger Nippon

jotun

Others

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Market Position of Kansai Paints in Pakistan

Kansai decorative products were launched in April, 2009. We have around three hundred dealers across eightyseven cities of Pakistan. Our deco products include emulsions for interior and exterior, enamels, pre-deco products, wood finish and texture paints. With the establishment of Kansai Paint (Pvt.) Ltd. in Pakistan, Kansai has introduced a whole range of products including CED (Cathode Electro Deposition), top coats, automotive, refinish and decorative products, leveraging its cutting-edge technology. Kansai Paint Pakistan with its modern, world class manufacturing facilities has a dominant share in Automotive paints business and is enjoying steady growth in decorative, refinish and industrial coating markets. In the automobile paint business, Kansai Pakistan is supplying car paints to Toyota, Suzuki, Nissan, Honda, Hino, Sigma, Hyundai, Yamaha and Baluchistan wheels. The Company has been in the Pakistan automotive market since 1992. Kansai decorative products were launched in April, 2009. We have around three hundred dealers across eighty-seven cities of Pakistan. Our deco products include emulsions for interior and exterior, enamels, pre-deco products, wood finish and texture paints. Our protective coatings have a wide variety of applications across diverse industrial sectors. In the following areas we offer exceptional levels of technological proficiency, product supremacy and devoted technical field support: a) Infrastructure projects, b) oil and gas installations, c) water and power d) manufacturing and maintenance facilities.

The local manufacturing of OEM and high performance coatings has saved and shall continue to save the country more than a 100 million US dollars of foreign exchange over the next few years. Till date these savings have created direct and indirect employment for over 500 families.

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4.3.10 Target Segments for Kansai Mosquito Repellant Paint Today everyone wants to save their time, money, and energy. Currently available emulsions are all oil based which consume more money, time, and, struggle of the consumers. Kansai Gloss Enamel is high quality solvent based enamel with gloss finish, suitable for all types of interior and exterior wood and metal surfaces. Kansai Gloss Enamel gives superior coverage and brilliant gloss along with the benefits of insect repellent and ecofriendly composition feature. In the wake of recent dengue outbreak, our position in the market looks quite good, we should focus on the following segments of the market. Hospitals, clinics, and health care institutes Federal and province governments looking to mitigate dengue and other diseases in public/govt. institutes Offices at high risk of chemical or dengue exposure Restaurants, shops, and indoor play areas People who are sensitive to chemical exposure Individuals with higher income range looking for a quality paint product for their homes

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5 DESIGNING AND IMPLEMENTING MARKETING STRATEGY FOR MOSQUITO REPELLENT PAINT IN PAKISTAN
5.1 PRODUCT
As an established brand name having ecofriendly corporate mission, Kansai paint uses technology to bring comfort and safety with its innovative products. Kansai paint products are enjoying steady growth as Pakistani market is getting familiar with the companys high quality products. In order to further the growth of our market share, we are launching an innovative product in the Pakistani market. This is our mosquito repellant water based gloss emulsion. Superior to the competitors water based emulsion, this product will be launched to protect households, offices, and other populated areas from mosquitos and other insects. This products launch is in response to the recent epidemic break out of dengue fever in Pakistan. The current epidemic has caused to date 16 580 confirmed cases and 257 deaths in Lahore and nearly 5000 cases and 60 deaths reported from the rest of the country according to WHO. The detail of recent years dengue cases is given below:

Year 2006 2007 2008 2009 2010 2011 2013

Suspected cases 4961 2304 2792 1940 15 901 252 935

Cases laboratoryconfirmed 1931 1226 2469 1085 11 024 17 057 8,546

Deaths 41 18 17 13 40 219 33

The unique property of Kansai Mosquito Repellent paint will attack the nervous and muscular system of insects. When a mosquito lands on the treated surface, the insect will absorb traces of the solution. This will result in paralysis and death within a few minutes. The effectiveness of the product is guaranteed for a minimum period of 2 years from the date of application, making it both economically and functionally efficient. It can dramatically reduce the spread of infection-carrying insects and so lower the risk of catching diseases such as malaria, dengue fever, yellow fever, chikungunya and chagas disease.

