kansai paint write up 2013
DESCRIPTION
Export Marketing PlanTRANSCRIPT
KANSAI PAINT JAPAN’S EXPORT MARKETING STRATEGY
Presented to Dr. Mubasher Munawwar Khan
DECEMBER 31, 2013 PRESENTED BY
MEHWISHAN JOOHI MBAE2012-027
MUHAMMAD ALI SHAFIQUE MBAE2012-043
HALEEMA TARIQ MBAE2012-048
MUHAMMAD ADEEL MBAE2012-053
SABEEH HABIB CHAUDHRY MBAE2012-055
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1 CONTENTS
2 Executive Summary ............................................................................................................................... 3
3 Deciding Whether to Internationalize .................................................................................................. 4
3.1 Introduction .................................................................................................................................. 4
3.2 Corporate Mission ......................................................................................................................... 5
3.3 Product Portfolio ........................................................................................................................... 5
3.4 Technology Overview .................................................................................................................... 8
3.4.1 Basic Technology ................................................................................................................... 8
3.4.2 Paint Technology ................................................................................................................... 8
3.4.3 Application Technology ......................................................................................................... 9
3.4.4 Color Technology and Color Design .................................................................................... 10
3.5 Motives for Export ...................................................................................................................... 11
4 Viable Markets to Enter ...................................................................................................................... 12
4.1 Markets Covered by Kansai Paints .............................................................................................. 12
4.2 Asia-Pacific Paint and Coating Market Breakdown ..................................................................... 12
4.3 Pakistan ....................................................................................................................................... 13
4.3.1 Background ......................................................................................................................... 13
4.3.2 POLITICAL AND LEGAL ANALYSIS ........................................................................................ 13
4.3.3 ECONOMIC ANALYSIS .......................................................................................................... 13
4.3.4 Raw Material ....................................................................................................................... 13
4.3.5 Foreign Investment ............................................................................................................. 14
4.3.6 Demand ............................................................................................................................... 14
4.3.7 Market Segmentation Based on Paint Usage ..................................................................... 15
4.3.8 Competitor Analysis ............................................................................................................ 15
4.3.9 Market Position of Kansai Paints in Pakistan ...................................................................... 16
4.3.10 Target Segments for Kansai Mosquito Repellant Paint ...................................................... 17
5 Designing and Implementing Marketing Strategy for Mosquito Repellent Paint in Pakistan ............ 18
5.1 Product ........................................................................................................................................ 18
5.2 Pricing .......................................................................................................................................... 20
5.2.1 Formula Cost ....................................................................................................................... 21
5.2.2 Sale Price of Product ........................................................................................................... 22
5.3 Place ............................................................................................................................................ 23
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5.3.1 Kansai’s Distribution Network ............................................................................................ 23
5.4 Promotion ................................................................................................................................... 24
5.4.1 Brochures ............................................................................................................................ 24
5.4.2 Print Media.......................................................................................................................... 24
5.4.3 Social Media ........................................................................................................................ 25
5.4.4 Posters/Fliers ...................................................................................................................... 25
5.4.5 Broadcast Media ................................................................................................................. 25
5.4.6 Advertising Gifts .................................................................................................................. 26
5.4.7 Sampling .............................................................................................................................. 27
5.4.8 Seminars .............................................................................................................................. 28
6 References .......................................................................................................................................... 29
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2 EXECUTIVE SUMMARY
Kansai Paint is Japan’s 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 Japan’s most progressive manufacturer in
various fields related to coatings. Today, the company enjoys a well-established position as one of the
world’s 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
Paint’s 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. To further build company credibility with the public and to contribute to society, by providing
products and services that achieve customer satisfaction.
2. To build on our knowledge and strive for technological innovations, in order to improve the
company’s performance.
3. 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 company’s 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 paint’s 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 Paint’s
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 manufacturer’s plant. This allows the R&D teams to
gather the necessary data to pursue, in a practical manner close to the car manufacturer’s line
conditions, further development in both the paint and paint application fields.
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3.4.4 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 paint’s 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 paint’s 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 Competitive pressures
Profit and growth goals Domestic market Saturation
Managerial urge Overproduction
Foreign market opportunities
Economies of scale
Tax benefits
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 Size (Tons)
Decorative Paints 7,752,837
Industrial Wood Coatings 1,583,343
Automotive OEM Coatings 1,346,662
Automotive Refinishes 360,694
Powder Coatings 1,362,903
General Industrial Coatings 1,808,766
Protective Coatings 2,485,349
Marine Paints 1,033,871
Coatings for Plastics 320,955
Total 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.
