Coatings World - October 2009

more than three times our anticipated budget, but we knew it would be a driving force for years to come. We have improved our color tools and have invested in a new color lab. We have also increased emphasis on color professional liaisons.

CW: H.R. 3382, The Home Improvement Revitalization for the Economy Act (HIRE) proposes to offer incentives for those undertaking home improvement projects; paint purchases are included. Do you feel this will result in a significant stimulus to bridge the industry until its projected turnaround in Q2 2010?

COHEN: I do not believe that this act will have a dramatic effect on our business. Although it will stimulate some activity the true turn will come when consumers feel they are secure in their jobs and when they feel that home buying is not a risk. Nobody wants to surrender equity. The average consumer will spend when they are getting or increasing value as was shown with the “Cash for Clunkers” program in the auto industry. At present the consumers are still in the “rainy day” fund mode. They are saving and awaiting that confidence.

CW: Professional painting contractors have different needs from homeowners. However, they must be responsive to the needs of homeowners who are often influenced by trends and certainly by the media. What is the DIFM side of the business doing to keep itself busy and how is it reinventing itself? How is California Products continuing to endear itself to the professional panting community?

COHEN: It is becoming increasing difficult to reach out to an audience who is so unwilling to be involved as a group or association. We try at store level to hold information breakfasts and alike. We are planning to increase the use of training at our facility to better educate the professionals to problems in the field and usage of our products. We will continue to utilize multiple forms of electronic and

print media to drive new products and solutions. We find that most contractors will only switch or suggest consumer choice when it is of benefit to them. We have a tremendous amount of contractor loyalty to our California Paints exterior house paints, Troubleshooter Primers and Storm Stain Exterior Stains due to the long-term reputation of performance. Having the number one rating in Consumer Reports for so many years for our house paint has provided the contractor the leverage to convince the homeowner.

CW: The homeowner has been told that the least expensive way to affect a new look for homes is to paint. We know through research that “paint begets more than paint.” For example, a freshly painted wall accentuates the need for a new sofa, etc. It also, we hope, encourages homeowners to paint adjacent surfaces and rooms. With money tight, how do we convince the homeowner they can still bring about a desired look with a minimal investment? Does that require us to ease off on the restoration hardware “syndrome?”

COHEN: The increased use of color has certainly shifted the look and feel of a newly painted room from a fresh look to a new interior ambiance. Our thoughts are that with the right color advice any consumer can handle this change from an altered to a totally new look based upon their desire and budget. On a budget, a depth and sheen change in an existing color and a couple of throw pillows can easily get the desired change in appearance. Since the introduction of The Perfect Palette color system, the amount of calls and e-mails we get for color assistance is growing rapidly. Retailers who feature color expertise and services are realizing the benefits. Our dealer training features color education and our website is a great decorating tool for the color novice or professional. The complete, one-stop, off the shelf decorating store will always be of service to a select market. Just like the mannequin in the department store. Interior and exterior color stylists,

once for the wealthy, are becoming more and more commonplace to the consumer.

CW: What would you like to add that I’ve not covered? Examples might include the future of the industry, the impact of global retailer strategy on the US, innovation in raw materials such as pigments and resins, etc.

COHEN: The industry is certainly going to continue to contract and consolidate its suppliers. Our biggest concern is that out of need or greed the independent channel members, those who built their success on products and in markets that are exclusive, are throwing away their futures. They are acquiescing to the pressures of the large manufacturers and are allowing the markets and brands they built to be eroded. Rather than fighting for their futures, they are surrendering control. The big boxes will continue to gain in market share and the level of quality and expertise must be improved in the independent dealer base.

Innovations for enhanced product performance will continue especially in the water-based coatings. Pigments technology in-store colorization could provide the greatest impact on product performance in the years ahead. CW

About the author:

Bonnie Morrow is a partner at The Coatings Consultancy, which can be found on the web at www.thecoatings-consultancy.com. She is a marketing and marketing research executive whose specialty is helping companies build and sustain brand loyalty by differentiating products from competition. She was selected by Benjamin Moore Paint Company to establish their marketing research and competitive intelligence group in support of both corporate and retail strategic initiatives. Her successes included identifying appropriate sales and communications strategies for Benjamin Moore’s waterborne brand platform. She now consults for the coatings and other industries.