Re-branding Pailac Paint

MKT465: Strategic Brand management SEC: 5 Instructor: ZTK

Group Members NAME Oditi Shirleena Mostafa 081 348 030 Afrina Sharmin Jushita Shahrin hossain Kimty Tazin Mehnaz Rahman Rusafa Obaid ID 081 348 030 081 914 030 071 351 030 082 145 530 0910598030

LETTER OF TRANSMITTAL

ZarjinaTarana Khalil (ZTK) Lecturer, School of Business Room: NAC 973 North South University Dhaka, Bangladesh Date: 13/12/11 Subject: Report on dying brand- Pailac Paints Dear Maam, Here is the report on our dying brand Pailac Paints which was the term report for the semester fall2011. In this report we have re-branded Pailac paint which is a dying brand due to unattractive packaging and lack of marketing. Thus, we have re-lauched Pailac Paints with a new logo and slogan. We have covered the porters 5 forces model, Competitors analysis, point of parity, point of declaration, the market place and launching activities off the renewed Pailac paints. By doing the practical work, we understood the relevant theoretical concept way better than any theory intensive study session would. So the scope of this report has been achieved. Also during our group work, we learned to communicate better with each other and overcome our different personalities and busy schedules. It is our honor to submit this report to you and we are thankful for giving us such learning and innovative tasks. If there is any question or queries regarding our report you can contact us at Oditi@yahoo.com

Sincerely,

Oditi shirleena Mostafa Afrina Sharmin Shahrin Hossain Kimty Tazin Mehnaz Rahman Rusafa Obaid

DECLARATION

We declare that every part of the Project Report on Pailac Paints submitted to our course instructor Zarjina Tarana Khalil , lecturer in the school of business of North South University is a record of an original work done by Oditi shirleena Mostafa Afrina Sharmin Shahrin Hossain Kimty Tazin Mehnaz Rahman Rusafa Obaid.. The results embodied in this report have not been submitted to any other University or used in other course as such. We acknowledge that, if our instructor detects any sort of malpractice in relation to this report, then he will not award us marks for our work.

Oditi shirleena Mostafa Afrina Sharmin Shahrin Hossain Kimty Tazin Mehnaz Rahman Rusafa Obaid

EXECUTIVE SUMMARY
A brand is a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers from others. Branding a dying brand is a huge challenge because one needs to re-establish the credibility and value of the product. Bangladeshs paint industry has been growing at a double-digit rate for the past several years. There are some large paint companies along with some small and insignificant ones. The market is dominated by Berger, followed by Elite Paints and Romana which are losing their market to the new entrants RAK Paints and Navana Paints. However the ones very popular Pailac paints lost its position because of its unappealing package and logo and limited product line in comparison with its competitors. Nevertheless, its established name in market and comparatively lower price than all the competitors can help us to capture the target market below Bergers target group. Thus now our objective is to be the 2nd sold paint by 2017. We are re-branding Pailac with an entirely new look, new logo and new slogan and targeting the middle class/upper middle class, married/early income, people who have good taste but cannot afford to paint their house according to their dream. To improve our quality we have co-branded with Square group of companies and also have extended our product line along with some new attractions like lessons on how to paint your walls on your own and selling complimentary materials at a discounted rate (brush, ladder, etc). With good quality and with the promise of making our customers house look sophisticated which will not only give them warmth but also will give the feel of a beautiful house. We will be launching on January 6th, 2012 but we will start our campaigns during 25th December to create awareness among the people with Billboards around Dhaka city. In addition to Billboards and a new print ad, we are introducing a new ad which will have an emotional appeal that our target customer can relate with.

