Nerolac Paints - A Case Study On Its Competitors

Real Floor of the Case

Nerolac Paints – the company has a rich heritage over 97 years in Indian paint market. Although once it was a sister concern of renowned Tata Group now it is the subsidiary of Kansai Paint Company and named as Kansai Nerolac Paints limited. Nerolac is facing a tremendous marketing problem because of its weak positioning strategy. As it is positioned on the platform “Environment Friendly Healthy Paint” it is losing customers, comparing to its main competitor Asian Paints. Because eco-friendly is a concept, that is talked about every brand in one way or other. So, to minimize the gap with the market leader Nerolac must go for a perfect positioning and a strong meaningful differentiation. Thus Nerolac may get opportunities to attain market leadership.

Now Come to solve its complexities - 

Question 1 - What is the main issue of the case?

Answer: Conflict and unable positioning strategy of Nerolac Paints in different times to create brand image.

Question 2 - What are the two segments of paints that the case mentions?

Answers: The two segments of paints mentioned in that case are –

1)      Industrial Paint Segment

2)      Decorative Paint Segment

Question 3 - What are the current problems of marketing programs that Nerolac is suffering from?

Answer: An overview of some current problems those Nerolac is facing like that – 

[

Inability of creating good positioning

Failure of making a meaningful differentiation from its main competitor (Asian Paints)

Confusion about Nerolac’s own strength

Nerolac is failing to bridge the gap with the market leader

Nerolac is spending a lot in promotion but couldn’t fight with the market leader. Because they are not informing customers something which are different or even useful for them. Customers always buy something which creates need in them. Nerolacs’s positioning strategy is not so important to ignite consumers need recognition. Although Indian people are aware of harmful effect of paint fumes, the harmful effects are hardly noticed. That’s why because of failing to create proper need recognition Nerolac is also failing to create want among target customers.

People always need information when they are buying anything necessary. Different people may have different benefit motivations for purchasing different products. That’s why to minimize risk possible customers may go for either –                      

                                                      i) Limited information search

                                                      ii) Extensive information search

Although healthy paint is a meaningful differentiation, it is not a very powerful or sustainable one for Indian consumers. As paint is very significant element for home decoration, consumers gather Information generally on the basis of their evaluations and choice behavior. It is important for marketers to know that, what information consumers are searching / looking for.

As Nerolac’s main competitor Asian Paints created a very good customer base on the basis of color platform, it should provide as much positive information as possible to create emotional ignition rather than an eco-friendly platform. Only then more consumers may think Nerolac as the alternative for its main competitor (Asian Paints) and other competitors.

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Directional Policy Matrix & Its Own Set Of Limitation

Note: DPM = Directional Policy Matrix

=> Directional Policy Matrix can operate when the economies of scale are achievable in production and distribution.
=> It is time consuming – But present business market is very much dynamic in nature where decision must be taken on time. That’s why many marketers don’t want to follow that matrix.
=> Dependent on judgment - depends on management politics, influence and negotiation. (It cannot provide ultimate decision)

·         The core competencies of the firm or the corporation are not represented in this analysis. It can be a deciding factor while judging the competitive strength of the SBUs.

A specific factor that a business sees as central to the way the company or its employees work. It fulfills three key criteria - It is not easy for competitors to imitate.

·         The relative weight given to each of the factors of competitive strength and market competitiveness is often arbitrary (Different Preferences). Any Analytic Hierarchy Process (analyzing complex decisions based on Mathematics and Psychology) is not used. This can throw the SBU on the matrix in criticism.

·         Interaction between SBUs is not considered

·         Scoring is personal and subjective (risk of bias)

·         DPM offers a broad strategy which requires extensive data gathering and does not indicate how best to implement it.

Recommendation Statement

It would be wise to use them primarily as an overview or as a complement to other analytical techniques in the organizational strategy.

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Occupational Health & Safety In Corporations & What are they

Issue – 1How liable should companies be for violent acts committed during work by their own employees?

Workplace violence is a common issue in today’s organizations. It can be either oral or with weapons. This is the incident which make embarrassing situation for the organization. Companies have the strong liability for violent acts committed during work by their own employees.

Companies have the liability of friendly environment of workplace. They must ensure it. They can play a vital role to make it stop. The upper authority should make easy solutions of those critical problems.

