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 – 

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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.