TABLE OF CONTENTS
Topic Page No#

Introduction

Paint Industry Porters 5 forces model Competitors analysis Brief overview on Pailac current state Reasons for Brand failure Objective Re-branding POP & POD Brand development strategy Brand elements Re-packaging and cobranding Launching Pailac Paints Launching events Print Ads Seasonal Campaigns Reference

2 2-3 4-7 7-8 8-9 9 10 11 12 13 14 15 16 17 18 19

INTRODUCTION

According to the American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Branding has been around for centuries as a means to distinguish the goods or services from one producer or service provider to another. While a product is anything we can offer to a market for attention, acquisition, use or consumption to satisfy our need or want, a brand is much more than that. This is because it has dimensions that can differentiate it from all other products that satisfy the same need or want. Therefore, marketers are very careful with branding their products or services. (Marketing textbook) Branding a dying brand is huge challenge because one needs to reestablish the credibility and value of the product. One such dying brand is Pailac Paints. Pailac Paints was very popular during the 90s but right at this point the paint company is struggling hard to become customers preference. The purpose of this report is to understand condition of the paint industry in Bangladesh. Paint industry is one of the flourishing industries of Bangladesh. There are many brands of paints that are being sold in the market. Nevertheless, through our market research we found out that Pailac is a brand which, although was very popular amongst people in the early 90s, has lost its popularity. The brands image has been blurred due to the overpowering effects of the competitors. Therefore, we have decided to rebrand Pailac in such a way that it regains its popularity in the market. Thus, we have focused on improving quality and targeting the market through extensive media plan along with repackaging and re-positioning the brand Pailac. While doing the project, the largest source of information was gathered from internet. We have also referred to textbooks and the market itself. There was not much limitation except that we missed the opportunity of visiting the organization and getting to know the managers and employees to get a better insight.

PAINT INDUSTRY

Bangladeshs paint industry has been growing at a double-digit rate for the past several years riding on the increasing demand from the construction sector. According to the figure at the right side, the industry has grown significantly from 2004 to 2008 and it still is growing. A recent study reveals its market size based on demand is estimated at Tk 1,000 crore and domestic production capacity Tk 920 crore. If the housing industry keeps growing the demand for paint will rise even more. Key products that hold the major market shares are: plastic emulsion, distemper, outer coat (weather proof), synthetic enamel etc.

PORTERS 5 FORCES MODEL

Competitive rivalry within an industry: Bangladesh has a very strong paint industry. There is an intense competition going on between existing and new paint industries. But the market is dominated by few players: Berger, Asian, Roxy, Pailac and Elite etc are operating in the market with over 90 percent market share. Berger alone holds 48 percent market share, followed by Asian Paints 12 percent, Roxy 10 percent, Pailac and Aqua each 7 percent and Elite Paints 5 percent.

Threats of substitute products:

In Bangladesh there is much substitute product when it comes to paint. Wall paper has recently emerged. The youth have started drifting towards colorful patters which is easier with wall papers. Substitutes within paint qualities can be between Plastic emulsion and distemper. These are close substitute of each other. Emulsion is basically used in high-end residence all over the country and distempers are economy class products having a demand in semi-urban and rural markets. Weather coat is growing very fast as it is for exterior wall and presently hold 20 percent market share. New entrants: RAK and Navana paints are new in the market. They have been in the market since 1999 so they are confident about grabbing a market share in the paint industry in Bangladesh. However the market is already crowded and there is little business opportunity for any other new entrants. Bargaining power of suppliers: Paints are fluid finishing compositions containing coloring substances. It forms in solid, adhesive, protective or decorative coat way. The major resources used to produce paint are resins, solvents, drying oils, pigments, and extenders, plasticizer and etc. basically, Paint industry today is a vital part of the chemical industry and has given impetus to development of synthetic resin, pigment and solvent industries. After the production there are also needed steel packagings for finished paint. The steel industry is available in the processing of finished product. The bargaining power of suppliers of the industry is moderately high since the demand for paint is high where as the entire paint industry relies on them. Bargaining power of Buyers: The bargaining power is high since there are too many paint industries and are very competitive. The price varies from BDT 350- BDT 325. The products range are also similar as a result buyers can shift to other brands which is why Berger has been spending so much in marketing and is the highest seller in the paint industry. If consumers want moderate quality products at a cheaper rate, there are many competitors such as Elite, Romana and Roxy.

