While generations of Indians have hummed the Nerolac jingle, Sukhpreet Singh, Vice President, Sales & Marketing (Decorative), Kansai Nerolac Paints Ltd, tells us how the brand continues to stay relevant by not just reinventing its jingle tunes but also its products and retail formats
Q] What are the insights and positioning behind your latest campaign which focuses on the weather defense formula of Nerolac Excel?
The positioning is simple - Nerolac Excel is an exterior paint range which can withstand all kinds of weather conditions and the insight was that rain and sun are what drives people to protect their homes. So our focus was to talk about protection and the bad effects of both these elements and our weather defense formula. The key creative ingredient used is the umbrella, as the insight was an umbrella is a symbol of protection and we have said if you don’t paint your homes with Nerolac Excel, then you probably need a huge umbrella to protect your homes.
Q] What is your communication strategy, focusing on the functional aspect or tapping the emotional trigger?
The way we have constructed our communication is that at the mother brand/ corporate level we talk about safety: families are safer because of products used. When we talk about products, then the functional aspects take centre-stage, be it protection or the aesthetics.
Q] You have taken your association with Shah Rukh Khan a step further and have tied up with his latest movie, Chennai Express. How does Nerolac fare when compared to other brands associated with the actor?
Shah Rukh Khan has been with the brand for three years and when you look at the recall value, Nerolac is among the top three brands associated with him. This is because of the usage of the actor and the proprietary tools in our communication, the Nerolac tune or jingle. While the brand ambassador is a key part of the communication, we try to integrate our best property, the Nerolac tune, which has been there for more than 50 years. So the tune/jingle and Shah Rukh Khan basically mean Nerolac, and you probably don’t even have to show the brand name. Chennai Express is a talking point and therefore it makes for a tactical association and we have a 20-seconder which reinforces the same message. I don’t think these tactical things help in the long run, but it helps reinforce your message during the buzz times.
Q] How has the concept of focusing on service and providing painting solutions taken off in India?
The demand for full-fledged service is growing, however the issue is not about demand, but how we can scale it up. When we manufacture paint, we can maintain the quality consistently, but for service, it is a difficult thing. We need to ensure that homes are painted in the same consistent manner with the same quality output throughout India. We need to have a trained set of people to ensure consistency, and provide regular service and that is why it is more a question of scalability. Currently, we operate in six cities and can move to 25, but it is a question of whether we can manage consistency and delivery of the service. So, while the market demand is there, the market will take off as long as the scalability of this is managed by the companies who provide it.
Q] You are very active on the digital front. How are you using this space to connect with your target group?
Our presence on digital platforms is increasing. We have a big section of influencers like painters and contractors and the mobile is a huge platform to reach out to them. Architects and designers are more evolved and we use various digital tools to involve them. For people with smart phones, we have home style applications where consumers can get a preview of the finished product with the help of a photograph. It is a multifaceted use of the digital platform.
Q] What are your media spends and media mix like?
Our ad spends for 2012-13 was Rs 1022.78 million. We use all mediums including Television, Print, Outdoor, Print and Digital but in terms of percentage of spends, Television remains the primary medium. We are a mass brand and Television still remains the reach medium as it is the most efficient in terms of cost per reach. When we target specific markets, we have to move out of Television and supplement it with various other mediums. Paint is a high involvement product, a big purchase and people are researching online before making any decision. Our presence on the digital platform ensures that we are in the contemplation stage. A lot of activities are geared to engaging consumers, not looking at painting their homes, as part of a long term brand building exercise.
Q] What are you doing on the distribution front? Are you looking at expanding this and what all is the focus on consumers?
We have over 15,000 dealers and are looking to increase this number. As the universe increases, we look to increase our reach and penetration. We are also looking at new channels such as large format-franchisee outlets called Impressions Style Zones. These are retail initiatives where our franchisee partners, who are not typically paint dealers, have opened about 30 exclusive stores which provide end-to-end service. We also have over 300 small shop-in-shop formats called Colour Stylers and Home Stylers.
Q] What is the current market size for the decorative paint segment and your market share?
The overall market size for paints is more than Rs 26,000 crore which also includes industrial paints. The market size for decorative paints is about Rs 15,500 crore and we have a 12-13% market share in this segment.
Q] Looking ahead, what are the future growth areas and where do you see traction coming from?
The paint market has seen growth even during the current slowdown and we believe the market will grow in the long-term. Innovation will be a key driver, not just in products, but also in services, retail formats, how the product is sold. All these innovations add up to extra traction that you get in the market. So apart from the external drivers, which is the overall economic growth, the internal drivers are innovation and the kind of products and services that you can provide to the consumer.
Q] What are the challenges faced in the Indian market?
Reach is a challenge even with a strong distribution network. From a business point of view, raw material prices have gone up due to inflation and consequently the paint price for the end consumer also increases. This is a challenge as beyond a point, there is always a danger of how you are going to manage the increasing price situation.
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