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Biting insects and other species such as flies and cockroaches also carry numerous diseases. Mosquitoes alone cause 2-3 million deaths annually. As well as spreading disease, insect bites can also cause pain, itching and swelling and general discomfort. Our solution dries to a clear finish over existing hard surfaces and is effective against such insects as:

Mosquitoes Flies Ants Beetles Cockroaches Ticks Termites Lice Spiders Scorpions Wasps Silverfish Weevils

It also contains an antimicrobial biocide, making it antibacterial, antiviral and antifungal. It is 100% safe to use following manufacturers instructions, is easy to apply and is not mixed or diluted with any other product. The product contains an active ingredient which combines an advanced generation pyrethroid with a unique capsule suspension formulation for outstanding protection against numerous insect pests. The microencapsulated water-based formulation offers superior insect control. Once the formulation has been applied and dries, the active ingredient is released from the capsules. Control will occur primarily through direct contact of the insect pest with the capsules, with the pyrethroid transferring directly from the capsule to the cuticle of the insect. It is also possible for the capsules to be ingested in the case of insect pests which preen themselves, such as cockroaches

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5.2 PRICING
Kansai Mosquito Repellent Water Based Gloss Emulsion is a premium quality Pure Acrylic-based emulsion with low to zero VOC, specially designed to give a long lasting color retention finish to exterior masonry surfaces along with mosquito repelling properties. The price distribution of this product across different processing phases is calculated below:

Mosquito Repellant Water Based Gloss Emulsion Pricing

Base price Discounted price

Base unit cost Initial markup Base unit price Quantity in this order Per unit discount Total savings per base unit Total line item price Lump sum total Sales tax Shipping and handling

Rs

1,125.00 60%

Rs

1,750.00 1 1 5% Rs Rs 87.50 1,662.50

Rs

1,750.00
7.50%

Rs

1,662.50
7.50%

Rs

12.31

Rs

12.31

Total Total Savings

Rs

1,893.56

Rs Rs

1,799.50 94.06

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5.2.1

Formula Cost

Water Based Gloss Emulsion

Codes SL4136 AB3212 AD3618 AT3113 AS3519 AD3621 AG3822 PW1122 PE1315 PE1321 SL4136 SL4155 EM2215 AT3115 I275-642 SL4136 Wt./L Cost/L Labor Cost Mark Up Sale Price Of 1 lit Sale Price Of a Gallon %ages 13.250 0.200 0.150 0.300 0.200 0.700 0.200 20.000 5.000 10.000 1.000 1.500 45.000 0.800 0.200 1.500 100.00 1.32 281.66 15 150 450 1800 Price/Kg 0.01 275.20 188.00 289.34 307.39 225.00 298.61 380.00 47.12 13.40 0.01 294.00 250.00 520.00 20.53 0.01 Formulation Cost 0.13 55.04 28.20 57.87 61.48 157.50 59.72 7600.00 235.62 134.00 0.02 441.00 11250.00 1040.00 4.11 0.02 21124.69

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5.2.2 Sale Price of Product The competing companies gloss enamels are solvent based products and for which customers have to bear an additional cost of thinner or solvent. On the other hand, Kansais groundbreaking product gives the same gloss level with added health and environment safety benefits and to top it off the customer will save the thinner cost as well. The following table compares our products pricing with major competitors. We have proposed the pricing on the bases of cost-based pricing strategy. The slightly higher prices than the competition will also reinforce the added advantages of Kansai products in customers perception.

Product

Tier Qtr.

Retail Price Gallon 1800 Drum 7000

Major Competitors Qtr. Berger Gloss Enamel Jotun Gloss Enamel ICI Gloss Enamel Nippon Gloss Enamel 435 430 420 425

Retail Price Gallon 1710 1700 1700 1720 Drum 6700 6800 6900 6850

Kansai Premium Interior Emulsion

Premium

450

7000 6000 5000 4000 3000 2000 1000 0 Quarter Gallon Drum Kansai Jotun Nippon ICI Brger

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5.3 PLACE
Two types of channel of distribution methods are available. 1. Indirect distribution It involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.