COMPETITORS ANALYSIS

There are some large paint companies along with some small and insignificant ones. The market is dominated by Berger, followed by Elite Paints and Romana which are losing their market to the new entrants RAK Paints and Navana Paints. Once very popular, Pailac Paints is slowly falling out of the race. The price structures of the different paint brands include:
COMPANY/BRAND Berger Elite Romana Roxy RAK Navana Pailac DISTEMPER(1 GALLON) 350 330 330 330 330 330 325 ENAMEL(1 GALLON) 870 820 820 820 800 800 800

BERGER

Slogan: Paint your imagination URL: www.bergerbd.com Founded in 1960,Berger Paints is one of the oldest names in the paint industry, yet, it is one of the most technologically advanced companies in the country Berger Paints started painting Bangladesh since independence. Over the past few decades, Berger has evolved and transformed itself in becoming the leading paint solution provider in the country with a diversified product range that caters to all your painting needs. To bolster customer satisfaction, Berger offers Home Decor Service from where one can get an array of services pertaining to painting. The product range includes: Specialized outdoor paints to protect against adverse weather conditions, Color Bank

 Superior Marine Paints Textured Coatings Heat Resistant Paints Roofing Compounds Epoxies and Powder Coatings.

ELITE PAINT

Slogan: Rangiye dao URL: www.elitepaint.com Elite Paint is one of the leading manufacturers of paints and Varnishes in Bangladesh. The company is operating in this particular industry for about 58 years and it is one of the oldest names in the paint industry of Bangladesh The company started producing and marketing their products to the local market in 1952 and now Elite is one of the renowned paint manufacturers in the country. At this point of time Elite offers all kinds of painting solutions in decorative, industrial and in marine segment for both decorative and protective purpose. Elite paint has a strong marketing network throughout the country. The company has their head office in Dhaka and they have their marketing operation in different zones like Dhaka, Chittagong. Noakhali, Sylhet, Rangamati, Bogra, Barisal, Kustia and Khulna. Theses zone are also covering few areas and the company is trying to expand their business around the country.

The product range includes:

 Decorative paint Thinner Industrial Paint Marine paint

ROMANA

Slogan: Choice of millions

URL: www.Romana.com

Founded 1983 and is the second largest paint manufacturer in Bangladesh. For the last two decades Romana Paint has become an international standard paints by fulfilling the demand millions of people. Romana Paint maintains its individual standard, quality, value and wins a permanent position in the hearts of the citizens of Bangladesh with different class and professionals A big number of active sales team and an efficient management co-ordinate respect a wonderful marketing result. They believe in quality and value peoples money. Their Products are:
Synthetic enamel paint Synthetic paste distemper Plastic emulsion Weather paint

 Thinner Synthetic undercoat Road marking paint Water sealer

RAK PAINTS

RAK Paints is founded by one of the leading groups, RAK Groups. RAK Paints (Private) Limited produces solvent based and water based paints of premier quality. The primary list of paints to be manufactured is given separately. RAK Paints (Private) Limited tries to focus on producing finest quality products, targeting retail consumers, real estate developers, major institutions, architects, interior designers and who are interested in exotic color combination to enhance the appearance. They have impressive packaging and website. RAK Paints supports green building construction. Slogan: Pran Jagaye, Jibon Rangaye URL: www.rakpaintsbd.com

OUR BRAND: PAILAC

Pailac Group (Pvt.) Ltd. is one of the largest Manufacturing Industries in Bangladesh. Major concentration of the group is aimed towards Pailac Paint & Chemical Co. (Pvt.) Ltd. Pailac Group (Pvt.) Ltd. consist seven enterprises. Pailac Group (Pvt.) Ltd. was established in 1978 In this globalization period Pailac Group has stepped in to overseas by their wide range of

products to occupy vacant market. Their products are: Aluminum Synthetic Thinner Primer Enamel paint

demands in the niche

paint under coat

Current Tagline: BANGLADESH ER RONG Pailac was very popular during the 90s but as the impact of Berger paint became overpowering, Pailac slowly lost its customers. Also, there are many new companies in the market which have come up with livelier array of products. Pailac cannot sustain in the competition at this point even though the brand has huge potential. The brand name is an establish one and people know about it very well. Therefore, a strong effective push can convert the slider brand into a power brand.