The demand for paints and varnished is
derived from expansion in construction,
building, manufacturing, transport and
other sectors. Moreover, a favorable
turn in the investment outlook in the
private sector, brought about by a
desired change in the industrial and
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.
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.
57%
10%5%
12%
2% 3%10%
1%
Product Volume
Gloss Enamel
Interior Emulsion
Exterior Emulsion
Distemper
Cement paint
Wood Finish
Putty
Primer, Thinner
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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
printer’s 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:
20% 20%
12%
18%
30%
ICI Berger Nippon jotun Others
Market Share
Market Share
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4.3.9 Market Position of Kansai Paints in Pakistan
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. 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 company’s 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 competitor’s water based emulsion, this
product will be launched to protect households, offices, and other populated areas from mosquitos and
other insects.
This product’s 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 Suspected cases Cases laboratory-
confirmed
Deaths
2006 4961 1931 41
2007 2304 1226 18
2008 2792 2469 17
2009 1940 1085 13
2010 15 901 11 024 40
2011 252 935 17 057 219
2013 8,546 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 manufacturer’s 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 Rs 1,125.00
Initial markup 60%
Base unit price Rs 1,750.00
Quantity in this order 1 1
Per unit discount 5%
Total savings per base unit Rs 87.50
Total line item price Rs 1,662.50
Lump sum total Rs 1,750.00 Rs 1,662.50
Sales tax 7.50% 7.50%
Shipping and handling Rs 12.31 Rs 12.31
Total Rs 1,893.56 Rs 1,799.50
Total Savings Rs 94.06
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5.2.1 Formula Cost
Water Based Gloss Emulsion
Codes %ages Price/Kg Formulation Cost
SL4136 13.250 0.01 0.13
AB3212 0.200 275.20 55.04
AD3618 0.150 188.00 28.20
AT3113 0.300 289.34 57.87
AS3519 0.200 307.39 61.48
AD3621 0.700 225.00 157.50
AG3822 0.200 298.61 59.72
PW1122 20.000 380.00 7600.00
PE1315 5.000 47.12 235.62
PE1321 10.000 13.40 134.00
SL4136 1.000 0.01 0.02
SL4155 1.500 294.00 441.00
EM2215 45.000 250.00 11250.00
AT3115 0.800 520.00 1040.00
I275-642 0.200 20.53 4.11
SL4136 1.500 0.01 0.02
100.00 21124.69
Wt./L 1.32
Cost/L 281.66
Labor Cost 15
Mark Up 150
Sale Price Of 1 lit 450
Sale Price Of a Gallon 1800
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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, Kansai’s 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 product’s 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
customer’s perception.
Product Tier Retail Price Major Competitors Retail Price
Qtr. Gallon Drum Qtr. Gallon Drum
Kansai Premium
Interior Emulsion
Premium 450 1800 7000 Berger Gloss Enamel 435 1710 6700
Jotun Gloss Enamel 430 1700 6800
ICI Gloss Enamel 420 1700 6900
Nippon Gloss Enamel 425 1720 6850
0
1000
2000
3000
4000
5000
6000
7000
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.
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.
Kansai is using a combination
of both the direct and indirect marketing. For the launch of the new product we’ll 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 Kansai’s 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.
Manufacturer
Distributor
Retailer
Consumer
Manufacturer Consumer
24 | P a g e K a n s a i P a i n t ’ s E x p o r t M a r k e t i n g S t r a t e g y
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.
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.
We Bring
Shine in
Life!
25 | P a g e K a n s a i P a i n t ’ s E x p o r t M a r k e t i n g S t r a t e g y
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, eco-
friendly, 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. Well-
targeted advertising can reap surprising benefits as it will affect a majority of
the target audience and will create a sense of assurance in customer’s 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 product’s 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 customer’s 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 product’s
quality and customer acceptance.
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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-asia-
pacific-paint-industry/
http://staging.informationresearch.co.uk/uploads/CUBE_press_release/2012-10-08/Asia-
Pacific%20Paints%20Press%20Release.pdf
http://www.emro.who.int/pak/pakistan-infocus/world-health-day.html