Issue – 2 Can companies completely prevent workplace violence? If not, what step can they take to reduce it?

No, companies can’t prevent workplace violence completely.

Good working environment is very important for employees. If they fail to provide this atmosphere, violence will take place all the time. It is not possible to stop violence by taking attacking actions. Company should make friendly atmosphere at every sphere of the organization’s works. They must establish proper code of conducts in the organization. They should unite all the employees in various occasions. Thus they will be able to make a solid bonding among them. Then employees will not attack each other by weapons or even by their speech.

Issue – 3 Why do you think only 1 percent of companies have formal anti-violence committee?

I think that because companies have to pay extra attention on it. There is a few numbers of companies around the world which have proper anti-violence policy. Most of the organizations are busy with the maintenance of their working environment. They have less time to spend before it. So I can say that the reason is - they are least bother about it.

In the context of Bangladesh, it is very rare in our local organizations. Here most of the organizations have the lack of perfection in their official environment management. So they are only busy with their environment building not with anti-violence matters.

Issue – 4 Some companies are considering installing metal detectors to prevent workplace violence. Do you think these measures infringe too much on individual privacy? In other words, can a company take prevention too far?

Some companies are considering installing metal detectors to prevent workplace violence. I don’t think that, it is infringe too much on individual privacy. Because, all employee’s safety is significant than individuals.

Yes, a company is able to take prevention too far. Company can surveillance their office properly by using close circuit cameras. In this process employees will always be in a control of their works and personal attitude toward other peers and subordinates, as well as bosses.

Issue – 5 What factors might lead to violent acts in workplace? Are this acts committed by only a few “sick” individuals, or are many individuals capable of committing acts given certain circumstances?

There are so many factors of violent acts in workplace. When an employee is behaved roughly from his boss or peers, then it makes a crush on his boss or peers. He then tries his best to make them insulted or harassed. Sometimes some employees are neglected by the boss. Bosses do not appraise their performance properly even they have done very good job. After a long time of negligence employees lose their temper and start to make violence.

No, this is not committed only by a few “sick” persons. This violence can be made by other individuals or groups also. It depends on the situations. If a person is deprived of his desired promotion or salary increase for the long time, then he could make violent acts even he is mentally or physically sound.

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Ethical Dilemmas in Business Corporations - How are they

The Situation is – [Lying in Business]

Issue - 1 In a Business context, is it ever ok to lie? If yes, what are those situations? Why is it okay to lie in these situations?

Yes, I think it is okay to lie.

Sometimes there is some situations in which lying are acceptable according to me. Suppose company’s employees and labors are agitating for their demands from the organization. Then some ---------- is making the situation worse with the help of political holds. Employees and labors are not attending to their works. As a result company is missing their important orders and falling in great losses.

In these situations it is okay to lie for controlling the current worse situations.

Issue - 2 A recent surveys revealed that 24 percent of managers said they have fired someone for lying. Do you think it’s fair to fire an employee who lies, no matter what the nature of the lie? Explain.

I think it is quiet unfair to fire an employee who lies not considering the nature of lying.

Sometimes any employee takes the shelter of lies to cover their faults.  Sometimes it may be very serious or not. The manager should consider the matter of his/her lying. Then if the cause is very severe only then a manager should fire an employee. Otherwise, if the matter is not much worrying then the employee must be forgiven by the manager as well as the organization.                                                               

Issue - 3 In business, is withholding information for your own advantage the same as lying? Why or why not?

Yes, withholding information for own advantage is the same as lying.

I think it is one kind of piracy with the organization. Suppose, an employee knows very significant information which are closely related to other employees of the organization. But he is refusing to share this information with the officials because; if there is any good opportunity he is trying to take it alone. Being an employee of the organization he is not performing his duty properly. By hiding the information he is lying with the organization.

Issue - 4 In a business context, if someone has something to gain by lying, what percentage of people, do you think, would lie?

I think as a human being people have tendency of lying to gain something.

This matter of lying to gain something will depend on some matters. It basically depends on the flow of corruption in the organization. It can be varied on the basis of cultural condition. Public and private organizations have different culture.

In the context of many developing, in most of the public organizations people have the tendency of lying to gain something. It can be either bribe or promotion. But in private organization because of strong law and cultural condition people are not much attempted to lie.

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