After establishing a strong brand proposition of safe and healthy paints in the decorative segment, Anuj Jain, Vice President, Marketing & Sales, Kansai Nerolac Paints Limited is extending the positioning by launching more differentiated products in this otherwise uniform paints category.
What are the insights behind the current positioning of Nerolac of ‘safe and healthy’?
If we compare the paint industry in the past and now, it has changed a lot. Earlier this was not a very high-profile industry and consumer involvement was also very low. For the past many years we’ve been trying to bring concepts with which consumer involvement increases. Most of the brands in this category talk about durability, look, finish, etc. We think paint is something that goes beyond that and form a larger part in the consumer’s life as they eventually become their environment and surroundings. Also, traditionally there were many components in paints that were creating health hazards. We started working on making paints free from toxic materials like lead, mercury, low on VOC, etc and created our positioning around health. We took the stand that paint is not only about beauty but about consumer’s environment and surroundings which need to be safer. And that is the message which we are trying to communicate through our branding and advertising campaigns also.
Earlier Nerolac also had cosmetic propositions, like textures and sheen.
Well, if you see our campaigns now all three of them, textures and sheen are still there but visually. But when it comes to providing a message from the commercial we are talking about how we can keep the society healthy and clean. Our product Eco Clean does not have odour and is free from toxins and another commercial talks about clean exteriors. So the message is around safety and health but the visuals still talk about colours and textures because those are fundamental requirements for every consumer. And that is sufficiently conveyed visually.
If you were to compare your texture and sheen positioning with the social message one, in terms of results and actual sales, which one do you think has worked better for you?
Certainly with the recent social message commercials our brand track scores have increased. We are seeing a change in imagery of the company. Now our commercials have a functional message and there is a clear cut benefit that we are able to convey to consumers and therefore they are able to receive it in a far better way. When it comes to textures and colours, I think probably everybody in the industry is talking about the same thing and the benefit goes to somebody who talks about it more. While here we have a different message which is functional and therefore works for us.
Some brands have also spoken on the service element and providing painting solutions for consumers. You also have that service, why do we not see you talking about it?
Talking about the service aspect is good in fact. Yes, we have such services in major metros since last five to six years. But as of now the business contribution from these services is not very high. The concept is that the consumer in big cities does not have much time to search around for contractors and painters, and he can contact the company who will take care of his job. So the concept is good but business contribution is low. It may pick up after three to five years. In terms of talking about these services, we talk about it through websites and small clippings in the local press.
According to you what will be the next marketing opportunity in the category, given the fundamental uniformity in products and benefits?
Of late products have not been uniform. For example the Eco Clean product that we launched last year was a breakthrough technology. Earlier technology did not playing a major role in decorative paints. It was only restricted to OEM. Now as the market is becoming mature and people are ready to pay premium for specialised products, we are seeing many differentiated products coming in the market.
This month we are launching a product called Lotus Touch. This is one product which has visibility as a property and is very different in terms of finish and functionality. In areas where there is too much dampness and humidity this product can actually curtail that and reduce the damp effect. In exteriors segment we had introduced Earl Art which becomes part of the wall and does not peel off thereby increasing the life of the concrete itself. So we are working on highly differentiated products keeping the core message of safety and health.
What is your communication plan for Lotus Touch?
As we will be launching the product this month, we are still in the process of making placements in distribution. We are educating the painters, contractors and architects about the product and doing a lot of below the line activities. In another three to six months, once the product is appropriately placed in the market, we will decide to go for ATL activities.
You currently have actor Shahrukh Khan as your brand ambassador. Earlier you’ve had stints with Amitabh Bachchan and couple of other actors for your commercials. How as the change in brand ambassadors impacted your brand?
We had Amitabh Bachchan as our brand ambassador till 2004 and that really helped us to gain mass acceptance. Nerolac was not very well known in the interiors of the country and after we brought Amitabh Bachchan the brand got good acceptance and got established in the interiors as well. People started recognising the brand. After those two years the second phase for us was to build the main brand. And we also got into bringing out products that were different from other players in the industry. Now we have Shahrukh Khan as the brand has travelled a journey and we have found a good fit with him. He is one of the leading actors in the industry and when we are taking a stand in doing something different it is important to have a good ambassador with you, so that when you communicate the message you are able to make an impact and cut through the clutter. And ultimately for any advertising campaign, it is important that people talk about your brand and look forward to something different, some entertainment value and effective communication.
How are you differentiating yourself from competition on the distribution front?
One is that we have been constantly expanding our distribution network. Today we stand at around 12,000 dealers. Secondly, we have created around 25 exclusive Nerolac stores in three cities – Hyderabad, Bangalore and Chennai. We call them the Impressions Style Zones which are in the area of around 500 sq feet. These are more of experience stores where a family can go and spend time and see applications of different textures and benefits of the products. We started this concept one and a half years ago and we may enter other markets with this. Apart from that we are driving a shop-in-shop concept for our existing distribution channel called Nerolac Colour Stylers. It is like a place within the regular shop with more information about the products and more consumer-friendly. We’ve already created such concepts in around 125 shops and it is catching up. There is only some resistance from the dealers for both these concepts as there is a bit of change and investment required, but it will definitely pick up.
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