WHERE ARE WE NOW?

Currently the market share of Pailac Paints is very small. Even the new entrants like Navana Paints and RAK Paints have a higher share than Pailac Paints. Most people know about the brand but they do not prefer Pailac Paints. The company has lost its brand preference because it did not change itself to match the changes in the market. They have, therefore, lost the brand credibility as well since people do not perceive it as a brand that is worth spending money on. Customers feel that since their look is still the same, they have to modernize their products according to the current market scenario. While Berger constantly bring create product variations and customer relationships, Pailac remains silent.

REASONS FOR BRAND FAILURE

Unattractive Packaging

The can of Pailac Paint is covered with the green and Pailac is typed on white with black. This is the case of Synthetic enamel paint. In case of acrylic paint, it is blue and white and cans of cement paint have got brown and white colors. There is no creativity or excitement in the can. On the other hand, competitors like Berger and RAK Paints are.

Unappealing Logo The logo is written in simple Bengali or English with black color on a white background. This, therefore, cannot easily grab the attention of customers. There is no fun or excitement in it and the brand logo in black and white does not go with the colorful image of the product. In case of the other products in the product line, the logo has a change in color but the look is still that boring.

Absence of Effective Marketing Communication At this point, while Berger and RAK Paints are displaying their products impressively on the internet, Pailac does not even have its own website address. It tried to bring changes with a television commercial but that did not work because Pailac failed to position it properly. Lack of Variety Pailac Paints has only 2-4 kinds of paints where as Berger and RAK have introduced wide array of products and wall paints.

WHERE DO WE WANT TO BE?

Right at this point, Pailac Paints is at the end of the list of brands operating in Bangladesh. Right now, we cannot dream too big because We have understood that since Berger is a power brand, it is almost impossible to defeat it by a dying brand. If we consider Berger as our prime competitor then we will again lose the market badly. Therefore, we have no intention to make an effort to cross Bergers brand equity. Instead, our plan is to serve people for whom Berger is expensive. Also, Elite Paints and Romana Paints are losing their popularity slowly. Although Navana Paints and RAK Paints are slowly capturing a good market share, Pailac Paints can still compete with them since the brand Pailac is an old and

established brand. Therefore we want to capture the highest market share after Berger in next 5 years. Thus, our objective is to become the number 2 bestselling brand within 2017.

REBRANDING PAILAC

In order to capture a market share higher than any other paint companies in Bangladesh except Berger, we need to rebrand Pailac. We need to change most of the brand elements along with product variety, package and media communication in order to become customers preferred paint. Therefore we need to reposition Pailac Paints by:

Keep the brand name Change the target market Change the brand logo Change the brand slogan Repackage the product Increase product Variations Redesign new commercials Use the Integrated Marketing Communication tools

TARGET MARKET

It is very important to define your target market extensively so that all your promotional activities are linked. The companies that fail to define its target market fail miserably in the market. In case of Pailac, we are going to keep the price same. This is because currently we are providing the lowest cost products in the market. Therefore, we will not target the high income earners. Middle Class or Upper Middle Class

Our target market can have one or more of the following characteristics: Newly Married Couple with Starting Salaries Stays in a rented apartment Has their own house but that is given to them by parents or grandparents Recently bought an apartment which cost all their savings Has a good taste in living but do not have the affordability power In the Dhaka City and in the large cities like Chittagong, Khulna, Bogra and Sylhet, families with not high monthly income (i.e. the total family income sums up to 20,000taka to 50,000taka) live, who have the desire to live a colorful life but cannot only because they are concerned about money. Most of these newlywed couple with small salary will soon earn more and can afford a small apartment. If we can value their feelings now then they will be loyal to our brand and will remain with them in the future. We want to target them and want to make them feel that painting walls of a room or house does not cost very high amount of money but painting a wall multiplies the happiness in life.