Manufacturer
Distributor Retailer Consumer
2. Direct distribution It involves distributing direct from a manufacturer to the consumer For example Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.

Manufacturer

Consumer

Kansai is using a combination of both the direct and indirect marketing. For the launch of the new product well engage our dealers network and also offer direct sales to customers throughout Pakistan. Our aim is to reach all of our varied customer base including hospitals, restaurants, factories, and offices. 5.3.1 Kansais Distribution Network Kansai decorative products were launched in April, 2009. We have around three hundred dealers across eighty-seven cities of Pakistan. Our deco products include emulsions for interior and exterior, enamels, pre-deco products, wood finish and texture paints. For the mosquito repellent paint we will specially train our team to make sure that the benefits of our new product are conveyed to the end users and buyers.

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5.4 PROMOTION
Following promotional mix will be used for promotion campaign of the mosquito repellent paint.

5.4.1 Brochures Leaflets, informational handouts, inserts will be published and distributed among the target market and community spreading the awareness about the product. Brochures are an excellent low-cost promotional vehicle. As the target audience is supposedly educated sect of the community, they are more likely to respond to these brochures. Brochures are especially useful for service businesses because they enable us to describe our valuable product.

We Bring Shine in

Life!

5.4.2 Print Media Another step would include Advertising in newspapers, newsletters, magazines, and trade and specialty publications. Cost of advertising in print media varies greatly for print ads: from little to nothing for ads in local newsletters to expensive ads in publications with national circulation. Before buying ad space in a publication, it will be ensured that target audience has a high viewership rate of that media.

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5.4.3 Social Media Kansai paint should launch an awareness and promotion campaign on popular social media networks like Facebook, twitter, and what Sapp. Some of the competing firms like Berger and Nippon are already using these media successfully. The competitive advantage of our products being free from lead, ecofriendly, and good for health and safety will give us a strong message to build our campaign. 5.4.4 Posters/Fliers For more economical campaign, a low-cost option is also plausible. Posters/ fliers can be posted locally or handed out in communities. Fliers and posters are a good means of advertising events or act now opportunities to try new product. These are definitely poised to create a buzz in the community about the new product and will instigate curiosity among the community. 5.4.5 Broadcast Media For more broad coverage, radio and television can also be utilized. Welltargeted advertising can reap surprising benefits as it will affect a majority of the target audience and will create a sense of assurance in customers mind about product credibility.

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5.4.6 Advertising Gifts Giveaway items emblazoned with company's logo, such as stickers, calendars, Hand bags, T-shirts, and key chains. These items vary in cost but can prove to be an effective means of developing brand recognition. Stickers are relatively inexpensive and are popular in many sectors of the community. Such corporate gifts build a healthy image in customers mind

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5.4.7 Sampling Distribution of free product samples is a great confidence building measure for customers. Painting contests can be held at various localities of major cities to promote the products benefits and spread the word about effectiveness of the product.

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5.4.8 Seminars Seminars and workshops can be held in various cities to create awareness about the product. This will be useful for two reasons. 1. Participation in seminars will raise the company profile 2. New business opportunities, such as strategic alliances with commercial partners such as various housing societies or institutes can be formed

Seminars create awareness and are a good forum for answering customers queries. The face to face nature of seminars give customers an opportunity to share their feedback with the company directly. The information exchanged during such events provides a golden opportunity to improve a products quality and customer acceptance.

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Kansai Paints Export Marketing Strategy

6 REFERENCES
http://www.thefreelibrary.com/Paint+Industry+in+Pakistan.-a070394839 http://www.coatingsworld.com/contents/view_market-research/2010-07-06/a-profile-of-the-asiapacific-paint-industry/ http://staging.informationresearch.co.uk/uploads/CUBE_press_release/2012-10-08/AsiaPacific%20Paints%20Press%20Release.pdf http://www.emro.who.int/pak/pakistan-infocus/world-health-day.html