Marketing Matters
Because most coatings manufacturers have a broad, complex business model that
embraces multiple customer targets, the selling and marketing of coatings
requires a vigilant and precise understanding of customers and their needs.
BY BONNIE A. MORROW
CONTRIBUTING EDITOR
Research has often shown paint o be perceived as a commodity product, particularly among
homeowners (DIYers) who, through no
fault of their own, are not always able
to differentiate between brands. This
is because there is normally an 18-
month purchase cycle associated with
interior paint projects. A lot can happen in 18-months making it difficult
and expensive for marketers to reinforce brand and retail awareness and
to build loyalty. Other factors that can
thwart customer loyalty include the
ability of most retailers to match colors from one brand to another
enabling customers to take a color
sample from one retail outlet and
duplicating it elsewhere.
Professional painting contractors
are more able to detect brand and
color differences because of their
almost daily interaction with products. The variables that can affect
their brand loyalty include client
preference, retailer convenience and
relationships, and other alliances
forged by manufacturers.
Since the downturn in the housing
market and its attendant impact on
the home improvement industry, less
paint is being sold and less advertising dollars are being spent promoting it. This economic environment
has suppressed sales as much as 25-
30% and has forced marketers to
become savvier at reaching customers and convincing them to paint.
No stranger to marketing challenges is Dan Cohen, vice president
of marketing at California Products
Corporation, an 80-year old company
headquartered in Andover, MA.
California Products manufactures
Elements Zero VOC 100% acrylic
interior paint, which is LEED compliant. The company is one of very
few whose premium paint lines are
based on 100% acrylic technology.
California products are sold through
a carefully selected independent
retail network. Other well-known
products include premium lines of
primers, clears, stains and enamels
for residential and commercial use.
I talked with Dan in August—
prime time in the residential painting season—to discuss how his company is endearing itself to its retail
and customer bases.
COATINGS WORLD: Given the state
of the economy and its effect on the
home improvement industry, how
has the strategic direction for key
players in the architectural coatings
business changed?
DAN COHEN: Based upon prior economic downturns, I do not believe
that anyone in the home improvement industry believed that this
cycle would be so long or so deep. As
the period lengthens, you are seeing
dramatic company shifts to aggressive market strategies attempting to
minimize the impact or increase
market position. Pricing strategies
and key manufacturer leverage are
being used to weaken competitors
and force the smaller companies out.
Many of the old rules of marketplace
and channel protection have been
eliminated. This is especially true of
the national independent brands.
The big box stores have taken a very
aggressive position on pricing, with
one company actually lowering retail
prices.
CW: In what ways has it forced corporate leadership to adopt new ways
of thinking about a very mature
industry?
COHEN: California Products management has had to become much
more strategic and defined with market penetration strategies. Cost control and select funding of initiatives
have forced us to be better at what
we do. The funding of market
research has been lowered, so much
of our research has gone to grass
; DAN COHEN
VP of Marketing
California Products Corp.