POINTS OF PARITY
Points of Parity simply include: It paints the walls like all other competitors The paint is waterproof and durable The product range has everything that its competitors have

POINTS OF DIFFERENCE/DIFFERENTIATION

Even though we have the low cost advantage at this point, the cost differ only 5 taka from the immediate competitors like RAK , NAVANA and as such. Therefore, the competitors can easily reduce their price by 5 or 10 taka. Therefore, the brand Pailac is highly subjected to price wars. That is the reason why will not bank on low price only. All our showrooms will have a huge color bank from which people can choose their choice of colors. We will have trainers in our showrooms who will teach you how to paint your walls on your own. There is a huge cost associated with appointing painters to paint the

walls. If the family together can paint the house not only will they have reduced the cost but also they will have great fun All the painting materials like brush, ladder and as such will be free for those who will purchase at bulk and at a discounted price who will buy less amount of paint.

BRAND DEVELOPMENT STRATEGY

BRAND BUILDING BLOCKS Brand Salience Pailac is a known brand but we need to create awareness that it has been re-launched with great improvements. People must know about it. Brand Performance Good quality, Waterproof, plastic paints where the stains can easily be removed. Brand Imagery The paint looks great on walls and it will make your house look new and sophisticated. Brand Judgment The brand is of better quality now but the price is same. Therefore you can get good quality products in low price. Brand Feelings Pailac gives a feeling of warmth.. Brand Resonance The kind of offers Pailac will have for its customers, people will feel attached to the brand.

POSITIONING STATEMENT

Positioning Statement: Pailac Paint is a quality product at a low price that you can use yourself to paint your walls beautiful. Key Insight: I want to have a beautiful house where I will live with my family.

NEW BRAND LOGO

This is our new logo. The background is black in color so that the vivacious and colorful feather looks beautiful on it. The brand symbol is a feather. It can be used for color patterns when customers would want to see our color collection. We can put our color collection in the shape of a feather with each undertone bellow each other. It is said that feathers aid in waterproofing and coloration that helps in protection. Since we are rePAILAC positioning Pailac with better more color variation and protection with no harmful chemical, feather relates to my product. And feather has always been considered as a colorful object. Hence: Meaningfulness and memorability (because of the dark background).

PAILAC

The brand name Pailac is in white so that it is visible.

NEW BRAND SLOGAN IS

Paint Your Dream with Pailac

The slogan is simple and straight forward so that people understand the meaning of it easily. It is still very appealing because the people who we are targeting have many dreams which remain unfulfilled because of not being able to afford but now they can paint their dreams into reality with Pailac Paints.

URL: www.Pailacfeather.com

PAILAC

PAILAC

PAILAC
RE-PACKAGING

PAILAC

PAILAC

PAILAC

But it needs to stand out in the market, needs more shelves in the stores. So far no paint company in Bangladesh have ever considered packaging to be a major factor but good packaging plays an important role in grabbing consumers attention. The packaging is colorful, vibrant and easy to notice. It is dramatic and no other company has ever tried to use black as the color of the paint containers. Also the logo (feather) covers the entire container which stands out in the crowd.

PROMOTION

Co-branding with square: We will co-brand with Square Group of Industries because Square is the largest pharmaceutical company in Bangladesh. It will be ingredient- branding since paint is made with chemicals. That will help us to emphasis on our quality. Promotion As a promotional campaign we will do lottery. If anyone buys a square product (hand wash, powder, lotion, etc) he/she will get a coupon and after some week we will do a lottery and the winners will be awarded free paints. Our team will go to their house and will paint their house according to the winners choice of course. That will create awareness and through word-of mouth we will gain the attention of our targeted market.

LAUNCHING PAILAC- PAINTS

We will launch Pailac Paints on January 06, 2012. However, the teaser campaigns will start from December 27, 2011 so that we can create awareness among the target group.

TEASER CAMPAIGNS

We will have teaser campaigns on billboards which will be on for 10 days before the launch of Pailac Paints. The above billboards which will be placed in both commercially and residentially crowded areas that include: Airport Circle Gushan 2 Circle Mohakhali Flyover Bijoy Sharani Linking Road New Market

BILLBOARD

Have you ever imagined painting your your dream?? dreams?

Have you ever imagined painting

LAUNCHING EVENT

We will launch it on Jan 6, 2012 which is a Friday it will be in the International Trade Fair, Dhaka. In the fair we will have a huge stall in the middle of the field where the launching Pailac Paint in a new way will take place around 6 p.m. During this event, the new package and the logo will be revealed and people will be given a small sample of Pailac Paints to try out their inner creativity on white boards. They will also be given tips on how to create designs on walls.

PROMOTIONAL ACTIVITIES
Here the SEM is Feel. It talks about how you would feel looking at a beautiful wall. What you feel when you see a beautiful wall painted in your house by you or loved ones by our Pailac Paints.

TELEVISION COMMERCIAL
We have made a television commercial in order to show how we want to go on air from Jan 06, 2012 onwards.

The following is a story board of the television ad that we have designed. This ad will have an emotional appeal that our target customer can relate with.

Wife touching an expensive necklace in a jewelry shop Husband looks at the heavy jewelry set and says in his mind Kono ekdin tomar golaye poriye dibo emon goyna Husband realizes it and looks at the house.

Husband brings a very small chain and gives her Husband and wife walking on the street and talking about something.

Wife immediately turns to him, takes the chain in her hand and pretends to like it very much Suddenly wife looks at a house they are passing and keeps staring without paying attention to what husband is saying. Wife realizes that the husband understood and immediately looks somewhere else pretending that she did not care about the house. Husband looks at her and proudly indicates that he has painted a beautiful wall for her. The scene closes with husband and wife looking at the wall with happiness.

Husband turns to her and says in his mind Kono ekdin emon ekta basha amader o hobe Wife enters the room to call the husband but is surprised with joy. Husband shows a demo.

Blurry scenes of Pailac Paint and husband painting the wall.

PAILAC

Wife walks to her husband and asks how he has done it.

PRINT ADVERTISEMENT

Shaddher moddhe rangiyen tulon apnar ei bhubonPaint your dream with Pailac
PAILAC
It is a product of Pailac Paint & Chemical Co. (Pvt.) Ltd.For information please contact Dhaka 01802928282, 018182828290, 9282722, 0181022883000, 0910198287209 ,091088990000, 09182800000 3/13 Sonatongore, Hazaribagh, 1209 Dhaka, Bangladesh. Chittagong 100 east nasirabad phone: 0992910010992301,0198280901001

 This print ad will be publish on Prothom Alo, Ittefaq, Amar desh and Daily Star. Also occasionally in Bangla and English Magazines.

SEASONAL CAMPAIGNS

Green
Paint your Pailac Paints dream with Pailac Paints

RED
Paint your dream with

REFERENCE

Drukenbrod. Mark; Nov 2, 2004, date of retrieval: 3rd December2011; Retrieved from: http://www.specialchem4coatings.com/resources/editorials/editorial.aspx?id=2046 Bangladesh Economics News, January 24, 2010, Date of retrieval : 3rd December2011; Retrieved from: http://bangladesheconomy.wordpress.com/2010/01/24/paint-makers-continue-doubledigit-growth/ "Asian Paints Business Strategy." Upload & Share PowerPoint Presentations and Documents. Web. 12 Dec. 2011. <http://www.slideshare.net/SUMEET1234567/asian-paints-businessstrategy>. "Basic Ingredients For Paint Making by Tony Johansen." Making Artists Paint In The Studio By Tony Johansen. Web. 12 Dec. 2011. <http://www.paintmaking.com/basic_ingredients.htm>. "What Is Branding and How Important Is It to Your Marketing Strategy?" Marketing Information and Advice on Marketing Strategy, Marketing Plans, and Marketing Careers and Jobs. Web. 12 Dec. 2011. <http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm>. RAK Paints (Pvt) Limited. Web. 12 Dec. 2011. <http://www.rakpaintsbd.com>.

Paint Your Dream with Pailac